Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

 

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of

April 27, 2011

among

FURNITURE BRANDS INTERNATIONAL, INC.,

BROYHILL FURNITURE INDUSTRIES, INC.,

HDM FURNITURE INDUSTRIES, INC.,

LANE FURNITURE INDUSTRIES, INC. and

THOMASVILLE FURNITURE INDUSTRIES, INC.,

MAITLAND-SMITH FURNITURE INDUSTRIES, INC.,

as Borrowers,

The Other Loan Parties Named Herein,

The Lenders Party Hereto,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

and

BANK OF AMERICA, N.A.

and

WELLS FARGO CAPITAL FINANCE, LLC,

as Syndication Agents

 

J.P. MORGAN SECURITIES LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, and

WELLS FARGO CAPITAL FINANCE, LLC,

as Joint Bookrunners and Joint Lead Arrangers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	1	 
	 
	SECTION 1.01 Defined Terms
	 	 	1	 
	SECTION 1.02 Classification of Loans and Borrowings
	 	 	26	 
	SECTION 1.03 Terms Generally
	 	 	26	 
	SECTION 1.04 Accounting Terms; GAAP
	 	 	26	 
	 
	ARTICLE II The Credits
	 	 	27	 
	 
	SECTION 2.01 Commitments
	 	 	27	 
	SECTION 2.02 Loans and Borrowings
	 	 	27	 
	SECTION 2.03 Requests for Revolving Borrowings
	 	 	28	 
	SECTION 2.04 Protective Advances
	 	 	28	 
	SECTION 2.05 Swingline Loans and Overadvances
	 	 	29	 
	SECTION 2.06 Letters of Credit
	 	 	30	 
	SECTION 2.07 Funding of Borrowings
	 	 	33	 
	SECTION 2.08 Interest Elections
	 	 	34	 
	SECTION 2.09 Termination, Reduction and Increase of Commitments
	 	 	35	 
	SECTION 2.10 Repayment of Loans; Evidence of Debt
	 	 	36	 
	SECTION 2.11 Prepayment of Loans
	 	 	37	 
	SECTION 2.12 Fees
	 	 	39	 
	SECTION 2.13 Interest
	 	 	39	 
	SECTION 2.14 Alternate Rate of Interest
	 	 	40	 
	SECTION 2.15 Increased Costs
	 	 	40	 
	SECTION 2.16 Break Funding Payments
	 	 	42	 
	SECTION 2.17 Taxes
	 	 	42	 
	SECTION 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs
	 	 	45	 
	SECTION 2.19 Mitigation Obligations; Replacement of Lenders
	 	 	47	 
	SECTION 2.20 Defaulting Lenders
	 	 	48	 
	SECTION 2.21 Returned Payments
	 	 	49	 
	SECTION 2.22 Banking Services and Swap Agreements
	 	 	49	 
	 
	ARTICLE III Representations and Warranties
	 	 	50	 
	 
	SECTION 3.01 Organization; Powers
	 	 	50	 
	SECTION 3.02 Authorization; Enforceability
	 	 	50	 
	SECTION 3.03 Governmental Approvals; No Conflicts
	 	 	50	 
	SECTION 3.04 Financial Condition; No Material Adverse Change
	 	 	50	 
	SECTION 3.05 Properties
	 	 	50	 
	SECTION 3.06 Litigation and Environmental Matters
	 	 	51	 
	SECTION 3.07 Compliance with Laws and Agreements
	 	 	51	 
	SECTION 3.08 Investment Company Status
	 	 	51	 
	SECTION 3.09 Taxes
	 	 	51	 
	SECTION 3.10 ERISA
	 	 	51	 
	SECTION 3.11 Disclosure
	 	 	52	 
	SECTION 3.12 Material Agreements
	 	 	52	 
	SECTION 3.13 Solvency
	 	 	52	 
	SECTION 3.14 Insurance
	 	 	52	 
	SECTION 3.15 Capitalization and Subsidiaries
	 	 	52	 
	SECTION 3.16 Security Interest in Collateral
	 	 	53	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.17 Employment Matters
	 	 	53	 
	SECTION 3.18 Common Enterprise
	 	 	53	 
	 
	ARTICLE IV Conditions
	 	 	53	 
	 
	SECTION 4.01 Restatement Date
	 	 	53	 
	SECTION 4.02 Each Credit Event
	 	 	55	 
	 
	ARTICLE V Affirmative Covenants
	 	 	56	 
	 
	SECTION 5.01 Financial Statements; Borrowing Base and Other Information
	 	 	56	 
	SECTION 5.02 Notices of Material Events
	 	 	60	 
	SECTION 5.03 Existence; Conduct of Business
	 	 	60	 
	SECTION 5.04 Payment of Obligations
	 	 	61	 
	SECTION 5.05 Maintenance of Properties
	 	 	61	 
	SECTION 5.06 Books and Records; Inspection Rights
	 	 	61	 
	SECTION 5.07 Compliance with Laws
	 	 	61	 
	SECTION 5.08 Use of Proceeds
	 	 	61	 
	SECTION 5.09 Insurance
	 	 	61	 
	SECTION 5.10 Casualty and Condemnation
	 	 	61	 
	SECTION 5.11 Appraisals and Field Examinations
	 	 	62	 
	SECTION 5.12 Depository Banks
	 	 	62	 
	SECTION 5.13 Additional Collateral; Further Assurances
	 	 	62	 
	 
	ARTICLE VI Negative Covenants
	 	 	63	 
	 
	SECTION 6.01 Indebtedness
	 	 	63	 
	SECTION 6.02 Liens
	 	 	66	 
	SECTION 6.03 Fundamental Changes
	 	 	67	 
	SECTION 6.04 Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	67	 
	SECTION 6.05 Asset Sales
	 	 	70	 
	SECTION 6.06 Sale and Leaseback Transactions
	 	 	70	 
	SECTION 6.07 Swap Agreements
	 	 	71	 
	SECTION 6.08 Restricted Payments; Certain Payments of Indebtedness
	 	 	71	 
	SECTION 6.09 Transactions with Affiliates
	 	 	72	 
	SECTION 6.10 Restrictive Agreements
	 	 	72	 
	SECTION 6.11 Amendment of Material Documents
	 	 	73	 
	SECTION 6.12 Financial Covenant
	 	 	73	 
	SECTION 6.13 Change in Fiscal Year
	 	 	73	 
	 
	ARTICLE VII Events of Default
	 	 	73	 
	 
	 
	ARTICLE VIII The Administrative Agent
	 	 	76	 
	 
	 
	ARTICLE IX Miscellaneous
	 	 	78	 
	 
	SECTION 9.01 Notices
	 	 	78	 
	SECTION 9.02 Waivers; Amendments
	 	 	79	 
	SECTION 9.03 Expenses; Indemnity; Damage Waiver
	 	 	80	 
	SECTION 9.04 Successors and Assigns
	 	 	82	 
	SECTION 9.05 Survival
	 	 	85	 
	SECTION 9.06 Counterparts; Integration; Effectiveness
	 	 	85	 
	SECTION 9.07 Severability
	 	 	86	 
	SECTION 9.08 Right of Setoff
	 	 	86	 
	SECTION 9.09 Governing Law; Jurisdiction; Consent to Service of Process
	 	 	86	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 9.10 WAIVER OF JURY TRIAL
	 	 	87	 
	SECTION 9.11 Headings
	 	 	87	 
	SECTION 9.12 Confidentiality
	 	 	87	 
	SECTION 9.13 Several Obligations; Nonreliance; Violation of Law
	 	 	88	 
	SECTION 9.14 USA PATRIOT Act
	 	 	88	 
	SECTION 9.15 Disclosure
	 	 	88	 
	SECTION 9.16 Appointment for Perfection
	 	 	88	 
	SECTION 9.17 Interest Rate Limitation
	 	 	88	 
	SECTION 9.18 Nature of Borrowers’ Obligations.
	 	 	89	 
	 
	ARTICLE X Loan Guaranty
	 	 	89	 
	 
	SECTION 10.01 Guaranty
	 	 	89	 
	SECTION 10.02 Guaranty of Payment
	 	 	89	 
	SECTION 10.03 No Discharge or Diminishment of Loan Guaranty
	 	 	90	 
	SECTION 10.04 Defenses Waived
	 	 	90	 
	SECTION 10.05 Rights of Subrogation
	 	 	91	 
	SECTION 10.06 Reinstatement; Stay of Acceleration
	 	 	91	 
	SECTION 10.07 Information
	 	 	91	 
	SECTION 10.08 Termination
	 	 	91	 
	SECTION 10.09 Taxes
	 	 	91	 
	SECTION 10.10 Maximum Liability
	 	 	92	 
	SECTION 10.11 Contribution
	 	 	92	 
	SECTION 10.12 Liability Cumulative
	 	 	92	 
	 
	ARTICLE XI The Borrower Representative
	 	 	93	 
	 
	SECTION 11.01 Appointment; Nature of Relationship
	 	 	93	 
	SECTION 11.02 Powers
	 	 	93	 
	SECTION 11.03 Employment of Agents
	 	 	93	 
	SECTION 11.04 Notices
	 	 	93	 
	SECTION 11.05 Successor Borrower Representative
	 	 	93	 
	SECTION 11.06 Execution of Loan Documents; Borrowing Base Certificate
	 	 	93	 
	SECTION 11.07 Reporting
	 	 	94	 
	 
	ARTICLE XII Amendment and Restatement
	 	 	94	 
	 
	 
	ARTICLE XIII Consent and Affirmation
	 	 	94	 
	 

SCHEDULES:

Commitment Schedule

Exiting Lenders Schedule

EXHIBITS:

	 	 	 

	Exhibit A —

	 	Form of Assignment and Assumption
	Exhibit B —

	 	Form of Borrowing Base Certificate
	Exhibit C —

	 	Form of Compliance Certificate
	Exhibit D —

	 	Form of Joinder Agreement
	Exhibit E-1 —

	 	Form of U.S. Tax Certificate (for Non-U.S. Lenders or Participants That are Not
Partnerships)
	Exhibit E-2 —

	 	Form of U.S. Tax Certificate (for Non-U.S. Lenders or Participants That are
Partnerships)

iii

 

     AMENDED AND RESTATED CREDIT AGREEMENT dated as of April 27, 2011 (as it may be amended or
modified from time to time, this “Agreement”), among FURNITURE BRANDS INTERNATIONAL, INC.,
a Delaware corporation (the “Company”), BROYHILL FURNITURE INDUSTRIES, INC., a North
Carolina corporation (“Broyhill”), HDM FURNITURE INDUSTRIES, INC., a Delaware corporation
(“HDM”), LANE FURNITURE INDUSTRIES, INC., a Mississippi corporation (“Lane”),
THOMASVILLE FURNITURE INDUSTRIES, INC., a Delaware corporation (“Thomasville”),
MAITLAND-SMITH FURNITURE INDUSTRIES, INC., a Delaware corporation (“Maitland-Smith”, and,
together with the Company, HDM, Broyhill, Lane and Thomasville, each a “Borrower,” and,
collectively, the “Borrowers”), the other Loan Parties named herein, the Lenders party
hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

RECITALS

          WHEREAS, certain of the Borrowers, the financial institutions designated as existing lenders
on the Commitment Schedule hereto (the “Continuing Lenders”), the financial
institutions listed on the Exiting Lenders Schedule (the “Exiting Lenders”) and the
Administrative Agent entered into that certain Credit Agreement dated as of August 9, 2007 (as
heretofore amended, the “Existing Credit Agreement”); and

          WHEREAS, the Borrowers, the Administrative Agent and the Continuing Lenders wish to amend and
restate the Existing Credit Agreement on the terms and conditions set forth below.

          NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Lenders, and the Administrative Agent hereby agree to amend and
restate the Existing Credit Agreement as follows:

ARTICLE I

Definitions

          SECTION 1.01 Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Accordion” means the Commitment increase mechanism set forth in Section 2.09.

          “Account” has the meaning assigned to such term in the Security Agreement.

          “Account Debtor” means any Person obligated on an Account.

          “Acquired Entity or Business” means either (a) the assets constituting a business,
division, facility, product line or line of business of any Person not already a Subsidiary which
are acquired by the Company or a direct or indirect wholly-owned Subsidiary of the Company or (b)
all of the capital stock of any such Person, which Person shall, as a result of such acquisition or
merger, become a direct or indirect wholly-owned Subsidiary of the Company (or shall be merged with
and into the Company or another Loan Party, with the Company or such other Loan Party being the
surviving Person).

 

 

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, or for any ABR Borrowing (for any Interest Period if such ABR Borrowing is based on clause
(c) of the definition of Alternate Base Rate), an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied
by (b) the Statutory Reserve Rate. Notwithstanding the above, to the extent that “LIBO Rate” or
“Adjusted LIBO Rate” is used in connection with an ABR Borrowing, such rate shall be determined as
modified by the definition of Alternate Base Rate.

          “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

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

          “Affiliate” means, with respect to a specified 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.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 0.5% and (c) the Adjusted LIBO Rate for a one month interest period on such day (or if
such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided
that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate
appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page) at
approximately 11:00 a.m. London time on such day (without any rounding). Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the
Adjusted LIBO Rate shall be effective from and including the effective date of such change in the
Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, a percentage equal to a
fraction the numerator of which is such Lender’s Commitment and the denominator of which is the
aggregate Commitments of all Lenders (if the Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon such Lender’s share of the aggregate Revolving Exposures
at that time); provided that, in accordance with Section 2.20, so long as any Lender shall
be a Defaulting Lender, such Defaulting Lender’s Commitment shall be disregarded in the
calculations above.

          “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar
Revolving Loan, or with respect to the commitment fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread” or
“Commitment Fee Rate”, as the case may be, based upon Average Availability:

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Average	 	 	 	 	 	Eurodollar	 	 	 	 
	Availability	 	ABR Spread	 	 	Spread	 	 	Commitment Fee Rate	 
	Category 1
	 	 	1.00	%	 	 	2.25	%	 	 	0.50	%
	3 $165,000,000
(or, after giving
effect to the first
exercise of the
Accordion,
$200,000,000)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Category 2
	 	 	1.25	%	 	 	2.50	%	 	 	0.50	%
	< $165,000,000
(or, after giving
effect to the first
exercise of the
Accordion,
$200,000,000) but
3 $125,000,000
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Category 3
	 	 	1.50	%	 	 	2.75	%	 	 	0.375	%
	< $125,000,000 but
3 $42,000,000
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Category 4
	 	 	1.75	%	 	 	3.00	%	 	 	0.375	%
	< $42,000,000
	 	 	 	 	 	 	 	 	 	 	 	 

          For purposes of the foregoing, (a) the Applicable Rate shall be determined by reference to the
Average Availability for the most recently completed fiscal quarter and (b) each change in the
Applicable Rate resulting from a change in the Average Availability shall be effective during the
period commencing on and including the date five Business Days after delivery to the Administrative
Agent of a Compliance Certificate indicating such change and ending on the date immediately
preceding the effective date of the next such change, provided that (i) subject to the
following clause (ii), Average Availability shall be deemed to be in Category 3 until adjusted
pursuant hereto for the fiscal quarter ending June 30, 2011 and (ii) Average Availability shall be
deemed to be in Category 4 (A) at any time that an Event of Default has occurred and is continuing
or (B) at the option of the Administrative Agent or at the request of the Required Lenders if the
Borrower fails to deliver a Compliance Certificate required to be delivered by it pursuant to
Section 5.01(d), during the period from the expiration of the time for delivery thereof until such
Compliance Certificate is delivered.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

          “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 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

          “Availability” means, at any time, an amount equal to (a) the lesser of the Commitment
and the Borrowing Base minus (b) the Revolving Exposure of all Lenders.

          “Availability Period” means the period from and including the Restatement Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

          “Available Commitment” means, at any time, the aggregate Commitments then in effect
minus the Revolving Exposure of all Lenders at such time (calculated, with respect to any
Defaulting Lender, as if such Defaulting Lender had funded its Applicable Percentage of all
outstanding Borrowings).

          “Average Availability” means, with respect to any fiscal quarter, an amount equal to
the sum of the Daily Availability for each day in such fiscal quarter divided by the number of days
in such fiscal quarter. For purposes hereof, “Daily Availability” for any day means the
excess of the Borrowing Base (as set forth on the most recent Borrowing Base Certificate delivered)
over the Revolving Exposure on such day (determined, in the case of days which are Business Days,
as of the close of business of each such day).

3

 

          “Banking Services” means each and any of the following bank services provided to any
Loan Party by any Lender or any of its Affiliates: (a) credit cards for commercial customers
(including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value
cards and (c) treasury management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts and interstate depository network
services).

          “Banking Services Obligations” of the Loan Parties means any and all obligations of
the Loan Parties, whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor) in connection with Banking Services.

          “Banking Services Reserves” means all Reserves which the Administrative Agent from
time to time establishes in its Permitted Discretion for Banking Services then provided or
outstanding.

          “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, custodian, assignee for the benefit of creditors or similar Person charged with
reorganization or liquidation of its business, appointed for it, or, in the good faith
determination of the Administrative Agent, has taken any action in furtherance of, or indicating
its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that
a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition
of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof,
provided, further, that such ownership interest does not result in or provide such Person with
immunity from the jurisdiction of courts within the United States or from the enforcement of
judgments or writs of attachment on its assets or permit such Person (or such Governmental
Authority or instrumentality), to reject, repudiate, disavow or disaffirm any contracts or
agreements made by such Person.

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

          “Borrower Representative” means the Company in its capacity as contractual
representative of the Borrowers pursuant to Article XI.

          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect, (b) a Swingline Loan, and (c) a Protective Advance and (d) an Overadvance.

          “Borrowing Base” means, at any time, the sum of (a) 85% of the Eligible Accounts at
such time, plus (b) the lesser of (i) 70% of the Eligible Inventory, valued at the lower of
cost or market value, determined on a first-in-first-out basis, at such time and (ii) the product
of 85% multiplied by the Net Orderly Liquidation Value percentage identified in the most recent
inventory appraisal ordered by the Administrative Agent multiplied by the eligible inventory (as
specified by category in such appraisal), valued at the lower of cost or market value, determined
on a first-in-first-out basis, at such time, minus (c) Reserves. The Administrative Agent
may, in its Permitted Discretion, adjust Reserves or reduce one or more of the other elements used
in computing the Borrowing Base and, after the occurrence and during the continuance of a Default,
reduce the advance rates set forth above.

          “Borrowing Base Certificate” means a certificate, signed and certified as accurate and
complete in all material respects by a Financial Officer of the Company, in substantially the form
of Exhibit C or another form which is acceptable to the Administrative Agent in its
Permitted Discretion.

4

 

          “Borrowing Request” means a request by the Borrower Representative for a Revolving
Borrowing in accordance with Section 2.03.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York, New York or Chicago, Illinois are authorized or required by law to
remain closed; provided that, when used in connection with a Eurodollar Loan, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market.

          “Capital Expenditures” means, without duplication, any expenditure or commitment to
expend money for any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of the Company and its Subsidiaries prepared
in accordance with GAAP.

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

          “Change in Control” means (a) the acquisition of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, by any Person or
group (within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on
the date hereof) (excluding, for this purpose, the Company or its Subsidiaries or any employee
benefit plan (or related trust) of the Company or its Subsidiaries) of 25% of the combined voting
power of the Company’s then-outstanding voting securities entitled to vote generally in the
election of directors; (b) occupation of a majority of the seats (other than vacant seats) on the
board of directors of the Company by Persons who were neither (i) nominated by a majority of the
board of directors of the Company then in office nor (ii) appointed by directors so nominated or
(c) the Company shall at any time cease to own directly or indirectly 100% of the capital stock of
any of Broyhill, Lane, HDM, Thomasville or Maitland-Smith.

          “Change in Law” means (a) the adoption of any law, rule, regulation or treaty
(including any rules or regulations issued under or implementing any existing law) after the date
of this Agreement, (b) any change in any law, rule, regulation or treaty or in the interpretation
or application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement; provided however, that notwithstanding
anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, guidelines, requirements and directives thereunder, issued in connection
therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and
directives promulgated by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States or foreign regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed to a “Change in Law”
regardless of the date enacted, adopted, issued or implemented.

          “Changeover Amount” means, at any time, the greater of $42,000,000 and 16.8% of the
aggregate amount of the Commitments at such time.

5

 

          “Chase” means JPMorgan Chase Bank, N.A., a national banking association, in its
individual capacity, and its successors.

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Protective Advances
or Overadvances.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral” means any and all property owned, leased or operated by a Person covered
by the Collateral Documents and any and all other property of any Loan Party, now existing or
hereafter acquired, that is or at any time becomes subject to a security interest or Lien in favor
of the Administrative Agent, on behalf of itself and the Lenders and other holders of the Secured
Obligations, to secure the Secured Obligations.

          “Collateral Access Agreement” has the meaning assigned to such term in the Security
Agreement.

          “Collateral Documents” means, collectively, the Security Agreement and any other
documents granting a Lien upon the Collateral as security for payment of the Secured Obligations.

          “Collection Account” has the meaning assigned to such term in the Security Agreement.

          “Commitment” means (a) with respect to each Lender, the commitment, if any, of such
Lender to make Revolving Loans and to acquire participations in Letters of Credit, Overadvances,
Protective Advances and Swingline Loans hereunder, expressed as an amount representing the maximum
possible aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
(i) reduced from time to time pursuant to Section 2.09 and (ii) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 9.04 and (b) with respect to
all Lenders, the aggregate of such commitments. The initial amount of each Lender’s Commitment is
set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the
Lenders’ Commitments is $250,000,000.

          “Commitment Schedule” means the Schedule attached hereto identified as such.

          “Company” means Furniture Brands International, Inc., a Delaware corporation.

          “Compliance Certificate” has the meaning assigned to such term in Section 5.01(d).

          “Consolidated EBIT” means, for any period, the Consolidated Net Income determined on a
consolidated basis, before Consolidated Interest Expense (to the extent deducted in arriving at
Consolidated Net Income) and provisions for taxes and non-cash impairment charges associated with
closed facilities, sales of assets other than inventory sold in the ordinary course of business, or
impairment of goodwill or intangible assets (including trade name write-downs), in each case that
were included in arriving at Consolidated Net Income.

          “Consolidated EBITDA” means, for any period, Consolidated EBIT, adjusted by adding
thereto the amount of all amortization of intangibles and depreciation, in each case that were
deducted in arriving at Consolidated EBIT for such period.

6

 

          “Consolidated Interest Expense” means, for any period, the sum of the total
consolidated interest expense of the Company and its Subsidiaries for such period (calculated
without regard to any limitations on the payment thereof) plus, without duplication, that portion
of Capital Lease Obligations of the Company and its Subsidiaries representing the interest factor
for such period.

          “Consolidated Net Income” means, for any period, the net after tax income of the
Company and its Subsidiaries determined on a consolidated basis, without giving effect to any
extraordinary gains or losses; provided that (without duplication of exclusions) (i) the net income
(to the extent positive) of any Person that is not a Subsidiary of the Company or that is accounted
for by the equity method of accounting shall be included only to the extent of the amount of
dividends or distributions paid in cash to the Company or a Wholly-Owned Subsidiary thereof, (ii)
to the extent Consolidated Net Income reflects amounts attributable to minority interests in
Subsidiaries that are not Wholly-Owned Subsidiaries of the Company, Consolidated Net Income shall
be reduced by the amounts attributable to such minority interests, (iii) the net income of any
Subsidiary shall be excluded to the extent that the declaration or payment of dividends and
distributions by that Subsidiary of net income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary or its stockholders, (iv)
the net income of any Person acquired in a pooling of interests transaction for any period prior to
the date of such acquisition shall be excluded and (v) the cumulative effect of a change in
accounting principles shall be excluded.

          “Continuing Lenders” has the meaning assigned to such term in the Recitals hereto.

          “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.

          “Control Agreement” has the meaning assigned to such term in the Security Agreement.

          “Covenant Period” has the meaning assigned to such term in Section 6.12.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Defaulting Lender” means any Lender that (a) has failed, within three Business Days
of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any
portion of its participations in Letters of Credit, Swingline Loans or Protective Advances or (iii)
pay over to any Designated Party any other amount required to be paid by it hereunder, unless, in
the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such
failure is the result of such Lender’s good faith determination that a condition precedent to
funding (specifically identified and including the particular Default, if any) has not been
satisfied; (b) has notified any Borrower or any Designated Party in writing, or has made a public
statement, to the effect that it does not intend or expect to comply with any of its funding
obligations under this Agreement (unless such writing or public statement indicates that such
position is based on such Lender’s good faith determination that a condition precedent to funding a
Loan under this Agreement (specifically identified and including the particular Default, if any)
cannot be satisfied) or generally under other agreements in which it commits to extend credit; (c)
has failed, within three Business Days after request by a Designated Party, acting in good faith,
to provide a certification in writing from an authorized officer of such Lender that it will comply
with its obligations to fund prospective Loans and participations in then outstanding Letters of
Credit, Swingline Loans and Protective Advances under this Agreement, provided that such Lender
shall cease to be a

7

 

Defaulting Lender pursuant to this clause (c) upon such Designated Party’s receipt of such
certification in form and substance satisfactory to it and the Administrative Agent, or (d) has
become the subject of a Bankruptcy Event.

          “Designated Party” means the Administrative Agent, the Issuing Bank, the Swingline
Lender or any other Lender.

          “Disclosure Letter” means that letter dated the date hereof from the Loan Parties to
Lenders and the Administrative Agent.

          “Document” has the meaning assigned to such term in the Security Agreement.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Electronic Delivery” has the meaning assigned to such term in Section 5.01(a).

          “Eligible Accounts” means, at any time, the Accounts of the Loan Parties which the
Administrative Agent determines in its Permitted Discretion are eligible as the basis for the
extension of Revolving Loans, Swingline Loans and the issuance of Letters of Credit hereunder.
Without limiting the Administrative Agent’s discretion provided herein, Eligible Accounts shall not
include any Account:

     (a) which is not subject to a first priority perfected security interest in favor of
the Administrative Agent;

     (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor
of the Administrative Agent;

     (c) with respect to which the scheduled due date is more than 105 days after the
original invoice date, is unpaid more than 150 days after the date of the original invoice
therefor or more than 60 days after the original due date, or which has been written off the
books of the applicable Loan Party or otherwise designated as uncollectible;

     (d) which is owing by an Account Debtor for which more than 50% of the Accounts owing
from such Account Debtor and its Affiliates are ineligible hereunder;

     (e) which is owing by an Account Debtor to the extent the aggregate amount of Accounts
owing from such Account Debtor and its Affiliates to the Loan Parties exceeds 10% of the
aggregate Eligible Accounts;

     (f) with respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement has been breached or is not true;

     (g) which (i) does not arise from the sale of goods or performance of services in the
ordinary course of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Administrative Agent which has been sent to the Account Debtor, (iii)
represents a progress billing, (iv) is contingent upon the applicable Loan Party’s
completion of any further performance, (v) represents a sale on a bill-and-hold, guaranteed
sale, sale-and-return, sale on approval, consignment, cash-on-delivery or any other
repurchase or return basis or (vi) relates to payments of interest;

8

 

     (h) for which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not been performed
by the applicable Loan Party or if such Account was invoiced more than once;

     (i) with respect to which any check or other instrument of payment has been returned
uncollected for any reason;

     (j) which is owed by an Account Debtor which has (i) applied for, suffered, or
consented to the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any
request or petition for liquidation, reorganization, arrangement, adjustment of debts,
adjudication as bankrupt, winding-up, or voluntary or involuntary case under any state or
federal bankruptcy laws, (iv) has admitted in writing its inability, or is generally unable
to, pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of its
business;

     (k) which is owed by any Account Debtor which has sold all or a substantially all of
its assets;

     (l) which is owed by an Account Debtor which (i) does not maintain its chief executive
office in the U.S. or Canada or (ii) is not organized under applicable law of the U.S., any
state of the U.S., Canada, or any province of Canada unless, in either case, such Account is
backed by a Letter of Credit acceptable to the Administrative Agent which is in the
possession of, has been assigned to and is directly drawable by the Administrative Agent;

     (m) which is owed in any currency other than U.S. dollars;

     (n) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the U.S. unless such Account is backed
by a Letter of Credit acceptable to the Administrative Agent which is in the possession of
the Administrative Agent, or (ii) the government of the U.S., or any department, agency,
public corporation, or instrumentality thereof, unless the Federal Assignment of Claims Act
of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et
seq.), and any other steps necessary to perfect the Lien of the Administrative Agent
in such Account have been complied with to the Administrative Agent’s satisfaction;

     (o) which is owed by any Affiliate, employee, officer or director of any Loan Party;

     (p) which, for any Account Debtor, exceeds a credit limit reasonably determined by the
Administrative Agent, to the extent of such excess;

     (q) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which
any Loan Party is indebted, but only to the extent of such indebtedness or is subject to any
security, deposit, progress payment, retainage or other similar advance made by or for the
benefit of an Account Debtor, in each case to the extent thereof;

     (r) which is subject to any counterclaim, deduction, defense, setoff or dispute, in
each case to the extent thereof;

     (s) which is evidenced by any promissory note, chattel paper, or instrument;

9

 

     (t) which is owed by an Account Debtor located in any jurisdiction which requires
filing of a “Notice of Business Activities Report” or other similar report in order to
permit the applicable Loan Party to seek judicial enforcement in such jurisdiction of
payment of such Account, unless such Loan Party has filed such report or qualified to do
business in such jurisdiction;

     (u) with respect to which the applicable Loan Party has made any agreement with the
Account Debtor for any reduction thereof, other than discounts and adjustments given in the
ordinary course of business, or any Account which was partially paid and such Loan Party
created a new receivable for the unpaid portion of such Account;

     (v) which does not comply in all material respects with the requirements of all
applicable laws and regulations, whether Federal, state or local, including without
limitation the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and
Regulation Z of the Board, in each case to the extent applicable;

     (w) which is for goods that have been sold under a purchase order or pursuant to the
terms of a contract or other agreement or understanding (written or oral) that indicates or
purports that any Person other than the applicable Loan Party has an ownership interest in
such goods, or which indicates any party other than the applicable Loan Party as payee or
remittance party;

     (x) which was created on cash on delivery terms; or

     (y) which the Administrative Agent determines in its Permitted Discretion may not be
paid by reason of the Account Debtor’s inability to pay or other circumstances.

          In the event that an Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder for any reason, including as a result of the exclusion of such Account by the
Administrative Agent in its Permitted Discretion (unless the Administrative Agent shall have failed
to deliver notice to the Company of its election to exclude such Account), the Company shall
exclude such Account from Eligible Accounts in the next Borrowing Base Certificate. In determining
the amount of an Eligible Account, the face amount of an Account may, in the Administrative Agent’s
Permitted Discretion, be reduced by, without duplication, to the extent not reflected in such face
amount, (i) the amount of all accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges or other allowances (including
any amount that a Loan Party may be obligated to rebate to an Account Debtor pursuant to the terms
of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash
received in respect of such Account but not yet applied by the applicable Loan Party to reduce the
amount of such Account. Notwithstanding the foregoing, no Person which becomes a Loan Party after
the date hereof shall be deemed a Loan Party for purposes of this definition without the approval
of the Administrative Agent or until the Administrative Agent has conducted such appraisals and/or
field examinations with respect to the Accounts and Inventory of such Person as it reasonably deems
necessary or appropriate.

          “Eligible Inventory” means, at any time, the Inventory of the Loan Parties which the
Administrative Agent determines in its Permitted Discretion is eligible as the basis for the
extension of Revolving Loans, Swingline Loans and the issuance of Letters of Credit hereunder.
Without limiting the Administrative Agent’s discretion provided herein, Eligible Inventory shall
not include any Inventory:

     (a) which is not subject to a first priority perfected Lien in favor of the
Administrative Agent;

10

 

     (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor
of the Administrative Agent;

     (c) which is, in the Administrative Agent’s opinion, slow moving (i.e., more than one
year old or in excess of a one year supply), obsolete, unmerchantable, defective, used,
unfit for sale, not salable at prices approximating at least the cost of such Inventory in
the ordinary course of business or unacceptable due to age, type, category and/or quantity;

     (d) with respect to which any covenant, representation, or warranty contained in this
Agreement or the Security Agreement has been breached or is not true and which does not
conform in all material respects to all applicable standards imposed by any Governmental
Authority;

     (e) in which any Person other than the Loan Parties shall (i) have any direct or
indirect ownership, interest or title to such Inventory or (ii) be indicated on any purchase
order or invoice with respect to such Inventory as having or purporting to have an interest
therein;

     (f) which is spare or replacement parts, subassemblies, packaging and shipping
material, manufacturing supplies, samples, prototypes, displays or display items,
bill-and-hold goods, goods that are returned or marked for return, repossessed goods,
defective or damaged goods, goods held on consignment, or goods which are not of a type held
for sale in the ordinary course of business;

     (g) which is not located in the U.S. or is in transit with a common carrier from
vendors and suppliers, except that up to $35,000,000 of Inventory in transit from vendors
and suppliers may be included as eligible pursuant to this clause (g) so long as
(i)(1) a customs broker has delivered to the Administrative Agent a Collateral Access
Agreement and such other documentation as the Administrative Agent may reasonably require
with respect to such Inventory or (2) an appropriate Reserve for customs charges and
shipping charges due or to become due has been established by the Administrative Agent in
its Permitted Discretion and (ii) the Administrative Agent shall have received (1) a true
and correct copy of the bill of lading and other shipping documents for such Inventory (or
alternate documentation or data satisfactory to the Administrative Agent in its Permitted
Discretion), (2) evidence of satisfactory casualty insurance naming the Administrative Agent
as loss payee and otherwise covering such risks as the Administrative Agent may reasonably
request, and (3) if the bill of lading is negotiable, confirmation that the bill is issued
in the name of the applicable Loan Party and consigned to the order of the Administrative
Agent, and a reasonably acceptable agreement has been executed with the applicable Loan
Party’s customs broker, in which the customs broker agrees that it holds the negotiable bill
as agent for the Administrative Agent and has granted the Administrative Agent access to the
Inventory and (ii) the common carrier is not an Affiliate of the applicable vendor or
supplier;

     (h) which is located in any location leased by a Loan Party unless (i) the lessor has
delivered to the Administrative Agent a Collateral Access Agreement or (ii) a Reserve for
three month’s rent, charges, and other amounts due or to become due with respect to such
facility has been established by the Administrative Agent in its Permitted Discretion;

     (i) which is located in any third party warehouse or is in the possession of a bailee
(other than a third party processor) and is not evidenced by a Document (other than bills of
lading to the extent permitted pursuant to clause (g) above), unless (i) such warehouseman
or bailee has

11

 

delivered to the Administrative Agent a Collateral Access Agreement and such other
documentation as the Administrative Agent may reasonably require or (ii) an appropriate
Reserve for charges and other amounts due or to become due has been established by the
Administrative Agent in its Permitted Discretion;

     (j) which is being processed offsite at a third party location or outside processor, or
is in-transit to or from said third party location or outside processor unless (i) the third
party, outside processor or shipper has delivered to the Administrative Agent a Collateral
Access Agreement and such other documentation as the Administrative Agent may reasonably
require or (ii) a Reserve for charges and other amounts due or to become due has been
established by the Administrative Agent in its Permitted Discretion;

     (k) which is a discontinued product or discontinued component thereof;

     (l) which is the subject of a consignment by a Loan Party as consignor;

     (m) which is perishable;

     (n) which contains or bears any intellectual property rights licensed to a Loan Party
unless the Administrative Agent is satisfied that it may sell or otherwise dispose of such
Inventory without (i) infringing the rights of such licensor, (ii) violating any contract
with such licensor, or (iii) incurring any liability with respect to payment of royalties
other than royalties incurred pursuant to sale of such Inventory under the current licensing
agreement;

     (o) which is not reflected in a current perpetual inventory report of a Loan Party
(unless such Inventory is reflected in a report to the Administrative Agent as “in transit”
Inventory);

     (p) for which reclamation rights have been asserted by the seller; or

     (q) which the Administrative Agent otherwise determines in its Permitted Discretion is
unacceptable.

          In the event that Inventory which was previously Eligible Inventory ceases to be Eligible
Inventory hereunder for any reason, including as a result of the exclusion of such Inventory by the
Administrative Agent in its Permitted Discretion (unless the Administrative Agent shall have failed
to deliver notice to the Company of its election to exclude such Inventory), the Company shall
exclude such Inventory from Eligible Inventory in the next Borrowing Base Certificate.
Notwithstanding the foregoing, no Person which becomes a Loan Party after the date hereof shall be
deemed a Loan Party for purposes of this definition without the approval of the Administrative
Agent or until the Administrative Agent has conducted such appraisals and/or field examinations
with respect to the Accounts and Inventory of such Person as it deems reasonably necessary or
appropriate.

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural
resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the

12

 

Company 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 shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the failure to make any minimum required contribution to any Plan or
Multiemployer Plan when due; (c) the filing pursuant to Section 412(d) of the Code or Section
303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title
IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Company or any
ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by
the Company or any of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Company or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the
meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Excluded Taxes” means, with respect to any payment made by any Loan Party under any
Loan Document, any of the following Taxes imposed on or with respect to a Recipient: (a) income
or franchise Taxes imposed on (or measured by) net income by the United States of America, or by
the jurisdiction under the laws of which such Recipient is organized or in which its principal
office is located
or, in the case of any Lender, in which its applicable lending office is located, (b) any
branch profits Taxes imposed by the United States of America or any similar Taxes imposed by any
other jurisdiction in which any Borrower is located and (c) in the case of a Non-U.S. Lender (other
than an assignee pursuant to a request by a Borrower under Section 2.19(b)), any U.S. Federal
withholding Taxes resulting from any law in effect (including FATCA) on the date such Non-U.S.
Lender becomes a party to this Agreement

13

 

(or designates a new lending office) or is attributable to
such Non-U.S. Lender’s failure to comply with Section 2.17(f), except to the extent that such
Non-U.S. Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the Borrowers with respect to such
withholding Taxes pursuant to Section 2.17(a).

          “Existing Credit Agreement” has the meaning assigned to such term in the Recitals
hereto.

          “Existing Letter of Credit” means a letter of credit issued and outstanding under the
Existing Credit Agreement and listed on Schedule 2.06 of the Disclosure Letter.

          “Exiting Lender Consent” has the meaning assigned to such term in Section 4.01(m).

          “Exiting Lenders” has the meaning assigned to such term in the Recitals hereto.

          “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement
and any regulations promulgated thereunder or administrative guidance implementing such sections or
regulations (including any Revenue Ruling, Revenue Procedure, Notice or similar guidance issued by
the U.S. Internal Revenue Service thereunder as a precondition to exemption from such Taxes under
such provisions).

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Fee Letter” means the letter agreement, dated March 24, 2011, among the Company,
Chase and J.P. Morgan Securities LLC.

          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company.

          “Fixed Charges” means, with reference to any period, without duplication, cash
Consolidated Interest Expense during such period, plus scheduled principal payments on
Indebtedness and required payments on Guarantees made by Loan Parties to the extent not duplicative
of amounts already included in the computation of Consolidated Net Income for such period,
plus expense for taxes paid in cash during such period, plus dividends or
distributions paid in cash during such period, plus Capital Lease Obligation payments during such
period, plus cash contributions to any Plan in excess of actual pension expense during such
period, all calculated for the Company and its Subsidiaries on a consolidated basis.

          “Fixed Charge Coverage Ratio” means, the ratio, determined as of the end of each
fiscal month of the Company for the most-recently ended twelve fiscal months, of (a) Consolidated
EBITDA
minus the unfinanced portion of Capital Expenditures to (b) Fixed Charges, all
calculated for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.

          “Funding Account” means the account of the Company, as identified to the
Administrative Agent from time to time by the Company (and agreed to by the Administrative Agent),

14

 

maintained at Chase to which the Lenders are authorized by the Borrowers to transfer the proceeds
of any Borrowing requested or authorized pursuant to this Agreement.

          “GAAP” means accounting principles generally accepted in the United States of America.

          “Governmental Authority” means the government of the United States of America, any
other nation or 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.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

          “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit and letters of
guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances and (k) obligations under any liquidated earn-out and (l) any other Off-Balance Sheet
Liability. The Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the extent such Person is
liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

          “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by any Loan Party under any Loan Document and (b) Other Taxes.

15

 

          “Information Memorandum” means the Confidential Information Memorandum dated March 28,
2011 relating to the Company and the Transactions.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.07.

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the first Business Day of each calendar month and the Maturity Date, and (b) with respect to
any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than
three months’ duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months’ duration after the first day of such Interest Period and the Maturity
Date.

          “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Eurodollar Borrowing and ending on the numerically corresponding day
in the calendar month that is one, two, three or six months thereafter, as the Borrower
Representative may elect; provided, that (i) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next succeeding Business
Day unless such next succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period
pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the last calendar month of such
Interest Period) shall end on the last Business Day of the last calendar month of such Interest
Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date
of the most recent conversion or continuation of such Borrowing.

          “Inventory” has the meaning assigned to such term in the Security Agreement.

          “Issuing Bank” means Chase and each other Lender that agrees in writing with the
Company to issue Letters of Credit (provided that notice of such agreement is given to the
Administrative Agent), in each case in its capacity as the issuer of Letters of Credit hereunder,
and its successors in such capacity as provided in Section 2.06(i). The Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing
Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to
Letters of Credit issued by such Affiliate. With respect to any Letter of Credit, “Issuing Bank”
shall mean the issuer thereof.

          “Joinder Agreement” has the meaning assigned to such term in Section 5.13.

          “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

          “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that
have not yet been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure
of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

          “Lenders” means the Persons listed on the Commitment Schedule and any other
Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than
any such

16

 

Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless
the context otherwise requires, the term “Lenders” includes the Swingline Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “Leverage Ratio” means, on any date, the ratio of (a) Total Indebtedness on such date
to (b) Consolidated EBITDA for the period of twelve consecutive fiscal months ended on such date
(or, if such date is not the last day of a fiscal month, ended on the last day of the fiscal month
most recently ended prior to such date).

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Reuters Screen LIBOR01 (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided on such page of such service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for
such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity
comparable to such Interest Period are offered by the principal London office of the Administrative
Agent in immediately available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest Period. Notwithstanding
the above, to the extent that “LIBO Rate” or “Adjusted LIBO Rate” is used in connection with an ABR
Borrowing, such rate shall be determined as modified by the definition of Alternate Base Rate.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

          “Loan” means a loan or advance made by the Lenders pursuant to this Agreement,
including Revolving Loans, Swingline Loans, Overadvances and Protective Advances.

          “Loan Documents” means this Agreement, the Disclosure Letter, the Fee Letter, the
Reaffirmation Agreement, any promissory notes issued pursuant to this Agreement, any Letter of
Credit applications, the Collateral Documents, the Loan Guaranty, the Collateral Access Agreements
and all other agreements, instruments, documents and certificates identified in Section 4.01
executed and delivered to, or in favor of, the Administrative Agent or any Lenders and including
all other pledges, powers of attorney, consents, assignments, contracts, notices and letter of
credit agreements whether heretofore, now or hereafter executed by or on behalf of any Loan Party,
and delivered to the Administrative Agent or any Lender in connection with this Agreement or the
transactions contemplated hereby. Any reference in this Agreement or any other Loan Document to a
Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other
modifications thereto, and shall refer to this Agreement or such Loan Document as the same may
be in effect at any and all times such reference becomes operative.

          “Loan Guarantor” means each Loan Party.

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          “Loan Guaranty” means Article X of this Agreement and each separate Guarantee, in form
and substance satisfactory to the Administrative Agent, delivered by a Loan Guarantor, as it may be
amended or modified and in effect from time to time.

          “Loan Parties” means the Borrowers, the Borrower’s United States Subsidiaries that are
party to a Loan Guaranty and any other Person who becomes a party to this Agreement pursuant to a
Joinder Agreement or a Loan Guaranty or otherwise and their successors and assigns.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or condition, financial or otherwise, of the Company and its Subsidiaries
taken as a whole, (b) the ability of the Loan Parties, taken as a whole, to perform any of their
obligations under the Loan Documents, (c) the Collateral, or the Administrative Agent’s Liens (on
behalf of itself and the Lenders and other holders of the Secured Obligations) on the Collateral or
the priority of such Liens, or (d) the rights of or benefits available to the Administrative Agent,
the Issuing Bank or the Lenders thereunder.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Company and its Subsidiaries in an aggregate principal amount exceeding $15,000,000. For purposes
of determining Material Indebtedness, the “obligations” of the Company or any Subsidiary in respect
of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any
netting agreements) that the Company or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

          “Maturity Date” means April 27, 2016 or any earlier date on which the Commitments are
reduced to zero or otherwise terminated pursuant to the terms hereof.

          “Maximum Liability” has the meaning assigned to such term in Section 10.10.

          “Moody’s” means Moody’s Investors Service, Inc.

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “Net Orderly Liquidation Value” means, with respect to Inventory of any Person, the
orderly liquidation value thereof as determined in a manner reasonably acceptable to the
Administrative Agent by an appraiser reasonably acceptable to the Administrative Agent, net of all
costs of liquidation thereof.

          “Net Proceeds” means, with respect to any event, (a) the cash proceeds received in
respect of such event including (i) any cash received in respect of any non-cash proceeds
(including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise, but excluding any
interest payments), but only as and when received, (ii) in the case of a casualty, insurance
proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar
payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third
parties (other than Affiliates) in connection with
such event, (ii) in the case of a sale, transfer or other disposition of an asset (including
pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar
proceeding), the amount of all payments required to be made as a result of such event to repay
Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment
as a result of such event and (iii) the amount of all taxes paid (or reasonably estimated to be
payable) and the amount of any reserves established to

18

 

fund contingent liabilities reasonably
estimated to be payable, in each case during the year that such event occurred or the next
succeeding year and that are directly attributable to such event (as determined reasonably and in
good faith by a Financial Officer).

          “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).

          “Non-Paying Guarantor” has the meaning assigned to such term in Section 10.11.

          “Non-U.S. Lender” means a Lender that is not a U.S. Person.

          “Obligated Party” has the meaning assigned to such term in Section 10.02.

          “Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities
and other obligations of the Loan Parties to the Lenders or to any Lender, the Administrative
Agent, the Issuing Bank or any indemnified party arising under or in connection with the Loan
Documents (including any fees or expenses that accrue after the commencement of an insolvency
proceeding, regardless of whether allowed or allowable in whole or in part as a claim in such
insolvency proceeding).

          “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any
indebtedness, liability or obligation under any so-called “synthetic lease” transaction entered
into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any
other transaction which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the balance sheets of such Person (other than operating leases
or guaranties of operating leases).

          “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the jurisdiction imposing such
Taxes (other than a connection arising from such Recipient having executed, delivered, enforced,
become a party to, performed its obligations under, received payments under, received or perfected
a security interest under, or engaged in any other transaction pursuant to, or enforced, any Loan
Document), or sold or assigned an interest in any Loan Document).

          “Other Taxes” means any present or future stamp, court, documentary, intangible,
recording, filing or similar excise or property Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, or from the registration,
receipt or perfection of a security interest under, or otherwise with respect to, any Loan
Document, except any such Taxes that are Excluded Taxes or Other Connection Taxes imposed with
respect to an assignment (other than an assignment under Section 2.19(b)).

          “Overadvance” has the meaning assigned to such term in Section 2.05(b).

          “Parent” means, with respect to any Lender, the Person as to which such Lender is,
directly or indirectly, a subsidiary.

          “Participant” has the meaning assigned to such term in Section 9.04(c).

          “Participant Register” has the meaning assigned to such term in Section 9.04(c).

          “Paying Guarantor” has the meaning assigned to such term in Section 10.11.

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          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Acquisition” means the acquisition by the Company or a wholly-owned
Subsidiary thereof of an Acquired Entity or Business (including by way of merger of such Acquired
Entity or Business with and into the Company (so long as the Company is the surviving corporation)
or a wholly-owned Subsidiary thereof (so long as the wholly-owned Subsidiary is the surviving
corporation)); provided that, in each case, (a) the consideration paid or to be paid by the
Company or such wholly-owned Subsidiary consists solely of cash, the issuance or incurrence of
Indebtedness otherwise permitted by Section 6.01 or the issuance of common stock of the Company to
the extent no Default exists pursuant to clause (m) of Article VII or would result therefrom; (b)
in the case of the acquisition of the capital stock of any Person (including by way of merger),
such Person shall own no capital stock of any other Person (excluding de minimis amounts) unless
such Person directly or indirectly owns 100% of the capital stock of such other Person; (c) the
Acquired Entity or Business acquired pursuant to the respective Permitted Acquisition is in a
business permitted by Section 6.03(b); (d) in the case of a stock acquisition, such acquisition
shall have been approved by the board of directors of the Acquired Entity or Business; and (e) all
applicable requirements of Section 6.04(l) applicable to Permitted Acquisitions are satisfied.

          “Permitted Discretion” means a determination made in good faith and in the exercise of
commercially reasonable (from the perspective of a secured asset-based lender) business judgment.

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes, assessments or governmental charges or levies that
are not yet due and payable or are being contested in compliance with Section 5.04;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with Section
5.04;

     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; and

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of the Company or any Subsidiary;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

          “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the

20

 

extent such obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of A1 or better from
S&P or P-1 or better from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any domestic office of
any commercial bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not less than
$500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution
satisfying the criteria described in clause (c) above or an investment bank reasonably
satisfactory to the Administrative Agent; and

     (e) investments in money market funds that comply with the criteria set forth in SEC
Rule 2a-7 under the Investment Company Act of 1940 so long as such investments would not
constitute more than 1% of any such fund’s portfolio assets.

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

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Prepayment Event” means:

     (a) any sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property or asset of any Loan Party, other than dispositions described
in Section 6.05(a), (b) or (f) except to the extent covered by (b) below;

     (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of any Loan Party
with a fair value immediately prior to such event equal to or greater than $5,000,000; or

     (c) the incurrence by any Loan Party of any Indebtedness, other than Indebtedness
permitted under Section 6.01.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by Chase as its prime rate at its offices at 270 Park Avenue in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

          “Projections” has the meaning assigned to such term in Section 5.01(f).

          “Protective Advance” has the meaning assigned to such term in Section 2.04.

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          “Protective Advance Exposure” means, at any time, the aggregate principal amount of
all Protective Advances outstanding at such time. The Protective Advance Exposure of any Lender at
any time shall be its Applicable Percentage of the total Protective Advance Exposure at such time.

          “Reaffirmation Agreement” means that certain Reaffirmation Agreement dated as of the
date hereof among the Loan Parties and the Administrative Agent.

          “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c)
the Issuing Bank.

          “Register” has the meaning set forth in Section 9.04.

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

          “Reports” means reports prepared by the Administrative Agent or another Person showing
the results of appraisals, field examinations or audits pertaining to the Loan Parties’ assets from
information furnished by or on behalf of the Loan Parties, after the Administrative Agent has
exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to
the Lenders by the Administrative Agent.

          “Required Lenders” means, at any time, Lenders (other than Defaulting Lenders) having
Revolving Exposure and unused Commitments representing greater than 50% of the sum of the total
Revolving Exposure and unused Commitments (excluding the Revolving Exposure and unused Commitments
of Defaulting Lenders) at such time.

          “Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject.

          “Reserves” means Swap Reserves and any and all reserves which the Administrative Agent
deems necessary, in its Permitted Discretion, to maintain (including, without limitation, an
availability reserve, reserves for accrued and unpaid interest on the Secured Obligations, Banking
Services Reserves, reserves for rent at locations leased by any Loan Party and for consignee’s,
warehousemen’s and bailee’s charges, reserves for dilution of Accounts, reserves for Inventory
shrinkage, reserves for customs charges and shipping charges related to any Inventory in transit,
reserves for contingent liabilities of any Loan Party, reserves for uninsured losses of any Loan
Party, reserves for uninsured, underinsured, un-indemnified or under-indemnified liabilities or
potential liabilities with respect to any litigation which is reasonably likely to have a Material
Adverse Effect, reserves for taxes, fees, assessments, and other governmental charges) with respect
to the Collateral or any Loan Party, reserves for Restricted Payments as set forth in Section 6.08
and the Temporary Field Examination Reserve.

          “Restatement Date” means the date on which the conditions specified in Section 4.01
are satisfied (or waived in accordance with Section 9.02).

          “Restricted Amount” means, at any time, an amount equal to the sum at such
time of (a) the aggregate amount of investments made by Loan Parties after the Restatement Date in
the Equity Interests of Subsidiaries that are not Loan Parties made pursuant to Section 6.04(c),
(b) the outstanding principal amount of intercompany loans and advances made by Loan Parties after
the Restatement Date to

22

 

Subsidiaries which are not Loan Parties pursuant to Section 6.04(d) and (c)
the aggregate principal amount of Indebtedness of Subsidiaries which are not Loan Parties which is
guaranteed by Loan Parties after the Restatement Date pursuant to Section 6.04(e) (in each case
determined without regard to any write-downs or write-offs).

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Company or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the Company, whether now or hereafter
outstanding, or any option, warrant or other right to acquire any such Equity Interests in the
Company.

          “Revolving Exposure” means, with respect to any Lender at any time, the sum of (a) the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure plus (b)
an amount equal to its Applicable Percentage of the aggregate principal amount of Swingline Loans
at such time, plus (c) an amount equal to its Applicable Percentage of the aggregate
principal amount of Overadvances outstanding at such time plus (d) an amount equal to its
Applicable Percentage of the aggregate principal amount of Protective Advances at such time.

          “Revolving Loan” means a Loan made pursuant to Section 2.01.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

          “SEC” means the Securities and Exchange Commission of the United States, or any
successor thereto.

          “Secured Creditors” has the meaning assigned to such term in the Security Agreement.

          “Secured Obligations” means all Obligations, together with all (i) Banking Services
Obligations and (ii) Swap Obligations owing to one or more Lenders or their respective Affiliates.

          “Security Agreement” means that certain Amended and Restated Security Agreement, dated
as of the date hereof, between the Loan Parties and the Administrative Agent, for the benefit of
the Administrative Agent and the other Secured Creditors, and any other pledge or security
agreement entered into, after the date of this Agreement by any other Loan Party (as required by
this Agreement or any other Loan Document), or any other Person, as the same may be amended,
restated or otherwise modified from time to time.

          “Settlement” has the meaning assigned to such term in Section 2.05(d).

          “Settlement Date” has the meaning assigned to such term in Section 2.05(d).

          “Specified Asset” means (a) any Equity Interest in any of the Borrowers (other than
the Company), (b) any material intellectual property (including brandnames) owned by any of the
foregoing Borrowers or (c) any other material business properties of any of the foregoing Persons
(other than plants which have been determined by the applicable Person to be not needed in its
business); provided,
however, that notwithstanding the foregoing, any asset of HDM (including Equity Interests of
subsidiaries of HDM, including without limitation, Maitland-Smith) which, together with all other
assets of HDM or its subsidiaries previously sold, transferred or disposed of in the applicable
fiscal year of the Company, comprises as of the date of such disposition less than 50% (in book
value without regard to write-downs,

23

 

other than with respect to write-downs of Inventory in the
ordinary course of business) of the consolidated assets of HDM and its subsidiaries as of December
31 of the previous year shall not constitute a Specified Asset as of such date.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

          “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the
payment of which is subordinated to payment of the Secured Obligations to the reasonable written
satisfaction of the Administrative Agent.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any direct or indirect subsidiary of the Company or a Loan Party,
as applicable.

          “Supermajority Lenders” means, at any time, Lenders (other than Defaulting Lenders)
having Revolving Exposure and unused Commitments representing at least 75% of the sum of the total
Revolving Exposure and unused Commitments (excluding the Revolving Exposure and unused Commitments
of Defaulting Lenders) at such time.

          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a
Swap Agreement.

          “Swap Obligations” of a Person means any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Swap Agreement transaction.

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          “Swap Reserve” means the aggregate amount of reserves established by the
Administrative Agent in amounts set forth in the written notices to the Administrative Agent from
the Company (which amount may be established or increased (by further written notice from the
Company to the Administrative Agent from time to time) as long as no Default or Event of Default
exists and establishment of a Swap Reserve for such amount and all other Swap Obligations would not
result in the total Revolving Exposures exceeding the lesser of (x) the total Commitment or (y) the
Borrowing Base then in effect), and as such amount may be adjusted by the Administrative Agent
based on such notices or otherwise increased, in its Permitted Discretion, from time to time in
respect of Swap Obligations.

          “Swingline Exposure” means, at any time, the sum of the aggregate amount of all
outstanding Swingline Loans. The Swingline Exposure of any Lender at any time shall be its
Applicable Percentage of the aggregate Swingline Exposure.

          “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder.

          “Swingline Loan” has the meaning assigned to such term in Section 2.05(a).

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

          “Temporary Field Exam Reserve” means a minimum Availability reserve of up to
$12,000,000 that may be imposed on April 30, 2011 and maintained thereafter by the Administrative
Agent until such time as the field examination of the Borrower that was commissioned by the
Administrative Agent in February 2011 has been completed and reviewed by the Administrative Agent
and the Company to the Administrative Agent’s satisfaction.

          “Total Indebtedness” means, at any date, the aggregate principal amount of all
Indebtedness of the Company and its Subsidiaries at such date excluding Guarantees, determined on a
consolidated basis in accordance with GAAP.

          “Transactions” means the execution, delivery and performance by the Borrowers of this
Agreement, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and
the issuance of Letters of Credit hereunder.

          “Trigger Amount” has the meaning assigned to such term in Section 6.12.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York or any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests.

          “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion
thereof) that are contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in
nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations.

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          “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)
of the Code.

          “Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of
whose capital stock (other than director’s qualifying shares) is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any partnership, association,
joint venture or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of
such Person has a 100% equity interest at such time.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          “Withholding Agent” means the Borrower Representative and the Administrative Agent.

          SECTION 1.02 Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by
Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a
“Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class
(e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

          SECTION 1.03 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) 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.

          SECTION 1.04 Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Company notifies the Administrative Agent
that the Company requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Company that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of
GAAP as in effect and applied immediately before such change shall have become effective until
such notice shall have been withdrawn or such provision amended in accordance herewith.

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ARTICLE II

The Credits

          SECTION 2.01 Commitments. (a) On August 9, 2007, the “Lenders” issued “Commitments”
(as each such term is defined in the Existing Credit Agreement) to certain of the Borrowers
(“Existing Commitments”). The aggregate outstanding principal balance of the “Revolving
Exposure” (as such term is defined in the Existing Credit Agreement) outstanding under the Existing
Commitments immediately prior to giving effect to this Agreement was $85,502,688.00 (“Existing
Revolving Exposure”). On the Restatement Date, each Continuing Lender shall purchase from one
another and from the Exiting Lenders an undivided interest in such Existing Revolving Exposure in
proportion to its Applicable Percentage. Such purchases shall be at par and shall be payable by
such Continuing Lenders to the Administrative Agent for the respective accounts of the Continuing
Lenders and Exiting Lenders. Upon the terms and subject to the conditions of this Agreement, such
outstanding Existing Revolving Exposure shall constitute Revolving Exposure under this Agreement
from and after the Restatement Date, and shall henceforth be governed by the terms and conditions
of this Agreement in all respects.

          (b) Subject to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrowers from time to time during the Availability Period in an aggregate
principal amount that will not result in (a) such Lender’s Revolving Exposure exceeding such
Lender’s Commitment or (b) the total Revolving Exposures exceeding the lesser of (x) the sum of the
total Commitments or (y) the Borrowing Base, subject to the Administrative Agent’s authority, in
its sole discretion, to make Protective Advances and Overadvances pursuant to the terms of Section
2.04 and 2.05. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

          SECTION 2.02 Loans and Borrowings. (a) Each Loan (other than a Swingline Loan)
shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the
Lenders ratably in accordance with their respective Commitments of the applicable Class. Any
Protective Advance, any Overadvance and any Swingline Loan shall be made in accordance with the
procedures set forth in Section 2.04 and 2.05.

          (a) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower Representative may request in accordance herewith,
provided that all Borrowings made on the Restatement Date must be made as ABR Borrowings
but may be converted into Eurodollar Borrowings in accordance with Section 2.08. Each Swingline
Loan shall be an ABR Loan. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any
exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in
accordance with the terms of this Agreement.

          (b) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is not less than $5,000,000. ABR Revolving
Borrowings and Swingline Borrowings may be in any amount. Borrowings of more than one Type and
Class may be outstanding at the same time; provided that there shall not at any time be
more than a total of 6 Eurodollar Borrowings outstanding.

          (c) Notwithstanding any other provision of this Agreement, the Borrower Representative shall
not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity Date.

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          SECTION 2.03 Requests for Revolving Borrowings. To request a Revolving Borrowing,
the Borrower Representative shall notify the Administrative Agent of such request either in writing
(delivered by hand or facsimile) in a form approved by the Administrative Agent and signed by the
Borrower Representative or by telephone (a) in the case of a Eurodollar Borrowing, not later than
10:00 a.m., Chicago time, three Business Days before the date of the proposed Borrowing or (b) in
the case of an ABR Borrowing, not later than noon, Chicago time, on the date of the proposed
Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e) shall be given not later
than 9:00 a.m., Chicago time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or
facsimile to the Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower Representative. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with Section 2.01:

     (i) the aggregate amount of the requested Borrowing and a breakdown of the separate
wires comprising such Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

     (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period.”

If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the Borrowers shall be deemed to have selected an
Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04 Protective Advances. (a) Subject to the limitations set forth below,
the Administrative Agent is authorized by the Borrowers and the Lenders, from time to time in the
Administrative Agent’s sole discretion (but shall have absolutely no obligation to), to make Loans
to the Borrowers, on behalf of all Lenders, which the Administrative Agent, in its Permitted
Discretion, deems necessary or desirable (i) to preserve or protect the Collateral, or any portion
thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and
other Obligations, or (iii) to pay any other amount chargeable to or required to be paid by the
Borrowers pursuant to the terms of this Agreement, including payments of reimbursable expenses
(including costs, fees, and expenses as described in Section 9.03) and other sums payable under the
Loan Documents (any of such Loans are herein referred to as “Protective Advances”);
provided that, the aggregate amount of Protective Advances outstanding at any time shall
not at any time exceed $15,000,000; provided further that, the aggregate Revolving Exposure
shall not exceed the aggregate Commitments; and provided further that no Protective
Advances shall be made unless a Default has occurred and is continuing. Protective Advances may be
made even if the conditions precedent set forth in Section 4.02 have not been satisfied. The
Protective Advances shall be secured by the Liens in favor of the Administrative Agent in and to
the Collateral and
shall constitute Obligations hereunder. All Protective Advances shall be ABR Borrowings. The
Administrative Agent’s authorization to make Protective Advances may be revoked at any time by the
Required Lenders. Any such revocation must be in writing and shall become effective prospectively
upon the Administrative Agent’s receipt thereof. At any time that there is sufficient Availability
and the

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conditions precedent set forth in Section 4.02 have been satisfied, the Administrative
Agent may request the Lenders to make a Revolving Loan to repay a Protective Advance. At any other
time the Administrative Agent may require the Lenders to fund their risk participations described
in Section 2.04(b).

          (b) Upon the making of a Protective Advance by the Administrative Agent, each Lender shall be
deemed, without further action by any party hereto, to have unconditionally and irrevocably
purchased from the Administrative Agent without recourse or warranty, an undivided interest and
participation in such Protective Advance in proportion to its Applicable Percentage. From and
after the date, if any, on which any Lender is required to fund its participation in any Protective
Advance purchased hereunder, the Administrative Agent shall promptly distribute to such Lender,
such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of
Collateral received by the Administrative Agent in respect of such Protective Advance.

          SECTION 2.05 Swingline Loans and Overadvances. (a) The Administrative Agent, the
Swingline Lender and the Lenders agree that in order to facilitate the administration of this
Agreement and the other Loan Documents, promptly after the Borrower Representative requests an ABR
Borrowing, the Swingline Lender may elect to have the terms of this Section 2.05(a) apply to such
Borrowing Request by advancing, on behalf of the Lenders and in the amount requested, same day
funds to the Borrowers on the applicable Borrowing date to the Funding Account (each such Loan made
solely by the Swingline Lender pursuant to this Section 2.05(a) is referred to in this Agreement as
a “Swingline Loan”), with settlement among them as to the Swingline Loans to take place on
a periodic basis as set forth in Section 2.05(d). Each Swingline Loan shall be subject to all the
terms and conditions applicable to other ABR Loans funded by the Lenders, except that all payments
thereon shall be payable to the Swingline Lender solely for its own account. The aggregate amount
of Swingline Loans outstanding at any time shall not exceed $25,000,000. The Swingline Lender
shall not make any Swingline Loan if the requested Swingline Loan exceeds Availability (before
giving effect to such Swingline Loan). All Swingline Loans shall be ABR Borrowings.

          (b) Any provision of this Agreement to the contrary notwithstanding, at the request of the
Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely
no obligation), make Revolving Loans to the Borrowers, on behalf of the Lenders, in amounts that
exceed Availability (any such excess Revolving Loans are herein referred to collectively as
“Overadvances”); provided that, no Overadvance shall result in a Default due to
Borrowers’ failure to comply with Section 2.01 for so long as such Overadvance remains outstanding
in accordance with the terms of this paragraph, but solely with respect to the amount of such
Overadvance. In addition, Overadvances may be made even if the condition precedent set forth in
Section 4.02(c) has not been satisfied. All Overadvances shall constitute ABR Borrowings. The
authority of the Administrative Agent to make Overadvances is limited to an aggregate amount not to
exceed $15,000,000 at any time, no Overadvance may remain outstanding for more than thirty days and
no Overadvance shall cause any Lender’s Revolving Exposure to exceed its Commitment;
provided that, the Required Lenders may at any time revoke the Administrative Agent’s
authorization to make Overadvances. Any such revocation must be in writing and shall become
effective prospectively upon the Administrative Agent’s receipt thereof.

          (c) Upon the making of a Swingline Loan or an Overadvance (whether before or after the
occurrence of a Default and regardless of whether a Settlement has been requested with respect to
such Swingline Loan or Overadvance), each Lender shall be deemed, without further action by any
party
hereto, to have unconditionally and irrevocably purchased from the Swingline Lender or the
Administrative Agent, as the case may be, without recourse or warranty, an undivided interest and
participation in such Swingline Loan or Overadvance in proportion to its Applicable Percentage of
the Commitment. The Swingline Lender or the Administrative Agent may, at any time, require the
Lenders

29

 

to fund their participations. From and after the date, if any, on which any Lender is
required to fund its participation in any Swingline Loan or Overadvance purchased hereunder, the
Administrative Agent shall promptly distribute to such Lender, such Lender’s Applicable Percentage
of all payments of principal and interest and all proceeds of Collateral received by the
Administrative Agent in respect of such Loan.

          (d) The Administrative Agent, on behalf of the Swingline Lender, shall request settlement (a
“Settlement”) with the Lenders on at least a weekly basis or on any date that the
Administrative Agent elects, by notifying the Lenders of such requested Settlement by facsimile,
telephone, or e-mail no later than 12:00 noon Chicago time on the date of such requested Settlement
(the “Settlement Date”). Each Lender (other than the Swingline Lender, in the case of the
Swingline Loans) shall transfer the amount of such Lender’s Applicable Percentage of the
outstanding principal amount of the applicable Loan with respect to which Settlement is requested
to the Administrative Agent, to such account of the Administrative Agent as the Administrative
Agent may designate, not later than 2:00 p.m., Chicago time, on such Settlement Date. Settlements
may occur during the existence of a Default and whether or not the applicable conditions precedent
set forth in Section 4.02 have then been satisfied. Such amounts transferred to the Administrative
Agent shall be applied against the amounts of the Swingline Lender’s Swingline Loans and, together
with Swingline Lender’s Applicable Percentage of such Swingline Loan, shall constitute Revolving
Loans of such Lenders, respectively. If any such amount is not transferred to the Administrative
Agent by any Lender on such Settlement Date, the Swingline Lender shall be entitled to recover such
amount on demand from such Lender together with interest thereon as specified in Section 2.07.

          SECTION 2.06 Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower Representative may request the issuance of Letters of
Credit for its own account or for the account of another Borrower (which, in either case may be for
the benefit of a creditor of any Loan Party), in a form reasonably acceptable to the Administrative
Agent and the Issuing Bank, at any time and from time to time during the Availability Period. In
the event of any inconsistency between the terms and conditions of this Agreement and the terms and
conditions of any form of letter of credit application or other agreement submitted by the
Borrowers to, or entered into by the Borrowers with, the Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control. Upon the effectiveness of this
Agreement, each Existing Letter of Credit shall, without any further action by any party, be deemed
to have been issued as a Letter of Credit hereunder on the date of such effectiveness and shall for
all purposes hereof be treated as a Letter of Credit under this Agreement.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower Representative shall hand deliver or send by facsimile (or transmit by
electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to
the Issuing Bank and the Administrative Agent (prior to 9:00 am, Chicago time, at least three
Business Days prior to the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply
with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of
the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew
or extend such Letter of Credit. If requested by the Issuing Bank, the applicable Borrower also
shall submit a letter of credit application on the Issuing Bank’s standard form in connection with
any request for a Letter of Credit. A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or
extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not
exceed $100,000,000 and

30

 

(ii) the total Revolving Exposures shall not exceed the lesser of the total
Commitments and the Borrowing Base.

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) except as otherwise provided in the following proviso, the date that is five
Business Days prior to the Maturity Date; provided, however, that notwithstanding
the foregoing, a Letter of Credit may be issued with an expiry date up to one year after the
Maturity Date but, in such event, the Borrowers shall, at the request of the Administrative Agent,
at least five Business Days prior to the Maturity Date, either provide to the Administrative Agent
a back-up letter of credit satisfactory in all respects to the Administrative Agent or else provide
cash collateral for such Letter of Credit in an amount equal to 105% of all LC Exposure with
respect thereto, which cash collateral shall be held and treated in the manner set forth in Section
2.06(j).

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section,
or of any reimbursement payment required to be refunded to the Borrowers for any reason. Each
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 11:00 a.m., Chicago
time, on the date that such LC Disbursement is made, if the Borrower Representative shall have
received notice of such LC Disbursement prior to 9:00 a.m., Chicago time, on such date, or, if such
notice has not been received by the Borrower Representative prior to such time on such date, then
not later than 11:00 a.m., Chicago time, on the Business Day immediately following the day that the
Borrower Representative receives such notice, if such notice is not received prior to such time on
the day of receipt; provided that the Borrowers may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be financed
with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so
financed, the Borrowers’ obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the Borrowers fail to make such payment
when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the
payment then due from the Borrowers in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrowers, in the same manner as
provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative
Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders.
Promptly following receipt by the Administrative Agent of any payment from the Borrowers pursuant
to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or,
to the extent

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that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then
to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a Lender
pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the
funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a
Loan and shall not relieve the Borrowers of their obligation to reimburse such LC Disbursement.

          (f) Obligations Absolute. The Borrowers’ joint and several obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement
under any and all circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any term or provision therein or
herein, (ii) any draft or other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any
respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft
or other document that does not comply with the terms of such Letter of Credit, or (iv) any other
event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but
for the provisions of this Section, constitute a legal or equitable discharge of, or provide a
right of setoff against, the Borrowers’ obligations hereunder. Neither the Administrative Agent,
the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit
or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank
from liability to the Borrowers to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by
applicable law) suffered by any Borrower that are caused by the Issuing Bank’s failure to exercise
care when determining whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court
of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such
determination. In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower by telephone (confirmed by facsimile) of such demand for payment and whether the Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not relieve the Borrowers of their obligation to reimburse the
Issuing Bank and the Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that,
if the Borrowers fail to

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reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then
Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph shall be for the account
of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender
pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of
such Lender to the extent of such payment.

          (i) Replacement of Issuing Bank. An Issuing Bank may be replaced at any time by
written agreement among the Borrower Representative, the Administrative Agent, the replaced Issuing
Bank and a successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such
replacement of an Issuing Bank. At the time any such replacement shall become effective, the
Borrowers shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant
to Section 2.12(b). From and after the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit to be issued thereafter and (ii) references herein to the term
“Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall require. After the replacement
of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

          (j) Cash Collateralization. Immediately upon (i) the Maturity Date, (ii) the
occurrence of any Event of Default with respect to any Borrower described in clause (h) or (i) of
Article VII or (iii) the declaration by the Administrative Agent or the Required Lenders that the
Loans are due and payable pursuant to Article VII, then without demand or other notice of any kind,
the Borrowers shall deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Lenders (the “LC Collateral Account”), an
amount in cash equal to 105% of the LC Exposure as of such date plus accrued and unpaid interest
thereon. The Borrowers’ obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable. Such deposit shall be held
by the Administrative Agent as collateral for the payment and performance of the Secured
Obligations. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account and the Borrowers hereby grant the Administrative
Agent a security interest in the LC Collateral Account. Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and sole discretion of
the Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall accumulate in such account.
Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank
for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall
be held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure
at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other
Secured Obligations. If the Borrowers are required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrowers within three Business Days after all such
Defaults have been cured or waived.

          SECTION 2.07 Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by
2:00 p.m., Chicago time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable
Percentage; provided that Swingline Loans shall be made as provided in Section
2.05. The Administrative Agent will make such Loans available to the Borrower Representative by
promptly crediting the amounts so received, in like funds, to the Funding Account(s);
provided that ABR Revolving Loans made to finance the reimbursement of (i) an LC
Disbursement as provided in Section 2.06(e) shall be remitted by the

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Administrative Agent to the Issuing Bank and (ii) a Protective Advance or an Overadvance shall
be retained by the Administrative Agent (or, to the extent the Lenders have funded their
participations therein, remitted to the Lenders).

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any 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 paragraph (a) of this Section 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 severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the applicable Borrower to
but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender,
the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in the case of the
Borrowers, the interest rate applicable to ABR Loans. Without prejudice to any cause of action the
Borrowers may have against such Lender, if such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

          SECTION 2.08 Interest Elections. (a) Each Revolving Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving
Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Borrower Representative may elect to convert such Borrowing to a different Type or
to continue such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest
Periods therefor, all as provided in this Section. The Borrower Representative may elect
different options with respect to different portions of the affected Borrowing, in which case each
such portion shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.
This Section shall not apply to Swingline Borrowings, Overadvances or Protective Advances, which
may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower Representative shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrowers were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or facsimile to the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by the Borrower Representative.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrowers and the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the information
to be specified pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

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     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

          If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower Representative fails to deliver a timely Interest Election Request with
respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end of such
Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any
contrary provision hereof, if a Default has occurred and is continuing and the Administrative
Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so
long as a Default is continuing (i) no outstanding Revolving Borrowing may be converted to or
continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing
shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

          SECTION 2.09 Termination, Reduction and Increase of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.

          (b) The Company may at any time terminate the Commitments upon (i) the payment in full of all
outstanding Loans, together with accrued and unpaid interest thereon and on any LC Disbursement,
(ii) the cancellation and return of all outstanding Letters of Credit (or alternatively, with
respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash deposit
(or a back up standby letter of credit satisfactory to the Administrative Agent in its sole
discretion) equal to 105% of the LC Exposure as of such date), (iii) the payment in full of the
accrued and unpaid fees payable to the Loan Parties hereunder, including, without limitation, fees
payable with respect to Letters of Credit, and (iv) the payment in full of all reimbursable
expenses and other Obligations together with accrued and unpaid interest thereon.

          (c) The Company may from time to time reduce the Commitments; provided that (i) each
reduction of the Commitments shall be in an amount that is an integral multiple of $10,000,000,
(ii) at no time shall the aggregate amount of the Commitments be reduced to less than $150,000,000
unless they are terminated in their entirety and (iii) the Company shall not reduce the Commitments
if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with
Section 2.10, the sum of the Revolving Exposures would exceed the lesser of the total Commitments
and the Borrowing Base.

          (d) The Borrower Representative shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) or (c) of this Section at least three
Business Days prior to the effective date of such termination or reduction, specifying such
election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by
the Borrower Representative

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pursuant to this Section shall be irrevocable; provided that a notice of termination
of the Commitments delivered by the Borrower Representative may state that such notice is
conditioned upon the effectiveness of other credit facilities, in which case such notice may be
revoked by the Borrower Representative (by notice to the Administrative Agent on or prior to the
specified effective date) if such condition is not satisfied. Any termination or reduction of the
Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among the
Lenders in accordance with their respective Commitments.

          (e) The Borrowers shall have the right to increase the Commitments by obtaining additional
Commitments, either from one or more of the Lenders or another lending institution provided that
(i) any such request for an increase shall be in a minimum amount of $25,000,000, (ii) the Borrower
Representative, on behalf of the Borrowers, may make a maximum of four (4) such requests, (iii) the
Administrative Agent has approved the identity of any such new Lender, such approval not to be
unreasonably withheld, (iv) any such new Lender assumes all of the rights and obligations of a
“Lender” hereunder, and (v) the procedure described in Section 2.09(f) have been satisfied.

          (f) Any amendment hereto for such an increase or addition shall be in form and substance
satisfactory to the Administrative Agent and shall only require the written signatures of the
Administrative Agent, the Borrowers and each Lender being added or increasing its Commitment,
subject only to the approval of all Lenders if any such increase would cause the Commitments to
exceed $350,000,000. As a condition precedent to such an increase, the Borrowers shall deliver to
the Administrative Agent a certificate of each Loan Party (in sufficient copies for each Lender)
signed by an authorized officer of such Loan Party (i) certifying and attaching the resolutions
adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of the
Borrowers, certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Article III and the other Loan Documents are true and
correct, except to the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct as of such earlier date, and (B) no Default
exists.

          (g) Within a reasonable time after the effective date of any increase, the Administrative
Agent shall, and is hereby authorized and directed to, revise the Commitment Schedule to reflect
such increase and shall distribute such revised Commitment Schedule to each of the Lenders and the
Borrowers, whereupon such revised Commitment Schedule shall replace the old Commitment Schedule and
become part of this Agreement. On the Business Day following any such increase, all outstanding
ABR Advances shall be reallocated among the Lenders (including any newly added Lenders) in
accordance with the Lenders’ respective revised Applicable Percentages and the Lenders shall make
adjustments among themselves with respect to the Advances then outstanding and amounts of
principal, interest, commitment fees and other amounts paid or payable with respect thereto as
shall be necessary, in the opinion of the Administrative Agent, in order to effect such
reallocation. Eurodollar Advances shall not be reallocated among the Lenders until the expiration
of the applicable Interest Period in effect at the time of any such increase, at which time any
such Eurodollar Advances being continued shall be reallocated, and any such Eurodollar Advances
being converted to ABR Advances shall be converted and allocated, among the Lenders (including the
newly added Lenders) at such time.

          SECTION 2.10 Repayment of Loans; Evidence of Debt. (a) The Borrowers hereby
unconditionally, jointly and severally promise to pay (i) to the Administrative Agent for the
account of each Lender or the Swingline Lender, as applicable, the then unpaid principal amount of
each Revolving Loan and Swingline Loan on the Maturity Date, (ii) to the Administrative Agent the
then unpaid amount of each Protective Advance on the earlier of the Maturity Date and demand by the
Administrative Agent, and (iii) to the Administrative Agent the then unpaid principal amount of
each Overadvance on the

36

 

earliest of the Maturity Date, the 30th day after such Overadvance is made and
demand by the Administrative Agent.

          (b) At all times that full cash dominion is in effect pursuant to Section 7.3 of the Security
Agreement, on each Business Day, the Administrative Agent shall apply all funds credited to the
Collection Account the previous Business Day (whether or not immediately available) first
to prepay any Protective Advances and Overadvances that may be outstanding, pro rata, and
second to prepay the Revolving Loans and Swing Line Loans and to cash collateralize
outstanding LC Exposure.

          (c) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (e) The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrowers to repay the Loans in accordance with the terms of this Agreement.

          (f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to
such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note
and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be
represented by one or more promissory notes in such form payable to the payee named therein (or, if
such promissory note is a registered note, to such payee and its registered assigns).

          SECTION 2.11 Prepayment of Loans. (a) The Borrowers shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in
accordance with paragraph (e) of this Section.

          (b) Except for Overadvances permitted under Section 2.05, in the event and on such occasion
that the total Revolving Exposure exceeds the lesser of (A) the aggregate Commitments or (B) the
Borrowing Base, the Borrowers shall prepay the Revolving Loans, LC Exposure and/or Swingline Loans
in an aggregate amount equal to such excess.

          (c) In the event and on each occasion that any Net Proceeds are received by or on behalf of
any Loan Party in respect of any Prepayment Event, the Borrowers shall, immediately after such Net
Proceeds are received by any Loan Party, prepay the Obligations as set forth in Section 2.11(d)
below in an aggregate amount equal to 100% of such Net Proceeds, provided that, in the case
of any event described in clause (a) of the definition of the term “Prepayment Event” (such event,
an “Asset Sale”), no prepayment shall be required except to the extent the Net Proceeds from such
Asset Sale, taken together with any other Asset Sales during the same fiscal year, exceed
$10,000,000, and provided further that, in the case of any event described in
clause (a) or (b) of the definition of the term “Prepayment Event”, if the

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Borrower Representative shall deliver to the Administrative Agent a certificate of a Financial
Officer to the effect that the Loan Parties intend to apply the Net Proceeds from such event (or a
portion thereof specified in such certificate), within 365 days after receipt of such Net Proceeds,
to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding
inventory) to be used in the business of the Loan Parties, and certifying that no Default has
occurred and is continuing, then either (i) so long as full cash dominion is not in effect, no
prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds specified in
such certificate or (ii) if full cash dominion is in effect, if the Net Proceeds specified in such
certificate are to be applied by (A) the Borrowers, then such Net Proceeds shall be applied by the
Administrative Agent to reduce the outstanding principal balance of the Revolving Loans (without a
permanent reduction of the Commitment) and upon such application, the Administrative Agent shall
establish a Reserve against the Borrowing Base in an amount equal to the amount of such proceeds so
applied and (B) any Loan Party that is not a Borrower, then such Net Proceeds shall be deposited in
a cash collateral account and in either case, thereafter, such funds shall be made available to the
applicable Loan Party as follows:

     (1) The Borrower Representative shall request a Revolving Loan (specifying that the
request is to use Net Proceeds pursuant to this Section) or the applicable Loan Party shall
request a release from the cash collateral account be made in the amount needed;

     (2) so long as the conditions set forth in Section 4.02 have been met, the Lenders
shall make such Revolving Loan or the Administrative Agent shall release funds from the cash
collateral account; and

     (3) in the case of Net Proceeds applied against the Revolving Loan, the Reserve
established with respect to such proceeds shall be reduced by the amount of such Revolving
Loan;

provided that to the extent of any such Net Proceeds therefrom that have not been so
applied by the end of such 365-day period, a prepayment shall be required at such time in an amount
equal to such Net Proceeds that have not been so applied; provided, further that
the Borrowers shall not be permitted to make elections to use Net Proceeds to acquire (or replace
or rebuild) real property, equipment or other tangible assets (excluding inventory) with respect to
Net Proceeds in any fiscal year in an aggregate amount in excess of $30,000,000.

          (d) All such amounts pursuant to Section 2.11(c) shall be applied, first to prepay any
Protective Advances and Overadvances that may be outstanding, pro rata, and second to
prepay the Revolving Loans (including Swing Line Loans) without a corresponding reduction in the
Commitment.

          (e) The Borrower Representative shall notify the Administrative Agent (and, in the case of
prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile) of any
prepayment hereunder (i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later
than 10:00 a.m., Chicago time, two Business Days before the date of prepayment, or (ii) in the case
of prepayment of an ABR Revolving Borrowing, not later than 10:00 a.m., Chicago time, on the date
of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a
notice of prepayment is given in connection with a conditional notice of termination of the
Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such
notice of termination is revoked in accordance with Section 2.09. Promptly following receipt of
any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing shall be in an
amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type
as provided in Section

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2.02. Each prepayment of a Revolving Borrowing shall be applied ratably to the Revolving
Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.13.

          SECTION 2.12 Fees. (a) The Borrowers agree to pay to the Administrative Agent for
the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the
average daily amount of the Available Commitment of such Lender during the period from and
including the Restatement Date to but excluding the date on which the Lenders’ Commitments
terminate. Accrued commitment fees shall be payable in arrears on the first Business Day of each
calendar month and on the date on which the Commitments terminate, commencing on the first such
date to occur after the Restatement Date. All commitment fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed.

          (b) The Borrowers agree to pay (i) to the Administrative Agent for the account of each Lender
a participation fee with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Rate used to determine the interest rate applicable to Eurodollar Revolving
Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Restatement
Date to but excluding the later of the date on which such Lender’s Commitment terminates and the
date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting
fee, which shall accrue at the rate set forth in the Fee Letter on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during
the period from and including the Restatement Date to but excluding the later of the date of
termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as
the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees
accrued through and including the last day of each calendar quarter shall be payable on the first
Business Day of each fiscal quarter following such last day, commencing on the first such date to
occur after the Restatement Date; provided that all such fees shall be payable on the date
on which the Commitments terminate and any such fees accruing after the date on which the
Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand. All participation fees
and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed.

          (c) The Company agrees to pay to the Administrative Agent, for its own account, fees payable
in the amounts and at the times separately agreed upon in writing signed by the Company and the
Administrative Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

          SECTION 2.13 Interest. (a) The Loans comprising each ABR Borrowing (including each
Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c) Each Protective Advance and each Overadvance shall bear interest at the Alternate Base
Rate plus the Applicable Rate for Revolving Loans plus 2%.

39

 

          (d) Notwithstanding the foregoing, (x) during the occurrence and continuance of an Event of
Default under subsection (a), (b), (h), (i) or (j) of Article VII, or (y) during the occurrence and
continuance of any other Event of Default that shall be deemed material by either the
Administrative Agent (in its sole discretion) or the Required Lenders (in their sole discretion)
pursuant to a written notice to the Borrower Representative (which notice may be revoked at the
option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent
of “each Lender affected thereby” for reductions in interest rates), in either event, (i) all Loans
shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the
preceding paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder,
such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided
hereunder.

          (e) Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior
calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and upon
termination of the Commitments; provided that (i) interest accrued pursuant to paragraph
(d) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Availability
Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior
to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion.

          (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate shall be computed on the basis of a year
of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number
of days elapsed. The applicable Alternate Base Rate, Adjusted LIBO Rate and LIBO Rate shall be
determined by the Administrative Agent, and such determination shall be conclusive absent manifest
error.

          SECTION 2.14 Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

     (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or
its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower Representative and the
Lenders by telephone or facsimile as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower Representative and the Lenders that the circumstances
giving rise to such notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a
Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar
Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing.

          SECTION 2.15 Increased Costs. (a) If any Change in Law shall:

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

     (ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition (other than Taxes) affecting this Agreement or Eurodollar Loans made by such
Lender or any Letter of Credit or participation therein; or

     (iii) subject any Recipient to any Taxes on its loans, loan principal, letters of
credit, commitments, or other obligations, or its deposits, reserves, other liabilities or
capital attributable thereto (other than (A) Indemnified Taxes, (B) Excluded Taxes and (C)
Other Connection Taxes on gross or net income, profits or receipts (including value-added or
similar Taxes)); provided, for the avoidance of doubt, without duplication of
amounts payable under Section 2.17;

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

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

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

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the Borrower Representative of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim
compensation therefor; provided further that, if the

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Change in Law giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.16 Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section 2.09(d) and is
revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by the Borrower
Representative pursuant to Section 2.19, then, in any such event, the Borrowers shall compensate
each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the
principal amount of such Eurodollar Loan had such event not occurred, at the Adjusted LIBO Rate
that would have been applicable to such Eurodollar Loan, for the period from the date of such event
to the last day of the then current Interest Period therefor (or, in the case of a failure to
borrow, convert or continue, for the period that would have been the Interest Period for such
Eurodollar Loan), over (ii) the amount of interest which would accrue on such principal amount for
such period at the interest rate which such Lender would bid were it to bid, at the commencement of
such period, for dollar deposits of a comparable amount and period from other banks in the
eurodollar market. A certificate of any Lender setting forth any amount or amounts that such
Lender is entitled to receive pursuant to this Section and showing the basis for the calculation
thereof shall be delivered to the Borrower Representative and shall be conclusive absent manifest
error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within
10 Business Days after receipt thereof.

          SECTION 2.17 Taxes. (a) Withholding of Taxes; Gross-Up. Each payment by any
Loan Party under any Loan Document shall be made without withholding for any Taxes, unless such
withholding is required by any law. If any Withholding Agent determines, in its sole discretion
exercised in good faith, that it is so required to withhold Taxes, then such Withholding Agent may
so withhold and shall timely pay the full amount of withheld Taxes to the relevant Governmental
Authority in accordance with applicable law. If such Taxes are Indemnified Taxes, then the amount
payable by such Loan Party shall be increased as necessary so that, net of such withholding
(including such withholding applicable to additional amounts payable under this Section), the
applicable Recipient receives the amount it would have received had no such withholding been made.

          (b) Payment of Other Taxes by the Borrowers. The Borrowers shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

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

          (d) Indemnification by the Loan Parties. The Loan Parties shall jointly and severally
indemnify each Recipient for any Indemnified Taxes that are withheld or deducted on payments to, or
paid or payable by such Recipient in connection with any Loan Document (including amounts paid or
payable under this Section 2.17(d)) and not covered by Section 2.17(a) above or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. The indemnity under this Section 2.17(d) shall be paid within 10
days after the

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Recipient delivers to the Borrower Representative a certificate stating the amount of any
Indemnified Taxes so paid or payable by such Recipient and describing the basis for the
indemnification claim. Such certificate shall be conclusive of the amount so paid or payable
absent manifest error. Such Recipient shall deliver a copy of such certificate to the
Administrative Agent.

          (e) Indemnification by the Lenders. Each Lender shall severally indemnify the
Administrative Agent for any Taxes (but, in the case of any Indemnified Taxes, only to the extent
that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes
and without limiting the obligation of the Loan Parties to do so) attributable to such Lender that
are paid or payable by the Administrative Agent in connection with any Loan Document and any
reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. The indemnity
under this Section 2.17(e) shall be paid within 10 days after the Administrative Agent delivers to
the applicable Lender a certificate stating the amount of Taxes so paid or payable by the
Administrative Agent. Such certificate shall be conclusive of the amount so paid or payable absent
manifest error.

          (f) Status of Lenders. (i) Any Lender that is entitled to an exemption from, or
reduction of, any applicable withholding Tax with respect to any payments under any Loan Document
shall deliver to the Borrower Representative and the Administrative Agent, at the time or times
reasonably requested by the Borrower Representative or the Administrative Agent, such properly
completed and executed documentation reasonably requested by the Borrower Representative or the
Administrative Agent as will permit such payments to be made without, or at a reduced rate of,
withholding. In addition, any Lender, if requested by the Borrower Representative or the
Administrative Agent, shall deliver such other documentation prescribed by law or reasonably
requested by the Borrower Representative or the Administrative Agent as will enable the Borrower
Representative or the Administrative Agent to determine whether or not such Lender is subject to
any withholding (including backup withholding) or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution
and submission of such documentation (other than such documentation set forth in Sections
2.17(f)(ii)(A) through (E) and 2.17(f)(iii) below) shall not be required if in the Lender’s
judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial position of such
Lender. Upon the reasonable request of the Borrower Representative or the Administrative Agent,
any Lender shall update any form or certification previously delivered pursuant to this Section
2.17(f). If any form or certification previously delivered pursuant to this Section expires or
becomes obsolete or inaccurate in any respect with respect to a Lender, such Lender shall promptly
(and in any event within 10 days after such expiration, obsolescence or inaccuracy) notify the
Borrower Representative and the Administrative Agent in writing of such expiration, obsolescence or
inaccuracy and update the form or certification if it is legally eligible to do so.

     (ii) Without limiting the generality of the foregoing, if any Borrower is a U.S.
Person, any Lender with respect to such Borrower shall, if it is legally eligible to do so,
deliver to the Borrower Representative and the Administrative Agent (in such number of
copies reasonably requested by the Borrower Representative and the Administrative Agent) on
or prior to the date on which such Lender becomes a party hereto, duly completed and
executed copies of whichever of the following is applicable:

          (A) in the case of a Lender that is a U.S. Person, IRS Form W-9 certifying that such
Lender is exempt from U.S. Federal backup withholding tax;

          (B) in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to
which the United States is a party (1) with respect to payments of interest under any

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Loan Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S.
Federal withholding Tax pursuant to the “interest” article of such tax treaty and (2) with
respect to any other applicable payments under this Agreement, IRS Form W-8BEN establishing
an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the “business
profits” or “other income” article of such tax treaty;

          (C) in the case of a Non-U.S. Lender for whom payments under this Agreement constitute
income that is effectively connected with such Lender’s conduct of a trade or business in
the United States, IRS Form W-8ECI;

          (D) in the case of a Non-U.S. Lender claiming the benefits of the exemption for
portfolio interest under Section 881(c) of the Code both (1) IRS Form W-8BEN and (2) a tax
certificate substantially in the form of Exhibit E-1 to the effect that such Lender is not
(a) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (b) a “10 percent
shareholder” of such Borrower within the meaning of Section 881(c)(3)(B) of the Code (c) a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and (d)
conducting a trade or business in the United States with which the relevant interest
payments are effectively connected;

          (E) in the case of a Non-U.S. Lender that is not the beneficial owner of payments made
under this Agreement (including a partnership or a participating Lender) (1) an IRS Form
W-8IMY on behalf of itself and (2) the relevant forms prescribed in clauses (A), (B), (C),
(D) and (F) of this paragraph (f)(ii) that would be required of each such beneficial owner
or partner of such partnership if such beneficial owner or partner were a Lender; provided,
however, that if the Lender is a partnership and one or more of its partners are claiming
the exemption for portfolio interest under Section 881(c) of the Code, such Lender may
provide a tax certificate substantially in the form of Exhibit E-2 on behalf of such
partners; or

          (F) any other form prescribed by law as a basis for claiming exemption from, or a
reduction of, U.S. Federal withholding Tax together with such supplementary documentation
necessary to enable the Borrower Representative or the Administrative Agent to determine the
amount of Tax (if any) required by law to be withheld.

     (iii) If a payment made to a Lender under any Loan Document would be subject to U.S.
Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the
applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Code, as applicable), such Lender shall deliver to the Withholding Agent, at
the time or times prescribed by law and at such time or times reasonably requested by the
Withholding Agent, such documentation prescribed by applicable law (including as prescribed
by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Withholding Agent as may be necessary for the Withholding Agent to comply
with its obligations under FATCA, to determine that such Lender has or has not complied with
such Lender’s obligations under FATCA and, as necessary, to determine the amount to deduct
and withhold from such payment. Solely for purposes of this Section 2.17(f)(iii), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

          (g) Treatment of Certain Refunds. If any party determines, in its sole discretion
exercised in good faith, that it has received a refund of any Taxes as to which it has been
indemnified pursuant to Section 2.15 and this Section 2.17 (including additional amounts paid
pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to such
refund (but only to the extent of indemnity payments made under this Section with respect to the
Taxes giving rise to such refund), net of all out-of-pocket expenses (including any Taxes) of such
indemnified party and without interest (other

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than any interest paid by the relevant Governmental Authority with respect to such refund).
Such indemnifying party, upon the request of such indemnified party, shall repay to such
indemnified party the amount paid to such indemnified party pursuant to the previous sentence (plus
any penalties, interest or other charges imposed by the relevant Governmental Authority) in the
event such indemnified party is required to repay such refund to such Governmental Authority. This
Section 2.17(g) shall not be construed to require any indemnified party to make available its Tax
returns (or any other information relating to its Taxes which it deems confidential) to the
indemnifying party or any other Person.

          (h) Issuing Bank. For purposes of Section 2.17(e) and (f), the term “Lender” includes
any Issuing Bank.

          SECTION 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs. (a)
The Borrowers shall make each payment required to be made by them hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16
or 2.17, or otherwise) prior to 2:00 p.m., Chicago time, on the date when due, in immediately
available funds, without set off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be
made to the Administrative Agent at its offices at 10 South Dearborn Street, 22nd Floor,
Chicago, Illinois, except payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17
and 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that
is not a Business Day, the date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be payable for the period
of such extension. All payments hereunder shall be made in dollars. At all times that full cash
dominion is in effect pursuant to Section 7.3 of the Security Agreement, solely for purposes of
determining the amount of Loans available for borrowing purposes, checks (in addition to
immediately available funds applied pursuant to Section 2.10(b)) from collections of items of
payment and proceeds of any Collateral shall be applied in whole or in part against the
Obligations, on the Business Day after receipt, subject to actual collection.

          (b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting
either (A) a specific payment of principal, interest, fees or other sum payable under the Loan
Documents (which shall be applied as specified by the Borrowers), (B) a mandatory prepayment (which
shall be applied in accordance with Section 2.11) or (C) amounts to be applied from the Collection
Account when full cash dominion is in effect (which shall be applied in accordance with Section
2.10(b)) or (ii) after an Event of Default has occurred and is continuing and the Administrative
Agent so elects or the Required Lenders so direct, such funds shall be applied ratably
first, to pay any fees, indemnities, or expense reimbursements including amounts then due
to the Administrative Agent and the Issuing Bank from the Borrowers (other than in connection with
Banking Services or Swap Obligations), second, to pay any fees or expense reimbursements
then due to the Lenders from the Borrowers (other than in connection with Banking Services or Swap
Obligations), third, to pay interest due in respect of the Overadvances and Protective
Advances, fourth, to pay the principal of the Overadvances and Protective Advances,
fifth, to pay interest then due and payable on the Loans (other than the Overadvances and
Protective Advances) ratably, sixth, to prepay principal on the Loans (other than the
Overadvances and Protective Advances) and unreimbursed LC Disbursements ratably, seventh,
on or after (i) the Maturity Date, (ii) the occurrence of any Event of Default with respect to any
Borrower described in clause (h) or (i) of Article VII or (iii) the declaration by the
Administrative Agent or the Required Lenders that the Loans are due and payable pursuant to Article
VII, to pay an amount to the Administrative Agent equal to one hundred five percent (105%) of the
aggregate undrawn face amount of all outstanding Letters of Credit and the aggregate

45

 

amount of any unpaid LC Disbursements, to be held as cash collateral for such Obligations,
eighth, to pay any amounts owing with respect to Banking Services and Swap Obligations,
ratably, ninth, to pay any other Secured Obligation due to the Administrative Agent or any
Lender by the Borrowers, and tenth, to the Borrowers or whomever a court of competent
jurisdiction may order. Notwithstanding anything to the contrary contained in this Agreement,
unless so directed by the Borrower Representative, or unless a Default is in existence, neither the
Administrative Agent nor any Lender shall apply any payment which it receives to any Eurodollar
Loan of a Class, except (a) on the expiration date of the Interest Period applicable to any such
Eurodollar Loan or (b) in the event, and only to the extent, that there are no outstanding ABR
Loans of the same Class and, in any such event, the Borrowers shall pay the break funding payment
required in accordance with Section 2.16. The Administrative Agent and the Lenders shall have the
continuing and exclusive right to apply and reverse and reapply any and all such proceeds and
payments to any portion of the Secured Obligations.

          (c) At the election of the Administrative Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the
Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a
request by the Borrower Representative pursuant to Section 2.03 or a deemed request as provided in
this Section or may be deducted from any deposit account of any Borrower maintained with the
Administrative Agent. Each Borrower hereby irrevocably authorizes (i) the Administrative Agent to
make a Borrowing for the purpose of paying each payment of principal, interest and fees as it
becomes due hereunder or any other amount due under the Loan Documents and agrees that all such
amounts charged shall constitute Loans (including Swingline Loans and Overadvances, but such a
Borrowing may only constitute a Protective Advance if it is to reimburse costs, fees and expenses
as described in Section 9.03) and that all such Borrowings shall be deemed to have been requested
pursuant to Sections 2.03, 2.04 or 2.05, as applicable and (ii) the Administrative Agent to charge
any deposit account of any Borrower maintained with the Administrative Agent for each payment of
principal, interest and fees as it becomes due hereunder or any other amount due under the Loan
Documents.

          (d) If, except as otherwise expressly provided herein, any Lender shall, by exercising any
right of set off or counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Loans or participations in LC Disbursements resulting in such Lender
receiving payment of a greater proportion of the aggregate amount of its Loans and participations
in LC Disbursements and accrued interest thereon than the proportion received by any other
similarly situated Lender, then the Lender receiving such greater proportion shall purchase (for
cash at face value) participations in the Loans and participations in LC Disbursements of other
Lenders to the extent necessary so that the benefit of all such payments shall be shared by all
such Lenders ratably in accordance with the aggregate amount of principal of and accrued interest
on their respective Loans and participations in LC Disbursements; provided that (i) if any
such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in LC Disbursements to any assignee
or participant, other than to the Borrowers or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). Each Borrower 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 Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of such Borrower in the amount of such participation.

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          (e) Unless the Administrative Agent shall have received notice from the Borrower
Representative prior to the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank 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
Issuing Bank, 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 Issuing Bank, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including the date such amount
is distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

          (f) If any Lender shall fail to make any payment required to be made by it hereunder, then the
Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i)
apply any amounts thereafter received by the Administrative Agent for the account of such Lender
for the benefit of the Administrative Agent, the Swingline Lender or the Issuing Bank to satisfy
such Lender’s obligations under the applicable Sections of this Agreement until all such
unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a segregated account as
cash collateral for, and application to, any future funding obligations of such Lender hereunder;
application of amounts pursuant to (i) and (ii) above shall be made in such order as may be
determined by the Administrative Agent in its discretion.

          SECTION 2.19 Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if the Borrowers are required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrowers hereby
agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b) If any Lender requests compensation under Section 2.15, or if the Borrowers are required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the Borrowers
may, at their 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 Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment); provided that (i) the Borrowers shall have received the prior
written consent of the Administrative Agent (and if a Commitment is being assigned, the Issuing
Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and participations in LC
Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, 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) and (iii) in the case of any
such assignment resulting from a claim for compensation under Section 2.15 or payments required to
be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such

47

 

assignment and delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrowers to require such assignment and delegation
cease to apply.

          SECTION 2.20 Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary and without prejudice to any cause of action the Borrowers may have against a
Defaulting Lender, if any Lender becomes a Defaulting Lender, then the following provisions shall
apply for so long as such Lender is a Defaulting Lender:

          (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting
Lender pursuant to Section 2.12(a);

          (b) such Defaulting Lender shall not have the right to vote on any issue on which voting is
required (other than to the extent expressly provided in Section 9.02(b)) and the Commitment and
Revolving Exposure of such Defaulting Lender shall not be included in determining whether the
Required Lenders or the Supermajority Lenders have taken or may take any action hereunder;

          (c) if any Swingline Exposure, LC Exposure or Protective Advance Exposure exists at the time a
Lender becomes a Defaulting Lender then:

     (i) as an initial matter, all or any part of the Swingline Exposure, LC Exposure and
Protective Advance Exposure of such Defaulting Lender shall be reallocated among the
non-Defaulting Lenders in accordance with their respective Applicable Percentages but only
to the extent the sum of all non-Defaulting Lenders’ Revolving Exposures plus such
Defaulting Lender’s Swingline Exposure, LC Exposure and Protective Advance Exposure does not
exceed the total of all non-Defaulting Lenders’ Commitments;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrowers shall (x) first, within one Business Day following notice by the
Administrative Agent, prepay such Swingline Exposure and Protective Advance Exposure,
ratably, and (y) second, within the earlier of five Business Day following notice by the
Administrative Agent or the date of the next date upon which a Letter of Credit is drawn,
cash collateralize, for the benefit of the Issuing Bank, the Borrowers’ obligations
corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.06(j) for so long as such LC Exposure is outstanding;

     (iii) if the Borrowers cash collateralize any portion of such Defaulting Lender’s LC
Exposure pursuant to clause (ii) above, the Borrowers shall not be required to pay any fees
to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting
Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash
collateralized;

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause
(i) above, then the fees payable to the Lenders pursuant to Sections 2.12(a) and 2.12(b)
shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages;
and

     (v) if all or any portion of such Defaulting Lender’s LC Exposure is neither
reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without
prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all Letter
of Credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC
Exposure shall be payable to the Issuing Bank until such LC Exposure is reallocated and/or
cash collateralized; and

48

 

          (d) so long as such Lender is a Defaulting Lender, the Issuing Bank shall not be required to
issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure
will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will
be provided by the Borrowers in accordance with Section 2.20(c), and participating interests in any
such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in
a manner consistent with Section 2.20(c)(i) and in accordance with their respective Applicable
Percentages (and such Defaulting Lender shall not participate therein).

          If (i) a Bankruptcy Event with respect to the Parent of any Lender shall occur following the
date hereof and for so long as such event shall continue or (ii) the Issuing Bank or the Swingline
Lender has a good faith belief that any Lender has defaulted in fulfilling its obligations under
one or more other agreements in which such Lender commits to extend credit, the Issuing Bank shall
not be required to issue, amend or increase any Letter of Credit, unless the Issuing Bank shall
have entered into arrangements with the Borrowers or such Lender, satisfactory to the Issuing Bank,
to defease any risk in respect of such Lender hereunder.

          In the event that each of the Administrative Agent, the Borrowers, the Issuing Bank and the
Swingline Lender agrees that a Defaulting Lender has adequately remedied all matters that caused
such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders
shall be readjusted to reflect the inclusion of such Lender’s Commitment and on the date of such
readjustment such Lender shall purchase at par such of the Loans of the other Lenders (other than
Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such
Lender to hold such Loans in accordance with its Applicable Percentage.

          SECTION 2.21 Returned Payments. If after receipt of any payment which is applied to
the payment of all or any part of the Obligations, the Administrative Agent or any Lender is for
any reason compelled to surrender such payment or proceeds to any Person because such payment or
application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or
voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other
reason, then the Obligations or part thereof intended to be satisfied shall be revived and
continued and this Agreement shall continue in full force as if such payment or proceeds had not
been received by the Administrative Agent or such Lender. The provisions of this Section 2.21
shall be and remain effective notwithstanding any contrary action which may have been taken by the
Administrative Agent or any Lender in reliance upon such payment or application of proceeds. The
provisions of this Section 2.21 shall survive the termination of this Agreement.

          SECTION 2.22 Banking Services and Swap Agreements. Each Lender or Affiliate thereof
providing Banking Services for, or having Swap Agreements with, any Loan Party shall deliver to the
Administrative Agent, promptly after entering into such Banking Services or Swap Agreements,
written notice setting forth the aggregate amount of all Banking Services Obligations and Swap
Obligations of such Loan Party to such Lender or Affiliate (whether matured or unmatured, absolute
or contingent). In furtherance of that requirement, each such Lender or Affiliate thereof shall
furnish the Administrative Agent, from time to time after a significant change therein or upon a
request therefor, a summary of the amounts due or to become due in respect of such Banking Services
Obligations and Swap Obligations. The most recent information provided to the Administrative Agent
shall be used in determining the amount of Banking Services Obligations and/or Swap Obligations
owed for purposes of Section 2.18(b).

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ARTICLE III

Representations and Warranties

          Each Loan Party represents and warrants to the Lenders that:

          SECTION 3.01 Organization; Powers. Each of the Loan Parties and each of its
Subsidiaries is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and
is in good standing in, every jurisdiction where such qualification is required.

          SECTION 3.02 Authorization; Enforceability. The Transactions are within each Loan
Party’s organizational powers and have been duly authorized by all necessary organizational actions
and, if required, actions by equity holders. The Loan Documents to which each Loan Party is a
party have been duly executed and delivered by such Loan Party and each of such Loan Documents
constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.

          SECTION 3.03 Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect
and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will
not violate the Certificate of Incorporation, by-laws or other organizational documents governing
any Loan Party, (c) will not violate any Requirement of Law applicable to any Loan Party or any of
its Subsidiaries, (d) will not violate or result in a default under any material indenture,
material agreement or other material instrument binding upon any Loan Party or any of its
Subsidiaries or its assets, or give rise to a right thereunder to require any material payment to
be made by any Loan Party or any of its Subsidiaries, and (e) will not result in the creation or
imposition of any Lien on any asset of any Loan Party or any of its Subsidiaries, except Liens
created pursuant to the Loan Documents.

          SECTION 3.04 Financial Condition; No Material Adverse Change. (a) The Company has
heretofore furnished to the Lenders its consolidated balance sheet and statements of income,
stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2010,
reported on by KPMG LLP, independent public accountants, and (ii) as of and for the fiscal month
ended February 28, 2011, certified by its chief financial officer. Such financial statements
present fairly, in all material respects, the financial position and results of operations and cash
flows of the Company and its consolidated Subsidiaries as of such dates and for such periods in
accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the
case of the statements referred to in clause (ii) above.

          (b) No event, change or condition has occurred that has had, or could reasonably be expected
to have or cause, a Material Adverse Effect, since December 31, 2010.

          SECTION 3.05 Properties. (a) As of the date of this Agreement, Schedule
3.05 of the Disclosure Letter sets forth the address of each parcel of real property that is
owned or leased by each Loan Party at which Collateral having a value of $1,000,000 or more is
located. Each of such leases and subleases is valid and enforceable in accordance with its terms
and is in full force and effect, and, to the

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knowledge of Borrowers, no default by any party to any such lease or sublease exists. Each of
the Loan Parties and its Subsidiaries has good and indefeasible title to, or valid leasehold
interests in, all its real and personal property, free of all Liens other than those permitted by
Section 6.02.

          (b) Each Loan Party and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property necessary to its business as
currently conducted, a correct and complete list of such trademarks, tradenames, copyrights,
patents and other intellectual property which are material, as of the date of this Agreement, is
set forth on Schedule 3.05 of the Disclosure Letter, and the use thereof by the
Loan Parties and its Subsidiaries does not infringe in any material respect upon the rights of any
other Person, and except as set forth on such Schedule, the Loan Parties’ rights thereto are not
subject to any licensing agreement or similar arrangement.

          SECTION 3.06 Litigation and Environmental Matters. (a) There are no actions, suits
or proceedings by or before any arbitrator or Governmental Authority pending against or, to the
knowledge of any Loan Party, threatened in writing against or directly affecting the Loan Parties
or any of their Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect or (ii) that involve this Agreement or the
Transactions.

          (b) (i) No Loan Party nor any of its Subsidiaries has received written notice of any claim
with respect to any material Environmental Liability or knows of any basis for any material
Environmental Liability and (ii) except with respect to any other matters that, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Loan
Party nor any of its Subsidiaries (1) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any Environmental Law
or (2) has become subject to any Environmental Liability.

          SECTION 3.07 Compliance with Laws and Agreements. Each Loan Party and its
Subsidiaries is in compliance with all Requirements of Law applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. No Event of Default has occurred and is continuing.

          SECTION 3.08 Investment Company Status. No Loan Party nor any of its Subsidiaries is
an “investment company” as defined in, or subject to regulation under, the Investment Company Act
of 1940.

          SECTION 3.09 Taxes. Each Loan Party and its Subsidiaries has timely filed or caused
to be filed all Tax returns and reports required to have been filed and has paid or caused to be
paid all material Taxes required to have been paid by it, except Taxes that are being contested in
good faith by appropriate proceedings and for which such Loan Party or such Subsidiary, as
applicable, has set aside on its books adequate reserves. No tax liens have been filed and no
claims are being asserted with respect to any such taxes.

          SECTION 3.10 ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. Without
qualification by the foregoing, there has been no failure to make any minimum required contribution
to any Plan or Multiemployer Plan when due.

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          SECTION 3.11 Disclosure. The Company has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any Subsidiary is
subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum
nor any of the other reports, financial statements, certificates or other information furnished by
or on behalf of the any Loan Party to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or any other Loan Document (as modified or supplemented by other
written factual information so furnished) taken as a whole contains any material misstatement of
fact or omits to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided that, with respect
to projected financial information, the Company represents only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time delivered and, if such
projected financial information was delivered prior to the Restatement Date, as of the Restatement
Date.

          SECTION 3.12 Material Agreements. All material agreements and contracts to which any
Loan Party is a party or is bound as of the date of this Agreement are referenced or otherwise
listed on Schedule 3.12 of the Disclosure Letter. No Loan Party is in default in
the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in (i) any material agreement to which it is a party or (ii) any agreement or instrument
evidencing or governing material Indebtedness.

          SECTION 3.13 Solvency. Immediately after the consummation of the Transactions to
occur on the Restatement Date, (i) the fair value of the assets of each Loan Party, at a fair
valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (ii) the
present fair saleable value of the property of each Loan Party will be greater than the amount that
will be required to pay the probable liability of its debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii)
each Loan Party will be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; and (iv) each Loan Party will
not have unreasonably small capital with which to conduct the business in which it is engaged as
such business is now conducted and is proposed to be conducted after the Restatement Date.

          (b) No Loan Party intends to, or will permit any of its Subsidiaries to, and no Loan Party
believes that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts
as they mature, taking into account the timing of and amounts of cash to be received by it or any
such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such Subsidiary.

          SECTION 3.14 Insurance. Schedule 3.14 of the Disclosure Letter sets
forth a description of all insurance maintained by or on behalf of the Loan Parties and the
Subsidiaries as of the Restatement Date. As of the Restatement Date, all premiums in respect of
such insurance have been paid. The Company believes that the insurance maintained by or on behalf
of the Company and the Subsidiaries is adequate. The expired insurance policies delivered to and
reviewed by the Administrative Agent and its representatives in connection with entering into the
Transactions are substantially similar to the Company’s current insurance policies. The Company
agrees to provide the Agent and its representatives with copies of its current insurance policies
upon receipt of same.

          SECTION 3.15 Capitalization and Subsidiaries. As of the Restatement Date,
Schedule 3.15 of the Disclosure Letter sets forth (a) a correct and complete list of the
name and relationship to the Company of each and all of the Company’s Subsidiaries and (b) the type
of entity of the Company and each of its Subsidiaries. All of the issued and outstanding Equity
Interests owned by any Loan Party have

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been (to the extent such concepts are relevant with respect to such ownership interests) duly
authorized and issued and are fully paid and non-assessable.

          SECTION 3.16 Security Interest in Collateral. The provisions of this Agreement and
the other Loan Documents create legal and valid Liens on all the Collateral in favor of the
Administrative Agent, for the benefit of the Administrative Agent and the other Secured Creditors,
and such Liens constitute perfected and continuing Liens on the Collateral, securing the Secured
Obligations, enforceable against the applicable Loan Party and all third parties, and having
priority over all other Liens on the Collateral except in the case of (a) Permitted Encumbrances,
to the extent any such Permitted Encumbrances would have priority over the Liens in favor of the
Administrative Agent pursuant to any applicable law or agreement and (b) Liens perfected only by
possession or control (including possession of any certificate of title) to the extent the
Administrative Agent has not obtained or does not maintain possession or control of such
Collateral.

          SECTION 3.17 Employment Matters. As of the Restatement Date, there are no strikes,
lockouts or slowdowns against any Loan Party or any Subsidiary pending or, to the knowledge of the
Borrowers, threatened. The hours worked by and payments made to employees of the Loan Parties and
the Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters. All payments due from any Loan
Party or any Subsidiary, or for which any claim may be made against any Loan Party or any
Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have
been paid or accrued as a liability on the books of the Loan Party or such Subsidiary.

          SECTION 3.18 Common Enterprise. The successful operation and condition of each of
the Loan Parties is dependent on the continued successful performance of the functions of the group
of the Loan Parties as a whole and the successful operation of each of the other Loan Parties.
Each Loan Party expects to derive benefit (and its board of directors or other governing body has
determined that it may reasonably be expected to derive benefit), directly and indirectly, from (i)
successful operations of the other Loan Parties and (ii) the credit extended by the Lenders to the
Borrowers hereunder, both in their separate capacities and as members of the group of companies.
Each Loan Party has determined that execution, delivery, and performance of this Agreement and any
other Loan Documents to be executed by such Loan Party is within its purpose, will be of direct and
indirect benefit to such Loan Party, and is in its best interest.

ARTICLE IV

Conditions

          SECTION 4.01 Restatement Date. The obligations of the Lenders to make Loans and of
the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

     (a) Credit Agreement and Loan Documents. The Administrative Agent (or its
counsel) shall have received (i) from each party hereto either (A) a counterpart of this
Agreement signed on behalf of such party or (B) written evidence satisfactory to the
Administrative Agent (which may include facsimile transmission of a signed signature page of
this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly
executed copies of the Loan Documents and such other certificates, documents, instruments
and agreements as the Administrative Agent shall reasonably request in connection with the
transactions contemplated by this Agreement and the other Loan Documents, including any
promissory notes requested by a Lender pursuant to Section 2.10 payable to each such
requesting Lender and a written opinion of

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the Loan Parties’ counsel, addressed to the Administrative Agent, the Issuing Bank and the Lenders in
form reasonably satisfactory to the Administrative Agent.

     (b) Financial Statements and Projections. The Lenders shall have received
(i) audited consolidated financial statements of the Borrower for the December 31, 2009 and
2010 fiscal years, (ii) unaudited interim consolidated financial statements of the Borrower
for each fiscal quarter ended after the date of the latest applicable financial statements
delivered pursuant to clause (i) of this paragraph as to which such financial statements are
available, and such financial statements shall not, in the reasonable judgment of the
Administrative Agent, reflect any material adverse change in the consolidated financial
condition of the Borrower, as reflected in the financial statements or projections contained
in the Information Memorandum and (iii) satisfactory projections through 2013.

     (c) Closing Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) a certificate of each
Loan Party, dated the Restatement Date and executed by its Secretary or Assistant Secretary,
which shall (A) certify the resolutions of its Board of Directors, members or other body
authorizing the execution, delivery and performance of the Loan Documents to which it is a
party, (B) identify by name and title and bear the signatures of the Financial Officers and
any other officers of such Loan Party authorized to sign the Loan Documents to which it is a
party, and (C) contain appropriate attachments, including the certificate or articles of
incorporation or organization of each Loan Party certified by the relevant authority of the
jurisdiction of organization of such Loan Party and a true and correct copy of its by-laws
or operating, management or partnership agreement, and (ii) a short form good standing
certificate for each Loan Party from its jurisdiction of organization.

     (d) Closing Certificate. The Administrative Agent shall have received a
certificate, signed by a Financial Officer of the Company and each other Loan Party, on the
initial Borrowing date (i) stating that no Default has occurred and is continuing, (ii)
stating that the representations and warranties contained in Article III are true and
correct in all material respects as of such date, and (iii) certifying any other factual
matters as may be reasonably requested by the Administrative Agent.

     (e) Fees. The Lenders and the Administrative Agent shall have received all
fees required to be paid, and all expenses for which invoices have been presented (including
the reasonable fees and expenses of legal counsel), on or before the Restatement Date. All
such amounts will be paid with proceeds of Loans made on the Restatement Date and will be
reflected in the funding instructions given by the Borrower Representative to the
Administrative Agent on or before the Restatement Date.

     (f) Lien Searches. The Administrative Agent shall have received the
results of a recent lien search in each of the jurisdictions reasonably requested by the
Administrative Agent, and such searches shall reveal no liens on any of the assets of the
Loan Parties except for liens permitted by Section 6.02 or discharged on or prior to the
Restatement Date pursuant to a pay-off letter or other documentation reasonably satisfactory
to the Administrative Agent.

     (g) Solvency. The Administrative Agent shall have received a solvency
certificate from a Financial Officer in form and substance satisfactory to the
Administrative Agent.

     (h) Borrowing Base Certificate. The Administrative Agent shall have
received a Borrowing Base Certificate which calculates the Borrowing Base as of a date
reasonably acceptable to the Administrative Agent.

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     (i) Closing Availability. After giving effect to all Borrowings to be made
on the Restatement Date and the issuance of any Letters of Credit on the Restatement Date
and payment of all fees and expenses due hereunder, and with all of the Loan Parties’
indebtedness, liabilities, and obligations current, (i) the Borrowers’ Availability shall
not be less than $70,000,000 and (ii) the Borrowers’ Availability plus cash on hand shall
not be less than $120,000,000. Each of the foregoing shall be calculated without giving
effect to the Temporary Field Exam Reserve.

     (j) Filings, Registrations and Recordings. Each document (including any
Uniform Commercial Code financing statement) required by the Collateral Documents or under
law or reasonably requested by the Administrative Agent to be filed, registered or recorded
in order to create in favor of the Administrative Agent, for the benefit of the Secured
Creditors, a perfected Lien on the Collateral described therein, prior and superior in right
to any other Person (other than with respect to Liens expressly permitted by Section 6.02),
shall be in proper form for filing, registration or recordation.

     (k) Insurance. The Administrative Agent shall have received evidence of
insurance coverage in form, scope, and substance reasonably satisfactory to the
Administrative Agent and otherwise in compliance with the terms of Section 4.7 of the
Security Agreement.

     (l) Existing Facility Payoff. All principal, interest, fees and other
amounts owing under the Existing Credit Agreement shall have been (or shall substantially
contemporaneously be) repaid in full (other than amounts continuing hereunder).

     (m) Consent of Exiting Lenders. The Administrative Agent shall have
received a consent (an “Exiting Lender Consent”) to the Credit Agreement from each
Exiting Lender under the Existing Credit Agreement in form and substance satisfactory to the
Administrative Agent.

     (n) Other Documents. The Administrative Agent shall have received such
other documents as the Administrative Agent, the Issuing Bank, any Lender or their
respective counsel may have reasonably requested.

The Administrative Agent shall notify the Company and the Lenders of the Restatement Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02)
at or prior to 2:00 p.m., Chicago time, on or prior to April 27, 2011 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02 Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (a) The representations and warranties of the Loan Parties set forth in the Loan
Documents shall be true and correct in all material respects on and as of the date of such
Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit,
as applicable (except that any representation or warranty that relates to a specific date
shall be true and correct in all material respects as of such date), or, if they are not
true and correct in all material respects, neither the Administrative Agent nor the Required
Lenders shall have determined not to make any such Loan or instructed the Issuing Bank not
to issue Letters of Credit as a result of the fact that such representation or warranty is
untrue or incorrect.

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     (b) At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing, or, if a Default shall have occurred and be
continuing, neither the Administrative Agent nor the Required Lenders shall have determined
not to make a Loan on the occasion of such Borrowing or instructed the Issuing Bank not to
issue such Letter of Credit as a result of such Default.

     (c) After giving effect to any Borrowing or the issuance of any Letter of Credit,
Availability (determined by reference to the most recently delivered Borrowing Base
Certificate) is not less than (x) the Trigger Amount at all times that the Borrowers are
making weekly financial deliveries pursuant to Section 5.01(n) (unless the Borrowers have
demonstrated in advance to the Administrative Agent compliance with all requirements related
to the Trigger Amount) or (y) the Changeover Amount at all other times (unless the Borrowers
have demonstrated in advance to the Administrative Agent compliance with all requirements
related to the Changeover Amount).

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated, or shall have been cash collateralized in accordance with Section
2.06(j), and all LC Disbursements shall have been reimbursed, each Loan Party executing this
Agreement covenants and agrees, jointly and severally with all of the Loan Parties, with the
Lenders that:

          SECTION 5.01 Financial Statements; Borrowing Base and Other Information. The Company
will furnish to the Administrative Agent:

     (a) within 90 days after the end of each fiscal year of the Company, its audited
consolidated balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by independent public
accountants of recognized national standing reasonably acceptable to the Administrative
Agent (without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit other than any qualification
regarding the adoption of accounting pronouncements) to the effect that such consolidated
financial statements present fairly in all material respects the financial condition and
results of operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, provided that the delivery
within the time period specified above of the Company’s Form 10-K for such fiscal year
(together with the Company’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefore
and filed with the SEC shall be deemed to satisfy the requirements of this Section 5.01(a);
and provided further, that the Company shall be deemed to have made such
delivery of such Form 10-K if it shall have timely made such Form 10-K available on “EDGAR”
and on its home page on the worldwide web (at the date of this Agreement located at
www.furniturebrands.com) and shall have given Administrative Agent prior notice of such
availability on EDGAR and its home page in

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connection with each delivery (such availability and notice thereof being referred to
as “Electronic Delivery”);

     (b) within 45 days after the end of each of the first three fiscal quarters of the
Company, its consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal quarter and the then elapsed
portion of the fiscal year, setting forth in each case in comparative form the figures for
the corresponding period or periods of (or, in the case of the balance sheet, as of the end
of) the previous fiscal year, all certified by one of its Financial Officers as presenting
fairly in all material respects the financial condition and results of operations of the
Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes, provided that delivery within the time period specified above of copies
of the Company’s Form 10-Q prepared in compliance with the requirements therefor and filed
with the SEC shall be deemed to satisfy the requirements of this Section 5.01(b); and
provided further that the Company shall be deemed to have made such delivery
of such Form 10-Q if it shall have timely made Electronic Delivery thereof;

     (c) within 30 days after the end of each fiscal month (other than a fiscal month
ending as of the end of a fiscal quarter of the Company), the Company’s consolidated balance
sheet and related statements of operations, and cash flows as of the end of and for such
fiscal month and the then elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by one of its
Financial Officers as presenting fairly in all material respects (to the best knowledge of
such Financial Officer) the financial condition and results of operations of the Company and
its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of footnotes;

     (d) concurrently with any delivery of financial statements under clause (a), (b) or
(c) above, a certificate of a Financial Officer of the Company in substantially the form of
Exhibit C (a “Compliance Certificate”) (i) certifying, in the case of the
financial statements delivered under clause (b) or (c), as presenting fairly in all material
respects the financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of footnotes, (ii)
certifying as to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect thereto, (iii)
setting forth reasonably detailed calculations demonstrating compliance with Section 6.12,
if applicable, (iv) stating whether any change in GAAP or in the application thereof has
occurred since the date of the audited financial statements referred to in Section 3.04 and,
if any such change has occurred, specifying the effect of such change on the financial
statements accompanying such certificate and (v) setting forth (only in the case of
certificates delivered concurrently with financial statements delivered pursuant to (a) or
(b) above) (1) a computation of Average Availability for the applicable fiscal quarter end
and (2) a summary of all guarantees, investments, and loans or advances (as applicable)
issued or made pursuant to Sections 6.01(d), or 6.04(c) or (d) during the immediately
preceding fiscal quarter;

     (e) within 30 days immediately following the end of each fiscal year of the
Company, a copy of the plan and forecast (including a projected consolidated balance sheet,
income statement and funds flow statement) of the Company for each quarter of the then
current fiscal year (the “Projections”) in form reasonably satisfactory to the
Administrative Agent;

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     (f) as soon as available but in any event within 25 days of the end of each
calendar month (or, at any time Availability is less than the Changeover Amount, at the end
of each calendar week, and at the end of each calendar week thereafter until Availability
has exceeded the Changeover Amount for 90 consecutive days) and at such other times as may
be necessary to re-determine availability of Advances hereunder or as may be requested by
the Administrative Agent, as of the period then ended, a Borrowing Base Certificate and
supporting information in connection therewith, together with any additional reports with
respect to the Borrowing Base as the Administrative Agent may reasonably request;

     (g) as soon as available but in any event within 25 days of the end of each
calendar month (or, at any time Availability is less than the Changeover Amount, at the end
of each calendar week, and at the end of each calendar week thereafter until Availability
has exceeded the Changeover Amount for 90 consecutive days) and at such other times as may
be requested by the Administrative Agent, as of the period then ended, all delivered
electronically in a text formatted file acceptable to the Administrative Agent:

     (i) a detailed schedule and aging of the Accounts (1) including all
invoices aged by invoice date and due date (with an explanation of the terms
offered) and (2) reconciled to the Borrowing Base Certificate delivered as of such
date prepared in a manner reasonably acceptable to the Administrative Agent,
together with a summary specifying the name and balance due for each Account Debtor:

     (ii) a schedule detailing the Inventory, in form satisfactory to the
Administrative Agent, (1) by location (showing Inventory in transit, any Inventory
located with a third party under any consignment, bailee arrangement, or warehouse
agreement), by class (raw material, work-in-process and finished goods), by product
type, and by volume on hand, which Inventory shall be valued at the lower of cost
(determined on a first-in, first-out basis) or market and adjusted for Reserves as
the Administrative Agent has previously indicated to the Company are deemed by the
Administrative Agent to be appropriate, (2) including a report of any variances or
other results of Inventory counts performed by the Loan Parties since the last
Inventory schedule (including information regarding sales or other reductions,
additions, returns, credits issued by the Loan Parties and complaints and claims
made against the Loan Parties), and (3) reconciled to the Borrowing Base Certificate
delivered as of such date;

     (iii) a worksheet of calculations prepared by the Company to determine
Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and
Inventory excluded from Eligible Accounts and Eligible Inventory and the reason for
such exclusion;

     (iv) a reconciliation of the Accounts and Inventory between the amounts
shown in the Loan Parties’ general ledger and financial statements and the reports
delivered pursuant to clauses (i) and (ii) above; and

     (v) a reconciliation of the loan balance per the Loan Parties’ general
ledger to the loan balance under this Agreement.

     (h) promptly upon the Administrative Agent’s request:

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     (i) copies of invoices in connection with the invoices issued by the Loan
Parties in connection with any Accounts, credit memos, shipping and delivery
documents, and other information related thereto;

     (ii) copies of purchase orders, invoices, and shipping and delivery
documents in connection with any Inventory or Equipment purchased by any Loan Party;
and

     (iii) a schedule detailing the balance of all intercompany accounts of the
Loan Parties;

     (i) as soon as available but in any event within 25 days of the end of each
calendar month and at such other times as may be requested by the Administrative Agent, as
of the period then ended, the Loan Parties’ sales journal, cash receipts journal
(identifying trade and non-trade cash receipts) and debit memo/credit memo journal;

     (j) upon request of Administrative Agent, copies of all tax returns filed by any
Loan Party with the U.S. Internal Revenue Service;

     (k) within 45 days after each June 30 starting June 30, 2011, an updated customer
list for the Borrower and its Subsidiaries as of June 30, which list shall state the
customer’s name, mailing address and phone number and shall be certified as true and correct
by a Financial Officer of the Company;

     (l) within 45 days after the last day of June of each year, a certificate of good
standing for each Loan Party from the appropriate governmental officer in its jurisdiction
of incorporation, formation, or organization;

     (m) promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Borrower or any Subsidiary
with the SEC, provided that in each case the Company shall be deemed to have made
such delivery if it shall have made Electronic Delivery thereof;

     (n) not later than 12:00 noon New York time on the Friday immediately following the
end of the second fiscal week of every fiscal month (or, to the extent that (x) the
Borrowers are at the applicable time subject to the requirements of the Changeover Amount or
(y) the Borrowers shall have voluntarily elected to commence reporting on a weekly basis for
purposes of this clause (n), not later than 12:00 noon New York time on the Friday
immediately following the end of each fiscal week), accounts receivable roll-forwards and
inventory gross balances for the two fiscal week period (or, to the extent that (x) the
Borrowers are at the applicable time subject to the requirements of the Changeover Amount or
(y) the Borrowers shall have voluntarily elected to commence reporting on a weekly basis for
purposes of this clause (n), the one fiscal week period) preceding such date, all calculated
on a consolidated basis and delivered in a format similar to the accounts receivable and
inventory reporting in a Borrowing Base Certificate; and

     (o) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Company or any Subsidiary, or
compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.

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          SECTION 5.02 Notices of Material Events. The Borrowers will furnish to the
Administrative Agent prompt written notice of the following:

     (a) the occurrence of any Default;

     (b) receipt of any notice of any governmental investigation or any litigation or
proceeding commenced or threatened against any Loan Party that (i) seeks damages in excess
of $15,000,000, (ii) seeks injunctive relief which could reasonably be expected to have a
Material Adverse Effect, (iii) is asserted or instituted against any Plan or Multiemployer
Plan, its fiduciaries or its assets, (iv) alleges criminal misconduct by any Loan Party, (v)
alleges the violation of any law regarding, or seeks remedies in connection with, any
Environmental Laws, (vi) contests any tax, fee, assessment, or other governmental charge in
excess of $15,000,000, or (vii) involves any product recall;

     (c) any Lien (other than Permitted Encumbrances or Liens otherwise permitted by
Section 6.02) or claim made or asserted against any of the Collateral;

     (d) any loss, damage, or destruction to the Collateral in the amount of $5,000,000
or more, whether or not covered by insurance;

     (e) any and all written default notices received under or with respect to any
leased location or public warehouse where Collateral with an aggregate value in excess of
$5,000,000 is located (which shall be delivered within ten Business Days after receipt
thereof);

     (f) the fact that a Loan Party has entered into a Swap Agreement or an amendment to
a Swap Agreement, together with copies of all agreements evidencing such Swap Agreement or
amendments thereto (which shall be delivered within ten Business Days);

     (g) the occurrence of (i) any ERISA Event described in clause (b) of the definition
thereof or (ii) any ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Company and its
Subsidiaries in an aggregate amount exceeding $15,000,000; and

     (h) any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          SECTION 5.03 Existence; Conduct of Business. Each Loan Party will, and will cause
each Subsidiary to, (a) do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, qualifications, licenses, permits,
franchises, governmental authorizations, intellectual property rights, licenses and permits
material to the conduct of its business, and maintain all requisite authority to conduct its
business in each jurisdiction in which its business is conducted except to the extent the failure
to maintain such authority would not reasonably be expected to cause a Material Adverse Effect;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (b) carry on and conduct its business in substantially
the same manner and in substantially the same fields of enterprise as it is presently conducted,
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

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          SECTION 5.04 Payment of Obligations. Each Loan Party will, and will cause each
Subsidiary to, pay or discharge all Material Indebtedness and all other material liabilities and
obligations, including Taxes, before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such
Loan Party or such Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

          SECTION 5.05 Maintenance of Properties. Each Loan Party will, and will cause each
Subsidiary to, keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted, provided that the foregoing shall not
prohibit any disposition under Section 6.05.

          SECTION 5.06 Books and Records; Inspection Rights. Each Loan Party will, and will
cause each Subsidiary to, (i) keep proper books of record and account in which full, true and
correct entries are made of all dealings and transactions in relation to its business and
activities and (ii) permit any representatives designated by the Administrative Agent or any Lender
(including employees of the Administrative Agent, any Lender or any consultants, accountants,
lawyers and appraisers retained by the Administrative Agent), upon reasonable prior notice during
regular business hours and under guidance of officers of the Borrowers, to visit and inspect its
properties, to examine and make extracts from their books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and intervals and as often as reasonably requested. After the occurrence and during the
continuance of any Event of Default, each Loan Party shall provide the Administrative Agent with
the names and contact information for its suppliers. The Loan Parties acknowledge that the
Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the
Lenders certain Reports pertaining to the Loan Parties’ assets for internal use by the
Administrative Agent and the Lenders.

          SECTION 5.07 Compliance with Laws. Each Loan Party will, and will cause each
Subsidiary to, comply with all Requirements of Law applicable to it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

          SECTION 5.08 Use of Proceeds. The proceeds of the Loans will be used only for the
general corporate purposes of the Company and its Subsidiaries in the ordinary course of business,
including the refinancing of existing Indebtedness and for Permitted Acquisitions. No part of the
proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U
and X.

          SECTION 5.09 Insurance. Each Loan Party will, and will cause each Subsidiary to,
maintain with financially sound and reputable carriers (a) insurance in such amounts (with no
greater risk retention) and against such risks (including loss or damage by fire and loss in
transit; theft, burglary, pilferage, larceny, embezzlement, and other criminal activities; business
interruption; and general liability) and such other hazards, as is customarily maintained by
companies engaged in the same or similar businesses operating in the same or similar locations and
(b) all insurance required pursuant to the Collateral Documents. The Borrower will furnish to the
Lenders, upon request of the Administrative Agent, information in reasonable detail as to the
insurance so maintained.

          SECTION 5.10 Casualty and Condemnation. The Borrowers (a) will furnish to the
Administrative Agent prompt written notice of any casualty or other insured damage to any material
portion of the Collateral or the commencement of any action or proceeding for the taking of any
material

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portion of the Collateral or interest therein under power of eminent domain or by
condemnation or similar proceeding and (b) will ensure that the Net Proceeds of any such event
(whether in the form of insurance
proceeds, condemnation awards or otherwise) are collected and applied in accordance with the
applicable provisions of this Agreement and the Collateral Documents.

          SECTION 5.11 Appraisals and Field Examinations. (a) The Company and the Subsidiaries
will provide the Administrative Agent with appraisals or updates thereof of their Inventory from an
appraiser selected and engaged by the Administrative Agent following consultation with the Company,
and prepared on a basis reasonably satisfactory to the Administrative Agent, such appraisals and
updates to include, without limitation, information required by applicable law and regulations;
provided, however, that one such appraisal shall be conducted per calendar year by
the Administrative Agent; provided further that two such appraisals may be
conducted per calendar year at the discretion of the Administrative Agent if Availability falls
below $60,000,000 or the Fixed Charge Coverage Ratio is less than 1.0 to 1.0; and provided
further that the number or frequency of inventory appraisals may increase (as determined by
the Administrative Agent in its sole discretion) if an Event of Default shall have occurred and be
continuing.

          (b) One field examination shall be conducted per year by the Administrative Agent, to
ensure the adequacy of Borrowing Base collateral and related reporting and control systems;
provided that two field examinations may be conducted per year at the discretion of the
Administrative Agent if Availability falls below $60,000,000 or the Fixed Charge Coverage Ratio is
less than 1.0 to 1.0; and provided further that the number or frequency of field
examinations may increase (as determined by the Administrative Agent in its sole discretion) if an
Event of Default shall have occurred and be continuing.

          SECTION 5.12 Depository Banks. The Loan Parties each will maintain at one or more of
the Lenders, or such other bank(s) as may be reasonably acceptable to Administrative Agent, as its
principal depository bank, including for the maintenance of operating, administrative, cash
management, collection activity, and other deposit accounts for the conduct of its business.

          SECTION 5.13 Additional Collateral; Further Assurances. (a) Subject to applicable
law, each Loan Party shall cause each of its domestic Subsidiaries (other than such domestic
Subsidiaries having less than $10,000 of assets) formed or acquired after the date of this
Agreement in accordance with the terms of this Agreement to become a Loan Party by executing the
Joinder Agreement set forth as Exhibit E hereto (the “Joinder Agreement”). Upon
execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor
hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such
capacity under the Loan Documents and (ii) will grant Liens to the Administrative Agent, for the
benefit of the Secured Creditors, in any property of such Loan Party which constitutes Collateral.

          (b) Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary
to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such
documents, agreements and instruments, and will take or cause to be taken such further actions
(including the filing and recording of financing statements, and other documents and such other
actions or deliveries of the type required by Section 4.01, as applicable), which may be required
by law or which the Administrative Agent may, from time to time, reasonably request to carry out
the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection
and priority of the Liens created or intended to be created by the Collateral Documents, all at the
expense of the Loan Parties.

          (c) If at any time Availability shall fall below the Changeover Amount, then the Loan
Parties shall promptly take the actions prescribed by the Security Agreement to establish cash
dominion in favor of the Administrative Agent over the Loan Parties’ cash and Investment Property
that

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constitutes Collateral. The obligation of the Loan Parties to comply with the foregoing
requirement shall continue
until Availability has exceeded the Changeover Amount for 90 consecutive days. The
Administrative Agent shall thereafter promptly take all necessary actions to terminate such cash
dominion.

          (d) Notwithstanding anything to the contrary herein or in the Security Agreement, the
Administrative Agent may, in its Permitted Discretion, establish a Reserve and require the
applicable Loan Party(ies) to open and maintain new deposit accounts as contemplated by Section 4.9
of the Security Agreement.

          (e) The Loan Parties shall deliver to the Administrative Agent each item set forth on
Schedule 5.13(e) to the Disclosure Letter in form and substance reasonably satisfactory to
the Administrative Agent within the time periods set forth opposite each such item on such Schedule
or such later date as shall be acceptable to the Administrative Agent in its sole discretion.

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in
full and all Letters of Credit have expired or terminated, or shall have been cash collateralized
in accordance with Section 2.06(j), and all LC Disbursements shall have been reimbursed, the Loan
Parties covenant and agree, jointly and severally, with the Lenders that:

          SECTION 6.01 Indebtedness. No Loan Party will, nor will it permit any Subsidiary to,
create, incur or suffer to exist any Indebtedness, except:

     (a) the Secured Obligations;

     (b) Indebtedness existing on the date hereof and set forth in Schedule
6.01 of the Disclosure Letter and extensions, renewals and replacements of any
such Indebtedness in accordance with clause (f) hereof;

     (c) Indebtedness of any Borrower to any other Borrower, of any Borrower to any
Subsidiary and of any Subsidiary to any Borrower or any other Subsidiary, provided
that (i) Indebtedness of any Subsidiary that is not a Loan Party to any Borrower or any
Subsidiary that is a Loan Party shall be subject to Section 6.04 and (ii) Indebtedness of
any Borrower to any Subsidiary that is not a Borrower and Indebtedness of any Subsidiary
that is a Loan Party to any Subsidiary that is not a Loan Party shall be subordinated to the
Secured Obligations on terms reasonably satisfactory to the Administrative Agent;

     (d) Guarantees by any Borrower of Indebtedness of any other Borrower or any
Subsidiary and by any Subsidiary of Indebtedness of any Borrower or any other Subsidiary,
provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01,
(ii) Guarantees by any Borrower or any Subsidiary that is a Loan Party of Indebtedness of
any Subsidiary that is not a Loan Party issued on or after the Restatement Date (A) shall be
subject to Section 6.04, and (B) shall only be permitted to the extent that (1) immediately
prior to or immediately after giving effect to such Guarantee the Restricted Amount is
$20,000,000 or less, without restriction, or (2) immediately prior to or immediately after
giving effect to such Guarantee the Restricted Amount is greater than $20,000,000 but less
than or equal to $50,000,000 and the average daily

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Availability during the ninety-day period
prior to the date of incurrence of such guaranteed Indebtedness (inclusive of the date of
incurrence of such guaranteed Indebtedness) is not less than
$70,000,000 calculated on a pro forma basis after giving effect to the applicable
incurrence of guaranteed Indebtedness, and (iii) Guarantees permitted under this clause (d)
shall be subordinated to the Secured Obligations of the applicable Subsidiary on the same
terms as the Indebtedness so Guaranteed is subordinated to the Secured Obligations;

     (e) Indebtedness of any Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets (whether or not
constituting purchase money Indebtedness), including Capital Lease Obligations and any
Indebtedness assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof, and extensions, renewals and
replacements of any such Indebtedness in accordance with clause (f) hereof; provided
that (i) such Indebtedness is incurred prior to or within 90 days after such acquisition or
the completion of such construction or improvement and (ii) the aggregate principal amount
of Indebtedness permitted by this clause (e) together with the aggregate principal amount of
Indebtedness permitted by clause 6.01(j) below shall not exceed $80,000,000 (except as
expressly set forth in clause (j) below with respect to Indebtedness incurred in connection
with an acquisition) at any time outstanding;

     (f) Indebtedness which represents an extension, refinancing, or renewal of any of
the Indebtedness described in clauses (b), (e), (i) and (j) hereof;
provided that, (i) the principal amount or interest rate of such Indebtedness is not
increased, (ii) any Liens securing such Indebtedness are not extended to any additional
property of any Loan Party, (iii) no Loan Party that is not originally obligated with
respect to repayment of such Indebtedness is required to become obligated with respect
thereto, (iv) such extension, refinancing or renewal does not result in a shortening of the
average weighted maturity of the Indebtedness so extended, refinanced or renewed, (v) the
terms of any such extension, refinancing, or renewal are not materially less favorable to
the obligor thereunder than the original terms of such Indebtedness and (iv) if the
Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment
to the Secured Obligations, then the terms and conditions of the refinancing, renewal, or
extension Indebtedness must include subordination terms and conditions that are at least as
favorable to the Administrative Agent and the Lenders as those that were applicable to the
refinanced, renewed, or extended Indebtedness;

     (g) Indebtedness owed to any person providing workers’ compensation, health,
disability or other employee benefits or property, casualty or liability insurance, pursuant
to reimbursement or indemnification obligations to such person, in each case incurred in the
ordinary course of business;

     (h) Indebtedness of the Borrower or any Subsidiary in respect of performance bonds,
bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the
ordinary course of business;

     (i) Indebtedness under Swap Agreements permitted hereunder;

     (j) Indebtedness of a Subsidiary existing at the time of acquisition thereof by the
Company or a Subsidiary not to exceed $80,000,000 (or $125,000,000 if the Fixed Charge
Coverage Ratio, determined as of the end of the most recently ended fiscal month for which
financial statements have been delivered pursuant to Section 5.01 giving pro forma effect to
the proposed acquisition as if made at the start of the preceding twelve month period, is
greater than 1.2 to 1.0) at the time of such acquisition (or Indebtedness assumed at the
time of an acquisition

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of an asset that is subject to a Lien securing such Indebtedness),
provided that (i) such Indebtedness was not incurred in connection with, or in
contemplation of, such acquisition, (ii)
any Lien securing such Indebtedness is permitted under Section 6.02(e); and (iii) the
aggregate principal amount of Indebtedness permitted by this clause (j) together with the
aggregate principal amount of Indebtedness permitted by clause 6.01(e) above shall not
exceed $80,000,000 (except as expressly set forth in this clause (j) with respect to
Indebtedness incurred in connection with an acquisition) at any time outstanding;

     (k) Guarantees (i) of the Borrowers or any of their Subsidiaries as a guarantor of
the lessee under any lease pursuant to which a Borrower or a Subsidiary is the lessee so
long as such lease is otherwise permitted hereunder, (ii) of the Company constituting
Guarantees by the Company of trade payables owing by its Subsidiaries in the ordinary course
of business, (iii) of the Company and/or Thomasville consisting of Guarantees (with the
maximum amount guaranteed at any time pursuant to this clause (iii) not to exceed $7,500,000
in the aggregate) of actual or potential claims under Environmental Laws, and (iv) of any
Borrower or any Subsidiary as a guarantor of the obligations of a lessee under any lease
pursuant to which a third party is the lessee not to exceed $100,000,000 in the aggregate;

     (l) other unsecured Indebtedness in an aggregate principal amount not exceeding (x)
$80,000,000 (or $125,000,000 if the Fixed Charge Coverage Ratio, determined as of the end of
the most recently ended fiscal month for which financial statements have been delivered
pursuant to Section 5.01 giving pro forma effect to the proposed Permitted Acquisition as if
made at the start of the preceding twelve month period, is greater than 1.2 to 1.0) to the
extent that the proceeds thereof are used to fund a Permitted Acquisition or (y) in all
other instances, $50,000,000, at any time outstanding; provided, that, if, at the
time of incurrence of any such other unsecured Indebtedness under this clause (l), the
Leverage Ratio does not exceed 5:1 (giving effect to such incurrence), then such maximum
amount shall be $125,000,000;

     (m) other Indebtedness, including Indebtedness pursuant to sale and leaseback
transactions permitted by the last sentence of Section 6.06; provided, that the aggregate
amount of such Indebtedness incurred in the same calendar year, does not exceed $20,000,000
(or $50,000,000 if the Administrative Agent shall so agree in its sole discretion); and

     (n) other Indebtedness incurred in connection with Permitted Acquisitions not to
exceed $80,000,000 (or $125,000,000 if the Fixed Charge Coverage Ratio, determined as of the
end of the most recently ended fiscal month for which financial statements have been
delivered pursuant to Section 5.01 giving pro forma effect to the proposed Permitted
Acquisition as if made at the start of the preceding twelve month period, is greater than
1.2 to 1.0)in the aggregate per calendar year.

Notwithstanding the foregoing, the aggregate principal amount of Indebtedness permitted by clause
6.01(j) above incurred in connection with Permitted Acquisitions, together with the aggregate
principal amount of Indebtedness permitted by clause 6.01(l) above incurred in connection with
Permitted Acquisitions, together with the aggregate principal amount of Indebtedness permitted by
clause 6.01(n) above incurred in connection with Permitted Acquisitions, shall not exceed an
aggregate amount of $80,000,000 (or $125,000,000 if the Fixed Charge Coverage Ratio, determined as
of the end of the most recently ended fiscal month for which financial statements have been
delivered pursuant to Section 5.01 giving pro forma effect to the proposed Permitted Acquisition as
if made at the start of the preceding twelve month period, is greater than 1.2 to 1.0) in the same
calendar year.

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          SECTION 6.02 Liens. No Loan Party will, nor will it permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter
acquired by it,
or assign or sell any income or revenues (including accounts receivable) or rights in respect
of any thereof, except:

     (a) Liens created pursuant to any Loan Document;

     (b) Permitted Encumbrances;

     (c) any Lien on any property or asset of any Borrower or any Subsidiary existing on
the date hereof and set forth in Schedule 6.02 of the Disclosure Letter;
provided that (i) such Lien shall not apply to any other property or asset of such
Borrower or Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the date hereof and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof;

     (d) Liens on fixed or capital assets acquired, constructed or improved by the
Borrower or any Subsidiary; provided that (i) such security interests secure
Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the
Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition
or the completion of such construction or improvement, (iii) the Indebtedness secured
thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed
or capital assets and (iv) such security interests shall not apply to any other property or
assets of such Borrower or Subsidiary or any other Borrower or Subsidiary;

     (e) any Lien existing on any property or asset (other than Accounts and Inventory)
prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any
property or asset (other than Accounts and Inventory) of any Person that becomes a Loan
Party after the date hereof prior to the time such Person becomes a Loan Party;
provided that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Loan Party, as the case may be, (ii) such Lien
shall not apply to any other property or assets of the Loan Party and (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition or the date
such Person becomes a Loan Party, as the case may be and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof;

     (f) Liens of a collecting bank arising in the ordinary course of business under
Section 4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction covering
only the items being collected upon;

     (g) Liens arising out of sale and leaseback transactions permitted by Section 6.06
and other Indebtedness permitted under Section 6.01(m); provided, that in no event
shall any such Liens encumber the Collateral or any intellectual property or tradenames of
the Company and its Subsidiaries;

     (h) Liens granted by a Subsidiary that is not a Loan Party in favor of the Borrower
or another Loan Party in respect of Indebtedness owed by such Subsidiary;

     (i) (i) licenses, leases or subleases granted to other Persons in the ordinary course
of business and not materially interfering with the conduct of the business of the Company
and its Subsidiaries taken as a whole, (ii) Liens arising from precautionary UCC financing
statements

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regarding operating leases and (iii) statutory and common law landlords’ liens
under leases to which any of the Company and/or its Subsidiaries is a party;

     (j) any interest or title of a lessor, sublessor, licensee or licensor under any
lease or license agreement not prohibited by this Agreement;

     (k) Liens in favor of customs and revenue authorities arising as a matter of law to
secure the payment of customs duties in connection with the importation of goods; and

     (l) Liens securing Indebtedness permitted by Section 6.01(n); provided that
such Liens (i) shall encumber only the assets of an Acquired Entity or Business and (ii)
shall not encumber the Accounts or Inventory of any such Acquired Entity or Business.

Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02 may at any
time attach to any Loan Party’s (1) Accounts, other than those permitted under clause (a) of the
definition of Permitted Encumbrances and clause (a) above, (2) Inventory, other than those
permitted under clause (a) or (b) of the definition of Permitted Encumbrances and clause (a) above,
or (3) Equity Interests in any Subsidiary.

          SECTION 6.03 Fundamental Changes. (a) No Loan Party will, nor will it permit any
Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Event of Default shall have occurred and be continuing
(i) any Person may merge into any Borrower in a transaction in which the surviving entity is any
Borrower, (ii) any Person may merge into any Subsidiary in a transaction in which the surviving
entity is a Subsidiary and, if any party to such merger is a Subsidiary that is a Loan Party, is or
becomes a Subsidiary that is Loan Party concurrently with such merger, and (iii) any Subsidiary
that is not a Loan Party may liquidate or dissolve if the Company determines in good faith that
such liquidation or dissolution is in the best interests of any Borrower and is not materially
disadvantageous to the Lenders; provided that any such merger involving a Person that is
not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 6.04.

          (b) No Loan Party will, nor will it permit any of its Subsidiaries to, engage in any
business other than businesses of the type conducted by the Borrowers and its Subsidiaries on the
date of execution of this Agreement and businesses reasonably related or complimentary thereto.

          SECTION 6.04 Investments, Loans, Advances, Guarantees and Acquisitions. No Loan
Party will, nor will it permit any Subsidiary to, purchase, hold or acquire (including pursuant to
any merger with any Person that was not a Loan Party and a wholly owned Subsidiary prior to such
merger) any capital stock, evidences of indebtedness or other securities (including any option,
warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any investment or any other
interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit (whether through purchase
of assets, merger or otherwise), except:

     (a) Permitted Investments, subject to control agreements in favor of the
Administrative Agent for the benefit of the Secured Creditors or otherwise subject to a
perfected security interest in favor of the Administrative Agent for the benefit of the
Secured Creditors;

     (b) investments in existence on the date of this Agreement and described in
Schedule 6.04 of the Disclosure Letter;

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     (c) investments by the Borrowers and the Subsidiaries in Equity Interests in their
respective Subsidiaries, provided that (i) at no time shall the Restricted Amount exceed $125,000,000 (excluding the amount of investments funded by the issuance of Equity
Interests by the Company (subject to the Administrative Agent’s receipt of written notice
from the Company with respect to such issuance not more than 30 days thereafter) not earlier
than two years prior to the applicable investment) and (ii) any investments (other than
investments funded by the issuance of Equity Interests by the Company (subject to the
Administrative Agent’s receipt of written notice from the Company with respect to such
issuance not more than 30 days thereafter) not earlier than two years prior to the
applicable investment) made by Loan Parties in Subsidiaries which are not Loan Parties
pursuant to this clause (c) shall be made only using the proceeds of Indebtedness incurred
pursuant to Section 6.01(l) with the exception of (x) any investment made on or after the
Restatement Date if immediately prior to and immediately after giving effect to such
investment the Restricted Amount is $20,000,000 or less, (y) any investment made on or after
the Restatement Date if immediately prior to and immediately after giving effect to such
investment the Restricted Amount is greater than $20,000,000 but less than or equal to
$50,000,000 and the average daily Availability during the ninety-day period prior to the
date of any such investment (inclusive of the date of such investment) is not less than
$70,000,000 calculated on a pro forma basis after giving effect to the applicable
investment, and (z) investments in an aggregate amount equal to the aggregate amount of
proceeds received as of the time of such investment from asset dispositions permitted by
Section 6.05(g) to the extent that such proceeds were received on or after the Restatement
Date and within two years of the date of the applicable investment;

     (d) loans or advances made by any Borrower to any Subsidiary or made by any
Subsidiary to any other Borrower or any other Subsidiary, provided that (i) any such loans
or advances made by a Loan Party shall be evidenced by a promissory note pledged pursuant to
the Security Agreement, (ii) at no time shall the Restricted Amount exceed $125,000,000
(excluding the amount of loans and advances funded by the issuance of Equity Interests by
the Company (subject to the Administrative Agent’s receipt of written notice from the
Company with respect to such issuance not more than 30 days thereafter) not earlier than two
years prior to the applicable loan or advance) and (iii) any loans or advances (other than
loans or advances funded by the issuance of Equity Interests by the Company(subject to the
Administrative Agent’s receipt of written notice from the Company with respect to such
issuance not more than 30 days thereafter) not earlier than two years prior to the
applicable loan or advance) made by Loan Parties to Subsidiaries which are not Loan Parties
pursuant to this clause (d) shall be made only using the proceeds of Indebtedness incurred
pursuant to Section 6.01(l) with the exception of (x) any loan or advance made on or after
the Restatement Date if immediately prior to and immediately after giving effect to such
loan or advance the Restricted Amount is $20,000,000 or less, (y) any investment made on or
after the Restatement Date if immediately prior to and immediately after giving effect to
such investment the Restricted Amount is greater than $20,000,000 but less than or equal to
$50,000,000 and the average daily Availability during the ninety-day period prior to the
date of any such loan or advance (inclusive of the date of such loan or advance) is not less
than $70,000,000 calculated on a pro forma basis after giving effect to the applicable loans
and advances, and (z) loans or advances made on or after the Restatement Date in an
aggregate amount equal to the aggregate amount of proceeds received as of the time of such
loans or advances from asset dispositions permitted by Section 6.05(g) to the extent that
such proceeds were received on or after the Restatement Date and within two years of the
date of the applicable loans or advances);

     (e) Guarantees constituting Indebtedness permitted by Section 6.01, provided that
at no time shall the Restricted Amount exceed $125,000,000;

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     (f) loans or advances made by a Loan Party to its directors, officers and other
employees on an arms-length basis in the ordinary course of business consistent with past
practices for travel and entertainment expenses, relocation costs and similar purposes up to
a maximum of $1,000,000 in the aggregate at any one time outstanding;

     (g) subject to Sections 4.2(a) and 4.4 of the Security Agreement, notes payable, or
stock or other securities issued by Account Debtors to a Loan Party pursuant to plans of
reorganization in bankruptcy cases or negotiated agreements with respect to settlement of
such Account Debtor’s Accounts in the ordinary course of business, consistent with past
practices;

     (h) investments in the form of Swap Agreements permitted by Section 6.07;

     (i) investments of any Person existing at the time such Person becomes a Subsidiary
of a Borrower or consolidates or merges with a Borrower or any of the Subsidiaries
(including in connection with a permitted acquisition) so long as such investments were not
made in contemplation of such Person becoming a Subsidiary or of such merger;

     (j) investments received in connection with the dispositions of assets permitted by
Section 6.05;

     (k) investments constituting deposits described in clauses (c) and (d) of the
definition of the term “Permitted Encumbrances”; and

     (l) subject to the requirements contained in the definition of Permitted
Acquisition, the Company and its wholly-owned Subsidiaries may from time to time make
investments in the form of Permitted Acquisitions so long as such Permitted Acquisitions are
in compliance with the following restrictions: (i) no Default shall have occurred and be
continuing at the time of the consummation of the proposed Permitted Acquisition or
immediately after giving effect thereto; (ii) the cash consideration used to fund such
Permitted Acquisition pursuant to this Section 6.04(l) consists of (A) the proceeds from the
issuance of Equity Interests (so long as the Company has issued such Equity Interests
(subject to the Administrative Agent’s receipt of written notice from the Company with
respect to such issuance not more than 30 days thereafter) not earlier than two years prior
to the applicable Permitted Acquisition); (B) the proceeds of Indebtedness permitted by
Section 6.01(l) incurred (subject to the Administrative Agent’s receipt of written notice
from the Company with respect to such incurrence not more than 30 days thereafter) not
earlier than two years prior to the applicable Permitted Acquisition; (C) the proceeds of
Indebtedness permitted by Section 6.01(n) incurred concurrently with the applicable
Permitted Acquisition or (D) so long as the average daily Availability during the ninety-day
period prior to the date of any such Permitted Acquisition (inclusive of the date of such
Permitted Acquisition) shall not be less than the Changeover Amount calculated on a pro
forma basis after giving effect to the applicable Permitted Acquisition, cash on hand
(including the proceeds of any Loans) in an aggregate amount in any calendar year not to
exceed $30,000,000 (or $90,000,000 if the Fixed Charge Coverage Ratio, determined as of the
end of the most recently ended fiscal month for which financial statements have been
delivered pursuant to Section 5.01 giving pro forma effect to the proposed Permitted
Acquisition as if made at the start of the preceding twelve month period, is greater than
1.2 to 1.0); (iii) non-cash consideration for such Permitted Acquisition pursuant to this
Section 6.04(l) consists of (x) Equity Interests in the Company or (y) Indebtedness
permitted to be assumed by Section 6.01(j); (iv) if the proposed Permitted Acquisition is
for aggregate consideration of $30,000,000 or more, the Company shall have given to the
Administrative Agent written notice of such proposed Permitted Acquisition at least ten (10)
Business Days prior to consummation of such Permitted Acquisition (or such shorter period

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of time as may be reasonably acceptable to the Administrative Agent), which notice
shall be executed by a Financial Officer and (A) shall describe in reasonable detail the
principal terms and conditions of such Permitted Acquisition and (B) include computations in
reasonable detail reflecting that after giving effect to such proposed Permitted Acquisition
and any Indebtedness to be incurred in connection therewith, the Company is in compliance
with Section 6.12, if applicable; and (v) at the time of any such Permitted Acquisition
involving the creation or acquisition of a Subsidiary, or the acquisition of capital stock
or other Equity Interest of any Person, the Borrower and its Subsidiaries shall have
complied with Section 5.13.

          SECTION 6.05 Asset Sales. No Loan Party will, nor will it permit any Subsidiary to,
sell, transfer, lease or otherwise dispose of any asset, including any Equity Interest of another
Person owned by it, nor will any Borrower permit any Subsidiary to issue any additional Equity
Interest in such Subsidiary (other than to any Borrower or another Subsidiary in compliance with
Section 6.04), except:

     (a) (i) sales, transfers and dispositions of inventory in the ordinary course of
business and (ii) sales, transfers, leases and other dispositions of used, obsolete, worn
out or surplus equipment or property in the ordinary course of business;

     (b) sales, transfers, leases and other dispositions to any Borrower or any
Subsidiary, provided that any such sales, transfers, leases or other dispositions
involving a Subsidiary that is not a Loan Party shall be made in compliance with Section
6.09;

     (c) sales, transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof;

     (d) sales, transfers and dispositions of investments permitted by clauses (i) and
(k) of Section 6.04;

     (e) sale and leaseback transactions permitted by Section 6.06;

     (f) dispositions resulting from any casualty or other insured damage to, or any
taking under power of eminent domain or by condemnation or similar proceeding of, any
property or asset of any Borrower or any Subsidiary; and

     (g) so long as no Event of Default shall have occurred and is continuing, sales,
transfers and other dispositions of assets (other than Equity Interests in a Subsidiary
unless all Equity Interests in such Subsidiary are sold) that are not permitted by any other
paragraph of this Section, provided that (i) the aggregate fair market value of all
assets sold, transferred or otherwise disposed of in reliance upon this paragraph (g) shall
not exceed $100,000,000 during any fiscal year of the Company or $300,000,000 over the term
of this Agreement and (ii) no sale, transfer or other disposition of a Specified Asset shall
be permitted by this clause (g) without the consent of the Required Lenders;

provided that all sales, transfers, leases and other dispositions permitted hereby (other
than those permitted by paragraphs (b), (c) and (f) above) shall be made for fair value and for at
least 75% cash consideration.

          SECTION 6.06 Sale and Leaseback Transactions. Except as set forth in the immediately
following sentence, no Loan Party will, nor will it permit any Subsidiary to, enter into any
arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter
rent or lease such property or other

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property that it intends to use for substantially the same purpose or purposes as the property
sold or transferred, except for any such sale of any fixed or capital assets by any Borrower or any
Subsidiary that is made for cash consideration in an amount not less than the fair value of such
fixed or capital asset and is consummated within 180 days after any Borrower or such Subsidiary
acquires or completes the construction of such fixed or capital asset. Notwithstanding the
foregoing, the Loan Parties and their Subsidiaries may enter into additional sale and leaseback
transactions in addition to those described in the immediately preceding sentence so long as: (i)
no Default shall have occurred and be continuing at the time of the consummation of the proposed
sale and leaseback transaction or immediately after giving effect thereto; and (ii) the aggregate
amount of proceeds from all such sale and leaseback transactions in the same calendar year together
with all Indebtedness incurred pursuant to Section 6.01(m) in such calendar year does not exceed
$20,000,000 (or $50,000,000 if the Administrative Agent shall so agree in its sole discretion).

          SECTION 6.07 Swap Agreements. No Loan Party will, nor will it permit any Subsidiary
to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate
risks to which any Borrower or any Subsidiary has actual exposure (other than those in respect of
Equity Interests of any Borrower or any of its Subsidiaries), and (b) Swap Agreements entered into
in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from
one floating rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Borrower or any Subsidiary.

          SECTION 6.08 Restricted Payments; Certain Payments of Indebtedness. (a) No Loan
Party will, nor will it permit any Subsidiary to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise)
to do so, except

	 	(i)	 	each Borrower may declare and pay dividends with respect to its common
stock payable solely in additional shares of its common stock, and, with respect to its
preferred stock, payable solely in additional shares of such preferred stock or in
shares of its common stock,

	 	(ii)	 	Subsidiaries may declare and pay dividends ratably with respect to their
Equity Interests,

	 	(iii)	 	so long as there exists no Event of Default either immediately before or
after giving effect to such Restricted Payment, if after giving effect to such
Restricted Payment and any Revolving Loan incurred to fund such Restricted Payment, (a)
the average daily Availability during the ninety-day period prior to the date of any
such Restricted Payment (inclusive of the date of such Restricted Payment) shall not be
less than $60,000,000 calculated on a pro forma basis after giving effect to the
applicable Restricted Payment and (b) the Fixed Charge Coverage Ratio (computed giving
effect to such Restricted Payment on a pro forma basis as of the end of the twelve
month period of the Company ending on the most recent month end for which financial
statements have been delivered pursuant to Section 5.01) is at least 1.2:1.0, the
Company may declare and pay cash dividends and make repurchases of its common shares,
which, when aggregated with all cash dividends and share repurchases previously made in
the same fiscal year pursuant to this subsection (iii) do not exceed $20,000,000;

This Section 6.08 shall not prohibit (a) the payment of a Restricted Payment if such Restricted
Payment was, at the time of declaration of such Restricted Payment, permitted by this Section 6.08
or (b) repurchases of common shares by the Company in the open market to offset the issuance of
shares of

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common stock pursuant to the exercise of employee stock options to the extent any such transactions
do not result in a net use of cash.

In addition to such other Reserves as the Administrative Agent may establish against the Borrowing
Base, if Availability is at any time less than the Changeover Amount, the Administrative Agent may,
in its Permitted Discretion, establish Reserves in the amount of any Restricted Payment declared
but not yet paid pursuant to this Section 6.08. Any such Reserve shall remain in effect until
Availability exceeds the Changeover Amount or such earlier date as the Administrative Agent shall
determine.

          (b) No Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or make,
directly or indirectly, any payment or other distribution (whether in cash, securities or other
property) of or in respect of principal of or interest on any Subordinated Indebtedness to the
extent such payments are prohibited by the subordination provisions thereof, and provided that no
such payment or distribution shall be permitted if at such time Availability is not greater than
the Changeover Amount.

          SECTION 6.09 Transactions with Affiliates. No Loan Party will, nor will it permit
any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease
or otherwise acquire any property or assets from, or otherwise engage in any other transactions
with, any of its Affiliates, except (a) transactions that (i) are in the ordinary course of
business and (ii) are at prices and on terms and conditions not less favorable to a Borrower or
such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
transactions between or among any Borrowers and any Subsidiary that is a Loan Party not involving
any other Affiliate, (c) any investment permitted by Sections 6.04(c) or 6.04(d), (d) any
Indebtedness permitted under Section 6.01(c), (e) any Restricted Payment permitted by Section 6.08,
(f) loans or advances to directors, officers or other employees permitted under Section 6.04, (g)
the payment of reasonable fees to directors of any Borrower or any Subsidiary who are not employees
of the Borrower or any Subsidiary, and compensation and employee benefit arrangements paid to, and
indemnities provided for the benefit of, directors, officers or employees of the Company or its
Subsidiaries in the ordinary course of business, (h) any transactions permitted by Section 6.03 and
(i) any issuances of securities or other payments, awards or grants in cash, securities or
otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership
plans approved by the Borrower’s board of directors.

          SECTION 6.10 Restrictive Agreements. No Loan Party will, nor will it permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other
arrangement that prohibits, restricts or imposes any condition upon (a) the ability of such Loan
Party or any of its Subsidiaries to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or advances to any
Borrower or any other Subsidiary or to Guarantee Indebtedness of any Borrower or any other
Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions
imposed by law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.10 of the Disclosure Letter
(but shall apply to any extension or renewal of, or any amendment or modification expanding the
scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by
this Agreement if such restrictions or conditions apply only to the property or assets securing
such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in
leases restricting the assignment thereof.

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          SECTION 6.11 Amendment of Material Documents. No Loan Party will, nor will it permit
any Subsidiary to, amend, modify or waive any of its rights under (a) agreement relating to any
Subordinated Indebtedness or (b) its certificate of incorporation, by-laws, operating, management
or partnership agreement or other organizational documents, to the extent any such amendment,
modification or waiver would be adverse to the Lenders.

          SECTION 6.12 Financial Covenant. The Borrowers will not permit the Fixed Charge
Coverage Ratio, determined for any period of twelve consecutive months ending on the last day of
any such period, to be less than 1.10 to 1.00; provided, however, that the foregoing covenant shall
be applicable only during the Covenant Period. “Covenant Period” means, relative to each
day on which Availability is less than the Trigger Amount (as defined below), the period commencing
on and including the last day of the most recent twelve month period for which financial statements
have been delivered pursuant to Section 5.01 (a), (b), (c) or (n) and ending on the first day
thereafter on which Availability has exceeded the Trigger Amount for 90 consecutive days.
Determinations under this covenant shall be made on a trailing twelve month basis. “Trigger
Amount” means an amount equal to the greater of (a) $35,000,000 and (b) 14% of the aggregate
amount of the Commitments at such time.

          SECTION 6.13 Change in Fiscal Year. The Company shall not change its fiscal year to
end on any date other than December 31 of each year.

ARTICLE VII

Events of Default

          If any of the following events (“Events of Default”) shall occur:

     (a) any Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

     (b) any Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article) payable under this
Agreement, when and as the same shall become due and payable, and such failure shall
continue unremedied for a period of three Business Days;

     (c) any representation or warranty made or deemed made by or on behalf of any Loan
Party or any Subsidiary in this Agreement or any Loan Document or any amendment or
modification thereof or waiver thereunder, or in any report, certificate, financial
statement or other document furnished pursuant to this Agreement or any Loan Document or any
amendment or modification thereof or waiver thereunder, shall prove to have been materially
incorrect when made or deemed made;

     (d) any Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in Section 5.02(a), 5.03 (with respect to a Loan Party’s existence) or
5.08 or in Article VI;

     (e) any Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement (other than those which constitute a default under
another Section of this Article), and such failure shall continue unremedied for a period of
(i) 5 days after the earlier of knowledge of such breach or notice thereof from the
Administrative Agent (which notice will be given at the request of any Lender) if such
breach relates to terms or provisions of

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Section 5.01, 5.02 (other than Section 5.02(a)), 5.03 through 5.07, 5.09, 5.10, 5.12 or
5.13(c) of this Agreement or (ii) 30 days after the earlier of knowledge of such breach or
notice thereof from the Administrative Agent (which notice will be given at the request of
any Lender) if such breach relates to terms or provisions of any other Section of this
Agreement;

     (f) any Loan Party or any Subsidiary shall fail (beyond any applicable grace or
cure period) to make any payment (whether of principal or interest and regardless of amount)
in respect of any Material Indebtedness, when and as the same shall become due and payable;

     (g) any event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or without the
giving of notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any Material
Indebtedness to become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; provided that this clause (g)
shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale
or transfer of the property or assets securing such Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall
be filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party
or any Subsidiary of any Loan Party or its debts, or of a substantial part of its assets,
under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now
or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for any Loan Party or any Subsidiary of any
Loan Party or for a substantial part of its assets, and, in any such case, such proceeding
or petition shall continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;

     (i) any Loan Party or any Subsidiary of any Loan Party shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar
law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in clause (h) of this
Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for such Loan Party or Subsidiary of any Loan
Party or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any action for the purpose of effecting
any of the foregoing;

     (j) any Loan Party or any Subsidiary of any Loan Party shall become unable, admit
in writing its inability or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess
of $15,000,000 shall be rendered against any Loan Party, any Subsidiary of any Loan Party or
any combination thereof and the same shall remain undischarged for a period of 60
consecutive days during which execution shall not be effectively stayed, or any action shall
be legally taken by a judgment creditor to attach or levy upon any assets of any Loan Party
or any Subsidiary of any Loan Party to enforce any such judgment or any Loan Party or any
Subsidiary of any Loan Party shall fail within 60 days to discharge one or more non-monetary
judgments or orders which, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed
on appeal or otherwise being appropriately contested in good faith by proper proceedings
diligently pursued;

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     (l) an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect;

     (m) a Change in Control shall occur;

     (n) the occurrence of any “default”, as defined in any Loan Document (other than
this Agreement) or the breach of any of the terms or provisions of any Loan Document (other
than this Agreement), which default or breach continues beyond any period of cure or grace
therein provided;

     (o) the Loan Guaranty shall fail to remain in full force or effect or any Loan
Party shall take any action to discontinue or to assert the invalidity or unenforceability
of the Loan Guaranty, or any Loan Guarantor shall fail to comply with any of the terms or
provisions of the Loan Guaranty to which it is a party, or any Loan Guarantor shall deny
that it has any further liability under the Loan Guaranty to which it is a party, or shall
give notice to such effect;

     (p) any Collateral Document shall for any reason fail to create a valid and
perfected first priority security interest in any Collateral purported to be covered
thereby, except as permitted by the terms of this Agreement or any Collateral Document, or
any Collateral Document shall fail to remain in full force or effect or any Loan Party shall
take any action to discontinue or to assert the invalidity or unenforceability of any
Collateral Document, or any Loan Party shall fail to comply with any of the terms or
provisions of any Collateral Document; or

     (q) any material provision of any Loan Document for any reason ceases to be valid,
binding and enforceable in accordance with its terms (or any Loan Party shall challenge the
enforceability of any Loan Document or shall assert in writing, or engage in any action or
inaction based on any such assertion, that any provision of any of the Loan Documents has
ceased to be or otherwise is not valid, binding and enforceable in accordance with its
terms);

then, and in every such event (other than an event with respect to any Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower Representative, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, whereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case
any principal not so declared to be due and payable may thereafter be declared to be due and
payable), whereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to
the Borrowers described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers. Upon the occurrence and the continuance of an Event of Default,
the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights
and remedies provided to the Administrative Agent under the Loan Documents or at law or equity,
including all remedies provided under the UCC.

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ARTICLE VIII

The Administrative Agent

          Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
as its agent and authorizes the Administrative Agent to take such actions on its behalf, including
execution of the other Loan Documents, and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such actions and powers as
are reasonably incidental thereto.

          The bank 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 such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Loan Parties or any Subsidiary of a Loan Party or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall
not 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 Subsidiaries that is communicated to or obtained by the
bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative
Agent shall not be liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02) or 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 written notice thereof is given to the Administrative Agent by the
Borrower or a Lender, and 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 any Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or in connection with any Loan Document, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, (v) the creation, perfection or priority of Liens on the Collateral or the
existence of the Collateral, or (vi) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to the 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 believed by it to be genuine and to have been signed or sent 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 be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), 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.

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          The Administrative Agent may perform any and all its duties and exercise its rights and powers
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 its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
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.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrower Representative. Upon any such resignation, the Required Lenders
shall have the right to appoint a successor Administrative Agent hereunder which shall be a
commercial bank reasonably acceptable to the Borrowers (which consent shall not be unreasonably
withheld or delayed and shall not be required at any time when a Default exists). If no 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, with the consent of the Borrowers (which consent shall not be
unreasonably withheld or delayed and shall not be required at any time when a Default exists) may,
on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall
be a commercial bank or an Affiliate of any such commercial bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. 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 Borrowers and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article,
Section 2.17(d) and Section 9.03 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 it was acting as Administrative Agent.

          Each Lender acknowledges that 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 Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender 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 related agreement or any document furnished
hereunder or thereunder.

          Each Lender hereby agrees that (a) it has requested a copy of each Report prepared by or on
behalf of the Administrative Agent; (b) the Administrative Agent (i) makes no representation or
warranty, express or implied, as to the completeness or accuracy of any Report or any of the
information contained therein or any inaccuracy or omission contained in or relating to a Report
and (ii) shall not be liable for any information contained in any Report; (c) the Reports are not
comprehensive audits or examinations, and that any Person performing any field examination will
inspect only specific information regarding the Loan Parties and will rely significantly upon the
Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel and
that the Administrative Agent undertakes no obligation to update, correct or supplement the
Reports; (d) it will keep all Reports confidential and strictly for its internal use, not share the
Report with any Person except as otherwise permitted pursuant to this Agreement; and (e) without
limiting the generality of any other indemnification provision contained in this Agreement, it will
pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person
preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs,
expenses, and other amounts (including reasonable attorney

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fees) incurred by the Administrative Agent or such other Person as the direct or indirect
result of any third parties who might obtain all or part of any Report through the indemnifying
Lender.

          The Syndication Agents shall not have any right, power, obligation, liability, responsibility
or duty under this Agreement other than those applicable to all Lenders as such.

ARTICLE IX

Miscellaneous

          SECTION 9.01 Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (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 facsimile, as follows:

	 	(i)	 	if to any Loan Party, to the Company at:
	 
	 	 	 	Furniture Brands International, Inc.

1 North Brentwood Boulevard, 15th Floor

St. Louis, MO 63105

Attention: Francis X. Ward, Vice President and Treasurer

Facsimile No: 314-863-5306

	 
	 	(ii)	 	if to the Administrative Agent, the Issuing Bank, the Swingline
Lender, or to Chase at:
	 
	 	 	 	JPMorgan Chase Bank, N.A.

c/o Chase Business Credit

10 S. Dearborn, Floor 22

Chicago, IL 60603

Attention: Bradford R. Kuhn

Facsimile No: (312) 732-7593

	 
	 	(iii)	 	if to any other Lender, to it at its address or facsimile
number set forth in its Administrative Questionnaire.

All such notices and other communications (i) sent by hand or overnight courier service, or mailed
by certified or registered mail, shall be deemed to have been given when received or (ii) sent by
facsimile shall be deemed to have been given when sent, provided that if not given during
normal business hours for the recipient on a Business Day, shall be deemed to have been given at
the opening of business on the next Business Day for the recipient.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications (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 pursuant to Article II unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower Representative (on behalf of the Loan
Parties) 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. All such notices and
other communications (i) sent to an e-mail address shall be deemed received upon the sender’s
receipt of an acknowledgement from the

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intended recipient (such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgement), provided that if not given during the normal
business hours of the recipient, such notice or communication shall be deemed to have been given at
the opening of business on the next Business Day for the recipient, and (ii) 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 (b)(i) of notification that such notice or
communication is available and identifying the website address therefor.

          (c) Any party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

          SECTION 9.02 Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and
under any other Loan Document are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of any Loan Document or consent to any
departure by any Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by the Borrowers and the Required Lenders or, (ii) in the
case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by
the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the
consent of the Required Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender without the written consent of such Lender (including any such Lender that
is a Defaulting Lender), (ii) reduce or forgive the principal amount of any Loan or LC Disbursement
or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable
hereunder, without the written consent of each Lender (including any such Lender that is a
Defaulting Lender) directly affected thereby, (iii) postpone any scheduled date of payment of the
principal amount of any Loan or LC Disbursement, or any date for the payment of any interest, fees
or other Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment,
or postpone the scheduled date of expiration of any Commitment, without the written consent of each
Lender (including any such Lender that is a Defaulting Lender) directly affected thereby, (iv)
change Section 2.18(b) or (d) in a manner that would alter the manner in which payments are shared,
without the written consent of each Lender (including any such Lender that is a Defaulting Lender),
(v) increase the advance rates set forth in the definition of Borrowing Base or add new categories
of eligible assets, without the written consent of each Lender (other than any Defaulting Lenders),
(vi) change any of the provisions of this Section or the definitions of “Required Lenders” or
“Supermajority Lenders” or any other provision of any Loan Document specifying the number or
percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights
thereunder or make any determination or grant any consent thereunder, without the written consent
of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby,
(vii) change Section 2.20, without the consent of each Lender (other than any Defaulting Lender),
(viii) release any Loan Guarantor from its obligation under its Loan Guaranty (except as otherwise
permitted herein or

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in the other Loan Documents), without the written consent of each Lender (other than any
Defaulting Lender), or (ix) except as provided in clauses (c) and (d) of this Section or in any
Collateral Document, release all or substantially all of the Collateral, without the written
consent of each Lender (other than any Defaulting Lender); provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent,
the Issuing Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be (it being
understood that any change to Section 2.20 shall require the consent of the Administrative Agent,
the Issuing Bank and the Swingline Lender). The Administrative Agent may also amend the
Commitment Schedule to reflect assignments entered into pursuant to Section 9.04

          (c) The Lenders hereby irrevocably authorize the Administrative Agent, at its option and in
its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties
on any Collateral (i) upon the termination of the all Commitments, payment and satisfaction in full
in cash of all Secured Obligations (other than Unliquidated Obligations), and the cash
collateralization of all Unliquidated Obligations in a manner reasonably satisfactory to each
affected Lender, (ii) constituting property being sold or disposed of if the Loan Party disposing
of such property certifies to the Administrative Agent that the sale or disposition is made in
compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on
any such certificate, without further inquiry), (iii) constituting property leased to a Loan Party
under a lease which has expired or been terminated in a transaction permitted under this Agreement,
or (iv) as required to effect any sale or other disposition of such Collateral in connection with
any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII.
Except as provided in the preceding sentence, the Administrative Agent will not release any Liens
on Collateral without the prior written authorization of the Required Lenders; provided
that, the Administrative Agent may in its discretion, release its Liens on Collateral valued in the
aggregate not in excess of $10,000,000 during any calendar year without the prior written
authorization of the Required Lenders. Any such release shall not in any manner discharge, affect,
or impair the Obligations or any Liens (other than those expressly being released) upon (or
obligations of the Loan Parties in respect of) all interests retained by the Loan Parties,
including the proceeds of any sale, all of which shall continue to constitute part of the
Collateral.

          (d) If, in connection with any proposed amendment, waiver or consent requiring the consent of
“each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is obtained,
but the consent of other necessary Lenders is not obtained (any such Lender whose consent is
necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the
Borrowers may elect to replace a Non-Consenting Lender as a Lender party to this Agreement,
provided that, concurrently with such replacement, (i) another bank or other entity which
is reasonably satisfactory to the Borrowers and the Administrative Agent shall agree, as of such
date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender
pursuant to an Assignment and Assumption and to become a Lender for all purposes under this
Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such
date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrowers
shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all
interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the
Borrowers hereunder to and including the date of termination, including without limitation payments
due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to
the payment which would have been due to such Lender on the day of such replacement under Section
2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the
replacement Lender.

          SECTION 9.03 Expenses; Indemnity; Damage Waiver. (a) The Borrowers shall pay (i)
all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent,
in connection

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with the syndication and distribution (including, without limitation, via the internet or
through a service such as Intralinks) of the credit facilities provided for herein, the preparation
and administration of the Loan Documents or any actual or proposed amendments, modifications or
waivers of the provisions of the Loan Documents (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the
Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of
Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the
Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements
of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in connection with the
enforcement, collection or protection of its rights in connection with the Loan Documents,
including its rights under this Section, or 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. Expenses being
reimbursed by the Borrowers under this Section include, without limiting the generality of the
foregoing, costs and expenses incurred in connection with:

     (i) appraisals and insurance reviews;

     (ii) field examinations and the preparation of Reports based on the fees charged by a
third party retained by the Administrative Agent or the internally allocated fees for each
Person employed by the Administrative Agent with respect to each field examination (which
currently equal $1,000 per day per examiner plus out of pocket expenses);

     (iii) background checks regarding senior management, as deemed necessary or appropriate
in the commercially reasonable discretion of the Administrative Agent;

     (iv) taxes, fees and other charges for (A) lien searches and (B) filing financing
statements and continuations, and other actions to perfect, protect, and continue the
Administrative Agent’s Liens;

     (v) sums paid or incurred to take any action required of any Loan Party under the Loan
Documents that such Loan Party fails to pay or take; and

     (vi) forwarding loan proceeds, collecting checks and other items of payment, and
establishing and maintaining the accounts and lock boxes, and costs and expenses of
preserving and protecting the Collateral.

All of the foregoing costs and expenses may be charged to the Borrowers as Revolving Loans or to
another deposit account, all as described in Section 2.18(c).

          (b) The Borrowers shall jointly and severally indemnify the Administrative Agent, the Issuing
Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, penalties, incremental taxes, liabilities and related expenses, including
the reasonable out-of-pocket fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result
of (i) the execution or delivery of the Loan Documents or any agreement or instrument contemplated
thereby, the performance by the parties hereto of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or
Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to
honor a demand for payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or
alleged presence or release of Hazardous Materials on or from

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any property owned or operated by the Company or any of its Subsidiaries, or any Environmental
Liability related in any way to the Company 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 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, penalties, liabilities or related expenses 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. This Section 9.03(b)
shall not apply with respect to Taxes other than Taxes that represent losses or damages arising
from any non-Tax claim provided that the calculation of Taxes that represent losses or
damages arising from any non-Tax claim shall take into account whether and to what extent the
payment of such indemnity is taxable income to such indemnified party and whether and to what
extent the indemnified party receives a tax deduction in respect of the underlying payment that is
the subject of such non-Tax claim.

          (c) To the extent that any Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, 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, penalty,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

          (d) To the extent permitted by applicable law, no Loan Party shall assert, and each 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 or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable not later than 10 Business Days after
written demand therefor.

          SECTION 9.04 Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of
Credit), except that (i) the Borrowers may not assign or otherwise transfer any of their rights or
obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrowers without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. 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 (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

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          (A) the Borrower Representative, provided that the Borrower Representative shall be
deemed to have consented to any such assignment unless it shall object thereto by written
notice to the Administrative Agent within five (5) Business Days after having received
notice thereof, and provided further that no consent of the Borrower Representative shall
be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if
an Event of Default has occurred and is continuing, any other assignee;

          (B) the Administrative Agent; and

          (C) the Issuing Bank.

     (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or 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) shall not be less than $5,000,000
unless each of the Company and the Administrative Agent otherwise consent, provided
that no such consent of the Company shall be required if an Event of Default has occurred
and is continuing;

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement; 

          (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500
provided that Borrowers are not obligated to pay or reimburse such fee; and

          (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or more Credit
Contacts to whom all syndicate-level information (which may contain material non-public
information about the Company, the Loan Parties and their Related Parties or their
respective securities) will be made available and who may receive such information in
accordance with the assignee’s compliance procedures and applicable laws, including Federal
and state securities laws.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

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

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto 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

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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 2.15,
2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section.

          (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers, shall
maintain at one of its offices 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 Commitment of, and
principal amount of the Loans and LC Disbursements 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, the Issuing Bank and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrowers, the Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the assigning Lender
or the assignee shall have failed to make any payment required to be made by it pursuant to Section
2.05, 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), the Administrative Agent shall have no
obligation to accept such Assignment and Assumption and record the information therein in the
Register unless and until such payment shall have been made in full, together with all accrued
interest thereon. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent, the
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The
Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 (subject to the requirements and limitations therein, including the requirements under Section
2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be
delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to paragraph (b) of this Section; provided that such
Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an
assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater
payment under Section 2.15 or 2.17, with respect to any participation, than its participating
Lender would have been entitled to receive; provided, however, that such participation
shall be entitled to receive a greater payment than its participating Lender would have been
entitled to

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receive to the extent such entitlement to receive such greater payment results from a Change
in Law that occurs after the Participant acquired the applicable participation and the Borrower was
provided with notice of the participation and consented thereto, such consent not to be
unreasonably withheld.

To the extent permitted by law, each Participant also shall be entitled to the benefits of Section
9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c)
as though it were a Lender. Each Lender that sells a participation shall, acting solely for this
purpose as an agent of the Borrowers, maintain a register on which it enters the name and address
of each Participant and the principal amounts (and stated interest) of each Participant’s interest
in the Loans or other obligations under this Agreement (the “Participant Register”); provided that
no Lender shall have any obligation to disclose all or any portion of the Participant Register to
any Person (including the identity of any Participant or any information relating to a
Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under
any Loan Document) except to the extent that such disclosure is necessary to establish that such
Commitment, Loan, Letter of Credit or other obligation is in registered form under Section
5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register
shall be conclusive absent manifest error, and such Lender shall treat each person whose name is
recorded in the Participant Register as the owner of such participation for all purposes of this
Agreement notwithstanding any notice to the contrary.

     (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05 Survival. All covenants, agreements, representations and warranties
made by the Loan Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or
any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.
The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments
or the termination of this Agreement or any provision hereof.

          SECTION 9.06 Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Loan Documents and any separate letter agreements with respect
to fees payable to the Administrative Agent constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, 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
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their

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respective successors and permitted assigns. Delivery of an executed counterpart of a
signature page of this Agreement by facsimile or other electronic transmission shall be effective
as delivery of a manually executed counterpart of this Agreement.

          SECTION 9.07 Severability. Any provision of any Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 9.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrowers or a
Loan Guarantor against any of and all the Secured Obligations held by such Lender, irrespective of
whether or not such Lender shall have made any demand under the Loan Documents and although such
obligations may be unmatured. The applicable Lender shall notify the Borrower Representative and
the Administrative Agent of such set-off or application, provided that any failure to give
or any delay in giving such notice shall not affect the validity of any such set-off or application
under this Section. The rights of each Lender under this Section are in addition to other rights
and remedies (including other rights of setoff) which such Lender may have.

          SECTION 9.09 Governing Law; Jurisdiction; Consent to Service of Process. (a) The
Loan Documents (other than those containing a contrary express choice of law provision) shall be
governed by and construed in accordance with laws of the State of New York, but giving effect to
federal laws applicable to national banks.

          (b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in
New York, New York in any action or proceeding arising out of or relating to any Loan Documents,
or for recognition or enforcement of any judgment, and each of the parties hereto hereby
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 or, to the extent permitted by 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 any other Loan Document shall
affect any right that the Administrative Agent, the Issuing Bank or any Lender 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) Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, 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 law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will
affect the right of any party to this Agreement to serve process in any other manner permitted by
law.

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          SECTION 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY 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, 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 PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11 Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory authority, (c) to the extent required by Requirement of Law or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or
any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights
or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Loan Parties and their obligations,
(g) with the consent of the Company or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes available to the
Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source
other than the Borrowers. For the purposes of this Section, “Information” means all
information received from the Borrowers relating to the Borrowers or their business, other than any
such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a
non-confidential basis prior to disclosure by the Borrowers; provided that, in the case of
information received from the Borrowers after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

          EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12 FURNISHED TO IT PURSUANT
TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWERS AND THEIR
AFFILIATES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS
DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT
WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE
LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

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          ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR
THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWERS,
THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH
LENDER REPRESENTS TO THE BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING
FEDERAL AND STATE SECURITIES LAWS.

          SECTION 9.13 Several Obligations; Nonreliance; Violation of Law. The respective
obligations of the Lenders hereunder are several and not joint and the failure of any Lender to
make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. Each Lender hereby represents that it is not relying on or
looking to any margin stock for the repayment of the Borrowings provided for herein. Anything
contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor any
Lender shall be obligated to extend credit to the Borrowers in violation of any Requirement of Law.

          SECTION 9.14 USA PATRIOT Act. Each Lender that is subject to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby
notifies the Borrowers that pursuant to the requirements of 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 to identify the
Borrowers in accordance with the Act.

          SECTION 9.15 Disclosure. Each Loan Party and each Lender hereby acknowledges and
agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments
in, make other loans to or have other relationships with any of the Loan Parties and their
respective Affiliates.

          SECTION 9.16 Appointment for Perfection. Each Lender hereby appoints each other
Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative
Agent and the other Secured Creditors, in assets which, in accordance with Article 9 of the UCC or
any other applicable law can be perfected only by possession. Should any Lender (other than the
Administrative Agent) obtain possession of any such Collateral, such Lender shall notify the
Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall
deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in
accordance with the Administrative Agent’s instructions.

          SECTION 9.17 Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount,

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together with interest thereon at the Federal Funds Effective Rate to the date of repayment,
shall have been received by such Lender.

          SECTION 9.18 Nature of Borrowers’ Obligations.

          (a) Notwithstanding anything to the contrary contained elsewhere in this Agreement, it is
understood and agreed by the various parties to this Agreement that all Obligations to repay
principal of, interest on, and all other amounts with respect to, all Revolving Loans, Swingline
Loans, LC Disbursements, Protective Advances and Overadvances and all other Obligations pursuant to
this Agreement and under any Note (including, without limitation, all fees, indemnities, taxes and
other Obligations in connection therewith or in connection with the related Commitments) shall
constitute the joint and several obligations of the Company, Broyhill, HDM, Lane, Thomasville and
Maitland-Smith. In addition to the direct (and joint and several) obligations of the Borrowers
with respect to Obligations as described above, all such Obligations shall be guaranteed pursuant
to, and in accordance with the terms of, the Loan Guaranty.

          (b) The obligations of each Borrower with respect to the Obligations are independent of the
obligations of the other Borrowers or any guarantor, and a separate action or actions may be
brought and prosecuted against each Borrower, whether or not any other Borrower or any guarantor is
joined in any such action or actions. Each Borrower waives, to the fullest extent permitted by
law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement
thereof. Any payment by any Borrower or other circumstance which operates to toll any statute of
limitations as to any Borrower shall, to the fullest extent permitted by law, operate to toll the
statute of limitations as to each Borrower.

ARTICLE X

Loan Guaranty

          SECTION 10.01 Guaranty. Each Loan Guarantor (other than those that have delivered a
separate Guaranty) hereby agrees that it is jointly and severally liable for, and, as primary
obligor and not merely as surety, absolutely and unconditionally guarantees to the Lenders the
prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all
times thereafter, of the Secured Obligations and all costs and expenses including, without
limitation, all court costs and attorneys’ and paralegals’ fees (including allocated costs of
in-house counsel and paralegals) and expenses paid or incurred by the Administrative Agent, the
Issuing Bank and the Lenders in endeavoring to collect all or any part of the Secured Obligations
from, or in prosecuting any action against, any Borrower, any Loan Guarantor or any other guarantor
of all or any part of the Secured Obligations (such costs and expenses, together with the Secured
Obligations, collectively the “Guaranteed Obligations”). Each Loan Guarantor further
agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without
notice to or further assent from it, and that it remains bound upon its Guarantee notwithstanding
any such extension or renewal. All terms of this Loan Guaranty apply to and may be enforced by or
on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of
the Guaranteed Obligations.

          SECTION 10.02 Guaranty of Payment. This Loan Guaranty is a guaranty of payment and
not of collection. Each Loan Guarantor waives any right to require the Administrative Agent, the
Issuing Bank or any Lender to sue any Borrower, any Loan Guarantor, any other guarantor, or any
other person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated
Party”), or otherwise to enforce its payment against any collateral securing all or any part of
the Guaranteed Obligations.

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          SECTION 10.03 No Discharge or Diminishment of Loan Guaranty. (a) Except as
otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional
and absolute and not subject to any reduction, limitation, impairment or termination for any reason
(other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:
(i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or
compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change
in the corporate existence, structure or ownership of any Borrower or any other guarantor of or
other person liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any Obligated Party, or their assets or any
resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of
any claim, setoff or other rights which any Loan Guarantor may have at any time against any
Obligated Party, the Administrative Agent, the Issuing Bank, any Lender, or any other person,
whether in connection herewith or in any unrelated transactions.

          (b) The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff,
counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or
unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

          (c) Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or
otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender
to assert any claim or demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any
agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity
of any indirect or direct security for the obligations of any Borrower for all or any part of the
Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any
of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, the
Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed
Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or
performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay
that might in any manner or to any extent vary the risk of such Loan Guarantor or that would
otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of the Guaranteed Obligations).

          (d) In connection with any asset sale, transfer or other disposition permitted by this
Agreement that results in the sale, transfer or other disposition of all of the Equity Interests
issued by any Loan Guarantor, the Administrative Agent is authorized to release such Loan Guarantor
from its obligations under the Loan Guaranty and the other Loan Documents upon consummation of such
sale or disposition if the Company certifies to the Administrative Agent that the applicable sale
or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent
may rely conclusively on any such certificate, without further inquiry).

          SECTION 10.04 Defenses Waived. To the fullest extent permitted by applicable law,
each Loan Guarantor hereby waives any defense based on or arising out of any defense of the
Borrower or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed
Obligations from any cause, or the cessation from any cause of the liability of any Borrower or any
Loan Guarantor, other than the indefeasible payment in full in cash of the Guaranteed Obligations.
Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not
provided for herein, as well as any requirement that at any time any action be taken by any person
against any Obligated Party, or any other person. The Administrative Agent may, at its election,
foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an
assignment of any such Collateral in lieu of foreclosure or otherwise act or

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fail to act with respect to any collateral securing all or a part of the Guaranteed
Obligations, compromise or adjust any part of the Guaranteed Obligations, make any other
accommodation with any Obligated Party or exercise any other right or remedy available to it
against any Obligated Party, without affecting or impairing in any way the liability of such Loan
Guarantor under this Loan Guaranty except to the extent the Guaranteed Obligations have been fully
and indefeasibly paid in cash. To the fullest extent permitted by applicable law, each Loan
Guarantor waives any defense arising out of any such election even though that election may
operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of any Loan Guarantor against any Obligated Party or any
security.

          SECTION 10.05 Rights of Subrogation. No Loan Guarantor will assert any right, claim
or cause of action, including, without limitation, a claim of subrogation, contribution or
indemnification that it has against any Obligated Party, or any collateral, until the Loan Parties
and the Loan Guarantors have fully performed all their obligations to the Administrative Agent, the
Issuing Bank and the Lenders.

          SECTION 10.06 Reinstatement; Stay of Acceleration. If at any time any payment of any
portion of the Guaranteed Obligations is rescinded or must otherwise be restored or returned upon
the insolvency, bankruptcy, or reorganization of any Borrower or otherwise, each Loan Guarantor’s
obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time
as though the payment had not been made and whether or not the Administrative Agent, the Issuing
Bank and the Lenders are in possession of this Loan Guaranty. If acceleration of the time for
payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or
reorganization of any Borrower, all such amounts otherwise subject to acceleration under the terms
of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan
Guarantors forthwith on demand by the Lender.

          SECTION 10.07 Information. Each Loan Guarantor assumes all responsibility for being
and keeping itself informed of the Borrowers’ financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope and extent of the risks that each Loan Guarantor assumes and incurs under this Loan Guaranty,
and agrees that neither the Administrative Agent, the Issuing Bank nor any Lender shall have any
duty to advise any Loan Guarantor of information known to it regarding those circumstances or
risks.

          SECTION 10.08 Termination. Each of the Lenders and the Issuing Bank may continue to
make loans or extend credit to the Borrowers based on this Loan Guaranty until five days after it
receives written notice of termination from any Loan Guarantor. Notwithstanding receipt of any
such notice, each Loan Guarantor will continue to be liable to the Lenders for any Guaranteed
Obligations created, assumed or committed to prior to the fifth day after receipt of the notice,
and all subsequent renewals, extensions, modifications and amendments with respect to, or
substitutions for, all or any part of that Guaranteed Obligations.

          SECTION 10.09 Taxes. Each payment of the Guaranteed Obligations will be made by each
Loan Guarantor without withholding for any Taxes, unless such withholding is required by law. If
any Loan Guarantor determines, in its sole discretion exercised in good faith, that it is so
required to withhold Taxes, then such Loan Guarantor may so withhold and shall timely pay the full
amount of withheld Taxes to the relevant Governmental Authority in accordance with applicable law.
If such Taxes are Indemnified Taxes, then the amount payable by such Loan Guarantor shall be
increased as necessary so that, net of such withholding (including such withholding applicable to
additional amounts payable under this Section), the Administrative Agent, Lender or Issuing Bank
(as the case may be) receives the amount it would have received had no such withholding been made.

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          SECTION 10.10 Maximum Liability. The provisions of this Loan Guaranty are severable,
and in any action or proceeding involving any state corporate law, or any state, federal or foreign
bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if
the obligations of any Loan Guarantor under this Loan Guaranty would otherwise be held or
determined to be avoidable, invalid or unenforceable on account of the amount of such Loan
Guarantor’s liability under this Loan Guaranty, then, notwithstanding any other provision of this
Loan Guaranty to the contrary, the amount of such liability shall, without any further action by
the Loan Guarantors or the Administrative Agent, the Issuing Bank or any Lender, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in such
action or proceeding (such highest amount determined hereunder being the relevant Loan Guarantor’s
“Maximum Liability”). This Section with respect to the Maximum Liability of each Loan
Guarantor is intended solely to preserve the rights of the Administrative Agent, the Issuing Bank
or any Lender to the maximum extent not subject to avoidance under applicable law, and no Loan
Guarantor nor any other Person shall have any right or claim under this Section with respect to
such Maximum Liability, except to the extent necessary so that the obligations of any Loan
Guarantor hereunder shall not be rendered voidable under applicable law. Each Loan Guarantor agrees
that the Guaranteed Obligations may at any time and from time to time exceed the Maximum Liability
of each Loan Guarantor without impairing this Loan Guaranty or affecting the rights and remedies of
the Administrative Agent, the Issuing Bank or the Lenders hereunder, provided that, nothing
in this sentence shall be construed to increase any Loan Guarantor’s obligations hereunder beyond
its Maximum Liability.

          SECTION 10.11 Contribution. In the event any Loan Guarantor (a “Paying
Guarantor”) shall make any payment or payments under this Loan Guaranty or shall suffer any
loss as a result of any realization upon any collateral granted by it to secure its obligations
under this Loan Guaranty, each other Loan Guarantor (each a “Non-Paying Guarantor”) shall
contribute to such Paying Guarantor an amount equal to such Non-Paying Guarantor’s “Applicable
Percentage” of such payment or payments made, or losses suffered, by such Paying Guarantor. For
purposes of this Article X, each Non-Paying Guarantor’s “Applicable Percentage” with
respect to any such payment or loss by a Paying Guarantor shall be determined as of the date on
which such payment or loss was made by reference to the ratio of (i) such Non-Paying Guarantor’s
Maximum Liability as of such date (without giving effect to any right to receive, or obligation to
make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum Liability has not been
determined, the aggregate amount of all monies received by such Non-Paying Guarantor from the
Borrowers after the date hereof (whether by loan, capital infusion or by other means) to (ii) the
aggregate Maximum Liability of all Loan Guarantors hereunder (including such Paying Guarantor) as
of such date (without giving effect to any right to receive, or obligation to make, any
contribution hereunder), or to the extent that a Maximum Liability has not been determined for any
Loan Guarantor, the aggregate amount of all monies received by such Loan Guarantors from the
Borrowers after the date hereof (whether by loan, capital infusion or by other means). Nothing in
this provision shall affect any Loan Guarantor’s several liability for the entire amount of the
Guaranteed Obligations (up to such Loan Guarantor’s Maximum Liability). Each of the Loan
Guarantors covenants and agrees that its right to receive any contribution under this Loan Guaranty
from a Non-Paying Guarantor shall be subordinate and junior in right of payment to the payment in
full in cash of the Guaranteed Obligations. This provision is for the benefit of all of the
Secured Creditors and the Loan Guarantors and may be enforced by any one, or more, or all of them
in accordance with the terms hereof.

          SECTION 10.12 Liability Cumulative. The liability of each Loan Party as a Loan
Guarantor under this Article X is in addition to and shall be cumulative with all liabilities of
each Loan Party to the Administrative Agent, the Issuing Bank and the Lenders under this Agreement
and the other Loan Documents to which such Loan Party is a party or in respect of any obligations
or liabilities of the other Loan Parties, without any limitation as to amount, unless the
instrument or agreement evidencing or creating such other liability specifically provides to the
contrary.

92

 

ARTICLE XI

The Borrower Representative

          SECTION 11.01 Appointment; Nature of Relationship. The Company is hereby appointed
by each of the Borrowers as its contractual representative (herein referred to as the “Borrower
Representative”) hereunder and under each other Loan Document, and each of the Borrowers
irrevocably authorizes the Borrower Representative to act as the contractual representative of such
Borrower with the rights and duties expressly set forth herein and in the other Loan Documents.
The Borrower Representative agrees to act as such contractual representative upon the express
conditions contained in this Article XI. Additionally, the Borrowers hereby appoint the Borrower
Representative as their agent to receive all of the proceeds of the Loans in the Funding
Account(s), at which time the Borrower Representative shall promptly disburse such Loans to the
appropriate Borrower. The Administrative Agent and the Lenders, and their respective officers,
directors, agents or employees, shall not be liable to the Borrower Representative or any Borrower
for any action taken or omitted to be taken by the Borrower Representative or the Borrowers
pursuant to this Section 11.01.

          SECTION 11.02 Powers. The Borrower Representative shall have and may exercise such
powers under the Loan Documents as are specifically delegated to the Borrower Representative by the
terms of each thereof, together with such powers as are reasonably incidental thereto. The
Borrower Representative shall have no implied duties to the Borrowers, or any obligation to the
Lenders to take any action thereunder except any action specifically provided by the Loan
Documents to be taken by the Borrower Representative.

          SECTION 11.03 Employment of Agents. The Borrower Representative may execute any of
its duties as the Borrower Representative hereunder and under any other Loan Document by or through
a Financial Officer.

          SECTION 11.04 Notices. Each Borrower shall immediately notify the Borrower
Representative of the occurrence of any Default hereunder referring to this Agreement describing
such Default and stating that such notice is a “notice of default.” In the event that the Borrower
Representative receives such a notice, the Borrower Representative shall give prompt notice thereof
to the Administrative Agent and the Lenders. Any notice provided to the Borrower
Representative hereunder shall constitute notice to each Borrower on the date received by the
Borrower Representative.

          SECTION 11.05 Successor Borrower Representative. Upon the prior written consent of
the Administrative Agent, the Borrower Representative may resign at any time, such resignation to
be effective upon the appointment of a successor Borrower Representative. The Administrative Agent
shall give prompt written notice of such resignation to the Lenders.

          SECTION 11.06 Execution of Loan Documents; Borrowing Base Certificate. The Borrowers
hereby empower and authorize the Borrower Representative, on behalf of the Borrowers, to execute
and deliver to the Administrative Agent and the Lenders, the Loan Documents (except that each of
the Loan Parties executed and delivered each of the Loan Documents to which such Loan Parties are
signatories) and all related agreements, certificates, documents, or instruments as shall be
necessary or appropriate to effect the purposes of the Loan Documents, including without
limitation, the Borrowing Base Certificates, the Compliance Certificates and the Borrowing
Requests. Each Borrower agrees that any action taken by the Borrower Representative or the
Borrowers in accordance with the terms of this Agreement or the other Loan Documents, and the
exercise by the Borrower Representative of its powers set forth therein or herein, together with
such other powers that are reasonably incidental thereto, shall be binding upon all of the
Borrowers.

93

 

          SECTION 11.07 Reporting. Each Borrower hereby agrees that such Borrower shall
furnish promptly after each fiscal month to the Borrower Representative a copy of its Borrowing
Base Certificate and any other certificate or report required hereunder or requested by the
Borrower Representative on which the Borrower Representative shall rely to prepare the Borrowing
Base Certificates and Compliance Certificates required pursuant to the provisions of this
Agreement.

ARTICLE XII

Amendment and Restatement

          On the Restatement Date the Existing Credit Agreement shall be amended, restated and
superseded in its entirety hereby. The parties hereto acknowledge and agree that (i) this
Agreement, any promissory notes delivered pursuant hereto and the other Loan Documents executed and
delivered in connection herewith do not constitute a novation or termination of the “Secured
Obligations” (as defined in the Existing Credit Agreement) under the Existing Credit Agreement as
in effect prior to the Restatement Date and (ii) such “Secured Obligations” are in all respects
continuing with only the terms thereof being modified as provided in this Agreement.

          Notwithstanding the modifications effected by this Agreement of the representations,
warranties and covenants of the Borrowers contained in the Existing Credit Agreement, the Borrowers
acknowledge and agree that any causes of action or other rights created in favor of the
Administrative Agent or any Lender or its successors arising out of the representations and
warranties of the Borrowers contained in or delivered in connection with the Existing Credit
Agreement shall survive the execution, delivery and effectiveness of this Agreement.

          The Administrative Agent hereby waives the requirement pursuant to Section 2.09 of the
Existing Credit Agreement that the Borrowers deliver prior notice of their election to terminate or
reduce the “Commitments” under the Existing Credit Agreement.

ARTICLE XIII

Consent and Affirmation

          By its execution hereof, each Continuing Lender confirms its consent to the payment on the
Restatement Date of the outstanding “Obligations” (as defined in the Existing Credit Agreement)
owed to the Exiting Lenders under the Existing Credit Agreement without a corresponding payment to
the Continuing Lenders.

          To the extent that any Continuing Lender (such Continuing Lender, an “Assignor
Lender”) assigned any Existing Revolving Exposure (such interests, the “Assigned
Interests”) to any other Lender (such other Lender, an “Assignee Lender”) in connection
with the transactions contemplated hereby, (i) such Assignor Lender represents to such Assignee
Lender with respect to the Assigned Interests assigned by such Assignor Lender that (x) it is the
legal and beneficial owner of such Assigned Interests, (y) such Assigned Interests are free and
clear of any lien, encumbrance or other adverse claim, and (z) it has full power and authority, and
has taken all action necessary, to execute and deliver this Agreement and to consummate the
transactions contemplated hereby, and (ii) such Assignee Lender represents to such Assignor Lender
with respect to the Assigned Interests assigned to such Assignee Lender that (x) it has full power
and authority, and has taken all action necessary, to execute and deliver this Agreement and to
consummate the transactions contemplated hereby and to become a Lender hereunder, and (y) it
satisfies the requirements that are required to be satisfied by it in order to acquire the Assigned
Interests and become a Lender.

94

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	LOAN PARTIES:

FURNITURE BRANDS INTERNATIONAL, INC.

BROYHILL FURNITURE INDUSTRIES, INC.

LANE FURNITURE INDUSTRIES, INC.

THOMASVILLE FURNITURE INDUSTRIES, INC.

ACTION TRANSPORT, INC.

BROYHILL TRANSPORT, INC.

BROYHILL RETAIL, INC.

BROYHILL HOME FURNISHINGS, INC.

THOMASVILLE RETAIL, INC.

HDM RETAIL, INC.

FAYETTE ENTERPRISES, INC.

HDM FURNITURE INDUSTRIES, INC.

HDM TRANSPORT, INC.

LANEVENTURE, INC.

MAITLAND-SMITH FURNITURE INDUSTRIES, INC.

THE LANE COMPANY, INCORPORATED

LANE HOME FURNISHINGS RETAIL, INC.

THOMASVILLE HOME FURNISHINGS, INC.

FURNITURE BRANDS RESOURCE COMPANY, INC.

FURNITURE BRANDS HOLDINGS, INC.

FURNITURE BRANDS OPERATIONS, INC.

 	 
	 	By  	/s/ Steven G. Rolls
 	 
	 	 	Name:  	Steven G. Rolls 	 
	 	 	Title:  	Senior Vice President and Chief Financial
Officer of the Company and Senior Vice President
— Finance of each other Loan Party
On behalf of each of the above Loan Parties 	 

95

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., individually, as

Administrative Agent, Issuing Bank and Swingline

Lender

 	 
	 	By  	/s/ Bradford R. Kuhn
 	 
	 	 	Name:  	Bradford R. Kuhn 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By  	/s/ Marina Kheylik
 	 
	 	 	Name:  	Marina Kheylik 	 
	 	 	Title:  	AVP, AB Portfolio Specialist 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By  	/s/ Reza Sabahi
 	 
	 	 	Name:  	Reza Sabahi 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION

 	 
	 	By  	/s/ Emmet Wong
 	 
	 	 	Name:  	Emmet Wong 	 
	 	 	Title:  	Vice President 	 
	 
	 	GENERAL ELECTRIC CAPITAL CORP.

 	 
	 	By  	/s/ Dwayne Coker
 	 
	 	 	Name:  	Dwayne Coker 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 
	 	CAPITAL ONE LEVERAGE FINANCE CORP.

 	 
	 	By  	/s/ Jon Oldham
 	 
	 	 	Name:  	Jon Oldham 	 
	 	 	Title:  	SVP 	 

96

 

	 	 	 	 	 

COMMITMENT SCHEDULE

	 	 	 	 	 
	Lender	 	Commitment	 
	JPMorgan Chase Bank, N.A.
	 	$	57,000,000.00	 
	Bank of America, N.A.
	 	$	57,000,000.00	 
	Wells Fargo Bank, National Association
	 	$	57,000,000.00	 
	PNC Bank, National Association
	 	$	34,000,000.00	 
	General Electric Capital Corporation
	 	$	25,000,000.00	 
	Capital One Leverage Finance Corp.
	 	$	20,000,000.00	 
	Total
	 	$	250,000,000.00	 

Commitment Schedule

 

 

EXITING LENDERS SCHEDULE

	 
	Lender
	The CIT Group / Commercial Services, Inc.

	Fifth Third Bank

	RBS Business Capital, a Division of RBS Asset Finance, Inc.

	UPS Capital Corporation

Exiting Lenders Schedule

 

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Restatement 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 Amended and Restated Credit
Agreement identified below (as amended, 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
Restatement Date inserted by the Administrative Agent as contemplated below, (i) all of the
Assignor’s rights and obligations in its capacity 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 any letters of credit,
guarantees and swingline loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and other rights 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 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.

	 	Borrower(s):
	 	Furniture Brands International, Inc. and certain of its Subsidiaries
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The $250,000,000 Amended and Restated Credit Agreement dated as of April 27, 2011 among
Furniture Brands International, Inc., the other Loan Parties named therein, the Lenders parties
thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents parties
thereto

Exhibit A

 

 

6. Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	 
	Facility Assigned	 	Commitment/Loans for	 	Commitment/Loans	 	Percentage Assigned of
	Commitment	 	all Lenders	 	Assigned	 	Commitment/Loans1
	 

	 	$	 	 	 	$	 	 	 	 	 	%
	 

	 	$	 	 	 	$	 	 	 	 	 	%
	 

	 	$	 	 	 	$	 	 	 	 	 	%

Restatement Date: _____________ ___, 2011 [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire
in which the Assignee designates one or more Credit Contacts to whom all syndicate-level
information (which may contain material non-public information about the Borrower, the Loan Parties
and their Related Parties or their respective securities) will be made available and who may
receive such information in accordance with the Assignee’s compliance procedures and applicable
laws, including Federal and state securities laws.

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: 	 
	 	 	 	 
	 

 

			
	1	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

Exhibit A

 

 

[Consented to and]2 Accepted:

[NAME OF ADMINISTRATIVE AGENT], as

Administrative Agent

	 	 	 	 	 

	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 

[Consented to:]3

[NAME OF RELEVANT PARTY]

	 	 	 	 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

			
	2	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	3	 	To be added only if the consent of the
Borrower and/or other parties (e.g. Swingline Lender, Issuing Bank) is required
by the terms of the Credit Agreement.

Exhibit A

 

 

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 the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
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 satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Restatement 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 has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent or any other Lender, and (v) if it is a Non-U.S.
Lender, attached to the Assignment and Assumption 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 Restatement 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
Restatement Date and to the Assignee for amounts which have accrued from and after the Restatement
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 facsimile 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 A

 

 

EXHIBIT B

BORROWING BASE CERTIFICATE

[See Attached]

Exhibit B

 

	 	 	 	 	 

		 	BORROWING BASE REPORT 	 	 
	 	Furniture Brands — Combined
	 	Rpt # 46
	Obligor Number:

	 	 	 	Date:
	Loan Number:

	 	 	 	Period Covered:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Raw	 	 	 	 	 	 	Finished	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Materials	 	 	WIP	 	 	Goods	 	 	In-Transit	 	 	Total	 	 	 	 
	COLLATERAL CATEGORY	 	A/R	 	 	Inventory	 	 	Inventory	 	 	Inventory	 	 	Inventory	 	 	Inventory	 	 	Total Eligible Collateral	 
	Description
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1	 	 	Beginning Balance ( Previous report — Line 8)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	2	 	 	Additions to Collateral (Gross Sales or Purchases)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3	 	 	Other Additions (Add back any non-A/R cash in line 3)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4	 	 	Deductions to Collateral (Cash Received)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5	 	 	Deductions to Collateral (Discounts, other)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	6	 	 	Deductions to Collateral (Credit Memos, all)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	7	 	 	Other non-cash credits to A/R
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8	 	 	Total Ending Collateral Balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	9	 	 	Less Ineligible — Extended Terms
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	10	 	 	Less Ineligible — Past Due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	11	 	 	Less Ineligible — Federal Government
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	12	 	 	Less Ineligible — Chargebacks (Current)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	a	 	Less Ineligible — Credits in Prior
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	b	 	Less Ineligible — Crossage
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	c	 	Less Ineligible — Contras
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	d	 	Less Ineligible — Foreign not covered by L/C
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	e	 	Less Ineligible — Intercompany /Affiliates
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	f	 	Less Ineligible — Notes Receivable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	g	 	Less Ineligible — Deductions (Shortpays)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	h	 	Less Ineligible — Employee/Officers/Sales Reps
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	i	 	Less Ineligible — Finance Charges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	j	 	Less Ineligible — Miscellaneous Account
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	k	 	Less Ineligible — Cash in Advance / Unapplied Cash
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	l	 	Less Ineligible — Interest Due on Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	m	 	Less Ineligible — Unclaimed Freight
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	n	 	Less Ineligible — Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	o	 	Less Ineligible — Dilution Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	14	 	 	Total Ineligibles — Accounts Receivable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	15	 	 	Less Ineligible  — Packaging Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	16	 	 	Less Ineligible — Inventory Offsite not covered
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	17	 	 	Less Ineligible — Inventory WIP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	18	 	 	Less Ineligible — Freight
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	a	 	Less Ineligible — Outlet Stores
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	b	 	Less Ineligible — Located Offsite (Foreign)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	c	 	Less Ineligible — Intercompany Profit Elimination
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	d	 	Less Ineligible — Other — Fuel Inventory / Accessories
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	e	 	Less Ineligible — Inv in Repair / Showroom w/o Landlord Waiver
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	f	 	Less Ineligible — Unreconciled Variance
(Perpetual & GL) / Consigned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	20	 	 	Total Ineligibles Inventory Appraisal-subtotal LINE 15 to 19e
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	21	 	 	Total Eligible Collateral
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	22	 	 	In Transit Inventory Cap ($40MM)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	23	 	 	Advance Rate Percentage
	 	 	85.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	24	 	 	Net Available — Appraisal Borrowing Base Value
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	In Transit-without inventory cap (to determine Adv.Rate %)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	25	 	 	Reserves — Rent
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	26	 	 	Total Borrowing Base Value — Appraisal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	27	 	 	Less Ineligible — Estate Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	28	 	 	Less Ineligible — Shrinkage / Discontinued Reserve GL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	29	 	 	Less Ineligible — Slow Moving Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	29	a	 	Less Ineligible — Discontinued Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	30	 	 	Total Ineligibles Inventory per exam
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	31	 	 	Total Eligible Collateral — Exam
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	32	 	 	Advance Rate Percentage
	 	 	85	%	 	 	70	%	 	 	70	%	 	 	70	%	 	 	70	%	 	 	70	%	 	 	 	 
	 	33	 	 	Net Available — Borrowing Base Value
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	34	 	 	Royalty Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	35	 	 	Total Borrowing Base Value — Per Exam
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	36	 	 	Lower of Apprasial Calculation or Exam Calculation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	37	 	 	Total Availability/ CAPS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	38	 	 	Revolver Line
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total Revolver Line	 
	 	39	 	 	Maximum Borrowing Limit (Lesser of 37. or 38.)*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total Available	 
	 	40	 	 	Suppressed Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LOAN STATUS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	41	 	 	Previous Loan Balance (Previous Report Line 44)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	42	 	 	Less: A. Net Collections (Same as line 4)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	B. Adjustments /
Other                     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	43	 	 	Add: A. Request for Funds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	B. Adjustments / Other                     
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	44	 	 	New Loan Balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total New Loan Balance:	 
	 	45	 	 	Rent Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	46	 	 	Custom Broker Fee Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	47	 	 	Inventory at Vendor Reserve
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	48	 	 	Letters of Credit/Bankers Acceptance Outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	49	 	 	Availability Not Borrowed (Lines 39 less 44,45 & 46)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Pursuant to, and in accordance with, the terms and provisions of that certain Credit Agreement
(“Agreement”), between JPMorgan Chase Bank, N.A. (“Chase”), [as administrative agent for the
Lenders,] the Loan Parties and Furniture Brands International (“Borrower”), Borrower is executing
and delivering to Chase this Collateral Report accompanied by supporting data (collectively
referred to as the “Report”). Borrower warrants and represents to Chase that this Report is true
and correct, and is based on information contained in Borrower’s own financial accounting records.
Borrower, by the execution of this Report, hereby ratifies, confirms and affirms all of the terms,
conditions and provisions of the Agreement, and further certifies on this 27th day of December,
2010, that the Borrower is in compliance with said Agreement.

	 	 	 

	BORROWER NAME:

	 	AUTHORIZED SIGNATURE:

FURNITURE BRANDS INTERNATIONAL

 

EXHIBIT C

COMPLIANCE CERTIFICATE

			
	To:	 	The Lenders parties to the

Credit Agreement Described Below

     This Compliance Certificate is furnished pursuant to that certain Amended and Restated Credit
Agreement dated as of April 27, 2011 (as amended, modified, renewed or extended from time to time,
the “Agreement”) among Furniture Brands International, Inc. (the “Company”), the other Loan
Parties, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the
Lenders and as the Issuing Bank. Unless otherwise defined herein, capitalized terms used in this
Compliance Certificate have the meanings ascribed thereto in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

     1. I am the duly elected of the Company;

     2. I have reviewed the terms of the Agreement and I have made, or have caused to be made
under my supervision, a detailed review of the transactions and conditions of the Company and its
Subsidiaries during the accounting period covered by the attached financial statements [for
quarterly financial statements add: and such financial statements present fairly in all material
respects the financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to
normal year-end audit adjustments and the absence of footnotes];

     3. The examinations described in paragraph 2 did not disclose, except as set forth below, and
I have no knowledge of (i) the existence of any condition or event which constitutes a Default
during or at the end of the accounting period covered by the attached financial statements or as of
the date of this Certificate or (ii) any material change in GAAP or in the application thereof that
has occurred since the date of the audited financial statements referred to in Section 3.04 of the
Agreement;

     4. I hereby certify that no Loan Party has changed (i) its name, (ii) its chief executive
office, (iii) principal place of business, (iv) the type of entity it is or (v) its state of
incorporation or organization without having given the Agent the notice required by Section 4.10 of
the Security Agreement;

     5. If applicable, Schedule I attached hereto sets forth financial data and
computations evidencing the Borrowers’ compliance with certain covenants of the Agreement, all of
which data and computations are true, complete and correct; and

     6. If applicable, Schedule II hereto sets forth the computation of Average
Availability for the fiscal quarter ended ___________, 20_.

     Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the (i)
nature of the condition or event, the period during which it has existed and the action which the
Loan Parties have taken, are taking, or propose to take with respect to each such condition or
event or (i) the material change in GAAP or the application thereof and the effect of such change
on the attached financial statements:

Exhibit C

 

 

     The foregoing certifications, together with the computations set forth in Schedule I and
Schedule II hereto and the financial statements delivered with this Certificate in support hereof,
are made and delivered this day of ______, _____.

	 	 	 	 	 
	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit C

 

 

SCHEDULE I

Compliance as of _________, ____ with

Provisions of Section ____ and ____ of

the Agreement

Exhibit C

 

 

SCHEDULE II

Borrower’s Applicable Rate Calculation

Exhibit C

 

 

EXHIBIT D

JOINDER AGREEMENT

     THIS JOINDER AGREEMENT (this “Agreement”), dated as of ___________, 2011, is entered into
between ______________________, a _________________ (the “New Subsidiary”) and JPMORGAN CHASE BANK,
N.A., in its capacity as administrative agent (the “Administrative Agent”) under that certain
Amended and Restated Credit Agreement, dated as of April 27, 2011 among Furniture Brands
International, Inc. (the “Company”), the other Loan Parties party thereto, the Lenders party
thereto and the Administrative Agent (as the same may be amended, modified, extended or restated
from time to time, the “Credit Agreement”). All capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Credit Agreement.

     The New Subsidiary and the Administrative Agent, for the benefit of the Secured Creditors,
hereby agree as follows:

     1. The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a
“Loan Guarantor” for all purposes of the Credit Agreement and shall have all of the obligations of
a Loan Party and a Loan Guarantor thereunder as if it had executed the Credit Agreement. The New
Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Credit Agreement, including without limitation (a) all
of the representations and warranties of the Loan Parties set forth in Article III of the Credit
Agreement, (b) all of the covenants set forth in Articles V and VI of the Credit Agreement and (c)
all of the guaranty obligations set forth in Article X of the Credit Agreement. Without limiting
the generality of the foregoing terms of this paragraph 1, the New Subsidiary, subject to the
limitations set forth in Section 10.10 of the Credit Agreement, hereby guarantees, jointly and
severally with the other Loan Guarantors, to the Administrative Agent and the Lenders, as provided
in Article X of the Credit Agreement, the prompt payment and performance of the Guaranteed
Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration or otherwise) strictly in accordance with the terms thereof and agrees that if any of
the Guaranteed Obligations are not paid or performed in full when due (whether at stated maturity,
as a mandatory prepayment, by acceleration or otherwise), the New Subsidiary will, jointly and
severally together with the other Loan Guarantors, promptly pay and perform 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 Guaranteed Obligations, the same will be promptly paid in full when due (whether at
extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the
terms of such extension or renewal. *[The New Subsidiary has delivered to the Administrative Agent
an executed Loan Guaranty.]*

     2. If required, the New Subsidiary is, simultaneously with the execution of this Agreement,
executing and delivering such Collateral Documents (and such other documents and instruments) as
requested by the Administrative Agent in accordance with the Credit Agreement.

     3. The address of the New Subsidiary for purposes of Section 9.01 of the Credit Agreement is
as follows:

     4. The New Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of
the guaranty by the New Subsidiary upon the execution of this Agreement by the New Subsidiary.

Exhibit D

 

 

     5. This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute one and the same
instrument.

     6. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its
authorized officer, and the Administrative Agent, for the benefit of the Secured Creditors, has
caused the same to be accepted by its authorized officer, as of the day and year first above
written.

	 	 	 	 	 
	 	[NEW SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Acknowledged and accepted:

JPMORGAN CHASE BANK, N.A., as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit D

 

 

EXHIBIT E-1

U.S. TAX CERTIFICATE

(For Non-U.S. [Lenders][Participants]1 That Are Not Partnerships For U.S. Federal Income
Tax Purposes)

          Reference is hereby made to the Amended and Restated Credit Agreement dated as of April 27,
2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among Furniture Brands International, Inc., Broyhill Furniture Industries, Inc, Lane Furniture
Industries, Inc., the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative
Agent.

          Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record and beneficial owner of the [Loan(s) (as well as any
Note(s) evidencing such Loan(s))][participation] in respect of which it is providing this
certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it
is not a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the
Code, (iv) it is not a controlled foreign corporation related to any Borrower as described in
Section 881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively
connected with the undersigned’s conduct of a U.S. trade or business.

          The undersigned has furnished [the Administrative Agent and the Borrower Representative][its
participating Lender] with a certificate of its non-U.S. person status on IRS Form W-8BEN. By
executing this certificate, the undersigned agrees that (1) if the information provided on this
certificate changes, the undersigned shall promptly so inform [the Borrower Representative and the
Administrative Agent][such Lender] and (2) the undersigned shall have at all times furnished [the
Borrower Representative and the Administrative Agent][such Lender] with a properly completed and
currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

          Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF LENDER OR PARTICIPANT]

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: ________ __, 20[ ]

 

			
	1	 	This form can be used for Lenders or Participants. Select the appropriate bracketed phrases.

Exhibit E-1

 

 

EXHIBIT E-2

U.S. TAX CERTIFICATE

(For Non-U.S. [Lenders][Participants]1 That Are Partnerships For U.S. Federal Income Tax
Purposes)

          Reference is hereby made to the Amended and Restated Credit Agreement dated as of April 27,
2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among Furniture Brands International, Inc., Broyhill Furniture Industries, Inc, Lane Furniture
Industries, Inc., the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative
Agent.

          Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record owner of the [Loan(s) (as well as any Note(s) evidencing
such Loan(s))][participation] in respect of which it is providing this certificate, (ii) its
partners/members are the sole beneficial owners of such [Loan(s) (as well as any Note(s) evidencing
such Loan(s))][participation], (iii) with respect to [the extension of credit pursuant to this
Credit Agreement][participation], neither the undersigned nor any of its partners/members is a bank
extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or
business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its partners/members
is a ten percent shareholder of any Borrower within the meaning of Section 871(h)(3)(B) of the
Code, (v) none of its partners/members is a controlled foreign corporation related to any Borrower
as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are
not effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade
or business.

          The undersigned has furnished [the Administrative Agent and the Borrower Representative][its
participating Lender] with IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of its
partners/members claiming the portfolio interest exemption. By executing this certificate, the
undersigned agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform [the Borrower Representative and the Administrative
Agent][such Lender] and (2) the undersigned shall have at all times furnished [the Borrower
Representative and the Administrative Agent][such Lender] with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments.

          Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF LENDER OR PARTICIPANT]

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: ________ __, 20[ ]

 

			
	1	 	This form can be used for Lenders and Participants. Select the appropriate bracketed phrases.

Exhibit E-2exv10w2

Exhibit 10.2

EXECUTION VERSION

AMENDED AND RESTATED SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT (as it may be amended or modified from time to
time, the “Security Agreement”) is entered into as of April 27, 2011 by and between each of
the undersigned grantors (each a “Grantor”, and collectively, the “Grantors”), and
JPMorgan Chase Bank, N.A., in its capacity as administrative agent (the “Administrative
Agent”), for the Secured Creditors party to the Credit Agreement referred to below.

PRELIMINARY STATEMENT

     WHEREAS, certain of the Grantors, the financial institutions party thereto and the
Administrative Agent entered into that certain Security Agreement dated as of August 9, 2007 (as
amended, the “Existing Security Agreement”);

     WHEREAS, the Grantors, the Administrative Agent and the Lenders are entering into an Amended
and Restated Credit Agreement dated as of the date hereof (as it may be amended, modified and/or
restated from time to time, the “Credit Agreement”);

     WHEREAS, the Borrowers, the Administrative Agent and the Lenders wish to amend and restate the
Existing Security Agreement on the terms and conditions set forth below; and

     WHEREAS, each Grantor is entering into this Security Agreement in order to induce the Lenders
to enter into and extend credit to Furniture Brands International, Inc., a Delaware corporation
(“Furniture Brands”), Broyhill Furniture Industries, Inc., a North Carolina corporation
(“Broyhill”), HDM Furniture Industries, Inc., a Delaware corporation (“HDM”), Lane
Furniture Industries, Inc., a Mississippi corporation (“Lane”), Thomasville Furniture
Industries, Inc., a Delaware corporation (“Thomasville”), Maitland-Smith Furniture
Industries, Inc., a Delaware corporation (“Maitland-Smith”, and, together with Furniture
Brands, HDM, Broyhill Lane and Thomasville, each a “Borrower,” and, collectively, the
“Borrowers”), under the Credit Agreement and to secure the Secured Obligations that it has
agreed to guarantee pursuant to Article X of the Credit Agreement.

     ACCORDINGLY, the Grantors and the Administrative Agent, on behalf of the Secured Creditors,
hereby agree to amend and restate the Existing Security Agreement as follows:

ARTICLE I

DEFINITIONS

     1.1 Terms Defined in Credit Agreement. All capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.

     1.2 Terms Defined in UCC. Terms defined in the UCC which are not otherwise defined in
this Security Agreement are used herein as defined in the UCC.

     1.3 Definitions of Certain Terms Used Herein. As used in this Security Agreement, in
addition to the terms defined in the Preliminary Statement, the following terms shall have the
following meanings:

     “Accounts” shall have the meaning set forth in Article 9 of the UCC.

     “Article” means a numbered article of this Security Agreement, unless another document
is specifically referenced.

     “Chattel Paper” shall have the meaning set forth in Article 9 of the UCC.

     “Collateral” shall have the meaning set forth in Article II.

 

 

     “Collateral Access Agreement” means any landlord waiver or other agreement, in form
and substance reasonably satisfactory to the Administrative Agent, between the Administrative Agent
and any third party (including any bailee, consignee, customs broker, or other similar Person) in
possession of any Collateral or any landlord of any Loan Party for any real property where any
Collateral is located, as such landlord waiver or other agreement may be amended, restated, or
otherwise modified from time to time.

     “Collateral Deposit Account” shall have the meaning set forth in Section 7.1(a).

     “Collateral Report” means any certificate (including any Borrowing Base Certificate),
report or other document delivered by any Grantor to the Administrative Agent or any Lender with
respect to the Collateral pursuant to any Loan Document.

     “Collection Account” shall have the meaning set forth in Section 7.1(b).

     “Control” shall have the meaning set forth in Article 8 or, if applicable, in Section
9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC.

     “Control Agreements” shall mean the Deposit Account Control Agreements and the
Securities Account Control Agreements.

     “Copyrights” means, with respect to any Person, all of such Person’s right, title, and
interest in and to the following: (a) all copyrights, rights and interests in copyrights, works
protectable by copyright, copyright registrations, and copyright applications; (b) all renewals of
any of the foregoing; (c) all income, royalties, damages, and payments now or hereafter due and/or
payable under any of the foregoing, including, without limitation, damages or payments for past or
future infringements for any of the foregoing; (d) the right to sue for past, present, and future
infringements of any of the foregoing; and (e) all rights corresponding to any of the foregoing
throughout the world.

     “Deposit Account Control Agreement” means an agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among any Loan Party, a banking institution
holding such Loan Party’s funds, and the Administrative Agent with respect to collection and
control of all deposits and balances held in a deposit account maintained by any Loan Party with
such banking institution.

     “Deposit Accounts” shall have the meaning set forth in Article 9 of the UCC.

     “Disclosure Letter” means that letter dated the date hereof from the Loan Parties to
the Lenders and the Administrative Agent.

     “Documents” shall have the meaning set forth in Article 9 of the UCC.

     “Dominion Period” shall have the meaning set forth in Section 7.1(b).

     “Event of Default” means an event described in Section 5.1.

     “Exhibit” refers to a specific exhibit to this Security Agreement, unless another
document is specifically referenced.

     “General Intangibles” shall have the meaning set forth in Article 9 of the UCC.

     “Instruments” shall have the meaning set forth in Article 9 of the UCC.

     “Inventory” shall have the meaning set forth in Article 9 of the UCC.

     “Investment Property” shall have the meaning set forth in Article 9 of the UCC.

2

 

     “Lenders” means the lenders party to the Credit Agreement and their successors and
assigns.

     “Letter-of-Credit Rights” shall have the meaning set forth in Article 9 of the UCC.

     “Lock Boxes” shall have the meaning set forth in Section 7.1(a).

     “Lock Box Agreements” shall have the meaning set forth in Section 7.1(a).

     “Other Inventory” means Inventory having an aggregate value not in excess of $500,000
of which not more than $50,000 in value is at any single location.

     “Receivables” means the Accounts, Chattel Paper, Documents, Investment Property,
Instruments and any other rights or claims to receive money which are General Intangibles or which
are otherwise included as Collateral.

     “Required Secured Parties” means (a) prior to the date upon which the Credit Agreement
has terminated by its terms and all of the obligations thereunder have been paid in full, the
Required Lenders, and (b) after the Credit Agreement has terminated by its terms and all of the
Obligations thereunder have been paid in full (whether or not the Obligations under the Credit
Agreement were ever accelerated), Secured Creditors holding in the aggregate at least a majority of
the aggregate (i) net early termination payments and all other amounts then due and unpaid from any
Grantor to the Secured Creditors under any Swap Agreement and (ii) due and unpaid Banking Services
Obligations, in each case as determined by the Administrative Agent in its reasonable discretion.

     “Restatement Date” shall have the meaning set forth in the Credit Agreement.

     “Section” means a numbered section of this Security Agreement, unless another document
is specifically referenced.

     “Secured Creditors” means, collectively, each Lender, any Affiliate which is the
holder of any Banking Services Obligations, any Affiliate of any Lender (even if such Lender ceases
to be a Lender under the Credit Agreement) which is the holder of any Swap Obligations, the
Administrative Agent, the Issuing Bank, the Swingline Lender and all of their respective successors
and assigns.

     “Securities Account Control Agreement” means an agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among any Loan Party, a securities
intermediary holding such Loan Party’s financial assets, and the Administrative Agent with respect
to collection and control of all financial assets held in a securities account maintained by any
Loan Party with such institution.

     “Securities Accounts” shall have the meaning set forth in Article 8 of the UCC.

     “Supporting Obligations” shall have the meaning set forth in Article 9 of the UCC.

     “Trademarks” means, with respect to any Person, all of such Person’s right, title, and
interest in and to the following: (a) all trademarks (including service marks), trade names, trade
dress, and trade styles and the registrations and applications for registration thereof and the
goodwill of the business symbolized by the foregoing; (b) all licenses of the foregoing, whether as
licensee or licensor; (c) all renewals of the foregoing; (d) all income, royalties, damages, and
payments now or hereafter due or payable with respect thereto, including, without limitation,
damages, claims, and payments for past and future infringements thereof; (e) all rights to sue for
past, present, and future infringements of the foregoing, including the right to settle suits
involving claims and demands for royalties owing; and (f) all rights corresponding to any of the
foregoing throughout the world.

     “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State
of New York or of any other state the laws of which are required as a result thereof to be applied
in connection with the

3

 

attachment, perfection or priority of, or remedies with respect to, Administrative Agent’s or
any Lender’s Lien on any Collateral.

     The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms.

ARTICLE II

GRANT OF SECURITY INTEREST

     Each Grantor hereby pledges, assigns and grants to the Administrative Agent, on behalf of and
for the ratable benefit of the Secured Creditors, a security interest in all of its right, title
and interest in, to and under the following personal property, whether now owned by or owing to, or
hereafter acquired by or arising in favor of such Grantor (including under any trade name or
derivations thereof), and whether owned or consigned by or to, or leased from or to, such Grantor,
and regardless of where located (all of which will be collectively referred to as the
“Collateral”):

     (i) all Accounts;

     (ii) all Inventory;

     (iii) all Chattel Paper, Documents and Instruments evidencing or substituting
for the foregoing;

     (iv) all letters of credit, Letter-of-Credit Rights and Supporting Obligations
relating to any of the foregoing;

     (v) all Deposit Accounts or Securities Accounts with any bank or other financial
institution including all cash or cash equivalents and Investment Property deposited
therein or credited thereto;

     (vi) and all accessions to, substitutions for and replacements, proceeds,
insurance proceeds and products of the foregoing, together with all books and
records, customer lists, credit files, computer files, programs, printouts and other
computer materials and records related thereto and any General Intangibles at any
time evidencing or relating to any of the foregoing;

to secure the prompt and complete payment and performance of the Secured Obligations. Subject only
to the limited license set forth in Section 5.4, the term Collateral shall not include any
Copyrights, Trademarks or other intellectual property of any Grantor.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Each Grantor represents and warrants to the Administrative Agent and the Secured Creditors
that:

     3.1 Title, Perfection and Priority. Such Grantor has good and valid rights in or the
power to transfer the Collateral and title to the Collateral with respect to which it has purported
to grant a security interest hereunder, free and clear of all Liens except for Liens permitted
under Section 4.1(e), and has full power and authority to grant to the Administrative Agent the
security interest in such Collateral pursuant hereto. When financing statements have been filed in
the appropriate offices against such Grantor in the locations listed on Exhibit E to the
Disclosure Letter, the Administrative Agent will have a perfected first priority security interest
in that Collateral of the Grantor in which a security interest may be perfected by filing a
financing statement under the UCC, subject only to Liens permitted under Section 4.1(e).

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     3.2 Type and Jurisdiction of Organization, Organizational and Identification Numbers.
The type of entity of such Grantor, its state of organization, the organizational number issued to
it by its state of organization, if any, and its federal employer identification number are set
forth on Exhibit A to the Disclosure Letter.

     3.3 Principal Location. Such Grantor’s mailing address and the location of its place
of business (if it has only one) or its chief executive office (if it has more than one place of
business), are disclosed in Exhibit A to the Disclosure Letter; such Grantor has no other
places of business except those set forth in Exhibit A to the Disclosure Letter.

     3.4 Collateral Locations. All of such Grantor’s locations where Collateral (other
than Other Inventory and Inventory in transit) is located are listed on Exhibit A to the
Disclosure Letter. All of said locations are owned by such Grantor except for locations (i) which
are leased by the Grantor as lessee and designated in Part VII(b) of Exhibit A to
the Disclosure Letter and (ii) at which Inventory is held in a public warehouse or is otherwise
held by a bailee or on consignment as designated in Part VII(c) of Exhibit A to the
Disclosure Letter. Grantors shall provide notice to Administrative Agent not less than 10 days
prior to the expiration of any lease of any Collateral Locations listed on Exhibit A to the
Disclosure Letter.

     3.5 Accounts. All of such Grantor’s Deposit Accounts and Securities Accounts are
listed on Exhibit B to the Disclosure Letter.

     3.6 Exact Names. Such Grantor’s name in which it has executed this Security Agreement
is the exact name as it appears in such Grantor’s organizational documents, as amended, as filed
with such Grantor’s jurisdiction of organization. Such Grantor has not, during the past five
years, been known by or used any other corporate or fictitious name except as disclosed on
Exhibit C to the Disclosure Letter, nor has such Grantor been a party to any merger or
consolidation, or been a party to any acquisition during the past five years except as disclosed on
Exhibit C to the Disclosure Letter.

     3.7 Letter-of-Credit Rights and Chattel Paper. Exhibit D to the Disclosure
Letter lists all Letter-of-Credit Rights and Chattel Paper of such Grantor with an aggregate face
value in excess of $100,000 which, in either case, constitutes Collateral. All action by such
Grantor necessary or desirable to protect and perfect the Administrative Agent’s Lien on each item
listed on Exhibit D to the Disclosure Letter (including the delivery of all originals and
the placement of a legend on all Chattel Paper as required hereunder) has been duly taken. The
Administrative Agent will have a perfected first priority security interest in the Collateral
listed on Exhibit D to the Disclosure Letter, subject only to Liens permitted under Section
4.1(e).

     3.8 Accounts and Chattel Paper.

          (a) The names of the obligors, amounts owing, due dates and other information with respect to
its Accounts and Chattel Paper are and will be correctly stated in all records of such Grantor
relating thereto and in all invoices and Collateral Reports with respect thereto furnished to the
Administrative Agent by such Grantor from time to time. As of the time when each Account or each
item of Chattel Paper arises, such Grantor shall be deemed to have represented and warranted that
such Account or Chattel Paper, as the case may be, and all records relating thereto, are genuine
and in all respects what they purport to be.

          (b) With respect to its Accounts as reported to the Administrative Agent, except as
specifically disclosed on the most recent Collateral Report, (i) all Accounts are Eligible
Accounts; (ii) all Accounts represent bona fide sales of Inventory or rendering of services to
Account Debtors in the ordinary course of such Grantor’s business and are not evidenced by a
judgment, Instrument or Chattel Paper; (iii) there are no setoffs, claims or disputes existing or
asserted with respect thereto and such Grantor has not made any agreement with any Account Debtor
for any extension of time for the payment thereof, any compromise or settlement for less than the
full amount thereof, any release of any Account Debtor from liability therefor, or any deduction
therefrom except a discount or allowance allowed by such Grantor in the ordinary course of its
business for prompt payment and disclosed to the Administrative Agent; (iv) to such Grantor’s
knowledge, there are no facts, events or occurrences which in any way impair the validity or
enforceability thereof or could

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reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s
books and records and any invoices, statements and Collateral Reports with respect thereto; (v)
such Grantor has not received any notice of proceedings or actions which are threatened or pending
against any Account Debtor which may reasonably be expected to result in any adverse change in such
Account Debtor’s financial condition; and (vi) such Grantor has no knowledge that any Account
Debtor is unable generally to pay its debts as they become due.

          (c) In addition, with respect to all of its Accounts as reported to the Administrative Agent,
(i) the amounts shown on all invoices, statements and Collateral Reports with respect thereto are
actually and absolutely owing to such Grantor as indicated thereon and are not in any way
contingent; (ii) no payments have been or shall be made thereon except payments immediately
delivered to a Lock Box or a Collateral Deposit Account as required pursuant to Section
7.1; and (iii) to such Grantor’s knowledge, all Account Debtors have the capacity to contract.

     3.9 Inventory. With respect to any of its Inventory scheduled or listed on the most
recent Collateral Report, (a) such Inventory (other than Other Inventory and Inventory in transit)
is located at one of such Grantor’s locations set forth on Exhibit A to the Disclosure
Letter, (b) no Inventory (other than Inventory in transit) is now, or shall at any time or times
hereafter be stored at any other location except as permitted by Section 4.1(g), (c) such Grantor
has good, indefeasible and merchantable title to such Inventory and such Inventory is not subject
to any Lien or security interest whatsoever except for the Lien granted to the Administrative
Agent, for the benefit of the Administrative Agent and the Secured Creditors, and except for Liens
permitted by Section 4.1(e), (d) except as specifically disclosed in the most recent Collateral
Report, such Inventory is Eligible Inventory of good and merchantable quality, free from any
defects, (e) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name
or copyright agreements with any third parties which would require any consent of any third party
upon sale or disposition of that Inventory or the payment of any monies to any third party upon
such sale or other disposition, (f) such Inventory has been produced in accordance with the Federal
Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder and
(g) the completion of manufacture, sale or other disposition of such Inventory by the
Administrative Agent following an Event of Default shall not require the consent of any Person and
shall not constitute a breach or default under any contract or agreement to which such Grantor is a
party or to which such property is subject.

     3.10 No Financing Statements, Security Agreements. No financing statement or security
agreement describing all or any portion of the Collateral which has not lapsed or been terminated
naming such Grantor as debtor has been filed or is of record in any jurisdiction except (a) for
financing statements or security agreements naming the Administrative Agent on behalf of the
Secured Creditors as the secured party and (b) as permitted by Section 4.1(e).

ARTICLE IV

COVENANTS

     From the date of this Security Agreement, and thereafter until this Security Agreement is
terminated, each Grantor agrees that:

     4.1 General.

          (a) Collateral Records. Such Grantor will maintain complete and accurate books and
records with respect to the Collateral owned by it, and furnish to the Administrative Agent, such
reports relating to such Collateral as the Administrative Agent shall from time to time reasonably
request.

          (b) Authorization to File Financing Statements; Ratification. Such Grantor hereby
authorizes the Administrative Agent to file, and if requested will deliver to the Administrative
Agent, all financing statements and other documents and take such other actions as may from time to
time be reasonably requested by the Administrative Agent in order to maintain a first priority
perfected security interest in and, if applicable, Control of, the Collateral owned by such
Grantor, subject to Liens permitted under Section 4.1(e).

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Any financing statement filed by the Administrative Agent may be filed in any filing office in
any UCC jurisdiction that Administrative Agent reasonably determines to be necessary and may (i)
indicate such Grantor’s Collateral by any description which reasonably approximates the description
contained in this Security Agreement, and (ii) contain any other information required by part 5 of
Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or
amendment, including whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor. Such Grantor also agrees to furnish any
such information to the Administrative Agent promptly upon request. Such Grantor also ratifies its
authorization for the Administrative Agent to have filed in any UCC jurisdiction any initial
financing statements or amendments thereto if filed prior to the date hereof.

          (c) Further Assurances. Such Grantor will, if so requested by the Administrative
Agent, furnish to the Administrative Agent, as often as the Administrative Agent requests,
statements and schedules further identifying and describing the Collateral owned by it and such
other reports and information in connection with its Collateral as the Administrative Agent may
reasonably request, all in such detail as the Administrative Agent may specify. Such Grantor also
agrees to take any and all actions necessary to defend title to the Collateral against all persons
and to defend the security interest of the Administrative Agent in its Collateral and the priority
thereof against any Lien not expressly permitted hereunder.

          (d) Disposition of Collateral. Such Grantor will not sell, lease or otherwise dispose
of the Collateral owned by it without prior written consent of the Required Lenders except for
dispositions specifically permitted pursuant to Section 6.05 of the Credit Agreement.

          (e) Liens. Such Grantor will not create, incur, or suffer to exist any Lien on the
Collateral owned by it except Liens permitted by Section 6.02 of the Credit Agreement.

          (f) Other Financing Statements. Such Grantor will not authorize the filing of any
financing statement naming it as debtor covering all or any portion of the Collateral owned by it,
except as permitted by Section 4.1(e). Such Grantor acknowledges that it is not authorized
to file any financing statement or amendment or termination statement with respect to any financing
statement without the prior written consent of the Administrative Agent, subject to such Grantor’s
rights under Section 9-509(d)(2) of the UCC.

          (g) Locations. Such Grantor will not (i) maintain any Collateral owned by it (other
than Other Inventory and Collateral in transit) at any location other than those locations listed
on Exhibit A to the Disclosure Letter, (ii) otherwise change, or add to, such locations
without the Administrative Agent’s prior written consent (and if the Administrative Agent gives
such consent, such Grantor will concurrently therewith obtain a Collateral Access Agreement for
each such location to the extent requested by the Administrative Agent), or (iii) change its
principal place of business or chief executive office from the location identified on Exhibit
A to the Disclosure Letter, other than as permitted by the Credit Agreement. Upon the granting
of any consent pursuant to Section 4.1(g)(ii), compliance with Section 4.10 and, if applicable, the
delivery of any Collateral Access Agreement referred to in Section 4.1(g)(ii), Exhibit A to
the Disclosure Letter shall be deemed automatically amended to reflect the applicable addition or
change.

          (h) Compliance with Terms. Such Grantor will perform and comply with all material
obligations in respect of the Collateral owned by it and all agreements to which it is a party or
by which it is bound relating to such Collateral.

     4.2 Receivables.

          (a) Certain Agreements on Receivables. Such Grantor will not make or agree to make
any discount, credit, rebate or other reduction in the original amount owing on a Receivable or
accept in satisfaction of a Receivable less than the original amount thereof, except that, at any
time an Event of Default does not exist, such Grantor may reduce the amount of Accounts arising
from the sale of Inventory in accordance with its present policies and in the ordinary course of
business or as otherwise permitted by Section 6.05 of the Credit Agreement.

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          (b) Collection of Receivables. Except as otherwise provided in this Security
Agreement, such Grantor will make commercially reasonable efforts to collect and enforce, at such
Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables
owned by it in accordance with its present policies and in the ordinary course of business.

          (c) Delivery of Invoices. Such Grantor will deliver to the Administrative Agent
immediately upon its request after the occurrence and during the continuation of an Event of
Default duplicate invoices with respect to each Account owned by it bearing such language of
assignment as the Administrative Agent shall specify.

          (d) Disclosure of Counterclaims on Receivables. At any time that Availability shall
be less than the Changeover Amount and also at any time when an Event of Default shall have
occurred and be continuing, (i) (A) if any discount, credit or agreement to make a rebate or to
otherwise reduce the amount owing on any Receivable owned by such Grantor exists or (B) if, to the
knowledge of such Grantor, any dispute, setoff, claim, counterclaim or defense exists or has been
overtly asserted or threatened with respect to any such Receivable, such Grantor will disclose such
fact to the Administrative Agent on the Borrowing Base Certificates submitted by it and (ii) (A)
such Grantor shall send the Administrative Agent a copy of each credit memorandum in excess of
$100,000 upon issuance, and (B) such Grantor shall promptly report each credit memo and each of the
facts required to be disclosed to the Administrative Agent in accordance with this Section
4.2(d) on the Borrowing Base Certificates submitted by it.

          (e) Electronic Chattel Paper. Such Grantor shall take all commercially reasonable
steps necessary to grant the Administrative Agent Control of all electronic chattel paper in
accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce Act.

     4.3 Inventory.

          (a) Maintenance of Goods. Such Grantor will do all things commercially reasonable to
maintain, preserve, protect and keep its Inventory in good repair and working and saleable
condition, except for damaged or defective goods arising in the ordinary course of such Grantor’s
business.

          (b) Returned Inventory. If Account Debtors return Inventory to such Grantor having
an individual or aggregate value in excess of $250,000 when no Event of Default exists, then such
Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to
the Account Debtor in the appropriate amount. Such Grantor shall immediately report to the
Administrative Agent any return involving an amount in excess of $250,000. Each such report shall
indicate the reasons for the returns and the locations and condition of the returned Inventory. In
the event any Account Debtor returns Inventory to such Grantor when availability is less than the
Changeover Amount or if an Event of Default exists, such Grantor, upon the request of the
Administrative Agent, shall: (i) hold the returned Inventory in trust for the Administrative Agent;
(ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned
Inventory solely according to the Administrative Agent’s written instructions; (iv) not issue any
credits or allowances with respect thereto without the Administrative Agent’s prior written
consent; and (v) disclose such returned Inventory to the Administrative Agent on the Borrowing Base
Certificates submitted by it. All returned Inventory shall be subject to the Administrative
Agent’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed
ineligible to the extent of the amount owing by the Account Debtor with respect to such returned
Inventory and such returned Inventory shall not be Eligible Inventory.

          (c) Inventory Count; Perpetual Inventory System. Such Grantor will conduct a physical
count of its Inventory at least once per Fiscal Year, and after and during the continuation of an
Event of Default, at such other time as the Administrative Agent may reasonably request. Such
Grantor, at its own expense, shall deliver to the Administrative Agent the results of each physical
verification, which such Grantor has made, or has caused any other Person to make on its or the
Administrative Agent’s behalf, of all or any portion of its Inventory. Such Grantor will maintain
a perpetual inventory system at all times.

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     4.4 Delivery of Instruments, Securities, Chattel Paper and Documents. Upon the
Administrative Agent’s request, such Grantor will (a) deliver to the Administrative Agent
immediately the originals of all Chattel Paper and Instruments constituting Collateral owned by it
(if any then exist), (b) hold in trust for the Administrative Agent upon receipt and immediately
thereafter deliver to the Administrative Agent any such Chattel Paper and Instruments constituting
Collateral, (c) deliver to the Administrative Agent (and thereafter hold in trust for the
Administrative Agent upon receipt and immediately deliver to the Administrative Agent) any Document
evidencing or constituting Collateral and (d) deliver to the Administrative Agent a duly executed
amendment to this Security Agreement, in the form of Exhibit A hereto (the
“Amendment”), pursuant to which such Grantor will pledge such additional Collateral. Such
Grantor hereby authorizes the Administrative Agent to attach each Amendment to this Security
Agreement and agrees that all additional Collateral owned by it set forth in such Amendments shall
at all times be considered to be part of the Collateral; provided, however, that so long as no
Event of Default shall have occurred and be continuing, the failure of the Grantors to make
delivery to the Administrative Agent upon request of Chattel Paper and Instruments having an
aggregate (for all such Chattel Paper and Instruments for all Grantors) face amount not in excess
of $100,000 shall not be a breach of this Section.

     4.5 Federal, State or Municipal Claims. Such Grantor will promptly notify the
Administrative Agent of any Collateral with an individual face value exceeding $250,000 which
constitutes a claim against the United States government or any state or local government or any
instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or
municipal law.

     4.6 No Interference. Such Grantor agrees that it will not interfere with any right,
power and remedy of the Administrative Agent provided for in this Security Agreement or now or
hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of
the exercise by the Administrative Agent of any one or more of such rights, powers or remedies.

     4.7 Insurance.

          (a) All insurance policies required hereunder and under Section 5.09 of the Credit Agreement
shall name the Administrative Agent (for the benefit of the Administrative Agent and the Secured
Creditors) as an additional insured or as loss payee, as applicable, and shall contain loss payable
clauses or mortgagee clauses, or through endorsements, in each case, in form and substance
reasonably satisfactory to the Administrative Agent, which provide that: (i) all proceeds
thereunder with respect to any Collateral shall be payable to the Administrative Agent unless the
loss proceeds thereunder are less than $500,000, in which case the proceeds may be issued directly
to the Grantor, other than if a Default or Event of Default shall be occurring; (ii) no such
insurance shall be affected by any act or neglect of the insured or owner of the property described
in such policy; and (iii) such policy and loss payable or mortgagee clauses may be canceled,
amended, or terminated only upon at least thirty days prior written notice given to the
Administrative Agent.

          (b) All premiums on any such insurance shall be paid when due by such Grantor, and copies,
binders or extracts of the policies delivered to the Administrative Agent upon written request
therefor. Unless a Grantor provides the Administrative Agent with evidence of the insurance
coverage required by this Security Agreement, the Administrative Agent may purchase insurance at
such Grantor’s or the Borrowers’ expense to protect the Administrative Agent’s and the Secured
Creditors’ interests in the Collateral. This insurance may, but need not, protect such Grantor’s
interests. The coverage that the Administrative Agent purchases may not pay any claim that such
Grantor makes or any claim that is made against such Grantor in connection with the Collateral.
Such Grantor may later cancel any insurance purchased by the Administrative Agent, but only after
providing the Administrative Agent with evidence that such Grantor has obtained insurance as
required by this Security Agreement. If the Administrative Agent purchases insurance for the
Collateral, such Grantor will be responsible for the costs of that insurance, including interest
and any other reasonable charges the Administrative Agent may impose in connection 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 Borrowers’ or such Grantor’s total
outstanding balance or obligation. The costs of the insurance may be more than the cost of
insurance such Grantor may be able to obtain on its own. By purchasing such

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insurance, the Administrative Agent shall not be deemed to have waived any Default arising
from the Grantor’s failure to maintain such insurance or pay any premiums therefor.

     4.8 Collateral Access Agreements. Subject to Section 5.13(d) of the Credit Agreement,
such Grantor shall use commercially reasonable efforts to obtain a Collateral Access Agreement,
from the lessor of each leased property, mortgagee of owned property or bailee or consignee with
respect to any warehouse, processor or converter facility or other location where Collateral is
stored or located, which agreement or letter shall provide access rights, contain a waiver or
subordination of all Liens or claims that the landlord, mortgagee, bailee or consignee may assert
against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and
substance to the Administrative Agent. With respect to such locations or warehouse space leased as
of the Restatement Date and thereafter, if the Administrative Agent has not received a Collateral
Access Agreement as of the Restatement Date (or, if later, as of the date such location is acquired
or leased), Borrower’s Eligible Inventory at that location shall be excluded from the Borrowing
Base or subject to such Reserves as may be established by the Administrative Agent, in its
Permitted Discretion. After the Restatement Date, no real property or warehouse space shall be
leased by such Grantor and no Inventory shall be shipped to a processor or converter under
arrangements established after the Restatement Date, unless and until a satisfactory Collateral
Access Agreement reasonably satisfactory to the Administrative Agent shall first have been obtained
with respect to such location and if it has not been obtained, Borrower’s Eligible Inventory at
that location shall, in the Administrative Agent’s Permitted Discretion, either be excluded from
the Borrowing Base or made subject to the establishment of Reserves determined by the
Administrative Agent in its Permitted Discretion. Such Grantor shall timely and fully pay and
perform its obligations under all leases and other agreements with respect to each leased location
or third party warehouse where any Collateral is or may be located.

     4.9 Deposit Account Control Agreements. Subject to Section 5.13(d) of the Credit
Agreement, such Grantor will use commercially reasonable efforts to provide to the Administrative
Agent upon the Administrative Agent’s request, a Deposit Account Control Agreement duly executed on
behalf of each financial institution holding a deposit account of such Grantor as set forth in this
Security Agreement; provided that, the Administrative Agent may, in its discretion, defer delivery
of any such Deposit Account Control Agreement, establish a Reserve with respect to any deposit
account for which the Administrative Agent has not received such Deposit Account Control Agreement,
and require such Grantor to open and maintain a new deposit account with a financial institution
subject to a Deposit Account Control Agreement.

     4.10 Change of Name or Location; Change of Fiscal Year. Such Grantor shall not (a)
change its name as it appears in official filings in the state of its incorporation or
organization, (b) change its chief executive office, principal place of business, mailing address,
corporate offices or warehouses or locations at which Collateral (excluding Other Inventory) is
held or stored, or the location of its records concerning the Collateral as set forth in this
Security Agreement, (c) change the type of entity that it is, (d) change its organization
identification number, if any, issued by its state of incorporation or other organization, or (e)
change its state of incorporation or organization, in each case, unless the Administrative Agent
shall have received at least thirty days (or such lesser time as the Administrative Agent shall
otherwise agree) prior written notice of such change and the Administrative Agent shall have
acknowledged in writing that either (1) such change will not adversely affect the validity,
perfection or priority of the Administrative Agent’s security interest in the Collateral, or (2)
any reasonable action requested by the Administrative Agent in connection therewith has been
completed or taken (including any action to continue the perfection of any Liens in favor of the
Administrative Agent, on behalf of the Secured Creditors, in any Collateral), provided that, any
new location shall be in the continental U.S. Such Grantor shall not change its fiscal year which
currently ends on December 31.

ARTICLE V

EVENTS OF DEFAULT AND REMEDIES

     5.1 Events of Default. The occurrence of any one or more of the following events
shall constitute an Event of Default hereunder:

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          (a) Any representation or warranty made by or on behalf of any Grantor under or in connection
with this Security Agreement shall be materially false as of the date on which made.

          (b) The breach by any Grantor of any of the terms or provisions of Article IV or
Article VII.

          (c) The breach by any Grantor (other than a breach which constitutes an Event of Default under
any other Section of this Article V) of any of the terms or provisions of this Security Agreement
which is not remedied within thirty days after the earlier of such Grantor’s knowledge of such
breach or such Grantor’s receipt of notice thereof from the Administrative Agent (which notice will
be given at the request of any Lender).

          (d) The occurrence of any “Event of Default” under, and as defined in, the Credit Agreement.

     5.2 Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, the Administrative
Agent may exercise any or all of the following rights and remedies:

          (i) those rights and remedies provided in this Security Agreement, the Credit
Agreement, or any other Loan Document; provided that, this Section 5.2(a) shall not be
understood to limit any rights or remedies available to the Administrative Agent and the
Secured Creditors prior to an Event of Default;

          (ii) those rights and remedies available to a secured party under the UCC (whether or
not the UCC applies to the affected Collateral) or under any other applicable law
(including, without limitation, any law governing the exercise of a bank’s right of setoff
or bankers’ lien) when a debtor is in default under a security agreement;

          (iii) give notice of sole control or any other instruction under any Deposit Account
Control Agreement and take any action permitted therein with respect to such Collateral; and

          (iv) without notice (except as specifically provided in Section 8.1 or elsewhere
herein), demand or advertisement of any kind to any Grantor or any other Person, enter the
premises of any Grantor where any Collateral is located (through self-help and without
judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign,
grant an option or options to purchase or otherwise dispose of, deliver, or realize upon,
the Collateral or any part thereof in one or more parcels at public or private sale or sales
(which sales may be adjourned or continued from time to time with or without notice and may
take place at any Grantor’s premises or elsewhere), for cash, on credit or for future
delivery without assumption of any credit risk, and upon such other terms as the
Administrative Agent may deem commercially reasonable in its Permitted Discretion.

          (b) The Administrative Agent, on behalf of the Secured Creditors, may comply with any
applicable state or federal law requirements in connection with a disposition of the Collateral and
compliance will not be considered to adversely affect the commercial reasonableness of any sale of
the Collateral.

          (c) The Administrative Agent shall have the right upon any such public sale or sales and, to
the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of
the Administrative Agent and the Secured Creditors, the whole or any part of the Collateral so
sold, free of any right of equity redemption, which equity redemption the Grantor hereby expressly
releases.

          (d) Until the Administrative Agent is able to effect a sale, lease, or other disposition of
Collateral, the Administrative Agent shall have the right to hold or use Collateral, or any part
thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its
value or for any other purpose

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deemed appropriate by the Administrative Agent. The Administrative Agent may, if it so
elects, seek the appointment of a receiver or keeper to take possession of Collateral and to
enforce any of the Administrative Agent’s remedies (for the benefit of the Administrative Agent and
the Secured Creditors), with respect to such appointment without prior notice or hearing as to such
appointment.

          (e) If, after the Credit Agreement has terminated by its terms and all of the Obligations have
been paid in full, there remain Swap Obligations or Banking Services Obligations outstanding, the
Required Secured Parties may exercise the remedies provided in this Section 5.2 upon the occurrence
of any event which would allow or require the termination or acceleration of any Swap Obligations
or Banking Services Obligations pursuant to the terms of the applicable related agreement.

          (f) Notwithstanding the foregoing, neither the Administrative Agent nor the Secured Creditors
shall be required to (i) make any demand upon, or pursue or exhaust any of their rights or remedies
against, any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the
payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with
respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the
Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such
guarantee in any particular order, or (iii) effect a public sale of any Collateral.

     5.3 Grantor’s Obligations Upon Default. Upon the request of the Administrative Agent
after the occurrence of an Event of Default, each Grantor will:

          (a) assemble and make available to the Administrative Agent the Collateral and all books and
records relating thereto at any place or places specified by the Administrative Agent, whether at a
Grantor’s premises or elsewhere; and

          (b) permit the Administrative Agent, by the Administrative Agent’s representatives and agents,
to enter, occupy and use any premises where all or any part of the Collateral, or the books and
records relating thereto, or both, are located, to take possession of all or any part of the
Collateral or the books and records relating thereto, or both, to remove all or any part of the
Collateral or the books and records relating thereto, or both, and to conduct sales of the
Collateral, without any obligation to pay the Grantor for such use and occupancy.

     5.4 Grant of Intellectual Property License. For the sole and limited purpose of
enabling the Administrative Agent to exercise the rights and remedies permitted under this
Article V only at such time as the Administrative Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby (a) grants to the Administrative Agent, for
the benefit of the Administrative Agent and the Secured Creditors, a nonexclusive, irrevocable
license (exercisable without payment of royalty or other compensation to any Grantor) to use,
license or sublicense any intellectual property rights now owned or hereafter acquired by such
Grantor (only to the extent Grantor has the right to grant any such rights), and wherever the same
may be located, and including in such license access to all media owned or licensed by Grantor in
which any of the licensed items may be recorded or stored and to all computer software and programs
used for the compilation or printout thereof and (b) irrevocably agrees that the Administrative
Agent may sell any of such Grantor’s Inventory directly to any person, including without limitation
persons who have previously purchased the Grantor’s Inventory from such Grantor and in connection
with any such sale or other enforcement of the Administrative Agent’s rights under this Security
Agreement, may sell Inventory which bears any Trademark owned by or licensed to (to the extent
permitted under any such licenses) such Grantor and any Inventory that is covered by any Copyright
owned by or licensed to such Grantor and the Administrative Agent may finish any work in process
and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided
herein. Any license granted pursuant to this Section shall not be effective unless and until the
Administrative Agent shall exercise its rights or remedies under this Article V and shall
terminate upon the termination of this Security Agreement pursuant to Section 8.14.

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ARTICLE VI

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

     6.1 Account Verification. The Administrative Agent may at any time, in the
Administrative Agent’s own name, in the name of a nominee of the Administrative Agent, or in the
name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account
Debtors of any such Grantor, parties to contracts with any such Grantor and obligors in respect of
Instruments of any such Grantor to verify with such Persons, to the Administrative Agent’s
reasonable satisfaction, the existence, amount, terms of, and any other matter relating to,
Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables.

     6.2 Authorization for Secured Party to Take Certain Action.

          (a) Each Grantor irrevocably authorizes the Administrative Agent at any time and from time to
time (except in the case of subsections (vi), (vii)(A), (viii)(A), (ix), (x), (xi), (xii) and
(xiv)(A) only at a time when either Availability is less than the Changeover Amount or a Default
has occurred and is continuing) in the Permitted Discretion of the Administrative Agent and
appoints the Administrative Agent as its attorney in fact (i) to execute on behalf of such Grantor
as debtor and to file financing statements necessary or desirable in the Administrative Agent’s
sole discretion to perfect and to maintain the perfection and priority of the Administrative
Agent’s security interest in the Collateral, (ii) to endorse and collect any cash proceeds of the
Collateral, (iii) to file a carbon, photographic or other reproduction of this Security Agreement
or any financing statement with respect to the Collateral as a financing statement and to file any
other financing statement or amendment of a financing statement (which does not add new collateral
or add a debtor) in such offices as the Administrative Agent in its sole discretion deems necessary
or desirable to perfect and to maintain the perfection and priority of the Administrative Agent’s
security interest in the Collateral, (iv) to apply the proceeds of any Collateral received by the
Administrative Agent to the Secured Obligations as provided in Section 7.3, (v) to discharge past
due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens as are
specifically permitted hereunder), (vi) to contact Account Debtors for any reason not contemplated
by Section 6.1 (it being understood that nothing in this Section shall impair the Administrative
Agent’s rights under Section 6.1), (vii) (A) to demand payment or enforce payment of the
Receivables in the name of the Administrative Agent or such Grantor and (B) to endorse any and all
checks, drafts, and other instruments for the payment of money relating to the Receivables, (viii)
to sign such Grantor’s name on (A) any invoice or bill of lading relating to the Receivables,
drafts against any Account Debtor of the Grantor, assignments and (B) verifications of Receivables,
(ix) to exercise all of such Grantor’s rights and remedies with respect to the collection of the
Receivables and any other Collateral, (x) to settle, adjust, compromise, extend or renew the
Receivables, (xi) to settle, adjust or compromise any legal proceedings brought to collect
Receivables, (xii) to prepare, file and sign such Grantor’s name on a proof of claim in bankruptcy
or similar document against any Account Debtor of such Grantor, (xiii) to prepare, file and sign
such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document
in connection with the Receivables, (xiv) (A) to change the address for delivery of mail addressed
to such Grantor to such address as the Administrative Agent may designate and (B) to receive, open
and dispose of all mail addressed to such Grantor, and (xv) to do all other acts and things
necessary to carry out this Security Agreement; and such Grantor agrees to reimburse the
Administrative Agent on receipt of invoice for any reasonable payment made or any out-of-pocket
expense incurred by the Administrative Agent in connection with any of the foregoing; provided
that, this authorization shall not relieve such Grantor of any of its obligations under this
Security Agreement or under the Credit Agreement.

          (b) All acts of said attorney or designee are hereby ratified and approved. The powers
conferred on the Administrative Agent, for the benefit of the Administrative Agent and Secured
Creditors, under this Section 6.2 are solely to protect the Administrative Agent’s interests in the
Collateral and shall not impose any duty upon the Administrative Agent or any Lender to exercise
any such powers.

     6.3 Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF THE ADMINISTRATIVE
AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE
IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH
SECTION 8.14.

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NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE ADMINISTRATIVE AGENT, NOR ANY LENDER,
NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES
SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE
THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN
RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS
FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE
LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

ARTICLE VII

COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS

     7.1 Collection of Receivables.

          (a) Subject to Section 5.13(d) of the Credit Agreement, on or before the Restatement Date,
each Grantor shall (a) execute and deliver to the Administrative Agent Deposit Account Control
Agreements for each Deposit Account maintained by such Grantor into which all cash, checks or other
similar payments relating to or constituting payments made in respect of Receivables will be
deposited (a “Collateral Deposit Account”), which Collateral Deposit Accounts are
identified as such on Exhibit B to the Disclosure Letter, and (b) establish lock box
service (the “Lock Boxes”) with the bank(s) set forth in Exhibit B to the
Disclosure Letter, which lock boxes shall be subject to irrevocable lockbox agreements in the form
provided by or otherwise reasonably acceptable to the Administrative Agent (a “Lock Box
Agreement”) and shall be accompanied by an acknowledgment by the bank where the Lock Box is
located of the Lien of the Administrative Agent granted hereunder and of irrevocable instructions
to wire all amounts collected therein to the Collection Account following its receipt of a notice
from the Administrative Agent per the penultimate sentence of Section 7.1(b). After the Restatement
Date, each Grantor will comply with the terms of Section 7.2.

          (b) Each Grantor shall direct all of its Account Debtors to forward payments directly to Lock
Boxes subject to Lock Box Agreements. During the Dominion Period (as defined below), the
Administrative Agent shall have sole access to the Lock Boxes at all times and each Grantor shall
take all actions necessary to grant the Administrative Agent such sole access. At no time during
the Dominion Period shall any Grantor remove any item from a Lock Box or from a Collateral Deposit
Account without the Administrative Agent’s prior written consent. If any Grantor should refuse or
neglect to notify any Account Debtor to forward payments directly to a Lock Box subject to a Lock
Box Agreement after notice from the Administrative Agent, the Administrative Agent shall be
entitled to make such notification directly to Account Debtor. If notwithstanding the foregoing
instructions, any Grantor receives any proceeds of any Receivables, such Grantor shall, during the
Dominion Period, receive such payments as the Administrative Agent’s trustee, and shall immediately
deposit all cash, checks or other similar payments related to or constituting payments made in
respect of Receivables received by it to a Collateral Deposit Account. At any time Availability is
less than the Changeover Amount or upon the occurrence and during the continuance of an Event of
Default (any such time being within the “Dominion Period”), upon the request of the
Administrative Agent (which may be made without Required Lender direction or consent) and following
delivery of notice by the Administrative Agent to the applicable depositary banks, all funds
deposited into any Lock Box subject to a Lock Box Agreement or a Deposit Account subject to a
Deposit Account Control Agreement will be swept on a daily basis into a collection account
maintained by such Grantor with the Administrative Agent (the “Collection Account”). All
funds held, deposited or transferred into any Securities Account subject to a Securities Account
Control Agreement shall be transferred to the Collection Account pursuant to such instructions as
shall be delivered by the Administrative Agent to the applicable securities intermediary. The
Administrative Agent shall hold and apply funds received into the Collection Account as provided by
the terms of Section 7.3. The obligation of the Loan Parties to comply with the foregoing
requirement shall continue until Availability has exceeded the Changeover Amount for 90 consecutive
days. The Administrative Agent shall thereafter promptly take all necessary actions to terminate
such cash dominion.

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     7.2 Covenant Regarding New Deposit Accounts; Lock Boxes. Before opening or replacing
any Collateral Deposit Account, other Deposit Account, or establishing a new Lock Box, each Grantor
shall (a) obtain the Administrative Agent’s consent in writing to the opening of such Deposit
Account or Lock Box, and (b) cause each bank or financial institution in which it seeks to open (i)
a Deposit Account, to enter into a Deposit Account Control Agreement with the Administrative Agent
in order to give the Administrative Agent Control of such Deposit Account, or (ii) a Lock Box, to
enter into a Lock Box Agreement with the Administrative Agent in order to give the Administrative
Agent Control of the Lock Box. In the case of Deposit Accounts or Lock Boxes maintained with
Lenders, the terms of such letter shall be subject to the provisions of the Credit Agreement
regarding setoffs.

     7.3 Application of Proceeds During the Dominion Period; Deficiency. All amounts
deposited in the Collection Account shall be deemed received by the Administrative Agent in
accordance with Section 2.18 of the Credit Agreement and shall, after having been credited to the
Collection Account, be applied (and allocated) by the Administrative Agent in accordance with
Section 2.10(b) of the Credit Agreement. The Administrative Agent shall require all other cash
proceeds of the Collateral, which are not required to be applied to the Obligations pursuant to
Section 2.11 of the Credit Agreement, to be deposited in a special non-interest bearing cash
collateral account with the Administrative Agent and held there as security for the Secured
Obligations. No Grantor shall have any control whatsoever over said cash collateral account. Any
such proceeds of the Collateral shall be applied in the order set forth in Section 2.18 of the
Credit Agreement unless a court of competent jurisdiction shall otherwise direct. The balance, if
any, after all of the Secured Obligations (other than unasserted contingent indemnification
obligations) have been satisfied, shall be deposited by the Administrative Agent into such
Grantor’s general operating account with the Administrative Agent or such other account as such
Grantor shall request. The Grantors shall remain liable for any deficiency if the proceeds of any
sale or disposition of the Collateral are insufficient to pay all Secured Obligations, including
any attorneys’ fees and other expenses incurred by Administrative Agent or any Lender to collect
such deficiency.

ARTICLE VIII

GENERAL PROVISIONS

     8.1 Waivers. Each Grantor hereby waives notice of the time and place of any public
sale or the time after which any private sale or other disposition of all or any part of the
Collateral may be made. To the extent such notice may not be waived under applicable law, any
notice made shall be deemed reasonable if sent to the Grantors, addressed as set forth in Article
IX, at least ten days prior to (i) the date of any such public sale or (ii) the time after which
any such private sale or other disposition may be made. To the maximum extent permitted by
applicable law, each Grantor waives all claims, damages, and demands against the Administrative
Agent or any Lender arising out of the repossession, retention or sale of the Collateral, except
such as arise solely out of the gross negligence or willful misconduct of the Administrative Agent
or such Lender as finally determined by a court of competent jurisdiction. To the extent it may
lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and
advantage of, and covenants not to assert against the Administrative Agent or any Lender, any
valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all
rights or defenses it may have as a surety now or hereafter existing which, but for this provision,
might be applicable to the sale of any Collateral made under the judgment, order or decree of any
court, or privately under the power of sale conferred by this Security Agreement, or otherwise.
Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand,
protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral.

     8.2 Limitation on Administrative Agent’s and Secured Creditors’ Duty with Respect to the
Collateral. The Administrative Agent shall have no obligation to clean-up or otherwise prepare
the Collateral for sale. The Administrative Agent and each Lender shall use reasonable care with
respect to the Collateral in its possession or under its control. Neither the Administrative Agent
nor any Lender shall have any other duty as to any Collateral in its possession or control or in
the possession or control of any agent or nominee of the Administrative Agent or such Lender, or
any income thereon or as to the preservation of rights against prior parties or any other rights
pertaining thereto. To the extent that applicable law imposes duties on the

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Administrative Agent to exercise remedies in a commercially reasonable manner, each Grantor
acknowledges and agrees that it is commercially reasonable for the Administrative Agent (i) to fail
to incur expenses deemed significant by the Administrative Agent to prepare Collateral for
disposition or otherwise to transform raw material or work in process into finished goods or other
finished products for disposition, (ii) to fail to obtain third party consents for access to
Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be
collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or
other Persons obligated on Collateral or to remove Liens on or any adverse claims against
Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons
obligated on Collateral directly or through the use of collection agencies and other collection
specialists, (v) to advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other
Persons, whether or not in the same business as such Grantor, for expressions of interest in
acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail
markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi)
to purchase insurance or credit enhancements to insure the Administrative Agent against risks of
loss, collection or disposition of Collateral or to provide to the Administrative Agent a
guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed
appropriate by the Administrative Agent, to obtain the services of other brokers, investment
bankers, consultants and other professionals to assist the Administrative Agent in the collection
or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this
Section 8.2 is to provide non-exhaustive indications of what actions or omissions by the
Administrative Agent would be commercially reasonable in the Administrative Agent’s exercise of
remedies against the Collateral and that other actions or omissions by the Administrative Agent
shall not be deemed commercially unreasonable solely on account of not being indicated in this
Section 8.2. Without limitation upon the foregoing, nothing contained in this Section 8.2 shall be
construed to grant any rights to any Grantor or to impose any duties on the Administrative Agent
that would not have been granted or imposed by this Security Agreement or by applicable law in the
absence of this Section 8.2.

     8.3 Compromises and Collection of Collateral. The Grantors and the Administrative
Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors
with respect to certain of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of success in litigating a
disputed Receivable may exceed the amount that reasonably may be expected to be recovered with
respect to a Receivable. In view of the foregoing, each Grantor agrees that the Administrative
Agent may at any time and from time to time, if an Event of Default has occurred and is continuing,
compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount
as the Administrative Agent in its Permitted Discretion shall determine or abandon any Receivable,
and any such action by the Administrative Agent shall be commercially reasonable so long as the
Administrative Agent acts in good faith based on information known to it at the time it takes any
such action.

     8.4 Secured Party Performance of Debtor Obligations. Without having any obligation to
do so, upon the occurrence and during the continuance of a Default, the Administrative Agent may
perform or pay any obligation which any Grantor has agreed to perform or pay in this Security
Agreement and the Grantors shall reimburse the Administrative Agent for any amounts paid by the
Administrative Agent pursuant to this Section 8.4. The Grantors’ obligation to reimburse the
Administrative Agent pursuant to the preceding sentence shall be a Secured Obligation payable upon
receipt of an invoice therefor.

     8.5 Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees
that a breach of any of the covenants contained in Sections 4.1(d), 4.1(e), 4.5, 4.7, 4.8, 4.9,
4.10, 5.3, or 8.7 or in Article VII will cause irreparable injury to the Administrative Agent and
the Secured Creditors, that the Administrative Agent and the Secured Creditors have no adequate
remedy at law in respect of such breaches and therefore agrees, without limiting the right of the
Administrative Agent or the Secured Creditors to seek and obtain specific performance of other
obligations of the Grantors contained in this Security Agreement, that the

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covenants of the Grantors contained in the Sections referred to in this Section 8.5 shall be
specifically enforceable against the Grantors.

     8.6 Dispositions Not Authorized. No Grantor is authorized to sell or otherwise
dispose of the Collateral except as set forth in Section 4.1(d) and notwithstanding any course of
dealing between any Grantor and the Administrative Agent or other conduct of the Administrative
Agent, no authorization to sell or otherwise dispose of the Collateral (except as set forth in
Section 4.1(d)) shall be binding upon the Administrative Agent or the Secured Creditors unless such
authorization is in writing signed by the Administrative Agent with the consent or at the direction
of the Required Secured Parties.

     8.7 No Waiver; Amendments; Cumulative Remedies. No delay or omission of the
Administrative Agent or any Lender to exercise any right or remedy granted under this Security
Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an
acquiescence therein, and any single or partial exercise of any such right or remedy shall not
preclude any other or further exercise thereof or the exercise of any other right or remedy. No
waiver, amendment or other variation of the terms, conditions or provisions of this Security
Agreement whatsoever shall be valid unless in writing signed by the Administrative Agent with the
concurrence or at the direction of the Lenders required under Section 9.02 of the Credit Agreement
and then only to the extent in such writing specifically set forth; provided, however, that
Exhibit A to the Disclosure Letter shall be automatically amended as provided in Section
4.1(g). All rights and remedies contained in this Security Agreement or by law afforded shall be
cumulative and all shall be available to the Administrative Agent and the Secured Creditors until
the Secured Obligations (other than unasserted contingent indemnification obligations) have been
paid in full.

     8.8 Limitation by Law; Severability of Provisions. All rights, remedies and powers
provided in this Security Agreement may be exercised only to the extent that the exercise thereof
does not violate any applicable provision of law, and all the provisions of this Security Agreement
are intended to be subject to all applicable mandatory provisions of law that may be controlling
and to be limited to the extent necessary so that they shall not render this Security Agreement
invalid, unenforceable or not entitled to be recorded or registered, in whole or in part. Any
provision in this Security Agreement that is held to be inoperative, unenforceable, or invalid in
any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without
affecting the remaining provisions in that jurisdiction or the operation, enforceability, or
validity of that provision in any other jurisdiction, and to this end the provisions of this
Security Agreement are declared to be severable.

     8.9 Reinstatement. This Security Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Grantor for liquidation or
reorganization, should any Grantor become insolvent or make an assignment for the benefit of any
creditor or creditors or should a receiver or trustee be appointed for all or any significant part
of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” or otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the
Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

     8.10 Benefit of Agreement. The terms and provisions of this Security Agreement shall
be binding upon and inure to the benefit of the Grantors, the Administrative Agent and the Secured
Creditors and their respective successors and assigns (including all persons who become bound as a
debtor to this Security Agreement), except that no Grantor shall have the right to assign its
rights or delegate its obligations under this Security Agreement or any interest herein without the
prior written consent of the Administrative Agent and any attempted assignment by a Grantor without
such consent shall be null and void. No sales of participations, assignments, transfers, or other
dispositions of any agreement governing the Secured Obligations or any portion thereof or interest
therein shall in any manner impair the Lien granted to the Administrative Agent, for the benefit of
the Administrative Agent and the Secured Creditors, hereunder.

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     8.11 Survival of Representations. All representations and warranties of the Grantors
contained in this Security Agreement shall survive the execution and delivery of this Security
Agreement.

     8.12 Taxes and Expenses. Any taxes payable or ruled payable by Federal or State
authority in respect of this Security Agreement shall be paid by the Grantors, together with
interest and penalties, if any. The Grantors shall reimburse the Administrative Agent for any and
all out-of-pocket expenses (including reasonable outside attorneys’, auditors’ and accountants’
fees) paid or incurred by the Administrative Agent in connection with the preparation, execution,
delivery, administration, collection and enforcement of this Security Agreement and in the audit,
analysis, administration, collection, preservation or sale of the Collateral (including the
expenses and charges associated with any periodic or special audit of the Collateral). Any and all
costs and expenses incurred by the Grantors in the performance of actions required pursuant to the
terms hereof shall be borne solely by the Grantors.

     8.13 Headings. The title of and section headings in this Security Agreement are for
convenience of reference only, and shall not govern the interpretation of any of the terms and
provisions of this Security Agreement.

     8.14 Termination. This Security Agreement shall continue in effect (notwithstanding
the fact that from time to time there may be no Secured Obligations outstanding) until (i) the
Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured
Obligations (other than unasserted contingent indemnification obligations) have been indefeasibly
paid and performed in full (or with respect to any outstanding Letters of Credit, a cash deposit or
Supporting Letter of Credit has been delivered to the Administrative Agent as required by the
Credit Agreement) and no commitments of the Administrative Agent or the Secured Creditors which
would give rise to any Secured Obligations are outstanding.

     8.15 Entire Agreement. This Security Agreement embodies the entire agreement and
understanding between the Grantors and the Administrative Agent relating to the Collateral and
supersedes all prior agreements and understandings between the Grantors and the Administrative
Agent relating to the Collateral.

     8.16 CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO
NATIONAL BANKS.

     8.17 CONSENT TO JURISDICTION. EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON
EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND EACH GRANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT
MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE
ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY
OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE ADMINISTRATIVE AGENT OR ANY
LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN
ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN
DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.

     8.18 WAIVER OF JURY TRIAL. EACH GRANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER
HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED

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WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

     8.19 Indemnity. Each Grantor hereby agrees to indemnify the Administrative Agent and
the Secured Creditors, and their respective successors, assigns, agents and employees, from and
against any and all liabilities, damages, penalties, suits, costs, and expenses of any kind and
nature (including, without limitation, all expenses of litigation or preparation therefor whether
or not the Administrative Agent or any Secured Creditor is a party thereto) imposed on, incurred by
or asserted against the Administrative Agent or the Secured Creditors, or their respective
successors, assigns, agents and employees, in any way relating to or arising out of this Security
Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery, lease,
possession, use, operation, condition, sale, return or other disposition of any Collateral
(including, without limitation, latent and other defects, whether or not discoverable by the
Administrative Agent or the Secured Creditors or any Grantor).

     8.20 Counterparts. This Security Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and any of the parties
hereto may execute this Security Agreement by signing any such counterpart.

ARTICLE IX

NOTICES

     Notwithstanding the disclosure of a mailing address for each Grantor on Exhibit A to
the Disclosure Letter, any notice required or permitted to be given under this Security Agreement
shall be sent in accordance with Section 9.01 of the Credit Agreement.

ARTICLE X

THE ADMINISTRATIVE AGENT

     JPMorgan Chase Bank, N.A. has been appointed Administrative Agent for the Secured Creditors
hereunder pursuant to Article VIII of the Credit Agreement. It is expressly understood and agreed
by the parties to this Security Agreement that any authority conferred upon the Administrative
Agent hereunder is subject to the terms of the delegation of authority made by the Secured
Creditors to the Administrative Agent pursuant to the Credit Agreement, and that the Administrative
Agent has agreed to act (and any successor Administrative Agent shall act) as such hereunder only
on the express conditions contained in such Article VIII. Any successor Administrative Agent
appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the rights,
interests and benefits of the Administrative Agent hereunder.

ARTICLE XI

AMENDMENT AND RESTATEMENT

     This Security Agreement amends and restates the Existing Security Agreement in its entirety
and, upon effectiveness of this Security Agreement, the terms and provisions of the Existing
Security Agreement shall, subject to the following sentence, be superseded hereby and the rights
and obligations of the parties hereto shall be governed by this Security Agreement rather than the
Existing Security Agreement. This Security Agreement is given in substitution for the Existing
Security Agreement, is in no way intended to constitute a novation of the Existing Security
Agreement and the Liens granted in the Existing Security Agreement hereby are renewed and extended
and shall be continuing. The parties hereto acknowledge and agree that any waivers, express or
implied by course of conduct or otherwise, amendments or other actions (or failures to act) under
the Existing Security Agreement shall be of no use in interpreting the rights and duties of the
parties under this Security Agreement.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the Grantors and the Administrative Agent have executed this Security
Agreement as of the date first above written.

	 	 	 	 	 
	 	GRANTORS:

FURNITURE BRANDS INTERNATIONAL, INC.

BROYHILL FURNITURE INDUSTRIES, INC.

LANE FURNITURE INDUSTRIES, INC.

THOMASVILLE FURNITURE INDUSTRIES, INC.

ACTION TRANSPORT, INC.

BROYHILL TRANSPORT, INC.

BROYHILL RETAIL, INC.

BROYHILL HOME FURNISHINGS, INC.

THOMASVILLE RETAIL, INC.

HDM RETAIL, INC.

FAYETTE ENTERPRISES, INC.

HDM FURNITURE INDUSTRIES, INC.

HDM TRANSPORT, INC.

LANEVENTURE, INC.

MAITLAND-SMITH FURNITURE INDUSTRIES, INC.

THE LANE COMPANY, INCORPORATED

LANE HOME FURNISHINGS RETAIL, INC.

THOMASVILLE HOME FURNISHINGS, INC.

FURNITURE BRANDS RESOURCE COMPANY, INC.

FURNITURE BRANDS HOLDINGS, INC.

FURNITURE BRANDS OPERATIONS, INC.

 	 
	 	By  	/s/ Steven G. Rolls
 	 
	 	 	Name:  	Steven G. Rolls 	 
	 	 	Title:  	Senior Vice President of Furniture Brands and
Senior Vice President-Finance of each other
Grantor
On behalf of each of the above Grantors 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Bradford R. Kuhn
 	 
	 	 	Name:  	Bradford R. Kuhn 	 
	 	 	Title:  	Duly Authorized Signatory 	 

 

 

	 	 	 	 	 

EXHIBIT A

(See Section 4.4 of Security Agreement)

AMENDMENT

This Amendment, dated ________________, ___ is delivered pursuant to Section 4.4 of the Security
Agreement referred to below. All defined terms herein shall have the meanings ascribed thereto or
incorporated by reference in the Security Agreement. The undersigned hereby certifies that the
representations and warranties in Article III of the Security Agreement are and continue to be true
and correct. The undersigned further agrees that this Amendment may be attached to that certain
Amended and Restated Security Agreement, dated April 27, 2011, between the undersigned, as the
Grantors, and JPMorgan Chase Bank, N.A., as the Administrative Agent, (the “Security
Agreement”) and confirms that the Collateral listed on Schedule I to this Amendment is
and shall be a part of the Collateral referred to in said Security Agreement and does and shall
secure all Secured Obligations referred to in said Security Agreement.

	 	 	 	 	 
	 	GRANTORS:

FURNITURE BRANDS INTERNATIONAL, INC.

BROYHILL FURNITURE INDUSTRIES, INC.

LANE FURNITURE INDUSTRIES, INC.

THOMASVILLE FURNITURE INDUSTRIES, INC.

ACTION TRANSPORT, INC.

BROYHILL TRANSPORT, INC.

BROYHILL RETAIL, INC.

BROYHILL HOME FURNISHINGS, INC.

THOMASVILLE RETAIL, INC.

HDM RETAIL, INC.

FAYETTE ENTERPRISES, INC.

HDM FURNITURE INDUSTRIES, INC.

HDM TRANSPORT, INC.

LANEVENTURE, INC.

MAITLAND-SMITH FURNITURE INDUSTRIES, INC.

THE LANE COMPANY, INCORPORATED

LANE HOME FURNISHINGS RETAIL, INC.

THOMASVILLE HOME FURNISHINGS, INC.

FURNITURE BRANDS RESOURCE COMPANY, INC.

FURNITURE BRANDS HOLDINGS, INC.

FURNITURE BRANDS OPERATIONS, INC.

 	 
	 	By  	 	 
	 	 	Name:  	Steven G. Rolls 	 
	 	 	Title:  	Senior Vice President of Furniture Brands and
Senior Vice President  - Finance of each other Grantor
On behalf of each of the above Grantors 	 

 

 

	 	 	 	 	 

SCHEDULE I TO AMENDMENT

[see attached]

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