Document:

EX-4.1 SIXTH AMENDMENT TO SHAREHOLDER AGREEMENT

 

Exhibit 4.1

SIXTH AMENDMENT TO

SHAREHOLDER PROTECTION RIGHTS AGREEMENT

     THIS SIXTH AMENDMENT (this “Amendment”), effective as of September 17, 2007, is between
PRG-SCHULTZ INTERNATIONAL, INC., a Georgia corporation (the “Company”), and AMERICAN STOCK TRANSFER
AND TRUST COMPANY, a New York Banking corporation and successor in interest to Wachovia Bank,
National Association, as Rights Agent (“AST” or the “Rights Agent”).

W I T N E S S E T H

     WHEREAS, AST has acquired the shareholder service business of Wachovia Bank, National
Association (“Wachovia”), including Wachovia’s obligations under that certain Shareholder
Protection Rights Agreement dated as of August 9, 2000, as amended effective May 15, 2002, August
16, 2002, November 7, 2005, November 14, 2005 and March 16, 2006, between the Company and the
Rights Agent (the “Agreement”), and, therefore, pursuant to Section 4.2 of the Agreement, AST,
without any further action on behalf of the Company, has automatically been substituted as Rights
Agent under the Agreement;

     WHEREAS, the Board of Directors of the Company deems it advisable and in the best interest of
the Company and its shareholders to amend the Agreement in accordance with Section 5.4 of the
Agreement;

     WHEREAS, pursuant to its authority under Section 5.4 of the Agreement, the Board of Directors
of the Company has authorized and approved this Amendment to the Agreement set forth herein as of
the date hereof.

     NOW, THEREFORE, in consideration of the premises and the respective agreements set forth
herein, the parties hereby agree as follows:

     1.     Definitions. Capitalized terms used in this Amendment, which are not otherwise defined
herein, are used with the same meaning ascribed to such terms in the Agreement.

     2.     Amendments.

(a)     The definition of “Acquiring Person” in Section 1.1 is hereby deleted in its
entirety and replaced to read as follows:

“Acquiring Person” shall mean any Person who is a Beneficial Owner of 15% or
more of the outstanding shares of Common Stock; provided, however, that the
term “Acquiring Person” shall not include any Person (i) who shall become the
Beneficial Owner of 15% or more of the outstanding shares of Common Stock
solely as a result of an acquisition by the Company of shares of Common Stock,
until such time thereafter as such Person shall become the Beneficial Owner
(other than by means of a stock dividend or stock split) of any additional shares of Common Stock, (ii) who is the

 

 

Beneficial Owner of 15% or more of the outstanding shares of Common Stock but
who acquired Beneficial Ownership of shares of Common Stock without any plan
or intention to seek or affect control of the Company, if such Person promptly
enters into an irrevocable commitment promptly to divest, and thereafter
promptly divests (without exercising or retaining any power, including voting,
with respect to such shares), sufficient shares of Common Stock (or securities
convertible into, exchangeable into or exercisable for Common Stock) so that
such Person ceases to be the Beneficial Owner of 15% or more of the
outstanding shares of Common Stock, (iii) who is the Beneficial Owner of shares of Common Stock consisting solely of shares of Common Stock, the
Beneficial Ownership of which was acquired by such Person pursuant to any
action or transaction or series of related actions or transactions approved by
the Company’s Board of Directors before such person otherwise became an
Acquiring Person, or (iv) who was the Beneficial Owner of 15% or more of the
outstanding shares of Common Stock on August 9, 2000 and does not thereafter
acquire Beneficial Ownership of additional shares of Common Stock that in the
aggregate exceed 2% of the outstanding shares of Common Stock. In addition,
notwithstanding any provision of this Agreement to the contrary, (A) no Blum
Investor or Investors shall be deemed an Acquiring Person for any purpose
under this Agreement for so long as that certain Amended and Restated
Standstill Agreement (the “Standstill Agreement”) between the Company and the
Blum Investors dated July 16, 2007, is in effect and so long as the Beneficial
Ownership of the Blum Investors does not exceed 49.9% of the Company’s Common
Stock (without giving effect to any stock split, share dividend,
recapitalization, reclassification or similar transactions effected by or with
the approval of the Board of Directors of the Company after the date hereof)
(the “Limit”); provided, however, that any termination of the Standstill
Agreement by the Company or delivery of any notice of termination by the Blum
Investors, in each case pursuant to Section 16 of the Standstill Agreement,
shall rescind this sentence and cause the Blum Investors’ full Beneficial
Ownership of Common Stock to be considered for purposes of determining whether
or not the Blum Investors are an Acquiring Person. Additionally, the Company,
any wholly owned Subsidiary of the Company and any employee stock ownership or
other employee benefit plan of the Company or a wholly owned Subsidiary of the
Company shall not be an Acquiring Person.

(b)     Section 5.9 is hereby amended to provide that notices or demands shall be
addressed as follows (until another address is filed):

	 	 	 
	If to the Company:

	 	PRG-Schultz International, Inc.
	 

	 	600 Galleria Parkway, Suite 100
	 

	 	Atlanta, Georgia 30339-5949
	 

	 	Attention: General Counsel

 

 

	 	 	 
	with a copy to:

	 	Troutman Sanders LLP
	 

	 	600 Peachtree Street, NE, Suite 5200
	 

	 	Atlanta, Georgia 30308
	 

	 	Attention: David W. Ghegan, Esq.

	 	 	 
	If to Rights Agent:

	 	American Stock Transfer & Trust Company
	 

	 	59 Maiden Lane
	 

	 	New York, New York 10038
	 

	 	Attention: Corporate Trust Department

(c)     Section 5.9 is hereby further amended by adding the following after the last
sentence of Section 5.9:

Notwithstanding the prior sentence, in lieu of providing notice to the holder
of any Rights by first-class mail, any notice authorized or required to be
given by the Company to the holder of any Rights prior to the Separation Time
will be deemed validly given to such holder if (i) the Company issues a press
release that includes the information required to be set forth in such notice
under this Agreement and (ii) such press release is filed by the Company with
the Securities and Exchange Commission on a Current Report on Form 8-K (or any
successor form thereto) within four business days of the date of the press
release.

     3.     Counterparts. This Amendment may be executed in any one or more counterparts, each of which
shall be deemed an original and all of which shall together constitute the same Amendment.

     4.     Ratification. Except as modified and amended as set forth herein, the Agreement is hereby
ratified and confirmed without further modification or amendment.

[signature page to immediately follow]

 

 

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

	 	 	 	 	 
	 	PRG-SCHULTZ INTERNATIONAL, INC.

 	 
	 	By  	/s/ James B. McCurry
 	 
	 	Name:  	James B. McCurry, 	 
	 	Title:  	Chief Executive Officer and President 	 
	 

	 	 	 	 	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY ( as successor in interest to Wachovia Bank, National Association)

 	 
	 	By  	/s/ Herbert J. Lemmer
 	 
	 	Name:  	Herbert J. Lemmer 	 
	 	Title:  	Vice PresidentEX-10.1 AMENDED AND RESTATED FINANCING AGREEMENT

 

Exhibit 10.1

AMENDED AND RESTATED FINANCING AGREEMENT

Dated as of September 17, 2007

by and among

PRG-SCHULTZ INTERNATIONAL, INC.,

as Parent

THE SUBSIDIARIES OF PARENT PARTY HERETO,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

ABLECO FINANCE LLC,

as Collateral Agent,

and

ABLECO FINANCE LLC,

as Administrative Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS; CERTAIN TERMS	 	 	1	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Terms Generally	 	 	39	 
	Section 1.03
	 	Accounting and Other Terms	 	 	39	 
	Section 1.04
	 	Time References	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE II. THE LOANS	 	 	40	 
	Section 2.01
	 	Commitments	 	 	40	 
	Section 2.02
	 	Making the Loans	 	 	41	 
	Section 2.03
	 	Repayment of Loans; Evidence of Debt	 	 	44	 
	Section 2.04
	 	Interest	 	 	45	 
	Section 2.05
	 	Reduction of Commitments; Prepayment of Loans	 	 	48	 
	Section 2.06
	 	Fees	 	 	53	 
	Section 2.07
	 	Securitization	 	 	54	 
	Section 2.08
	 	Taxes	 	 	54	 
	Section 2.09
	 	Conversion Election	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE III. LETTERS OF CREDIT	 	 	57	 
	Section 3.01
	 	Letter of Credit Guaranty	 	 	57	 
	Section 3.02
	 	Participations	 	 	59	 
	Section 3.03
	 	Letters of Credit	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE IV. FEES, PAYMENTS AND OTHER COMPENSATION	 	 	61	 
	Section 4.01
	 	[Intentionally Omitted]	 	 	61	 
	Section 4.02
	 	Payments; Computations and Statements	 	 	61	 
	Section 4.03
	 	Sharing of Payments, Etc.	 	 	63	 
	Section 4.04
	 	Apportionment of Payments	 	 	63	 
	Section 4.05
	 	Increased Costs and Reduced Return	 	 	64	 
	Section 4.06
	 	Joint and Several Liability of each Person Composing the Borrower	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE V. CONDITIONS TO LOANS	 	 	67	 
	Section 5.01
	 	Conditions Precedent	 	 	67	 
	Section 5.02
	 	Special Condition Precedent to Delayed Draw Term Loans	 	 	70	 
	Section 5.03
	 	Conditions Precedent to All Loans and Letters of Credit	 	 	70	 
	Section 5.04
	 	Conditions Subsequent to All Loans	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE VI. REPRESENTATIONS AND WARRANTIES	 	 	71	 
	Section 6.01
	 	Representations and Warranties	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE VII. COVENANTS OF THE LOAN PARTIES	 	 	80	 
	Section 7.01
	 	Affirmative Covenants	 	 	80	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 7.02
	 	Negative Covenants	 	 	91	 
	Section 7.03
	 	Financial Covenants	 	 	96	 
	 
	 	 	 	 	 	 
	ARTICLE VIII.
	 	MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER COLLATERAL	 	 	98	 
	Section 8.01
	 	Collection of Accounts Receivable; Management of Collateral	 	 	98	 
	Section 8.02
	 	Accounts Receivable Documentation	 	 	100	 
	Section 8.03
	 	Status of Accounts Receivable	 	 	101	 
	Section 8.04
	 	Collateral Custodian	 	 	102	 
	 
	 	 	 	 	 	 
	ARTICLE IX. EVENTS OF DEFAULT	 	 	102	 
	Section 9.01
	 	Events of Default	 	 	102	 
	 
	 	 	 	 	 	 
	ARTICLE X. AGENTS	 	 	106	 
	Section 10.01
	 	Appointment	 	 	106	 
	Section 10.02
	 	Nature of Duties	 	 	107	 
	Section 10.03
	 	Rights, Exculpation, Etc.	 	 	107	 
	Section 10.04
	 	Reliance	 	 	108	 
	Section 10.05
	 	Indemnification	 	 	108	 
	Section 10.06
	 	Agents Individually	 	 	108	 
	Section 10.07
	 	Successor Agent	 	 	109	 
	Section 10.08
	 	Collateral Matters	 	 	109	 
	Section 10.09
	 	Agency for Perfection	 	 	111	 
	 
	 	 	 	 	 	 
	ARTICLE XI. GUARANTY	 	 	112	 
	Section 11.01
	 	Guaranty	 	 	112	 
	Section 11.02
	 	Guaranty Absolute	 	 	112	 
	Section 11.03
	 	Waiver	 	 	113	 
	Section 11.04
	 	Continuing Guaranty; Assignments	 	 	113	 
	Section 11.05
	 	Subrogation	 	 	114	 
	 
	 	 	 	 	 	 
	ARTICLE XII. MISCELLANEOUS	 	 	115	 
	Section 12.01
	 	Notices, Etc.	 	 	115	 
	Section 12.02
	 	Amendments, Etc.	 	 	117	 
	Section 12.03
	 	No Waiver; Remedies, Etc.	 	 	118	 
	Section 12.04
	 	Expenses; Taxes; Attorneys Fees	 	 	118	 
	Section 12.05
	 	Right of Set-off	 	 	119	 
	Section 12.06
	 	Severability	 	 	120	 
	Section 12.07
	 	Assignments and Participations	 	 	120	 
	Section 12.08
	 	Counterparts	 	 	123	 
	Section 12.09
	 	GOVERNING LAW	 	 	124	 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	Section 12.10	 	CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE	 	 	124	 
	Section 12.11	 	 WAIVER OF JURY TRIAL, ETC.	 	 	125	 
	Section 12.12
	 	Consent by the Agents and Lenders	 	 	125	 
	Section 12.13
	 	No Party Deemed Drafter	 	 	125	 
	Section 12.14
	 	Reinstatement; Certain Payments	 	 	125	 
	Section 12.15
	 	Indemnification	 	 	126	 
	Section 12.16
	 	Records	 	 	126	 
	Section 12.17
	 	Binding Effect	 	 	127	 
	Section 12.18
	 	Interest	 	 	127	 
	Section 12.19
	 	Confidentiality	 	 	128	 
	Section 12.20
	 	Section Headings	 	 	128	 
	Section 12.21
	 	Integration	 	 	128	 
	Section 12.22
	 	Release of Security Interest or Guaranty	 	 	129	 
	Section 12.23
	 	Acknowledgment of Prior Obligations and Continuation Thereof	 	 	129	 
	Section 12.24
	 	No Novation	 	 	130	 
	Section 12.25
	 	Judgment Currency	 	 	130	 

-iii-

 

SCHEDULE AND EXHIBITS

	 	 	 
	Schedule R-1

	 	Lenders and Lenders’ Commitments
	Schedule 6.01(e)

	 	Subsidiaries
	Schedule 6.01(f)

	 	Litigation; Commercial Tort Claims
	Schedule 6.01(i)

	 	ERISA
	Schedule 6.01(o)

	 	Real Property
	Schedule 6.01(r)

	 	Environmental Matters
	Schedule 6.01(s)

	 	Insurance
	Schedule 6.01(v)

	 	Bank Accounts
	Schedule 6.01(w)

	 	Intellectual Property
	Schedule 6.01(x)

	 	Material Contracts
	Schedule 6.01(dd)

	 	Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of
Business; Chief Executive Office; FEIN
	Schedule 6.01(ff)

	 	Collateral Locations
	Schedule 7.02(a)

	 	Existing Liens
	Schedule 7.02(b)

	 	Existing Indebtedness
	Schedule 7.02(d)

	 	Nature of Business
	Schedule 7.02(e)

	 	Existing Investments
	Schedule 7.02(k)

	 	Limitations on Dividends and Other Payment Restrictions
	Schedule 8.01

	 	Lockbox Banks and Lockbox Accounts
	 
	 	 
	Exhibit A-1

	 	Form of Assignment and Acceptance
	Exhibit B-1

	 	Form of Borrowing Base Certificate
	Exhibit F-1

	 	Form of Funds Flow Agreement
	Exhibit L-1

	 	Form of LIBOR Notice
	Exhibit R-1

	 	Form of Ratification Agreement
	Exhibit S-1

	 	Form of Solvency Certificate
	Exhibit 2.02

	 	Form of Notice of Borrowing
	Exhibit 5.01(d)

	 	Forms of Opinions of Counsel

-iv-

 

AMENDED AND RESTATED FINANCING AGREEMENT

          Amended and Restated Financing Agreement, dated as of September 17, 2007, by and among
PRG-SCHULTZ INTERNATIONAL, INC., a Georgia corporation (the “Parent”), PRG-SCHULTZ USA,
INC., a Georgia corporation (“PRG-Schultz USA” and together with the Parent, individually
and collectively, jointly and severally, the “Borrower”), each subsidiary of the Parent
listed as a “Guarantor” on the signature pages hereto (each a “Guarantor” and collectively,
jointly and severally, the “Guarantors”), the lenders, from time to time, party hereto
(each a “Lender” and collectively, the “Lenders”), ABLECO FINANCE LLC, a Delaware
limited liability company (“Ableco”), as collateral agent for the Lenders (in such
capacity, together with any successor collateral agent, the “Collateral Agent”), and
Ableco, as administrative agent for the Lenders (in such capacity, together with any successor
administrative agent, the “Administrative Agent” and together with the Collateral Agent,
each an “Agent” and collectively, the “Agents”).

RECITALS

          WHEREAS, the Borrower, the Guarantors, the Agents, and the Lenders entered into that certain
Financing Agreement dated as of March 17, 2006 (as in effect immediately prior to the effectiveness
of this Agreement, the “Original Financing Agreement”);

          WHEREAS, the Borrower, the Guarantors, the Agents, and the Lenders desire to amend and restate
the Original Financing Agreement in its entirety subject to the terms and conditions set forth
herein, to among other things, restructure the credit facilities under the Original Financing
Agreement, it being understood that no repayment of the obligations under the Original Financing
Agreement is being effected hereby, but merely an amendment and restatement in accordance with the
terms hereof.

          NOW, THEREFORE, the Borrower, the Guarantors, the Agents, and the Lenders hereby amend and
restate the Original Financing Agreement in its entirety as follows:

ARTICLE I.

DEFINITIONS; CERTAIN TERMS

     Section 1.01 Definitions. As used in this Agreement, the following terms shall have
the respective meanings indicated below, such meanings to be applicable equally to both the
singular and plural forms of such terms:

          “Ableco” has the meaning specified therefor in the preamble hereto and shall include
its permitted assigns and successors.

          “Account Debtor” means any Person who is or who may become obligated under, with
respect to, or on account of, an Account Receivable, chattel paper, or a general intangible.

 

 

          “Account Receivable” means, with respect to any Person, all of such Person’s now owned
or hereafter acquired right, title, and interest with respect to “accounts” (as that term is
defined in Article 9 of the Code), and any and all “supporting obligations” (as that term is
defined in the Code) in respect thereof.

          “Action” has the meaning specified therefor in Section 12.12.

          “additional amount” has the meaning specified therefor in Section 2.08(a).

          “Administrative Agent” has the meaning specified therefor in the preamble hereto.

          “Administrative Agent’s Account” means an account at a bank designated by the
Administrative Agent from time to time as the account into which the Borrower shall make all
payments to the Administrative Agent for the benefit of the Agents and the Lenders under this
Agreement and the other Loan Documents.

          “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (i) vote 10% or more of the Capital Stock having ordinary voting
power for the election of directors of such Person or (ii) direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Notwithstanding anything
herein to the contrary, in no event shall any Agent or any Lender be considered an
“Affiliate” of any Loan Party.

          “After Acquired Property” means any fee-owned interest in real property acquired by
the Parent or any of its Subsidiaries after the date hereof with a Current Value in excess of
$200,000.

          “Agent” and “Agents” have the respective meanings specified therefor in the
preamble hereto.

          “Agent Advances” has the meaning specified therefor in Section 10.08(a).

          “Agreement” means this Amended and Restated Financing Agreement, including all
amendments, modifications and supplements and any exhibits or schedules to any of the foregoing,
and shall refer to the Agreement as the same may be in effect at the time such reference becomes
operative.

          “Albertsons Receivables” means Accounts Receivable owing from Albertsons, Inc. with a
due date no later than 60 days after the invoice date.

          “Assignment and Acceptance” means an assignment and acceptance entered into by an
assigning Lender and an assignee, in accordance with Section 12.07 hereof and substantially
in the form of Exhibit A-1 hereto or such other form acceptable to the Agents.

2

 

          “Authorized Officer” means, with respect to any Person, the chief executive officer,
chief financial officer, president or executive vice president of such Person.

          “Availability” means, at any time, the sum of (a) the difference between (i) the
lesser of (A) the Borrowing Base, and (B) the Total Revolving Credit Commitment, and (ii) the sum
of (A) the aggregate outstanding principal amount of all Revolving Loans, (B) all Letter of Credit
Obligations, and (C) the excess of (x) the aggregate amount, if any, of all trade payables of the
Borrower and the Domestic Guarantors which are past due by more than 30 days and are not in
dispute, over (y) 10% of trade payables of the Borrower and the Domestic Guarantors at such time,
and (b) Qualified Cash.

          “Bankruptcy
Code” means the United States Bankruptcy Code (11 U.S.C.
§ 101, et  seq.),
the Bankruptcy and Insolvency Act (Canada), and the Companies’ Creditors Arrangement Act (Canada),
each as amended, and any successor statutes.

          “Base LIBOR Rate” means the rate per annum, determined by Administrative Agent in
accordance with its customary procedures, and utilizing such electronic or other quotation sources
as it considers appropriate, on the basis of the rates at which Dollar deposits are offered to
major banks in the London interbank market on or about 11:00 a.m. (New York time) 3 Business Days
prior to the commencement of the applicable Interest Period, for a term and in amounts comparable
to the Interest Period and amount of the LIBOR Rate Loan requested by the Borrower in accordance
with this Agreement, which determination shall be conclusive in the absence of manifest error;
provided, however, that the Base LIBOR Rate shall be subject to a minimum rate of
5.25 percentage points per annum, and, accordingly, to the extent that the Base LIBOR Rate on any
day would be less than the foregoing minimum rate, the Base LIBOR Rate hereunder for such day
automatically shall be deemed increased to such minimum rate.

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

          “Borrower” has the meaning specified therefor in the preamble hereto.

          “Borrowing Base” means, as of any date of determination, an amount determined by the
Administrative Agent in the exercise of its Permitted Discretion, with reference to the most recent
Borrowing Base Certificate, equal to the difference between (a) the sum of (i) up to 85% of the
value of the Net Amount of Eligible Accounts Receivable, less the amount, if any, of the
Dilution Reserve, plus (ii) the lesser of (A) up to 20% of the Eligible Backlog, and (B)
50% of the amount determined under clause (a)(i) of this definition, and (b) such reserves as the
Administrative Agent may deem appropriate in the exercise of its Permitted Discretion.

          “Borrowing Base Certificate” means a certificate signed by an Authorized Officer of
the Borrower and setting forth the calculation of the Borrowing Base in compliance with Section
7.01(a)(vii), substantially in the form of Exhibit B-1.

          “Brazilian Pledge Agreement” means the Quota Pledge Agreement, dated as of April 4,
2006, by and among PRG-Schultz USA, Profit Recovery Brasil Ltda., a limited liability company duly
incorporated under the laws of Brazil, and the Agents.

3

 

          “Business Day” means any day that is not a Saturday, Sunday, or other day on which
banks are authorized or required to close in the State of New York, except that, if a determination
of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall
exclude any day on which banks are closed for dealings in U.S. Dollar deposits in the London
interbank market.

          “Canadian Employee Benefit Laws” shall mean the Canada Pension Plan (Canada), the
Income Tax Act (Canada), the Pension Benefits Standards Act 1985 (Canada), the Employment Insurance
Act (Canada), the Pension Benefits Act (Nova Scotia), the Workers’ Compensation Act (Nova Scotia),
the Labour Standards Code (Nova Scotia), the Occupational Health and Safety Act (Nova Scotia), the
Health and Sciences Insurance Act (Nova Scotia) and any federal, provincial or local counterparts
or equivalents, in each case, as amended from time to time.

          “Canadian Guarantee” means the General and Continuing Guarantee, dated as of March 17,
2006, executed and delivered by the Canadian Guarantor in favor of the Collateral Agent, for the
benefit of the Agents and Lenders, in form and substance reasonably satisfactory to the Agents.

          “Canadian Guarantor” means PRG-Schultz Canada Corp., a Nova Scotia unlimited liability
company.

          “Canadian Pledge Agreement” means the Share Pledge Agreement, dated as of March 17,
2006, executed and delivered by PRG-Schultz Canada, Inc., a Georgia corporation, in favor of the
Collateral Agent, for the benefit of the Agents and Lenders, in form and substance reasonably
satisfactory to the Agents.

          “Canadian Security Agreement” means the General Security Agreement, dated as of March
17, 2006, executed and delivered by the Canadian Guarantor, in favor of the Collateral Agent, for
the benefit of the Agents and Lenders, in form and substance reasonably satisfactory to the Agents.

          “Capital Expenditures” means, with respect to any Person for any period, the sum of
(i) the aggregate of all expenditures by such Person and its Subsidiaries during such period that
in accordance with GAAP are or should be included in “property, plant and equipment” or in a
similar fixed asset account on its balance sheet, whether such expenditures are paid in cash or
financed and including all Capitalized Lease Obligations paid or payable during such period, and
(ii) to the extent not covered by clause (i) above, the aggregate of all expenditures by such
Person and its Subsidiaries during such period to acquire by purchase or otherwise the business or
fixed assets of, or the Capital Stock of, any other Person.

          “Capital Guideline” means any law, rule, regulation, policy, guideline or directive
(whether or not having the force of law and whether or not the failure to comply therewith would be
unlawful) (i) regarding capital adequacy, capital ratios, capital requirements, the calculation of
a bank’s capital or similar matters, or (ii) affecting the amount of capital required to be
obtained or maintained by any Lender, any Person controlling any Lender, or the L/C Issuer or the
manner in which any Lender, any Person controlling any Lender, or the L/C Issuer allocates

4

 

capital to any of its contingent liabilities (including letters of credit), advances,
acceptances, commitments, assets or liabilities.

          “Capitalized Lease” means, with respect to any Person, any lease of real or personal
property by such Person as lessee which is required under GAAP to be capitalized on the balance
sheet of such Person.

          “Capitalized Lease Obligations” means, with respect to any Person, obligations of such
Person and its Subsidiaries under Capitalized Leases, and, for purposes hereof, the amount of any
such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

          “Capital Stock” means (i) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated and whether or not
voting) of corporate stock, and (ii) with respect to any Person that is not a corporation, any and
all partnership, membership or other equity interests of such Person.

          “Cash Equivalents” means (i) marketable direct obligations issued or unconditionally
guaranteed by the United States Government or issued by any agency or instrumentality thereof and
backed by the full faith and credit of the United States, in each case, maturing within six months
from the date of acquisition thereof; (ii) commercial paper, maturing not more than 270 days after
the date of issue rated P-1 by Moody’s or A-1 by S&P; (iii) certificates of deposit maturing not
more than 270 days after the date of issue, issued by commercial banking institutions and money
market or demand deposit accounts maintained at commercial banking institutions, each of which is a
member of the Federal Reserve System and has a combined capital and surplus and undivided profits
of not less than $500,000,000; (iv) repurchase agreements having maturities of not more than 90
days from the date of acquisition which are entered into with banks included in the commercial
banking institutions described in clause (iii) above and which are secured by marketable direct
obligations of the United States Government or any agency thereof, (v) money market accounts
maintained with mutual funds having assets in excess of $2,500,000,000; (vi) tax exempt securities
rated A or better by Moody’s or A+ or better by S&P, and (vii) with respect to Foreign
Subsidiaries, investments which are comparable in term and credit quality to those described in the
foregoing clauses (i) — (vi).

          “CFC” means a controlled foreign corporation (as that term is defined in the IRC).

          “Change in Law” has the meaning specified therefor in Section 4.05(a).

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

          (a) the acquisition by any person, including any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, of
shares of the Capital Stock of the Parent entitling that person to exercise 50% or more of the
total voting power of all shares of such Capital Stock entitled to vote generally in elections of
directors,

5

 

          (b) the Parent ceases to own and control, directly or indirectly, 100% of the shares of the
Capital Stock of PRG-Schultz USA,

          (c) during any consecutive two-year period, individuals who at the beginning of that two-year
period constituted the board of directors of the Parent (together with any new directors whose
election to the board of directors of the Parent, or whose nomination for election by the
shareholders of the Parent, was approved by a vote of a majority of the directors then still in
office who were either directors at the beginning of such period or whose election or nomination
for election were previously so approved) cease for any reason to constitute a majority of the
board of directors then in office, or

          (d) a Change of Executive Event occurs.

          “Change of Executive Event” means the failure of Jim McCurry to be involved actively
on an ongoing basis in the executive management and operations of the Borrower and its
Subsidiaries, unless within 180 days after the aforementioned individual ceases to be actively
involved in the executive management and operations of the Borrower and its Subsidiaries, the
Borrower finds a replacement individual reasonably satisfactory to the Agents (which approval of
the Agents shall not be unreasonably withheld).

          “Claims Reporting System” means the database repository of the Parent and its
Subsidiaries which tracks all claims of clients of the Parent and its Subsidiaries through the
claim life cycle from prospective claim to work-in-process to approved for invoicing.

          “Code” means the New York Uniform Commercial Code, as in effect from time to time;
provided, however, that in the event that, by reason of mandatory provisions of
law, any or all of the attachment, perfection, priority, or remedies with respect to Collateral
Agent’s Liens on any Collateral is governed by the Uniform Commercial Code as enacted and in effect
in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the
provisions thereof relating to such attachment, perfection, priority, or remedies.

          “Collateral” means all of the property and assets and all interests therein and
proceeds thereof now owned or hereafter acquired by any Person upon which a Lien is granted or
purported to be granted by such Person in favor of the Collateral Agent as security for all or any
part of the Obligations pursuant to the Loan Documents.

          “Collateral Agent” has the meaning specified therefor in the preamble hereto.

          “Collection Account” and “Collection Accounts” have the meanings specified
therefor in Section 8.01(a).

          “Collections” means all cash, checks, notes, instruments, and other items of payment
(including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds).

          “Commitments” means, with respect to each Lender, such Lender’s Revolving Credit
Commitment, Term Loan Commitment, and Delayed Draw Term Loan Commitment.

6

 

          “Consolidated EBITDA” means, with respect to any Person for any period, and all as
determined on a consolidated basis and in accordance with GAAP, the Consolidated Net Income of such
Person and its Subsidiaries for such period, minus (a) the sum of the following amounts of
such Person and its Subsidiaries for such period: (i) any non-cash extraordinary or non-recurring
gains or any non-cash gains solely to the extent that they will not result in cash receipts in any
future period, (ii) gains or income from discontinued operations, (iii) interest income, and (iv)
any tax credits, net operating losses or other net tax benefits recognized during such period,
plus (b) without duplication, the sum of the following amounts of such Person and its
Subsidiaries for such period and to the extent deducted in determining Consolidated Net Income of
such Person and its Subsidiaries for such period: (i) interest expense, (ii) income tax expense,
(iii) depreciation expense, (iv) amortization expense, (v) any equity based compensation expense
relating to the Borrower’s 2006 Amended and Restated Management Incentive Plan and any other
non-cash equity based compensation expense, (vi) any non-cash extraordinary or non-recurring losses
or any non-cash losses solely to the extent that they will not result in cash charges in any future
period, (vii) losses from discontinued operations, (viii) restructuring charges in an aggregate
amount not to exceed $1,250,000 in any Fiscal Year or $5,000,000 during the term of the Agreement,
and (ix) any other non-cash charges.

          “Consolidated Net Income” means, with respect to any Person for any period, the net
income (loss) of such Person and its Subsidiaries for such period, determined on a consolidated
basis and in accordance with GAAP.

          “Consolidated Senior Debt” means, as of any date of determination, the aggregate
principal amount of all Revolving Loans, the Letter of Credit Obligations, the principal amount of
the Term Loan, and the aggregate principal amount of all Delayed Draw Term Loans.

          “Contingent Obligation” means, with respect to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other
obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including (i) the direct or indirect guaranty, endorsement (other
than for collection or deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of the obligation of a primary obligor, (ii) the
obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by
any other party or parties to an agreement, (iii) any obligation of such Person, whether or not
contingent, (A) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (B) to advance or supply funds (1) for the purchase or payment of any
such primary obligation or (2) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (C) to purchase
property, assets, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (D) otherwise to assure or hold harmless the holder of such primary obligation
against loss in respect thereof; provided, however, that the term “Contingent
Obligation” shall not include any product warranties extended in the ordinary course of
business or any obligation that is incurred to comply with thin capitalization rules. The amount
of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation with respect to which such Contingent Obligation is made (or, if
less, the maximum amount of such primary obligation for which such Person may be liable

7

 

pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not
stated or determinable, the maximum reasonably anticipated liability with respect thereto (assuming
such Person is required to perform thereunder), as determined by such Person in good faith.

          “Control Agreement” means a control agreement, in form and substance reasonably
satisfactory to the Agents, executed and delivered by the Parent or one of its Subsidiaries,
Collateral Agent, Administrative Agent, and the applicable securities intermediary or commodities
intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account).

          “Conversion Election” has the meaning specified therefore in Section 2.09.

          “Current Value” has the meaning specified therefor in Section 7.01(o).

          “Default” means an event which, with the giving of notice or the lapse of time or
both, would constitute an Event of Default.

          “Delayed Draw Term Loan” and “Delayed Draw Term Loans” have the respective
meanings specified therefor in Section 2.01(a)(iii).

          “Delayed Draw Term Loan Amount” means the lesser of (a) $31,000,000, and (b) the
aggregate amount of Senior Convertible Notes and Series A Preferred Stock redeemed or to be
redeemed in connection with the Redemption Transaction and not converted to common Capital Stock of
the Parent.

          “Delayed Draw Term Loan Commitment” means, with respect to each Lender, the commitment
of such Lender to make Delayed Draw Term Loans to the Borrower in the amount set forth opposite
such Lender’s name in Schedule R-1 hereto, as such amount may be terminated or reduced from
time to time in accordance with the terms of this Agreement.

          “Delayed Draw Term Loan Commitment Expiry Date” means October 31, 2007.

          “Delayed Draw Term Loan Lender” means a Lender with a Delayed Draw Term
Loan Commitment.

          “Delayed Draw Term Loan Margin” means, as of any date of determination, the following
margins based upon the aggregate principal amount of the Delayed Draw Term Loans advanced to the
Borrower (without regard to any repayment or prepayment thereof):

8

 

	 	 	 	 	 
	 	 	Delayed Draw Term Loan	 	 
	Aggregate Principal	 	Margin for Delayed	 	Delayed Draw Term Loan
	Amount of the	 	Draw Term Loans that	 	Margin for Delayed
	Delayed Draw Term	 	are Reference Rate	 	Draw Term Loans that
	Loans	 	Loans	 	are LIBOR Rate Loans
	< $20,000,000

	 	2.00 percentage points
	 	5.00 percentage points
	≥ $20,000,000 and
≤ $31,000,000

	 	3.00 percentage points
	 	5.50 percentage points

          “Delayed Draw Term Loan Obligations” means any Obligations with respect to the Delayed
Draw Term Loans (including the principal thereof, the interest thereon, and the fees and expenses
specifically related thereto).

          “Deposit Account” means any deposit account (as that term is defined in the Code).

          “Dilution” means, as of any date of determination, a percentage, based upon the
experience of the immediately prior 12 months, that is the result of dividing the Dollar amount of
(a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with
respect to the Borrower’s and the Domestic Guarantors’ Account Receivables during such period
(excluding Accounts Receivables of the PR Partnership), by (b) the Borrower’s and the Domestic
Guarantors’ billings with respect to Account Receivables during such period (excluding
extraordinary items and excluding Accounts Receivables of the PR Partnership).

          “Dilution Reserve” means, as of any date of determination, an amount sufficient to
reduce the advance rate against Eligible Accounts Receivable by one percentage point for each
percentage point by which Dilution is in excess of 5%.

          “Disposition” means any transaction, or series of related transactions, pursuant to
which any Person or any of its Subsidiaries sells, assigns, transfers or otherwise disposes of any
property or assets (whether now owned or hereafter acquired) to any other Person (other than the
granting of a Lien), in each case, whether or not the consideration therefor consists of cash,
securities or other assets owned by the acquiring Person.

          “Dollar,” “Dollars” and the symbol “$” each means lawful money of the
United States of America.

          “Dollar Equivalent” shall mean, as to any amount denominated in a Judgment Currency as
of any date of determination, the amount of Dollars that would be required to purchase the amount
of such Judgment Currency based upon the spot selling rate at which major banks offer to sell such
Judgment Currency for Dollars in the London foreign exchange market at approximately 11:00 a.m.
London time on such date for delivery two Business Days later.

9

 

          “Domestic Guarantor” means any Guarantor organized under the laws of the United States
or the District of Columbia (including the PR Partnership).

          “Domestic Loan Party” means any Loan Party that is organized under the laws of the
United States or the District of Columbia (including the PR Partnership).

          “Domestic Subsidiary” means any Subsidiary of the Parent that is organized under the
laws of the United States or the District of Columbia (including the PR Partnership).

          “Effective Date” means the date, on or before October 31, 2007, on which all of the
conditions precedent set forth in Section 5.01 are first satisfied or waived.

          “Eligible Accounts Receivable” means the Accounts Receivable of the Borrower and the
Domestic Guarantors (other than the PR Partnership) which are, and at all times continue to be,
acceptable to the Administrative Agent in its Permitted Discretion. In general, an Account
Receivable may, in the Permitted Discretion of the Administrative Agent, be deemed to be eligible
if:

          (a) delivery of the merchandise or the rendition of the services has been completed with
respect to such Account Receivable and the Account Receivable has not resulted from a transaction
wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or
return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by
the Account Debtor may be conditional;

          (b) no return, rejection, repossession or dispute has occurred with respect to such Account
Receivable, the Account Debtor has not asserted any setoff, defense or counterclaim with respect to
such Account Receivable, and there has not occurred any extension of the time for payment with
respect to such Account Receivable without the consent of the Administrative Agent, provided that,
in the case of any dispute, setoff, defense or counterclaim with respect to an Account Receivable,
the portion of such Account Receivable not subject to such dispute, setoff, defense or counterclaim
will not be ineligible solely by reason of this clause (b);

          (c) such Account Receivable is lawfully owned by the Borrower or one of the Domestic
Guarantors (other than the PR Partnership) free and clear of any Lien other than in favor of the
Collateral Agent for the benefit of the Agents and the Lenders and otherwise continues to be in
full conformity with all representations and warranties made by the Borrower and the other Domestic
Guarantors (other than the PR Partnership) to the Agents and the Lenders with respect thereto in
the Loan Documents;

          (d) such Account Receivable is unconditionally payable in Dollars within 30 days from the
invoice date (other than with respect to Albertsons Receivables, Meijer Receivables, Supervalu
Receivables, Toys R Us Receivables, and Wal Mart Holdback Receivables) and is not evidenced by a
promissory note, chattel paper or any other instrument or other document unless such promissory
note, chattel paper or other instrument or document, together with an appropriate instrument of
transfer executed in blank by the Borrower, has been delivered to and is in the possession of the
Collateral Agent;

10

 

          (e) no more than 60 days have elapsed from the invoice due date and no more than 90 days have
elapsed from the invoice date with respect to such Account Receivable; provided that (i) in the
case of Albertsons Receivables, no more than 90 days have elapsed from the invoice due date and no
more than 120 days have elapsed from the invoice date with respect to such Accounts Receivable,
(ii) in the case of Meijer Receivables, no more than 75 days have elapsed from the invoice due date
and no more than 135 days have elapsed from the invoice date with respect to such Accounts
Receivable, (iii) in the case of Supervalu Receivables, no more than 120 days have elapsed from the
invoice due date and no more than 150 days have elapsed from the invoice date with respect to such
Accounts Receivable, (iv) in the case of Toys R Us Receivables, no more than 75 days have elapsed
from the invoice due date and no more than 135 days have elapsed from the invoice date with respect
to such Accounts Receivable, and (v) Wal Mart Holdback Receivables will not be ineligible under
this clause (e);

          (f) such Account Receivable is not due from an Affiliate of the Borrower or its Subsidiaries;

          (g) such Account Receivable does not constitute an obligation of the United States or any
other Governmental Authority (unless all steps required by the Administrative Agent in connection
therewith, including notice to the United States Government under the Federal Assignment of Claims
Act or any action under any state statute comparable to the Federal Assignment of Claims Act, have
been duly taken in a manner satisfactory to the Administrative Agent;

          (h) the Account Debtor (or the applicable office of the Account Debtor) with respect to such
Account Receivable is located in the continental United States, unless such Account Receivable is
supported by a letter of credit or other similar obligation satisfactory to the Administrative
Agent in its Permitted Discretion;

          (i) the Account Debtor with respect to such Account Receivable is not a supplier to or
creditor of the Borrower or the Domestic Guarantors (other than the PR Partnership) of goods or
services in excess of $50,000; provided, however, that in the event that an
Account Debtor is a supplier to or creditor of the Borrower or one of the Domestic Guarantors
(other than the PR Partnership) such Account Receivable will be eligible under this clause if the
Account Debtor has executed a non-offset letter satisfactory to the Administrative Agent in its
Permitted Discretion; provided further, however, that if such an Account Debtor has not executed a
non-offset agreement, Administrative Agent, in its discretion, may include as eligible the net
amount due from such Account Debtor to the Borrower or such Domestic Guarantors (other than the PR
Partnership);

          (j) not more than 50% of the aggregate amount of all Accounts Receivable of the Account Debtor
with respect to such Account Receivable have remained unpaid 60 days past the invoice due date or
90 days past the invoice date; provided that (i) in the case of Albertsons
Receivables, not more than 50% of the aggregate amount of all Albertsons Receivable have remained
unpaid 90 days past the invoice due date or 120 days past the invoice date, (ii) in the case of
Meijer Receivables, not more than 50% of the aggregate amount of all Meijer Receivable have
remained unpaid 75 days past the invoice due date or 135 days past the invoice date, (iii) in the
case of Supervalu Receivables, not more than 50% of the aggregate amount of all Supervalu

11

 

Receivable have remained unpaid 120 days past the invoice due date or 150 days past the
invoice date, or (iv) in the case of Toys R Us Receivables, not more than 50% of the aggregate
amount of all Toys R Us Receivables have remained unpaid 75 days past the invoice due date or 135
days past the invoice date;

          (k) (i) the Account Debtor with respect to such Account Receivable has not filed a petition
for bankruptcy or any other relief under the Bankruptcy Code or any other law relating to
bankruptcy, insolvency, reorganization or relief of debtors, made an assignment for the benefit of
creditors, had filed against it any petition or other application for relief under the Bankruptcy
Code or any such other law, (ii) has not failed, suspended business operations, or called a meeting
of its creditors for the purpose of obtaining any financial concession or accommodation, or (iii)
has not had or suffered to be appointed a receiver or a trustee for all or a significant portion of
its assets or affairs;

          (l) in the case of an Account Debtor who is an individual, is not an employee of the Borrower
or the Domestic Guarantors (other than the PR Partnership) or any of their respective Affiliates
and has not died or been declared incompetent;

          (m) the Administrative Agent is, and continues to be, satisfied with the credit standing of
the Account Debtor in relation to the amount of credit extended and the Administrative Agent
believes, in its Permitted Discretion, that the prospect of collection of such Account Receivable
is not impaired for any reason; and

          (n) the Account Receivable does not represent the right to receive progress payments,
installment billings (other than Milestone Accounts), bill and hold invoices, retainage invoices,
or other advance billings that are due prior to the completion of performance by the Borrower or
one of the Domestic Guarantors (other than the PR Partnership) of the subject contract for goods or
services.

          “Eligible Backlog” means as of any date of determination and without duplication, (a)
the U.S. Retail Key Client WIP as of the most recent fiscal quarter end multiplied by (b) the
lesser of (i) the U.S. Retail Key Client Effective Fee Rate and (ii) 20 percent, multiplied by (c)
the U.S. Retail Key Client Claim Retention Rate.

          “Employee Plan” means an employee benefit plan (other than a Multiemployer Plan)
covered by Title IV of ERISA and maintained (or that was maintained at any time during the six (6)
calendar years preceding the date of any borrowing hereunder) for employees of any Loan Party or
any of its ERISA Affiliates.

          “Environmental Actions” means any complaint, summons, citation, notice, directive,
order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or
other communication from any Governmental Authority involving violations of Environmental Laws or
Releases of Hazardous Materials (i) from any assets, properties or businesses of any Loan Party or
any of its Subsidiaries or any predecessor in interest; (ii) from adjoining properties or
businesses; or (iii) onto any facilities which received Hazardous Materials generated by any Loan
Party or any of its Subsidiaries or any predecessor in interest.

12

 

          “Environmental Laws” means the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. §
1801, et seq.), the Resource Conservation and Recovery
Act (42 U.S.C. § 6901, et seq.), the Federal
Clean Water Act (33 U.S.C. § 1251 et seq.), the
Clean Air Act (42 U.S.C. § 7401 et  seq.), the Toxic
Substances Control Act (15 U.S.C. § 2601 et  seq.), as such laws may be amended or otherwise
modified from time to time, and any other present or future applicable federal (including the
federal government of Canada), state, provincial, local or foreign statute, ordinance, rule,
regulation, order, judgment, decree, permit, license or other legally binding determination of any
Governmental Authority imposing liability or establishing standards of conduct for protection of
the environment or other government restrictions relating to the protection of the environment or
the release, emission, deposit, discharge, leaching, migration or spill of any Hazardous Materials
into the environment.

          “Environmental Liabilities and Costs” means all liabilities, monetary obligations,
Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs
and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and
consultants and costs of investigations and feasibility studies), fines, penalties, sanctions and
interest incurred as a result of any claim or demand by any Governmental Authority or any third
party, and which relate to the liability or potential liability of any Loan Party with respect to
any environmental condition or a Release of Hazardous Materials from or onto (i) any property
currently or formerly owned by any Loan Party or any of its Subsidiaries or (ii) any Real Property
which received Hazardous Materials generated by any Loan Party or any of its Subsidiaries.

          “Environmental Lien” means any Lien in favor of any Governmental Authority for
Environmental Liabilities and Costs.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, and regulations thereunder, in each case, as in effect from
time to time. References to sections of ERISA shall be construed also to refer to any successor
sections.

          “ERISA Affiliate” means, with respect to any Person, any trade or business (whether or
not incorporated) which is a member of a group of which such Person is a member and which would be
deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the
IRC.

          “Event of Default” means any of the events set forth in Section 9.01.

          “Excess Cash Flow” means, with respect to any Person for any period, determined on a
consolidated basis in accordance with GAAP, (a) Consolidated Net Income of such Person and its
Subsidiaries for such period, plus (b) without duplication the sum of the following amounts
of such Person and its Subsidiaries for such period: (i) any non-cash extraordinary or
non-recurring losses or any non-cash losses solely to the extent that they will not result in cash
charges in any future period, (ii) losses from discontinued operations, (iii) all non-cash items of
such Person and its Subsidiaries to the extent deducted in determining Consolidated Net Income for
such period, and (iv) income tax expense, minus
(c) without duplication the sum of the

13

 

following amounts of such Person and its Subsidiaries for such period: (i) any non-cash
extraordinary or non-recurring gains or any non-cash gains solely to the extent that they will not
result in cash receipts in any future period, (ii) gains or income from discontinued operations,
(iii) interest income, (iv) any tax credits, net operating losses or other net tax benefits
recognized during such period on account of any prior period, (v) all cash principal payments on
Indebtedness (excluding voluntary prepayments of the Term Loan made pursuant to Section
2.05(b)(ii) and voluntary prepayments of the Delayed Draw Term Loans made pursuant to
Section 2.05(b)(iii)) of such Person and its Subsidiaries made during such period (but in
the case of the Revolving Loans or other revolving credit facilities, only to the extent there is
an equivalent permanent reduction of the Total Revolving Credit Commitment or the commitment to
provide such other revolving credit facility) to the extent such Indebtedness is permitted to be
incurred, and such payments are permitted to be made, under this Agreement, (vii) cash payments of
taxes by such Person and its Subsidiaries during such period, net of refunds received by such
Person and its Subsidiaries during such period, (viii) the cash portion of Capital Expenditures
made by such Person and its Subsidiaries during such period to the extent permitted to be made
under this Agreement (net of (A) any proceeds reinvested in accordance with Section
2.05(d)(iv), and (B) any proceeds of related financings (other than Revolving Loans) with
respect to such expenditures), (ix) the excess, if any, of Working Investment at the end of such
period over Working Investment at the beginning of such period (or, if the difference results in an
amount that is less than zero, minus the excess, if any, of Working Investment at the beginning of
such period over Working Investment at the end of such period), (x) cash restructuring charges of
such Person and its Subsidiaries whether accrued in such period or a prior period, and (xi)
reasonable transaction related fees and expenses incurred reasonably contemporaneously with the
date hereof or the Effective Date by such Person or its Subsidiaries in connection with the
transactions contemplated hereby.

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

          “Existing Revolving Loans” has the meaning specified therefor in Section
2.01(b).

          “Extraordinary Receipts” means any cash received by the Parent or any of its
Subsidiaries not in the ordinary course of business (and not consisting of proceeds of Dispositions
or Indebtedness or any foreign, United States, state or local tax refunds), including (i) pension
plan reversions, (ii) proceeds of insurance (other than the proceeds of business interruption
insurance), (iii) judgments, proceeds of settlements or other consideration of any kind in
connection with any cause of action, (iv) condemnation awards (and payments in lieu thereof), (v)
indemnity payments, and (vi) any purchase price adjustment received in connection with any purchase
agreement and any amounts received from escrow arrangements in connection with any purchase
agreement.

          “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal to, for each day during such period, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published 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 which is a Business Day, the average of the

14

 

quotations for such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.

          “Fee Letter” means that certain fee letter, dated as of even date herewith, among the
Borrower and the Collateral Agent.

          “Final Maturity Date” means September 17, 2011, or such earlier date on which (a) the
Total Revolving Credit Commitment is terminated for any reason or (b) all or any portion of the
Obligations shall become due and payable pursuant to the terms of Section 9.01.

          “Financial Statements” means (i) the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2006, and the related
consolidated statement of operations, shareholders’ equity and cash flows for the Fiscal Year then
ended, and (ii) the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of
June 30, 2007, and the related consolidated statement of operations, shareholder’s equity and cash
flows for the 6 months then ended.

          “Fiscal Year” means the fiscal year of the Parent (or, prior to the Effective Date,
the Borrower) and its Subsidiaries ending on December 31st of each year.

          “Fixed Charge Coverage Ratio” means, with respect to any Person for any period, the
ratio of (a) the Consolidated EBITDA of such Person and its Subsidiaries for such period, to (b)
the sum of (i) all principal of Indebtedness for borrowed money of such Person and its Subsidiaries
scheduled to be paid or prepaid during such period, plus (ii) gross cash interest expense
on the Consolidated Senior Debt during such period, plus (iii) all income tax liabilities
of such Person and its Subsidiaries that accrued during such period, to the extent that the amount
of such liabilities is greater than zero, plus (iv) cash dividends or distributions paid by
such Person and its Subsidiaries (other than, in the case of the Parent, dividends or distributions
paid to the Parent or its wholly-owned Subsidiaries) during such period, plus (v) Capital
Expenditures made by such Person and its Subsidiaries during such period. In determining the Fixed
Charge Coverage Ratio for a particular period, the calculation of the income tax liabilities of
such Person and its Subsidiaries described in clause (ii)(C) of the immediately preceding sentence
shall be made without giving effect to any tax refunds, tax receivables, net operating losses or
other net tax benefits that were received or receivable during such period on account of any prior
periods.

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

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

          “Funding Losses” has the meaning specified therefor in Section 2.04(f)(ii)(B).

          “Funds Flow Agreement” means a Funds Flow Agreement by and among the Administrative
Agent, the Collateral Agent, the Lenders, and the Borrower, substantially in the form of
Exhibit F-1.

          “GAAP” means generally accepted accounting principles in effect from time to time in
the United States, provided that for the purpose of Section 7.03 hereof and the
definitions

15

 

used therein, “GAAP” shall mean generally accepted accounting principles in effect on the date
hereof and consistent with those used in the preparation of the Financial Statements,
provided, further, that if there occurs after the date of this Agreement any change
in GAAP or in the methodologies used thereunder that affects in any respect the calculation of any
covenant contained in Section 7.03 hereof, the Agents and the Borrower shall negotiate in
good faith amendments to the provisions of this Agreement that relate to the calculation of such
covenant with the intent of having the respective positions of the Lenders and the Borrower after
such change in GAAP conform as nearly as possible to their respective positions as of the date of
this Agreement and, until any such amendments have been agreed upon, the covenants in Section
7.03 hereof shall be calculated as if no such change in GAAP had occurred.

          “German Guarantor” means PRG-Schultz (Deutschland) GmbH, a company incorporated under
the laws of Germany registered in commercial register of Neuss under registered number HRB 12404.

          “German Pledge Agreement” means the Share Pledge Agreement, dated as of April 6, 2006,
between The Profit Recovery Group Germany, Inc., a Georgia corporation and the Collateral Agent.

          “German Security Agreements” means the (a) Bank Account Pledge Agreement, dated as of
April 6, 2006 between the German Guarantor and the Collateral Agent, and (b) the Security
Assignment of Receivables, dated as of April 6, 2006, between the German Guarantor and the
Collateral Agent.

          “Governmental Authority” means any nation or government, any Federal, (including the
federal government of Canada) state, province, city, town, municipality, county, local or other
political subdivision thereof or thereto and any department, commission, board, bureau,
instrumentality, agency or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

          “Guaranteed Obligations” has the meaning specified therefor in Section 11.01.

          “Guarantor” (i) has the meaning specified therefor in the preamble to this Agreement,
and (ii) includes each other Person which guarantees, pursuant to the requirements of Section
7.01(b) or otherwise, all or any part of the Obligations.

          “Guaranty” means (i) the guaranty of each Guarantor party hereto contained in Article
XI hereof, and (ii) each other guaranty made by any other Guarantor in favor of the Collateral
Agent for the benefit of the Agents and the Lenders pursuant to the requirements of Section
7.01(b) or otherwise.

          “Hazardous Materials” means (a) any element, compound or chemical that is defined,
listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
substance, extremely hazardous substance or extremely hazardous chemical, hazardous waste, or
special waste under Environmental Laws, including any pollutant, contaminant, waste, hazardous
waste, toxic substance or dangerous good which is defined or identified as such in any
Environmental Law and which is present in the environment in such quantity or state that it
contravenes any Environmental Law; (b) petroleum and its refined

16

 

products; (c) polychlorinated biphenyls; (d) any substance exhibiting a hazardous waste
characteristic, including corrosivity, ignitability, toxicity or reactivity as well as any
radioactive or explosive materials; and (e) any raw materials or building components containing
hazardous substances (including asbestos-containing materials) listed or classified as such under
Environmental Laws.

          “Hedging Agreement” means any interest rate, foreign currency, commodity or equity
swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to
protect against fluctuations in interest rates or currency, commodity or equity values (including
any option with respect to any of the foregoing and any combination of the foregoing agreements or
arrangements), and any confirmation executed in connection with any such agreement or arrangement.

          “Highest Lawful Rate” means, with respect to any Agent or any Lender, the maximum
non-usurious interest rate, if any, that at any time or from time to time may be contracted for,
taken, reserved, charged or received on the Obligations under laws applicable to such Agent or such
Lender which are currently in effect or, to the extent allowed by law, under such applicable laws
which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than
applicable laws now allow.

          “Inactive Subsidiaries” means PRG USA, Inc., a Georgia corporation, Howard Schultz &
Associates (Asia) Limited, a company organized under the laws of Hong Kong, HS&A International PTE
LTD, a company organized under the laws of Singapore, PRG-Schultz (Thailand) Co., Limited, a
company organized under the laws of Thailand, PRGDS, LLC, a Georgia limited liability company, and
Howard Schultz de Mexico, S.A. de C.V., a company organized in
Mexico, PRG - Schultz Chile, Inc., a
Georgia corporation, The Profit Recovery Group South Africa, Inc., a Georgia Corporation, PRG -
Schultz Japan, Inc., a Georgia Corporation.

          “Indebtedness” means, with respect to any Person, without duplication, (i) all
indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the
deferred purchase price of property or services (other than trade payables or other accounts
payable incurred in the ordinary course of such Person’s business and (A) not outstanding for more
than 90 days after the date the payable was created, or (B) if outstanding for more than 90 days
after the date the payable was created, being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP); (iii) all obligations
of such Person evidenced by bonds, debentures, notes or other similar instruments or upon which
interest payments are customarily made; (iv) all reimbursement, payment or other obligations and
liabilities of such Person created or arising under any conditional sales or other title retention
agreement with respect to property used or acquired by such Person, even though the rights and
remedies of the lessor, seller or lender thereunder may be limited to repossession or sale of such
property; (v) all Capitalized Lease Obligations of such Person; (vi) all obligations and
liabilities, contingent or otherwise, of such Person, in respect of letters of credit, acceptances
and similar facilities; (vii) all obligations and liabilities, calculated in accordance with
accepted practice, of such Person under Hedging Agreements; (viii) all Contingent Obligations; (ix)
all monetary obligations under any receivables factoring, receivable sales or similar transactions
and all monetary obligations under any synthetic lease, tax

17

 

ownership/operating lease, off-balance sheet financing or similar financing which would give rise to a claim in an Insolvency
Proceeding; and (x) all obligations referred to in clauses (i) through (ix) of this definition of
another Person secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) a Lien upon property owned by such Person, even though
such Person has not assumed or become liable for the payment of such Indebtedness. The
Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in
which such Person is a general partner or a joint venturer.

          “Indemnified Matters” has the meaning specified therefor in Section 12.15.

          “Indemnitees” has the meaning specified therefor in Section 12.15.

          “Indenture for the 10% Senior Convertible Notes” means that certain Indenture dated as
of March 17, 2006 between the Parent and U.S. Bank, National Association, as trustee, as amended or
modified in accordance with the terms hereof and thereof.

          “Indenture for the 11% Senior Notes” means that certain Indenture dated as of March
17, 2006 between the Parent and U.S. Bank, National Association, as trustee, as amended or modified
in accordance with the terms hereof and thereof.

          “Insignificant Subsidiary” means, as of any date of determination, any Subsidiary of
the Parent having assets with a fair market value of less than $500,000 and revenue for the twelve
months most recently ended prior to such date of determination of less than $500,000.

          “Insolvency Proceeding” means any proceeding commenced by or against any Person under
any provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments
for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally
with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

          “Intercompany Subordination Agreement” means the Intercompany Subordination Agreement,
dated as of March 17, 2006, duly executed by each of the Loan Parties.

          “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on
the date of the making of such LIBOR Rate Loan and ending 1, 2, or 3 month(s) thereafter;
provided, however, that (a) if any Interest Period would end on a day that is not a
Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next
succeeding Business Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate
from and including the first day of each Interest Period to, but excluding, the day on which any
Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in another
calendar month, in which case such Interest Period shall end on the next preceding Business Day,
(d) with respect to an Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the end of
such Interest Period), the Interest Period shall end on the last Business Day

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of the calendar month that is 1, 2, or 3 month(s) after the date on which the Interest Period began, and (e) Borrower may
not elect an Interest Period which will end after the Final Maturity Date.

          “IRC” means the Internal Revenue Code of 1986, as amended (or any successor statute
thereto) and the regulations thereunder.

          “Judgment Currency” has the meaning specified therefor in Section 12.25.

          “Judgment Currency Conversion Date” has the meaning specified therefor in Section
12.25.

          “L/C Issuer” means such bank as the Administrative Agent may select in its sole and
absolute discretion.

          “L/C Subfacility” means that portion of the Total Revolving Credit Commitment equal to
$5,000,000.

          “Lease” means any lease of real property to which any Loan Party or any of its
Subsidiaries is a party as lessor or lessee.

          “Lender” has the meaning specified therefor in the preamble hereto.

          “Letter of Credit” has the meaning specified therefor in Section 3.01(a).

          “Letter of Credit Application” has the meaning specified therefor in Section
3.01(a).

          “Letter of Credit Collateral Account” has the meaning specified therefor in
Section 3.01(b).

          “Letter of Credit Fees” has the meaning specified therefor in Section 3.03(b).

          “Letter of Credit Guaranty” means one or more guaranties by the Administrative Agent
in favor of the L/C Issuer guaranteeing the Borrower’s obligations to the L/C Issuer under a
reimbursement agreement, Letter of Credit Application or other like document in respect of any
Letter of Credit.

          “Letter of Credit Obligations” means, at any time and without duplication, the sum of
(i) the Reimbursement Obligations at such time, plus (ii) the aggregate maximum amount
available for drawing under the Letters of Credit outstanding at such time, plus (iii) all
amounts for which the Administrative Agent may be liable to the L/C Issuer pursuant to any Letter
of Credit Guaranty.

          “Liabilities” has the meaning specified therefor in Section 2.07.

          “LIBOR Deadline” has the meaning set forth in Section 2.04(f)(ii)(A).

          “LIBOR Notice” means a written notice in the form of Exhibit L-1.

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          “LIBOR Option” has the meaning specified therefor in Section 2.04(f)(i).

          “LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per
annum determined by Administrative Agent by dividing (a) the Base LIBOR Rate for such Interest
Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of
the effective day of any change in the Reserve Percentage.

          “LIBOR Rate Loan” means each portion of a Loan that bears interest at a rate
determined by reference to the LIBOR Rate.

          “Lien” means any mortgage, deed of trust, pledge, lien (statutory or otherwise),
security interest, charge or other encumbrance or security or preferential arrangement of any
nature, including any conditional sale or title retention arrangement, any Capitalized Lease and
any assignment, deposit arrangement or financing lease intended as, or having the effect of,
security.

          “Loan” means the Term Loan, any Delayed Draw Term Loan or any Revolving Loan made by
an Agent or a Lender to the Borrower pursuant to Article II hereof.

          “Loan Account” means an account maintained hereunder by the Administrative Agent on
its books of account at the Payment Office, and with respect to the Borrower, in which the Borrower
will be charged with all Loans made to, all Letters of Credit issued for the benefit of or at the
request of, and all other Obligations incurred by, the Borrower.

          “Loan Document” means this Agreement, the Funds Flow Agreement, the Intercompany
Subordination Agreement, any Guaranty, any Security Agreement, any Mortgage, any Letter of Credit
Application, any Filing Authorization Letter, the Fee Letter, the Brazilian Pledge Agreement, the
Canadian Guarantee, the Canadian Security Agreement, the Canadian Pledge Agreement, the German
Security Agreements, the German Pledge Agreement, the Meridian Pledge Agreements, the Ratification
Agreement, and any other agreement, instrument, and other document executed and delivered pursuant
hereto or thereto or otherwise evidencing or securing any Loan, any Letter of Credit Obligation or
any other Obligation; provided that Loan Documents shall not include any Hedging Agreement.

          “Loan Party” means the Borrower or any Guarantor.

          “Lockbox Bank” has the meaning specified therefor in Section 8.01(a).

          “Lockboxes” has the meaning specified therefor in Section 8.01(a).

          “Material Adverse Effect” means a material adverse effect on any of (i) the
operations, business, assets, properties, or financial condition of the Parent and its Subsidiaries
taken as a whole, (ii) the ability of any Loan Party to perform any of its obligations under any
Loan Document to which it is a party, (iii) the legality, validity or enforceability of this
Agreement or any other Loan Document, or (iv) the rights and remedies of any Agent or any Lender
under any Loan Document.

20

 

          “Material Contract” means, with respect to the Parent and its Subsidiaries, (i) the
contracts or agreements involving the top 15 customers based on revenues of the Parent and its
Subsidiaries for the most recent Fiscal Year, and (ii) all other contracts or agreements the loss
of which could reasonably be expected to result in a Material Adverse Effect to the Loan Parties
taken as a whole.

          “Meijer Receivables” means Accounts Receivable owing from Meijer Great Lakes Limited
Partnership with a due date no later than 75 days after the invoice date.

          “Meridian” means Meridian Corporation Limited (formerly known as Meridian VAT
Corporation Limited), a company incorporated in the Isle of Jersey.

          “Meridian Pledge Agreements” means the Security Interest Agreements, dated as of March
17, 2006, executed and delivered by each of the Parent and HS&A Acquisition — UK, Inc., a Texas
corporation, in favor of Collateral Agent, for the benefit of the Agents and Lenders.

          “Meridian Subsidiaries” means Meridian and each of its direct and indirect
Subsidiaries.

          “Milestone Accounts” shall mean Accounts Receivable which satisfy each of the
following criteria: (i) they arise out of a contract between Borrower or a Domestic Guarantor and a
customer of Borrower or such Domestic Guarantor, which contract provides for services to be
performed by such Borrower or Domestic Guarantor to be divided into “units” or “milestones” and
such Borrower or Domestic Guarantor shall be entitled to collect and enforce payment in full from
the customer for such Account Receivable despite other “units” or “milestones” under the contract
being not yet completed; (ii) the applicable Borrower or Domestic Guarantor shall have delivered an
invoice for such Account Receivable and the customer shall have accepted such invoice; and (iii)
such Account Receivable shall not be subject to any offset, setoff or right of recoupment on the
part of the customer.

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

          “Mortgage” means a mortgage, deed of trust or deed to secure debt, in form and
substance reasonably satisfactory to the Agents, made by a Loan Party in favor of the Collateral
Agent for the benefit of the Agents and the Lenders, securing the Obligations and delivered to the
Collateral Agent pursuant to the provisions hereof or otherwise.

          “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which any Loan Party or any of its ERISA Affiliates has contributed to, or has been
obligated to contribute, at any time during the preceding six (6) years.

          “Net Amount of Eligible Accounts Receivable” means the aggregate unpaid invoice amount
of Eligible Accounts Receivable less, without duplication, sales, excise or similar taxes, returns,
discounts, chargebacks, claims, advance payments, credits and allowances of any nature at any time
issued, owing, granted, outstanding, available or claimed with respect to such Eligible Accounts
Receivable.

21

 

          “Net Cash Proceeds” means, (i) with respect to any Disposition by any Person or any of
its Subsidiaries, the amount of cash received (directly or indirectly) from time to time (whether
as initial consideration or through the payment or disposition of deferred consideration) by or on
behalf of such Person or such Subsidiary, in connection therewith after deducting therefrom only (A) the amount of any Indebtedness secured by any Permitted Lien on any asset
(other than Indebtedness assumed by the purchaser of such asset) which is required to be, and is,
repaid in connection with such Disposition (other than Indebtedness under this Agreement), (B)
reasonable expenses related thereto incurred by such Person or such Subsidiary in connection
therewith, (C) transfer taxes paid to any taxing authorities by such Person or such Subsidiary in
connection therewith, and (D) net income taxes to be paid in connection with such Disposition
(after taking into account any tax credits or deductions and any tax sharing arrangements) and (ii)
with respect to the issuance or incurrence of any Indebtedness by any Person or any of its
Subsidiaries, or the sale or issuance by any Person or any of its Subsidiaries of any shares of its
Capital Stock, the aggregate amount of cash received (directly or indirectly) from time to time
(whether as initial consideration or through the payment or disposition of deferred consideration)
by or on behalf of such Person or such Subsidiary in connection therewith, after deducting
therefrom only (A) reasonable expenses related thereto incurred by such Person or such Subsidiary
in connection therewith, (B) transfer taxes paid by such Person or such Subsidiary in connection
therewith and (C) net income taxes to be paid in connection therewith (after taking into account
any tax credits or deductions and any tax sharing arrangements); in each case of clause (i) and
(ii) to the extent, but only to the extent, that the amounts so deducted are (x) actually paid to a
Person that, except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such
Person or any of its Subsidiaries and (y) properly attributable to such transaction or to the asset
that is the subject thereof.

          “New Lending Office” has the meaning specified therefor in Section 2.08(d).

          “New Subsidiary” has the meaning specified therefor in Section 7.01(b).

          “Non-Insignificant Subsidiary” means any Subsidiary of the Parent that is not an
Insignificant Subsidiary.

          “Non-U.S. Lender” has the meaning specified therefor in Section 2.08(d).

          “North American Consolidated Net Income” means, with respect to any Person for any
period, the net income (loss) of such Person and its North American Subsidiaries for such period,
determined on a consolidated basis and in accordance with GAAP.

          “North American Excess Cash Flow” means, with respect to any Person for any period,
determined for such Person and its North American Subsidiaries on a consolidated basis in
accordance with GAAP, (a) North American Consolidated Net Income of such Person and its North
American Subsidiaries for such period, plus (b) without duplication the sum of the
following amounts of such Person and its North American Subsidiaries for such period: (i) any
non-cash extraordinary or non-recurring losses or any non-cash losses solely to the extent that
they will not result in cash charges in any future period, (ii) losses from discontinued
operations, (iii) all non-cash items of such Person and its North American Subsidiaries to the
extent deducted in determining North American Consolidated Net Income for such period, and (iv)

22

 

income tax expense, minus (c) without duplication the sum of the following amounts of such
Person and its North American Subsidiaries for such period: (i) any non-cash extraordinary or
non-recurring gains or any non-cash gains solely to the extent that they will not result in cash
receipts in any future period, (ii) gains or income from discontinued operations, (iii) interest
income, (iv) any tax credits, net operating losses or other net tax benefits recognized during
such period on account of any prior period, (v) all cash principal payments on Indebtedness
(excluding voluntary prepayments of the Term Loan made pursuant to Section 2.05(b)(ii) and
voluntary prepayments of the Delayed Draw Term Loans made pursuant to Section 2.05(b)(iii))
of such Person and its North American Subsidiaries made during such period (but in the case of the
Revolving Loans or other revolving credit facilities, only to the extent there is an equivalent
permanent reduction of the Total Revolving Credit Commitment or the commitment to provide such
other revolving credit facility) to the extent such Indebtedness is permitted to be incurred, and
such payments are permitted to be made, under this Agreement, (vii) cash payments of taxes by such
Person and its North American Subsidiaries during such period, net of refunds received by such
Person and its North American Subsidiaries during such period, (viii) the cash portion of Capital
Expenditures made by such Person and its North American Subsidiaries during such period to the
extent permitted to be made under this Agreement (net of (A) any proceeds reinvested in accordance
with Section 2.05(d)(iv), and (B) any proceeds of related financings (other than Revolving
Loans) with respect to such expenditures), (ix) the excess, if any, of Working Investment at the
end of such period over Working Investment at the beginning of such period (or, if the difference
results in an amount that is less than zero, minus the excess, if any, of Working Investment at the
beginning of such period over Working Investment at the end of such period), (x) cash restructuring
charges of such Person and its North American Subsidiaries whether accrued in such period or a
prior period, and (xi) reasonable transaction related fees and expenses incurred reasonably
contemporaneously with the date hereof or the Effective Date by such Person or its North American
Subsidiaries in connection with the transactions contemplated hereby.

          “North American Subsidiary” means any Subsidiary of a Person that is organized under
the laws of the United States, the District of Columbia, or Canada.

          “North American Working Investment” means, at any date of determination thereof, (i)
the sum, for any Person and its North American Subsidiaries, of (A) the unpaid face amount of all
Accounts Receivable of such Person and its North American Subsidiaries as at such date of
determination, plus (B) the aggregate amount of prepaid expenses of such Person and its
North American Subsidiaries as at such date of determination, minus (ii) the sum, for such
Person and its North American Subsidiaries, of (A) the unpaid amount of all accounts payable of
such Person and its North American Subsidiaries as at such date of determination, plus (B)
the aggregate amount of all accrued expenses of such Person and its North American Subsidiaries as
at such date of determination (including deferred compensation, but, excluding from accounts
payable and accrued expenses, the current portion of long-term debt and all accrued interest and
taxes).

          “Notice of Borrowing” has the meaning specified therefor in Section 2.02(a).

          “Obligation Currency” has the meaning specified therefor in Section 12.25.

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          “Obligations” means all present and future indebtedness, obligations, and liabilities
of each Loan Party to the Agents and the Lenders, or any of them, under the Loan Documents, whether
or not the right of payment in respect of such claim is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected
by any proceeding referred to in Section 9.01. Without limiting the generality of the
foregoing, the Obligations of each Loan Party under the Loan Documents include (a) the obligation
(irrespective of whether a claim therefor is allowed in any Insolvency Proceeding) to pay
principal, interest, charges, expenses, fees, reasonable attorneys fees and disbursements,
indemnities and other amounts payable by such Person under the Loan Documents, and (b) the
obligation of such Person to reimburse any amount in respect of any of the foregoing that any Agent
or any Lender (in its sole discretion) may elect to pay or advance on behalf of such Person.

          “Original Financing Agreement” has the meaning specified therefor in the recitals
hereto.

          “Original Loan Documents” has the meaning specified therefor in Section 12.23.

          “Other Taxes” has the meaning specified therefor in Section 2.08(b).

          “Parent” has the meaning specified therefor in the preamble hereto.

          “Participant Register” has the meaning specified therefor in Section 12.07(g).

          “Payment Office” means the Administrative Agent’s office located at 299 Park Avenue,
22nd Floor, New York, NY 10171 or at such other office or offices of the Administrative Agent as
may be designated in writing from time to time by the Administrative Agent to the Collateral Agent
and the Borrower.

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

          “Permits” has the meaning specified therefor in Section 6.01(n).

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

          “Permitted Dispositions” means (a) Dispositions of obsolete, worn-out, or surplus
equipment in the ordinary course of business, (b) Dispositions of other property or assets for cash
in an aggregate amount not less than the fair market value of such property or assets,
provided that the Net Cash Proceeds of such Dispositions in the case of clauses (a) and (b)
do not exceed $1,000,000 in the aggregate, (c) the use or transfer of cash and Cash Equivalents by
the Parent and its Subsidiaries in a manner that is not prohibited by the terms of this Agreement
or the other Loan Documents, (d) the licensing or sublicensing by the Parent and its Subsidiaries,
(i) on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property
rights in the ordinary course of business, or (ii) on a non-exclusive or exclusive basis, patents,
trademarks, copyrights, and other intellectual property rights in connection with a Disposition
permitted

24

 

under clause (s) of this definition, (e) the granting of leases or subleases to other Persons not materially interfering with the conduct of business of any of the Loan Parties, (f) the
abandonment or other Disposition of patents, trademarks, copyrights or other intellectual property
rights that are neither necessary nor economically desirable in the operation of the Loan
Parties’ business, (g) the Disposition of Accounts Receivable in connection with the
collection or compromise thereof in the ordinary course of business and in a manner not
inconsistent with the provisions of this Agreement (excluding any securitization, factoring, or
similar transaction), (h) the sale or issuance of (i) the Capital Stock of any Subsidiary of the
Parent to PRG-Schultz USA (so long as such sale or issuance is made subject to Collateral Agent’s
Liens on such Capital Stock), (ii) PRG-Schultz USA’s Capital Stock to the Parent (so long as such
sale or issuance is made subject to Collateral Agent’s Liens on such Capital Stock), or (iii) the
Parent’s Capital Stock to any Person (so long as a Change of Control would not result therefrom),
(i) sales or other Dispositions of assets from any Subsidiary of the Parent (other than a Person
composing the Borrower) to the Borrower, to any Domestic Guarantor, or to the Canadian Guarantor,
(j) sales or other Dispositions of equipment or supplies from PRG-Schultz USA to any Domestic Loan
Party, (k) sales or other Dispositions of equipment or supplies from PRG-Schultz USA to any Foreign
Subsidiary in the ordinary course of business and consistent with historical practices of
PRG-Schultz USA, (l) sales or other Dispositions of assets from any Foreign Subsidiary (other than
the Canadian Guarantor) to any Foreign Guarantor, (m) sales or other Dispositions of assets from
any Subsidiary of the Parent that is not a Person composing the Borrower or a Guarantor to the
Parent or any of its Subsidiaries, (n) transfers of property subject to a casualty event upon
receipt of the net cash proceeds of such casualty event and application of such net cash proceeds
to the Obligations to the extent required under Section 2.05(c), (o) [intentionally
omitted], (p) investments expressly permitted under Section 7.02(e) to the extent
constituting Dispositions, (q) Dispositions expressly permitted under Section 7.02(c)(ii),
(r) voluntary terminations of Hedging Agreements, and (s) Dispositions set forth in that certain
letter agreement regarding Dispositions dated as of March 17, 2006 between the Agents and Borrower.

          “Permitted Indebtedness” means:

          (a) any Indebtedness owing to any Agent and any Lender under this Agreement and the other Loan
Documents;

          (b) Indebtedness listed on Schedule 7.02(b), and any Permitted Refinancing thereof;

          (c) [intentionally omitted];

          (d) purchase money Indebtedness and Capitalized Lease Obligations incurred to enable a Loan
Party to acquire equipment in the ordinary course of its business, and any Permitted Refinancing
thereof, which Indebtedness does not exceed $2,000,000 at any time outstanding;

          (e) Indebtedness in respect of stay, customs or appeals bonds required (i) in the ordinary
course of business of the Parent and its Subsidiaries, (ii) in connection with the enforcement of
rights or claims of the Parent or one of its Subsidiaries, or (iii) in connection with any judgment
that has not given rise to an Event of Default;

25

 

          (f) Indebtedness of the Parent or any of its Subsidiaries under any Hedging Agreement so long
as such Hedging Agreements are used solely as a part of its normal business operations as a risk
management strategy or hedge against changes resulting from market operations and not as a means to speculate for investment purposes on trends and shifts in
financial or commodities markets;

          (g) Indebtedness composing Permitted Intercompany Investments;

          (h) Indebtedness in respect of surety bonds, performance bonds and performance and completion
guarantees required in the ordinary course of business of the Parent and its Subsidiaries, which
Indebtedness does not exceed $250,000 at any time outstanding;

          (i) solely for the period from the date of this Agreement to the date that the Term Loan is
funded, Indebtedness of the Parent evidenced by the Senior Notes in an aggregate principal amount
not to exceed $52,000,000;

          (j) solely for the period from the date of this Agreement to the Delayed Draw Term Loan
Commitment Expiry Date, Indebtedness of the Parent evidenced by the Senior Convertible Notes in an
aggregate principal amount not to exceed $60,000,000 (not including any paid-in-kind interest on
such Indebtedness pursuant to the terms of the Indenture for the 10% Senior Convertible Notes as of
the date hereof);

          (k) Subordinated Debt and any Permitted Refinancing thereof;

          (l) unsecured Indebtedness in an aggregate amount not to exceed $1,000,000 at any time
outstanding;

          (m) Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument and consisting of obligations in respect of cash management or
pooling or netting services, overdraft protections and similar arrangements in each case in
connection with cash management and deposit accounts arising in the ordinary course of business;

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

          (o) Indebtedness incurred in connection with the financing of insurance premiums in the
ordinary course of business in an aggregate amount not to exceed $1,500,000 at any time
outstanding;

          (p) [intentionally omitted];

          (q) Indebtedness incurred in connection with a Permitted Disposition solely to the extent
arising under agreements providing for customary indemnification, adjustments of the purchase
price, or similar adjustments;

          (r) Contingent Obligations of the Parent in respect of Indebtedness permitted to be incurred
pursuant to clauses (a), (b), (d) — (g), or (m) — (q) of this definition, in respect of

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Indebtedness of any Subsidiary of the Parent that is permitted to be incurred hereunder, or in
respect of obligations of any Domestic Subsidiary or the Canadian Guarantor; and

          (s) unsecured Indebtedness in an aggregate principal amount not to exceed $2,600,000 to
finance the acquisition of certain software products and services from Microsoft Corporation,
pursuant to the Loan Agreement dated as of June 30, 2006, between De Lage Landen Financial
Services, Inc. and Parent and any Permitted Refinancing thereof.

          “Permitted Intercompany Investments” means (a) investments consisting of loans or
other cash investments among the Domestic Loan Parties or the Canadian Guarantor so long as all
parties to such transaction are party to the Intercompany Subordination Agreement, (b) investments
consisting of loans (or, solely if required by applicable law or thin capitalization rules,
contributions) by any Domestic Loan Party or the Canadian Guarantor to any Foreign Guarantor (other
than the Canadian Guarantor) so long as (i) all parties to such transaction are party to the
Intercompany Subordination Agreement, and (ii) the aggregate amount of such investments outstanding
at any time (net of any repayment thereof) does not exceed $3,000,000, (c) investments consisting
of loans (or, solely if required by applicable law or thin capitalization rules, contributions) by
any Loan Party to any Foreign Subsidiary (other than any Foreign Guarantor or the Meridian
Subsidiaries) so long as the aggregate amount of such investments outstanding at any time (net of
any repayment thereof) does not exceed $3,000,000, (d) investments consisting of loans (or, solely
if required by applicable law or thin capitalization rules, contributions) by any Loan Party to any
Meridian Subsidiary so long as the aggregate amount of such investments outstanding at any time
(net of any repayment thereof) does not exceed $3,000,000, (e) investments consisting of loans (or,
solely if required by applicable law or thin capitalization rules, contributions) by any Subsidiary
of the Parent that is not the Borrower or a Guarantor to any other Subsidiary of the Parent that
is not the Borrower or a Guarantor, and (f) Transfer Pricing arrangements entered into in the
ordinary course of business from time to time among divisions of the Parent or any of its
Subsidiaries, Parent and any of its Subsidiaries, or any of Parent’s Subsidiaries.

          “Permitted Investments” means (a) investments in cash and Cash Equivalents, (b)
Permitted Intercompany Investments, (c) Permitted Reorganization Transactions, (d) Hedging
Agreements so long as such Hedging Agreements are used solely as a part of normal business
operations as a risk management strategy or hedge against changes resulting from market operations
and not as a means to speculate for investment purposes on trends and shifts in financial or
commodities markets, (e) loans to one or more directors, officers or other employees of the Parent
or its Subsidiaries in connection with any such director’s, officer’s or employee’s acquisition of
shares of Capital Stock of the Parent in an amount not greater than the purchase price paid by such
director, officer or employee for such shares of Capital Stock and in an aggregate amount not to
exceed $250,000 at any time outstanding, (f) investments received by the Parent or any of its
Subsidiaries pursuant to any plan of reorganization or liquidation or other similar arrangement
that has gone effective in an Insolvency Proceeding of any Person, (g) the endorsement of
negotiable instruments held for collection in the ordinary course of business, (h) deposits made in
the ordinary course of business to secure the performance of leases or to obtain utilities, (i)
advances to employees of the Parent or its Subsidiaries made in the ordinary course of business;
provided that the aggregate amount of such advances at any time outstanding shall not
exceed $250,000, (j) the acquisition by the Borrower or any Domestic Guarantor of Accounts

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Receivable held by the Parent or any of its Subsidiaries; provided that (i) any such
acquisition is in the ordinary course of business, and (ii) the acquired Accounts Receivable are
payable or dischargeable in accordance with customary terms, (k) Indebtedness expressly permitted
by clause (g) of the definition of “Permitted Indebtedness” (without duplication of any other
clause in this definition) or clause (r) of the definition of “Permitted Indebtedness”, in each
case, solely to the extent constituting investments, (l) Liens expressly permitted by clause (f) of
the definition of “Permitted Liens” solely to the extent constituting investments, (m)
[intentionally omitted], (n) investments made by the Borrower or any of its Subsidiaries in the
form of non-cash consideration received in connection with a Disposition described in clauses (c)
— (r) of the definition of “Permitted Dispositions”, and (o) other investments in an aggregate
amount not to exceed $250,000 outstanding at any time.

          “Permitted Liens” means:

          (a) Liens securing the Obligations;

          (b) Liens for taxes, assessments, levies, or governmental charges the payment of which is not
overdue by more than 30 days and, if overdue by more than 30 days (i) such taxes, assessments,
levies, or governmental are being contested in good faith by appropriate proceedings for which
adequate reserves have been established in accordance with GAAP, or (ii) secure taxes, assessments,
levies, or governmental charges in an aggregate amount not to exceed $50,000.

          (c) Liens such as carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens
arising in the ordinary course of business and securing obligations (other than Indebtedness for
borrowed money) that are not overdue by more than 30 days and, if overdue by more than 30 days (i)
are being contested in good faith and by appropriate proceedings promptly initiated and diligently
conducted, and a reserve or other appropriate provision, if any, as shall be required by GAAP shall
have been made therefor, or (ii) secure obligations in an aggregate amount not to exceed $50,000;

          (d) Liens described on Schedule 7.02(a), and any Lien granted as a modification,
renewal, extension, replacement, or substitute therefor so long as such modification, renewal,
extension, replacement, or substitute therefor does not extend coverage thereof to other property
or assets;

          (e) Liens arising under Capitalized Leases or securing purchase money Indebtedness permitted
under the definition of Permitted Indebtedness; provided, however, that (A) no such Lien shall
extend to or cover any other property of any Loan Party or any of its Subsidiaries (other than the
proceeds and products of the property that is the subject of the Capitalized Lease or purchase
money Indebtedness and accessions thereto), and (B) the principal amount of the Indebtedness
secured by any such Lien shall not exceed the lesser the fair market value or the cost of the
property so held or acquired and customary fees incurred in connection therewith;

          (f) deposits and pledges of cash securing (i) obligations incurred in respect of workers’
compensation, unemployment insurance or other forms of governmental insurance or

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benefits, (ii) the performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory
obligations, (iii) obligations on surety or appeal bonds, but only to the extent such deposits or
pledges are made or otherwise arise in the ordinary course of business and secure obligations not past due, or (iv) letters of credit or bank guarantees to support
payment of items set forth in this clause (f);

          (g) easements, zoning restrictions and similar encumbrances on real property and minor
irregularities in the title thereto that do not (i) secure obligations for the payment of money or
(ii) materially impair the value of such property or its use by any Loan Party or any of its
Subsidiaries in the normal conduct of such Person’s business;

          (h) leases or subleases granted to other Persons not materially interfering with the conduct
of the business of the Parent or any of its Subsidiaries;

          (i) (i) non-exclusive licenses or sub-licenses by the Parent or any of its Subsidiaries of
patents, trademarks, copyrights, or other intellectual property rights in the ordinary course of
business and not interfering in any material respect with the ordinary conduct of the business of
the Parent or any of its Subsidiaries, or (ii) exclusive or non-exclusive licenses or sub-licenses
by the Parent or any of its Subsidiaries of patents, trademarks, copyrights, or other intellectual
property rights in connection with a Disposition expressly permitted by clause (s) of the
definition of “Permitted Dispositions”;

          (j) precautionary financing statement filings regarding operating leases or consignments of
goods;

          (k) Liens arising out of the existence of judgments or awards not giving rise to an Event of
Default;

          (l) landlords’ liens under leases to which the Parent or any of its Subsidiaries is a party;

          (m) Liens securing refinancing Indebtedness permitted to be incurred under clause (d) of the
definition of “Permitted Indebtedness”; provided, that such Liens do not extend to any property or
assets other than the property or assets that served as collateral for the refinanced Indebtedness;

          (n) bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to
Cash and Cash Equivalents on deposit in one or more accounts maintained by Parent or any of its
Subsidiaries, in each case granted in the ordinary course of business of such Person in favor of
the bank or banks with which such accounts are maintained, securing amounts owing to such bank or
its affiliates with respect to cash management, letters of credit, and operating account
arrangements, including those involving pooled accounts and netting arrangements; provided
that in no case shall any such Liens secure (either directly or indirectly) the repayment of any
Indebtedness for borrowed money.

          (o) Liens (i) on advances of Cash or Cash Equivalents or Permitted Investments in favor of the
seller of any property to be acquired in an investment permitted hereunder, (ii) on any earnest
money deposits made by the Parent or any of its Subsidiaries in

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connection with any letter of intent or purchase agreement permitted hereunder, and (iii) consisting of any agreement to dispose
of property in a Disposition permitted under Section 7.02(c);

          (p) [intentionally omitted];

          (q) Liens securing Indebtedness in an aggregate amount not to exceed $100,000 arising out of
conditional sale, title retention, consignment or similar arrangements for the sale of goods
entered into by the Parent or its Subsidiaries in the ordinary course of business; and

          (r) other Liens securing Indebtedness in an aggregate amount not to exceed $200,000.

          “Permitted Merger” means (a) the merger or consolidation of a Domestic Subsidiary
(other than a Person composing the Borrower) or the Canadian Guarantor with and into a Person
composing the Borrower, a Domestic Guarantor, or the Canadian Guarantor, (b) the merger,
consolidation or amalgamation of a Foreign Subsidiary (other than the Canadian Guarantor) with and
into a Foreign Guarantor (other than the Canadian Guarantor), and (c) the merger of any Subsidiary
of a Person composing the Borrower that is not a Loan Party with and into a Person composing the
Borrower or another Subsidiary of such Person, in the case of each of clauses (a), (b), and (c), so
long as (i) no Event of Default shall have occurred or be continuing either before or after giving
effect to such merger, (ii) the Borrower gives the Agents at least 15 days prior written notice of
such merger, (iii) (A) in the case of a merger involving a Person composing the Borrower, such
Person is the continuing or surviving Person, (B) in the case of a merger involving a Domestic
Guarantor (other than a merger involving a Person composing the Borrower), the continuing or
surviving Person is, or simultaneously therewith becomes, a Domestic Guarantor, (C) in the case of
a merger involving the Canadian Guarantor (other than a merger involving a Person composing the
Borrower or a Domestic Guarantor), the continuing or surviving Person is, or simultaneously
therewith becomes, the Canadian Guarantor, (D) in the case of a merger involving a Foreign
Guarantor (other than the Canadian Guarantor), the continuing or surviving Person is, or
simultaneously becomes, a Foreign Guarantor (other than the Canadian Guarantor), and (v) the
Agents’ and Lenders’ Lien in all or any portion of the Collateral, including without limitation,
the existence, perfection, and priority of any Lien thereon, are not adversely affected by such
merger.

          “Permitted Preferred Stock” means and refers to (a) any Preferred Stock issued by the
Parent (and not by one or more of its Subsidiaries) that is not Prohibited Preferred Stock, and (b)
prior to the Delayed Draw Term Loan Commitment Expiry Date, the Series A Preferred Stock.

          “Permitted Refinancing” means any extension, refinancing, or modification of any
Indebtedness; provided that (a) after giving effect to such extension, refinancing or
modification, the amount of such Indebtedness is not greater than the amount of Indebtedness
outstanding immediately prior to such extension, refinancing or modification plus accrued interest
thereon and the fees incurred in connection with the extension, refinancing, or modification, (b)
such extension, refinancing or modification does not result in an increase in the

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interest rate with respect to the Indebtedness so extended, refinanced, or modified, (c) such extension,
refinancing or modification does not result in a shortening of the average weighted maturity of the
Indebtedness so extended, refinanced, or modified, (d) if the Indebtedness that is extended,
refinanced, or modified was subordinated in right of payment to the Obligations, then
the terms and conditions of the extension, refinancing, or modification must include
subordination terms and conditions that are at least as favorable to the Agents and the Lenders as
those that were applicable to the extended, refinanced, or modified Indebtedness, and (e) the
Indebtedness that is extended, refinanced, or modified is not recourse to any Person that is liable
on account of the Obligations other than those Persons which were obligated with respect to the
Indebtedness that was extended, refinanced, or modified.

          “Permitted Reorganization Transaction” means (a) the dissolution, liquidation, or
winding-up of any Domestic Subsidiary (other than a Person composing the Borrower) or the Canadian
Guarantor so long as (i) the assets (if any) of such Domestic Subsidiary or the Canadian Guarantor
are transferred to a Domestic Loan Party, (ii) no Event of Default shall have occurred and be
continuing either immediately before or after giving effect to such transaction, (iii) the Agents’
and Lenders’ Lien in any Collateral, including, without limitation, the existence, perfection and
priority of any Lien thereon, are not adversely affected by such dissolution or winding-up, and
(vi) such Domestic Loan Party shall have executed and delivered or authorized, as applicable, any
and all security agreements, financing statements, fixture filings, and other documentation
reasonably requested by any Agent in order to include the transferred assets within the Collateral,
or (b) the dissolution, liquidation, or winding-up of any Foreign Subsidiary (other than the
Canadian Guarantor) so long as (i) the assets of such Foreign Subsidiary are transferred to a
Foreign Guarantor (other than the Canadian Guarantor) or its parent, (ii) no Event of Default shall
have occurred and be continuing either immediately before or after giving effect to such
transaction, (iii) the Agents’ and Lenders’ Liens in any Collateral, including, without limitation,
the existence, perfection and priority of any Lien thereon, are not adversely affected by such
dissolution or winding-up, and (iv) the applicable Foreign Guarantor shall have executed and
delivered or authorized, as applicable, any and all security agreements, financing statements,
fixture filings, and other documentation reasonably requested by any Agent in order to include the
transferred assets within the Collateral.

          “Person” means an individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization, joint venture or other
enterprise or entity or Governmental Authority.

          “Post-Default Rate” means a rate of interest per annum equal to the rate of interest
otherwise in effect from time to time pursuant to the terms of this Agreement plus 2.0 percentage
points, or, if a rate of interest is not otherwise in effect, interest at the highest rate
specified herein for any Loan (or in the case of the Letter of Credit Fee, the highest Letter of
Credit Fee specified herein) prior to the Event of Default plus 2.0 percentage points.

          “PPSA” means the Personal Property Security Act of the applicable Canadian province or
provinces in respect of the Canadian Guarantor, each as amended from time to time.

          “PR Partnership” means PRG-Schultz Puerto Rico, a foreign partnership organized under
the laws of Puerto Rico.

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          “Preferred Stock” means, as applied to the Capital Stock of any Person, the Capital
Stock of any class or classes (however designated) that is preferred with respect to the payment of
dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of
such Person.

          “PRG-Schultz USA” has the meaning specified therefor in the preamble hereto.

          “Prohibited Preferred Stock” means any Preferred Stock that by its terms is
mandatorily redeemable or subject to any other payment obligation (including any obligation to pay
dividends, other than dividends of shares of Preferred Stock of the same class and series payable
in kind or dividends of shares of common stock) on or before a date that is less than 6 months
after the Final Maturity Date, or, on or before the date that is less than 6 months after the Final
Maturity Date, is redeemable at the option of the holder thereof for cash or assets or securities
(other than distributions in kind of shares of Preferred Stock of the same class and series or of
shares of common stock).

          “property” means any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible.

          “Pro Rata Share” means:

          (a) with respect to a Lender’s obligation to make Revolving Loans, to participate in Letters
of Credit, and to reimburse the L/C Issuer with respect to Letters of Credit, and right to receive
payments of interest, fees, and principal with respect thereto, the percentage obtained by dividing
(i) such Lender’s Revolving Credit Commitment, by (ii) the Total Revolving Credit Commitment,
provided that if the Total Revolving Credit Commitment has been reduced to zero, the numerator
shall be the unpaid principal amount of such Lender’s Revolving Loans and its interest in the
Letter of Credit Obligations and the denominator shall be the unpaid principal amount of all
Revolving Loans and Letter of Credit Obligations,

          (b) with respect to a Lender’s obligation to make the Term Loan and right to receive payments
of interest, fees, and principal with respect thereto, the percentage obtained by dividing (i) such
Lender’s Term Loan Commitment, by (ii) the Total Term Loan Commitment, provided that if the Total
Term Loan Commitment has been reduced to zero, the numerator shall be the unpaid principal amount
of such Lender’s portion of the Term Loan and the denominator shall be the unpaid principal amount
of the Term Loan,

          (c) with respect to a Lender’s obligation to make the Delayed Draw Term Loans and right to
receive payments of interest, fees, and principal with respect thereto, the percentage obtained by
dividing (i) such Lender’s Delayed Draw Term Loan Commitment, by (ii) the Total Delayed Draw Term
Loan Commitment, provided that if the Total Delayed Draw Term Loan Commitment has been reduced to
zero, the numerator shall be the unpaid principal amount of such Lender’s portion of the Delayed
Draw Term Loans and the denominator shall be the unpaid principal amount of the Delayed Draw Term
Loans, and

          (d) with respect to all other matters (including the indemnification obligations arising under
Section 10.05), the percentage obtained by dividing (i) the sum of such Lender’s

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Revolving Credit Commitment, the unpaid principal amount of such Lender’s portion of the Term Loan, the
unpaid principal amount of such Lender’s portion of the Delayed Draw Term Loans, and such Lender’s
Delayed Draw Term Loan Commitment, by (ii) the sum of the Total Revolving Credit Commitment, the aggregate unpaid principal amount of the Term Loan, the
aggregate unpaid principal amount of the Delayed Draw Term Loans, and the Total Delayed Draw Term
Loan Commitment; provided, that, if such Lender’s Revolving Credit Commitment shall have been
reduced to zero, such Lender’s Revolving Credit Commitment shall be deemed to be the unpaid
principal amount of such Lender’s Revolving Loans and its interest in the Letter of Credit
Obligations and if the Total Revolving Credit Commitment shall have been reduced to zero, the Total
Revolving Credit Commitment shall be deemed to be the unpaid principal amount of all Revolving
Loans and Letter of Credit Obligations.

          “Qualified Cash” means, as of any date of determination, the amount of unrestricted
cash and Cash Equivalents of the Borrower and its Subsidiaries that is subject to a control
agreement in favor of Collateral Agent, upon which the Collateral Agent has a perfected first
priority Lien, and that is on deposit with banks, or in securities accounts with securities
intermediaries, or any combination thereof.

          “Ratification Agreement” means a Ratification Agreement, substantially in the form of
Exhibit R-1, among the Collateral Agent and the Loan Parties.

          “Rating Agencies” has the meaning specified therefor in Section 2.07.

          “Redemption Transaction” means (a) the repayment of 100% of the Senior Notes, (b) the
repayment or conversion to common Capital Stock of the Parent of 100% of the Senior Convertible
Notes, and (c) the redemption or conversion to common Capital Stock of the Parent of 100% of the
Series A Preferred Stock.

          “Redemption Transaction Documents” means the agreements, instruments, and documents
executed in connection with the Redemption Transaction, as amended or modified in accordance with
the terms hereof and thereof.

          “Reference Bank” means JPMorgan Chase Bank, N.A. and its successors or any other
commercial bank that is a member of the Federal Reserve System with a combined capital and surplus
and undivided profits of not less than $500,000,000 designated by the Administrative Agent to the
Borrower from time to time; provided that if Wells Fargo Foothill, Inc. or one of its
Affiliates is appointed as Administrative Agent hereunder, the “Reference Bank” shall be Wells
Fargo Bank, N.A. and its successors or any other commercial bank that is a member of the Federal
Reserve System with a combined capital and surplus and undivided profits of not less than
$500,000,000 designated by the Administrative Agent to the Borrower from time to time.

          “Reference Rate” means the rate of interest publicly announced by the Reference Bank
in New York, New York from time to time as its reference rate, base rate or prime rate;
provided, however, that the Reference Rate shall be subject to a minimum rate of
8.25 percentage points per annum, and, accordingly, to the extent that the Reference Rate on any
day would be less than the foregoing minimum rate, the Reference Rate hereunder for such day
automatically shall be deemed increased to such minimum rate. The reference rate, base rate or

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prime rate is determined from time to time by the Reference Bank as a means of pricing some loans
to its borrowers and neither is tied to any external rate of interest or index nor necessarily
reflects the lowest rate of interest actually charged by the Reference Bank to any particular class
or category of customers. Subject to the minimum rate for the Reference Rate described in
this definition, each change in the Reference Rate shall be effective from and including the date
such change is publicly announced as being effective.

          “Reference Rate Loan” means each portion of a Loan that bears interest at a rate
determined by reference to the Reference Rate.

          “Register” has the meaning specified therefor in Section 12.07(d).

          “Registered Loan” has the meaning specified therefor in Section 12.07(d).

          “Regulation T”, “Regulation U” and “Regulation X” mean, respectively,
Regulations T, U and X of the Board or any successor, as the same may be amended or supplemented
from time to time.

          “Reimbursement Obligations” means the obligation of the Borrower to reimburse the
Administrative Agent or any Lender for amounts payable by the Administrative Agent or any Lender
under a Letter of Credit Guaranty in respect of any drawing made under any Letter of Credit,
together with interest thereon as provided in Section 2.04.

          “Reinvestment Eligible Funds” means (a) Net Cash Proceeds which, but for the
application of Section 2.05(d)(iv), would be required to be used to prepay the Loans
pursuant to Section 2.05(c)(vi) or (b) Extraordinary Receipts consisting of insurance or
condemnation proceeds paid as the result of loss, destruction, casualty, condemnation or
expropriation which, but for the application of Section 2.05(d)(iv), would be required to
be used to prepay the Loans pursuant to Section 2.05(c)(viii).

          “Reinvestment Notice” has the meaning specified therefor in Section 2.05(d).

          “Related Fund” means a fund, money market account, investment account or other account
managed by a Lender or an Affiliate of such Lender or its investment manager.

          “Related Party Assignment” has the meaning specified therefor in Section
12.07(b).

          “Related Party Register” has the meaning specified therefor in Section
12.07(d).

          “Release” means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any
Hazardous Material (including the abandonment or discarding of barrels, containers and other closed
receptacles containing any Hazardous Material) into the indoor or outdoor environment, including
the movement of Hazardous Materials through or in the ambient air, soil, surface or ground water,
or property.

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          “Remedial Action” means, with respect to the presence of Hazardous Materials at
concentrations exceeding those allowed by Environmental Laws, all actions taken to (i) clean up,
remove, remediate, contain, treat, monitor, assess, evaluate or in any other way address Hazardous
Materials in the environment; (ii) prevent or minimize a Release or threatened Release of Hazardous Materials so they do not migrate or endanger or threaten to endanger
public health or welfare or the environment; (iii) perform pre-remedial studies and investigations
and post-remedial operation and maintenance activities; or (iv) any other actions authorized by 42
U.S.C. § 9601.

          “Reportable Event” means an event described in Section 4043 of ERISA (other than an
event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated
under such Section).

          “Required Lenders” means Lenders whose Pro Rata Shares (calculated under clause (d) of
the definition thereof) aggregate more than 50%.

          “Reserve Percentage” means, on any day, for any Lender, the maximum percentage
prescribed by the Board (or any successor Governmental Authority) for determining the reserve
requirements (including any basic, supplemental, marginal, or emergency reserves) that are in
effect on such date with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities”) of that Lender.

          “Revolving Credit Commitment” means, with respect to each Lender, the commitment of
such Lender to make Revolving Loans to the Borrower in the amount set forth opposite such Lender’s
name in Schedule R-1 hereto, as such amount may be terminated or reduced from time to time
in accordance with the terms of this Agreement.

          “Revolving Loan” and “Revolving Loans” have the meaning specified therefor in
Section 2.01(a)(i).

          “Revolving Loan Lender” means a Lender with a Revolving Credit Commitment.

          “Revolving Loan Obligations” means any Obligations with respect to the Revolving Loans
(including the principal thereof, the interest thereon, and the fees and expenses specifically
related thereto).

          “SEC” means the Securities and Exchange Commission or any other similar or successor
agency of the Federal government administering the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended, or any similar Federal
statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect
from time to time.

          “Securities Account” means a securities account (as that term is defined in the Code).

          “Securitization” has the meaning specified therefor in Section 2.07.

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          “Securitization Parties” has the meaning specified therefor in Section 2.07.

          “Security Agreement” means a Security Agreement, in form and substance reasonably
satisfactory to the Agents, made by a Loan Party in favor of the Collateral Agent for the benefit of the Agents, the L/C Issuer, and the Lenders, securing the Obligations and
delivered to the Collateral Agent.

          “Senior Convertible Notes” means the 10% Senior Convertible Notes due 2011 issued by
the Parent pursuant to the Indenture for the 10% Senior Convertible Notes.

          “Senior Notes” means the 11% Senior Notes due 2011 issued by the Parent pursuant to
the Indenture for the 11% Senior Notes.

          “Series A Preferred Stock” means the 9% senior series A convertible participating
Preferred Stock of the Parent.

          “Settlement Period” has the meaning specified therefor in Section 2.02(d)(i)
hereof.

          “Solvent” means, with respect to any Person on a particular date, that on such date
(a) such Person is able to realize upon its assets and pay its debts and other liabilities,
contingent obligations and other commitments as they mature in the normal course of business, (b)
such Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature, and (c) such Person is
not engaged in business or a transaction, and is not about to engage in business or a transaction,
for which such Person’s property would constitute unreasonably small capital.

          “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw
Hill Companies, Inc. and any successor thereto.

          “Subordinated Debt” means Indebtedness of the Parent that is on terms and conditions
(including payment terms, interest rates, covenants, remedies, defaults and other material terms)
reasonably satisfactory to the Agents and which has been expressly subordinated in right of payment
to all Indebtedness of the Parent under the Loan Documents by the execution and delivery of a
subordination agreement, in form and substance reasonably satisfactory to the Agents.

          “Subsidiary” means, with respect to any Person at any date, any corporation, limited
or general partnership, limited liability company, trust, estate, association, joint venture or
other business entity (i) the accounts of which would be consolidated with those of such Person in
such Person’s consolidated financial statements if such financial statements were prepared in
accordance with GAAP or (ii) of which more than 50% of (A) the outstanding Capital Stock having (in
the absence of contingencies) ordinary voting power to elect a majority of the board of directors
or other managing body of such Person, (B) in the case of a partnership or limited liability
company, the interest in the capital or profits of such partnership or limited liability company,
or (C) in the case of a trust, estate, association, joint venture or other entity, the beneficial
interest in such trust, estate, association or other entity business is, at the time of

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determination, owned or controlled directly or indirectly through one or more intermediaries, by
such Person.

          “Supervalu Receivables” means Accounts Receivables owing from Supervalu Inc. with a
due date no later than 120 days after the invoice date.

          “Taxes” has the meaning specified therefor in Section 2.08(a).

          “Term Loan” has the meaning specified therefor in Section 2.01(a)(ii).

          “Term Loan Commitment” means, with respect to each Lender, the commitment of such
Lender to make its portion of the Term Loan to the Borrower in the amount set forth in Schedule
R-1 hereto, as the same may be terminated or reduced from time to time in accordance with the
terms of this Agreement.

          “Term Loan Lender” means a Lender with a Term Loan Commitment.

          “Term Loan LIBOR Margin” means 4.50 percentage points; provided that on and
after the later of (a) the date that is 12 months after the Effective Date, and (b) the date that
is the last day of the third consecutive month in which the sum of the Revolving Loan Obligations,
plus the Letter of Credit Obligations, plus the Term Loan Obligations as of the
last day of each such month is less than TTM EBITDA for the 12 month period ended as of the last
day of the corresponding month, the “Term Loan LIBOR Margin” shall be 4.00 percentage points.

          “Term Loan Obligations” means any Obligations with respect to the Term Loan (including
the principal thereof, the interest thereon, and the fees and expenses specifically related
thereto).

          “Term Loan Reference Margin” means 1.75 percentage points; provided that on
and after the later of (a) the date that is 12 months after the Effective Date, and (b) the date
that is the last day of the third consecutive month in which the sum of the Revolving Loan
Obligations, plus the Letter of Credit Obligations, plus the Term Loan Obligations
as of the last day of each such month is less than TTM EBITDA for the 12 month period ended as of
the last day of the corresponding month, the “Term Loan Reference Margin” shall be 1.25 percentage
points.

          “Termination Event” means (i) a Reportable Event with respect to any Employee Plan,
(ii) any event that causes any Loan Party or any of its ERISA Affiliates to incur liability under
Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section
4971 or 4975 of the IRC, (iii) the filing of a notice of intent to terminate an Employee Plan or
the treatment of an Employee Plan amendment as a termination under Section 4041 of ERISA, (iv) the
institution of proceedings by the PBGC to terminate an Employee Plan, or (v) any other event or
condition which might constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Employee Plan.

          “Title Insurance Policy” means a mortgagee’s loan policy, in form and substance
satisfactory to the Collateral Agent, together with all endorsements made from time to time
thereto, issued by or on behalf of a title insurance company satisfactory to the Collateral Agent,

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insuring the Lien created by a Mortgage in an amount and on terms satisfactory to the Agents,
delivered to the Collateral Agent.

          “Total Commitment” means the sum of the Total Revolving Credit Commitment, the Total
Term Loan Commitment, and the Total Delayed Draw Term Loan Commitment.

          “Total Delayed Draw Term Loan Commitment” means the sum of the amounts of the Lenders’
Delayed Draw Term Loan Commitments, which amount is equal to $31,000,000 as of the Effective Date.

          “Total Revolving Credit Commitment” means the sum of the amounts of the Lenders’
Revolving Credit Commitments, which amount is $20,000,000 as of the Effective Date.

          “Total Term Loan Commitment” means the sum of the amounts of the Lenders’ Term Loan
Commitments, which amount is $45,000,000 as of the Effective Date.

          “Toys R Us Receivables” means Accounts Receivables owing from Toys R Us, Inc. with a
due date no later than 75 days after the invoice date.

          “Transfer Pricing” means the price that is assumed to have been charged by one segment
of an organization for products and services it provides to another segment of such organization,
in order to calculate each segment’s profit and loss separately.

          “Transferee” has the meaning specified therefor in Section 2.08(a).

          “TTM EBITDA” means, as of any date of determination and with respect to a Person, the
Consolidated EBITDA of such Person and its Subsidiaries for the 12 month period most recently
ended.

          “U.S. Retail Key Client Claim Retention Rate” means the sum of (a) the net-approved
claims of U.S. Retail Key Clients that are in the Claims Reporting System as of most recent fiscal
quarter and (b) changes to work-in-process for U.S. Retail Key Clients for such fiscal quarter,
divided by the gross claims of U.S. Retail Key Clients that are in the Claims Reporting System
produced during such fiscal quarter.

          “U.S. Retail Key Client Effective Fee Rate” means, as of any date of determination,
the revenue of the Borrower and the Domestic Guarantors (other than the PR Partnership) from the
U.S. Retail Key Clients for the most recent fiscal quarter as determined in accordance with GAAP
divided by net-approved claims of U.S. Retail Key Clients that are in the Claims Reporting System
for such fiscal quarter.

          “U.S. Retail Key Client WIP” means the claims of U.S. Retail Key Clients that are in
the Claims Reporting System not yet approved for invoicing, but presented to the client or vendor
awaiting approval; provided that U.S. Retail Key Client WIP shall not include any claim (a)
that is more than 6 months old (determined from the date that the payment giving rise to the claim
was made), (b) that is in an amount less than $1,000.

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          “U.S. Retail Key Clients” means, as of any date of determination, the top 40 United
States retail clients of the Borrower and the Domestic Guarantors (other than the PR Partnership)
based on revenue recognized by the Borrower and the Domestic Guarantors (other than the PR
Partnership) for the 12 months most recently ended (not including (a) any client that has filed a
petition for bankruptcy or any other relief under the Bankruptcy Code or any other law relating to
bankruptcy, insolvency, reorganization or relief of debtors, made an assignment for the benefit of
creditors, had filed again it any petition or other application for relief under the Bankruptcy Code or any such other law, or (b) clients that are the United States or any other
Governmental Authority (unless all steps required by the Administrative Agent in connection
therewith, including notice to the United States Government under the Federal Assignment of Claims
Act or any action under any state statute comparable to the Federal Assignment of Claims Act, have
been duly taken in a manner satisfactory to the Administrative Agent; provided that from
the Effective Date through and including the date that is 120 days after the Effective Date, U.S.
Retail Key Client WIP of the Army & Air Force Exchange in an aggregate amount not to exceed
$250,000 (when aggregated with any Accounts Receivable of the Army & Air Force Exchange that are
not ineligible because of the proviso in clause (g) of the definition of “Eligible Accounts
Receivable”) shall not be ineligible under this clause (b) regardless of whether all steps required
by the Administrative Agent to be taken under the Federal Assignment of Claims Act or any state
statute comparable to the Federal Assignment of Claims Act have been taken).

          “Wal Mart Holdback Receivables” means Accounts Receivable owing from Wal-Mart Stores,
Inc. equal to $217,000 due in the fiscal quarter ending September 30, 2006 and $24,000 due in the
fiscal quarter ending September 30, 2007.

          “WARN” has the meaning specified therefor in Section 6.01(z).

          “Working Investment” means, at any date of determination thereof, (i) the sum, for any
Person and its Subsidiaries, of (A) the unpaid face amount of all Accounts Receivable of such
Person and its Subsidiaries as at such date of determination, plus (B) the aggregate amount
of prepaid expenses of such Person and its Subsidiaries as at such date of determination,
minus (ii) the sum, for such Person and its Subsidiaries, of (A) the unpaid amount of all
accounts payable of such Person and its Subsidiaries as at such date of determination, plus
(B) the aggregate amount of all accrued expenses of such Person and its Subsidiaries as at such
date of determination (including deferred compensation, but, excluding from accounts payable and
accrued expenses, liabilities related to equity based compensation, and the current portion of
long-term debt and all accrued interest and taxes).

     Section 1.02 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,”
whether or not so expressly stated in each such instance and the term “or” has, except where
otherwise indicated, the inclusive meaning represented by the phrase “and/or.” 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

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as from time to time amended, restated, supplemented or otherwise modified (subject to any
restrictions on such amendments, restatements, 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. References in this Agreement to “determination” by any Agent include estimates
honestly made by such Agent (in the case of quantitative determinations) and beliefs honestly held
by such Agent (in the case of qualitative determinations).

     Section 1.03 Accounting and Other Terms. Unless otherwise expressly provided herein,
each accounting term used herein shall have the meaning given it under GAAP. All terms used in
this Agreement which are defined in Article 8 or Article 9 of the Code and which are not otherwise
defined herein shall have the same meanings herein as set forth therein.

     Section 1.04 Time References. Unless otherwise indicated herein, all references to
time of day refer to Eastern Standard Time or Eastern daylight saving time, as in effect in New
York City on such day. For purposes of the computation of a period of time from a specified date
to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each means “to but excluding,” provided, however, that with respect to a
computation of fees or interest payable to any Agent, any Lender or the L/C Issuer, such period
shall in any event consist of at least one full day. When the payment of any obligation or the
performance of any covenant, duty or obligation is stated to be due on a day that is not a Business
Day or delivery of any notice, document, certificate or other writing is stated to be required on a
day that is not a Business Day, the date of such payment (other than as described in the definition
of “Interest Period”), performance or delivery shall extend to the immediately succeeding Business
Day.

ARTICLE II.

THE LOANS

     Section 2.01 Commitments.

          (a) Subject to the terms and conditions and relying upon the representations and warranties
herein set forth:

               (i) each Revolving Loan Lender severally agrees to make loans (each, a “Revolving
Loan” and, collectively, the “Revolving Loans”) to the Borrower at any time and from
time to time from the Effective Date to the Final Maturity Date, or until the earlier reduction of
its Revolving Credit Commitment to zero in accordance with the terms hereof, in an aggregate
principal amount of Revolving Loans at any time outstanding not to exceed the lesser of (A) the
amount of such Lender’s Revolving Credit Commitment, and (B) the amount of such Lender’s Pro Rata
Share of the then extant Borrowing Base;

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               (ii) each Term Loan Lender severally agrees to make a term loan (collectively, the
“Term Loan”) to the Borrower on the Effective Date, in an aggregate principal amount equal
to the amount of such Lender’s Term Loan Commitment; and

               (iii) each Delayed Draw Term Loan Lender severally agrees to make term loans (each a
“Delayed Draw Term Loan” and, collectively, the “Delayed Draw Term Loans”) to the
Borrower at any time and from time to time from the Effective Date to the Delayed Draw Term Loan
Commitment Expiry Date, or until the earlier reduction of its Delayed Draw Term Loan Commitment to
zero in accordance with the terms hereof, in an amount requested by the Borrower not to exceed such
Delayed Draw Term Loan Lender’s Pro Rata Share of (A) the Delayed Draw Term Loan Amount,
minus (B) the aggregate amount of all Delayed Draw Term Loans previously made hereunder
(without regard to any repayment or prepayment thereof).

          (b) Notwithstanding the foregoing, “Revolving Loans” (as defined in the Original Financing
Agreement) outstanding under the Original Financing Agreement on the Effective Date, if any (the
“Existing Revolving Loans”) shall be converted into Revolving Loans hereunder, it being
understood that no repayment of the Existing Revolving Loans is being effected hereby, but merely
an amendment, restatement, and renewal in accordance with the terms hereof. Any Revolving Loans
made pursuant to the conversion of any Existing Revolving Loans into Revolving Loans shall be
deemed made by the Revolving Loan Lenders proportionately to their Pro Rata Shares of the Total
Revolving Credit Commitment.

          (c) Further notwithstanding the foregoing:

               (i) The aggregate principal amount of Revolving Loans outstanding at any time to the Borrower
shall not exceed the lower of (A) the difference between (x) the Total Revolving Credit Commitment
and (y) the aggregate Letter of Credit Obligations and (B) the difference between (x) the then
current Borrowing Base and (y) the aggregate Letter of Credit Obligations. The Revolving Credit
Commitment of each Lender shall automatically and permanently be reduced to zero on the Final
Maturity Date. Within the foregoing limits, the Borrower may borrow, repay and reborrow the
Revolving Loans, on or after the Effective Date and prior to the Final Maturity Date, subject to
the terms, provisions and limitations set forth herein.

          (d) The aggregate principal amount of the Term Loan made on the Effective Date shall not
exceed the Total Term Loan Commitment. Any principal amount of the Term Loan that is repaid or
prepaid may not be reborrowed.

          (e) Any principal amount of the Delayed Draw Term Loans that is repaid or prepaid may not be
reborrowed.

     Section 2.02 Making the Loans.

          (a) The Borrower shall give the Administrative Agent prior telephonic notice (immediately
confirmed in writing, in substantially the form of Exhibit 2.02 hereto (a “Notice of
Borrowing”)), (i) in the case of a LIBOR Rate Loan, not later than 12:00 noon (New York City
time) on the date that is 3 Business Days prior to the date of the proposed Loan (or such shorter

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period as the Administrative Agent is willing, in its sole discretion, to accommodate from
time to time), or (ii) in the case of a Reference Rate Loan, not later than 12:00 noon (New York
City time) on the of the proposed Loan (or such shorter period as the Administrative Agent is
willing, in its sole discretion, to accommodate from time to time). Such Notice of Borrowing shall
specify (A) the principal amount of the proposed Loan, and (B) the proposed borrowing date, which
must be a Business Day, and, with respect to the Term Loan, must be the Effective Date, (C) whether
the proposed Loan is to be a Reference Rate Loan or a LIBOR Rate Loan, and (D) in the case of a
LIBOR Rate Loan, 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
Loan is specified, then the requested Loan shall be a Reference Rate Loan. If no Interest Period
is specified with respect to any requested LIBOR Rate Loan, then the Borrower shall be deemed to
have selected an Interest Period of one month’s duration. The Administrative Agent and the Lenders
may act without liability upon the basis of written, telecopied or telephonic notice believed by
the Administrative Agent in good faith to be from the Borrower (or from any Authorized Officer
thereof designated in writing purportedly from the Borrower to the Administrative Agent). The
Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms of any
such telephonic Notice of Borrowing. The Administrative Agent and each Lender shall be entitled to
rely conclusively on any Authorized Officer’s authority to request a Loan on behalf of the Borrower
until the Administrative Agent receives written notice to the contrary. The Administrative Agent
and the Lenders shall have no duty to verify the authenticity of the signature appearing on any
written Notice of Borrowing.

          (b) Each Notice of Borrowing pursuant to this Section 2.02 shall be irrevocable and the
Borrower shall be bound to make a borrowing in accordance therewith. Except for Revolving Loans
deemed made pursuant to Section 3.01(c), each Revolving Loan shall be made in a minimum amount of
$100,000 and shall be in integral multiples of $100,000 in excess thereof. No more than 4 Delayed
Draw Term Loans shall be made during the period of time from the Effective Date to the Delayed Draw
Term Loan Commitment Expiry Date and each Delayed Draw Term Loan shall be made in a minimum amount
of $50,000 and shall be in integral multiples of $50,000 in excess thereof

          (c) (i) Except as otherwise provided in this Section 2.02(c), all Loans under this
Agreement shall be made by the Lenders simultaneously and proportionately to their Pro Rata Shares
of the Total Revolving Credit Commitment, the Total Term Loan Commitment, and the Total Delayed
Draw Term Loan Commitment, as the case may be, it being understood that no Lender shall be
responsible for any default by any other Lender in that other Lender’s obligations to make a Loan
requested hereunder, nor shall the Commitment of any Lender be increased or decreased as a result
of the default by any other Lender in that other Lender’s obligation to make a Loan requested
hereunder, and each Lender shall be obligated to make the Loans required to be made by it by the
terms of this Agreement regardless of the failure by any other Lender.

               (ii) Notwithstanding any other provision of this Agreement, and in order to reduce the number
of fund transfers among the Borrower, the Agents and the Lenders, the Borrower, the Agents and the
Lenders agree that the Administrative Agent may (but shall not be obligated to), and the Borrower
and the Lenders hereby irrevocably authorize the Administrative Agent to, fund, on behalf of the
Lenders with a Revolving Credit Commitment,

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Revolving Loans pursuant to Section 2.01, subject to the procedures for settlement set
forth in Section 2.02(d); provided, however, that (a) the Administrative
Agent shall in no event fund any such Revolving Loans if the Administrative Agent shall have
received written notice from the Collateral Agent or the Required Lenders prior to the time of the
proposed Revolving Loan that one or more of the conditions precedent contained in Section
5.02 will not be satisfied at the time of the proposed Revolving Loan, and (b) the
Administrative Agent shall not otherwise be required to determine that, or take notice whether, the
conditions precedent in Section 5.02 have been satisfied. If the Borrower gives a Notice
of Borrowing requesting a Revolving Loan and the Administrative Agent elects not to fund such
Revolving Loan on behalf of the Revolving Loan Lenders, then promptly after receipt of the Notice
of Borrowing requesting such Revolving Loan, the Administrative Agent shall notify each Revolving
Loan Lender of the specifics of the requested Revolving Loan and that it will not fund the
requested Revolving Loan on behalf of the Revolving Loan Lenders. If the Administrative Agent
notifies the Revolving Loan Lenders that it will not fund a requested Revolving Loan on behalf of
such Revolving Loan Lenders, each Revolving Loan Lender shall make its Pro Rata Share of the
Revolving Loan available to the Administrative Agent, in immediately available funds, at the
Payment Office no later than 3:00 p.m. (New York City time) (provided that the
Administrative Agent requests payment from such Revolving Loan Lender not later than 1:00 p.m. (New
York City time)) on the date of the proposed Revolving Loan. The Administrative Agent will make
the proceeds of such Revolving Loans available to the Borrower on the day of the proposed Revolving
Loan by causing an amount, in immediately available funds, equal to the proceeds of all such
Revolving Loans received by the Administrative Agent at the Payment Office or the amount funded by
the Administrative Agent on behalf of the Revolving Loan Lenders to be deposited in an account
designated by the Borrower.

               (iii) If the Administrative Agent has notified the Revolving Loan Lenders that the
Administrative Agent, on behalf of such Revolving Loan Lenders, will fund a particular Revolving
Loan pursuant to Section 2.02(c)(ii), the Administrative Agent may assume that each such
Revolving Loan Lender has made such amount available to the Administrative Agent on such day and
the Administrative Agent, in its sole discretion, may, but shall not be obligated to, cause a
corresponding amount to be made available to the Borrower on such day. If the Administrative Agent
makes such corresponding amount available to the Borrower and such corresponding amount is not in
fact made available to the Administrative Agent by any such Revolving Loan Lender, the
Administrative Agent shall be entitled to recover such corresponding amount on demand from such
Revolving Loan Lender together with interest thereon, for each day from the date such payment was
due until the date such amount is paid to the Administrative Agent, at the Federal Funds Rate for 3
Business Days and thereafter at the Reference Rate. During the period in which such Revolving Loan
Lender has not paid such corresponding amount to the Administrative Agent, notwithstanding anything
to the contrary contained in this Agreement or any other Loan Document, the amount so advanced by
the Administrative Agent to the Borrower shall, for all purposes hereof, be a Revolving Loan made
by the Administrative Agent for its own account. Upon any such failure by a Revolving Loan Lender
to pay the Administrative Agent, the Administrative Agent shall promptly thereafter notify the
Borrower of such failure and the Borrower shall immediately pay such corresponding amount to the
Administrative Agent for its own account.

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               (iv) Nothing in this Section 2.02(c) shall be deemed to relieve any Revolving Loan
Lender from its obligations to fulfill its Revolving Credit Commitment hereunder or to prejudice
any rights that the Administrative Agent or the Borrower may have against any Revolving Loan Lender
as a result of any default by such Revolving Loan Lender hereunder.

          (d) (i) With respect to all periods for which the Administrative Agent has funded Revolving
Loans pursuant to Section 2.02(c), on Wednesday of each week, or if the applicable Wednesday is not
a Business Day, then on the following Business Day, or such shorter period as the Administrative
Agent may from time to time select (any such week or shorter period being herein called a
“Settlement Period”), the Administrative Agent shall notify each Revolving Loan Lender of the
unpaid principal amount of the Revolving Loans outstanding as of the last day of each such
Settlement Period. In the event that such amount is greater than the unpaid principal amount of
the Revolving Loans outstanding on the last day of the Settlement Period immediately preceding such
Settlement Period (or, if there has been no preceding Settlement Period, the amount of the
Revolving Loans made on the date of such Revolving Loan Lender’s initial funding), each Revolving
Loan Lender shall promptly (and in any event not later than 2:00 p.m. (New York City time) if the
Administrative Agent requests payment from such Lender not later than 12:00 noon (New York City
time) on such day) make available to the Administrative Agent its Pro Rata Share of the difference
in immediately available funds. In the event that such amount is less than such unpaid principal
amount, the Administrative Agent shall promptly pay over to each Revolving Loan Lender its Pro Rata
Share of the difference in immediately available funds. In addition, if the Administrative Agent
shall so request at any time when a Default or an Event of Default shall have occurred and be
continuing, or any other event shall have occurred as a result of which the Administrative Agent
shall determine that it is desirable to present claims against the Borrower for repayment, each
Revolving Loan Lender shall promptly remit to the Administrative Agent or, as the case may be, the
Administrative Agent shall promptly remit to each Revolving Loan Lender, sufficient funds to adjust
the interests of the Revolving Loan Lenders in the then outstanding Revolving Loans to such an
extent that, after giving effect to such adjustment, each such Revolving Loan Lender’s interest in
the then outstanding Revolving Loans will be equal to its Pro Rata Share thereof. The obligations
of the Administrative Agent and each Revolving Loan Lender under this Section 2.02(d) shall be
absolute and unconditional. Each Revolving Loan Lender shall only be entitled to receive interest
on its Pro Rata Share of the Revolving Loans which have been funded by such Revolving Loan Lender.

               (ii) In the event that any Revolving Loan Lender fails to make any payment required to be made
by it pursuant to Section 2.02(d)(i), the Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Revolving Loan Lender together with interest thereon,
for each day from the date such payment was due until the date such amount is paid to the
Administrative Agent, at the Federal Funds Rate for 3 Business Days and thereafter at the Reference
Rate. During the period in which such Revolving Loan Lender has not paid such corresponding amount
to the Administrative Agent, notwithstanding anything to the contrary contained in this Agreement
or any other Loan Document, the amount so advanced by the Administrative Agent to the Borrower
shall, for all purposes hereof, be a Revolving Loan made by the Administrative Agent for its own
account. Upon any such failure by a Revolving Loan Lender to pay the Administrative Agent, the
Administrative Agent shall

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promptly thereafter notify the Borrower of such failure and the Borrower shall immediately pay
such corresponding amount to the Administrative Agent for its own account. Nothing in this
Section 2.02(d)(ii) shall be deemed to relieve any Revolving Loan Lender from its
obligation to fulfill its Revolving Credit Commitment hereunder or to prejudice any rights that the
Administrative Agent or the Borrower may have against any Revolving Loan Lender as a result of any
default by such Revolving Loan Lender hereunder.

     Section 2.03 Repayment of Loans; Evidence of Debt.

          (a) The outstanding principal of all Revolving Loans shall be due and payable on the Final
Maturity Date.

          (b) The outstanding principal of the Term Loan shall be repayable in consecutive quarterly
installments, each in an amount equal to $1,250,000, on the first day of each January, April, July,
and October commencing on April 1, 2008. The outstanding principal of the Term Loan shall be
repaid in full on the earlier of (i) the termination of the Total Revolving Credit Commitment and
(ii) the Final Maturity Date.

          (c) The outstanding principal of the Delayed Draw Term Loans shall be repaid in full on the
earlier of (i) the termination of the Total Revolving Credit Commitment and (ii) the Final Maturity
Date.

          (d) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower 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.

          (e) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower 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.

          (f) The entries made in the accounts maintained pursuant to paragraphs (d) or (e) of this
Section 2.03 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 Borrower to
repay the Loans in accordance with the terms of this Agreement.

          (g) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall 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) in a form
furnished by the Collateral Agent and reasonably satisfactory to the Borrower. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 12.07) 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).

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     Section 2.04 Interest.

          (a) Revolving Loans. Each Revolving Loan shall bear interest on the principal amount
thereof from time to time outstanding, from the date of the making of such Loan until the date on
which such principal amount is repaid in accordance herewith, as follows: (i) if the relevant
Revolving Loan is a LIBOR Rate Loan, at a rate per annum equal to the LIBOR Rate plus 2.00
percentage points, and (ii) otherwise, at a rate per annum equal to the Reference Rate.

          (b) Term Loan. The Term Loan shall bear interest on the principal amount thereof from
time to time outstanding, from the date of the making of the Term Loan until the date on which such
principal amount is repaid in accordance herewith, as follows: (i) if the relevant portion of the
Term Loan is a LIBOR Rate Loan, at a rate per annum equal to the LIBOR Rate plus the Term Loan
LIBOR Margin, and (ii) otherwise, at a rate per annum equal to the Reference Rate plus the Term
Loan Reference Margin.

          (c) Delayed Draw Term Loans. Each Delayed Draw Term Loan shall bear interest on the
principal amount thereof from time to time outstanding, from the date of such Loan until such
principal amount is repaid, as follows: (i) if the relevant Delayed Draw Term Loan is a LIBOR Rate
Loan, at a rate per annum equal to the LIBOR Rate plus the applicable Delayed Draw Term Loan
Margin, and (ii) otherwise, at a rate per annum equal to the Reference Rate plus the applicable
Delayed Draw Term Loan Margin.

          (d) Default Interest and Fees. To the extent permitted by law, upon the occurrence
and during the continuance of an Event of Default, (i) at the election of the Required Lenders (and
written notice of such election shall be given by such Lenders to each Agent), the principal of,
and unpaid interest on, all Loans shall bear interest, from the date such Event of Default occurred
until the date such Event of Default is cured or waived in writing in accordance herewith, at all
times during such period at a rate per annum equal to the Post-Default Rate, and (ii) at the
election of the Required Lenders (and written notice of such election shall be given by such
Lenders to each Agent), the Letter of Credit Fees shall be increased by 2.0 percentage points above
the per annum rate otherwise applicable hereunder.

          (e) Interest Payment Dates. Interest on each Reference Rate Loan and each LIBOR Rate
Loan shall be payable monthly, in arrears, on the first day of each month, commencing on the first
day of the month following the month in which such Loan is made and at maturity (whether upon
demand, by acceleration or otherwise). Interest at the Post-Default Rate shall be payable on
demand. The Borrower hereby authorizes the Administrative Agent to, and the Administrative Agent
may, from time to time, charge the Loan Account pursuant to Section 4.02 with the amount of
any interest payment due hereunder.

          (f) General. All interest shall be computed on the basis of a year of 360 days for
the actual number of days, including the first day but excluding the last day, elapsed.

          (g) LIBOR Option.

               (i) LIBOR Election. In lieu of having interest charged at the rate based upon the
Reference Rate, the Borrower shall have the option (the “LIBOR Option”) to

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have interest on all or a portion of the Loans be charged at a rate of interest based upon the
LIBOR Rate. On the last day of each applicable Interest Period, unless the Borrower properly has
exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate
Loan automatically shall convert to the rate of interest then applicable to Reference Rate Loans of
the same type hereunder. At any time that an Event of Default has occurred and is continuing, the
Borrower no longer shall have the option to request that Loans bear interest at the LIBOR Rate and
Administrative Agent shall have the right to convert the interest rate on all outstanding LIBOR
Rate Loans to the rate then applicable to Reference Rate Loans hereunder.

                    (A) The Borrower may, at any time and from time to time, so long as no Event of
Default has occurred and is continuing, elect to exercise the LIBOR Option by
notifying Administrative Agent prior to 12:00 noon (New York time) at least 3
Business Days prior to the commencement of the proposed Interest Period (the
“LIBOR Deadline”). Notice of the Borrower’s election of the LIBOR Option
for a permitted portion of the Loans and an Interest Period pursuant to this Section
shall be made by delivery to Administrative Agent of a LIBOR Notice received by
Administrative Agent before the LIBOR Deadline. Promptly upon its receipt of each
such LIBOR Notice, Administrative Agent shall provide a copy thereof to each of the
Lenders having a Commitment of the type to which such LIBOR Notice relates.

                    (B) Each LIBOR Notice shall be irrevocable and binding on the Borrower. In
connection with each LIBOR Rate Loan, the Borrower shall indemnify, defend, and hold
Administrative Agent and the Lenders harmless against any loss, cost, or expense
incurred by Administrative Agent or any Lender as a result of (1) the payment of any
principal of any LIBOR Rate Loan other than on the last day of an Interest Period
applicable thereto (including as a result of an Event of Default), (2) the
conversion of any LIBOR Rate Loan other than on the last day of the Interest Period
applicable thereto, or (3) the failure to borrow, convert, continue or prepay any
LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto
(such losses, costs, and expenses, collectively, “Funding Losses”). Funding
Losses shall, with respect to Administrative Agent or any Lender, be deemed to equal
the amount determined by Administrative Agent or such Lender to be the excess, if
any, of (x) the amount of interest that would have accrued on the principal amount
of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would
have been applicable thereto, 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
therefor), minus (y) the amount of interest that would accrue on such principal
amount for such period at the interest rate which Administrative Agent or such
Lender would be offered were it to be offered, at the commencement of such period,
Dollar deposits of a comparable amount and period in the London interbank market. A
certificate of Administrative Agent or a Lender delivered to the Borrower setting
forth any amount or amounts that Administrative Agent or such Lender is entitled to
receive pursuant to this Section shall be conclusive absent manifest error.

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                    (C) The Borrower shall have not more than 5 LIBOR Rate Loans in effect at any
given time. The Borrower only may exercise the LIBOR Option for LIBOR Rate Loans of
at least $500,000 and integral multiples of $100,000 in excess thereof.

               (ii) Conversions. The Borrower may convert LIBOR Rate Loans at any time;
provided, however, that in the event that LIBOR Rate Loans are converted or prepaid
on any date that is not the last day of the Interest Period applicable thereto, including as a
result of any automatic prepayment through the required application by the Administrative Agent of
proceeds of Collateral in accordance with Section 4.04 or for any other reason, including
early termination of the term of this Agreement or acceleration of all or any portion of the
Obligations pursuant to the terms hereof, the Borrower shall indemnify, defend, and hold
Administrative Agent and the Lenders and their participants harmless against any and all Funding
Losses in accordance with subsection (ii) above.

               (iii) Special Provisions Applicable to LIBOR Rate.

                    (A) The LIBOR Rate may be adjusted by Administrative Agent with respect to any
Lender on a prospective basis to take into account any additional or increased costs
to such Lender of maintaining or obtaining any eurodollar deposits or increased
costs due to changes in applicable law occurring subsequent to the commencement of
the then applicable Interest Period, including changes in tax laws (except changes
of general applicability in corporate income tax laws) and changes in the reserve
requirements imposed by the Board of Governors of the Federal Reserve System (or any
successor), excluding the Reserve Percentage, which additional or increased costs
would increase the cost of funding loans bearing interest at the LIBOR Rate. In any
such event, the affected Lender shall give the Borrower and Administrative Agent
notice of such a determination and adjustment and Administrative Agent promptly
shall transmit the notice to each other Lender and, upon its receipt of the notice
from the affected Lender, the Borrower may, by notice to such affected Lender (1)
require such Lender to furnish to the Borrower a statement setting forth the basis
for adjusting such LIBOR Rate and the method for determining the amount of such
adjustment, or (2) repay the LIBOR Rate Loans with respect to which such adjustment
is made (together with any amounts due under subsection (ii)(B) above).

                    (B) In the event that any change in market conditions or any law, regulation,
treaty, or directive, or any change therein or in the interpretation of application
thereof, shall at any time after the date hereof, in the reasonable opinion of any
Lender, make it unlawful or impractical for such Lender to fund or maintain LIBOR
Rate Loans or to continue such funding or maintaining, or to determine or charge
interest rates at the LIBOR Rate, such Lender shall give notice of such changed
circumstances to Administrative Agent and the Borrower and Administrative Agent
promptly shall transmit the notice to each other Lender and (1) in the case of any
LIBOR Rate Loans of such Lender that are outstanding, the date specified in such
Lender’s notice shall be deemed to be the last day of the

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Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate
Loans of such Lender thereafter shall accrue interest at the rate then applicable to
Reference Rate Loans, and (2) the Borrower shall not be entitled to elect the LIBOR
Option until such Lender determines that it would no longer be unlawful or
impractical to do so.

               (iv) No Requirement of Matched Funding. Anything to the contrary contained herein
notwithstanding, neither Administrative Agent, nor any Lender, nor any of their participants, is
required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as
to which interest accrues at the LIBOR Rate. The provisions of this Section shall apply as if each
Lender or its participants had match funded any Obligation as to which interest is accruing at the
LIBOR Rate by acquiring eurodollar deposits for each Interest Period in the amount of the LIBOR
Rate Loans.

     Section 2.05 Reduction of Commitments; Prepayment of Loans.

          (a) Reduction of Commitments.

               (i) Revolving Credit Commitments. The Total Revolving Credit Commitment shall
terminate on the Final Maturity Date. The Borrower may reduce the Total Revolving Credit
Commitment to an amount (which may be zero) not less than the sum of (A) the aggregate unpaid
principal amount of all Revolving Loans then outstanding, (B) the aggregate principal amount of all
Revolving Loans not yet made as to which a Notice of Borrowing has been given by the Borrower under
Section 2.02, (C) the Letter of Credit Obligations at such time and (D) the stated amount
of all Letters of Credit not yet issued as to which a request has been made and not withdrawn.
Each such reduction shall be in an amount which is an integral multiple of $1,000,000 (unless the
Total Revolving Credit Commitment in effect immediately prior to such reduction is less than
$1,000,000), shall be made by providing not less than 3 Business Days prior written notice to the
Administrative Agent and shall be irrevocable; provided that, a notice of termination of
the Commitments delivered by the Borrower may state that such notice is conditioned upon the
consummation of financing that will refinance the Indebtedness under this Agreement, in which case
such notice may be revoked by the Borrower if such condition is not satisfied (by notice to the
Administrative Agent on or prior to the specified effective date), and if such notice is revoked
then, anything to the contrary contained herein notwithstanding, the failure to terminate the
Commitments on the date specified in such notice shall not constitute an Event of Default. Once
reduced, the Total Revolving Credit Commitment may not be increased. Each such reduction of the
Total Revolving Credit Commitment shall reduce the Revolving Credit Commitment of each Lender
proportionately in accordance with its Pro Rata Share thereof.

               (ii) Term Loan. The Total Term Loan Commitment shall terminate upon the making of the
Term Loan on the Effective Date.

               (iii) Delayed Draw Term Loans. The Total Delayed Draw Term Loan Commitment shall
terminate on the Delayed Draw Term Loan Commitment Expiry Date. The Delayed Draw Term Loan
Commitment of each Lender shall automatically and permanently be reduced to the extent that such
Lender makes a Delayed Draw Term Loan to the Borrower.

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          (b) Optional Prepayment.

               (i) Revolving Loans. The Borrower may prepay the principal of any Revolving Loan, in
whole or in part, without premium or penalty other than as set forth in the Fee Letter.

               (ii) Term Loan. So long as (A) no Default or Event of Default shall have occurred and
be continuing, and (B) Availability is greater than or equal to $10,000,000 after giving effect to
such payment, the Borrower may, upon at least 3 Business Days prior written notice to the
Administrative Agent, prepay the principal of the Term Loan, in whole or in part. Each prepayment
made pursuant to this Section 2.05(b)(ii) shall be accompanied by the payment of accrued
interest to the date of such payment on the amount prepaid. Each such prepayment shall be applied
against the remaining installments of principal due on the Term Loan in the inverse order of
maturity (for the avoidance of doubt, any amount that is due and payable on the Final Maturity Date
shall constitute an installment).

               (iii) Delayed Draw Term Loans. So long as (A) no Default or Event of Default shall
have occurred and be continuing, (B) Availability is greater than or equal to $10,000,000 after
giving effect to such payment, and (C) the outstanding principal amount of the Term Loan has been
paid in full, the Borrower may, upon at least 3 Business Days prior written notice to the
Administrative Agent, prepay the principal of the Delayed Draw Term Loans, in whole or in part.
Each prepayment made pursuant to this Section 2.05(b)(iii) shall be accompanied by the
payment of accrued interest to the date of such payment on the amount prepaid.

          (c) Mandatory Prepayment.

               (i) The Borrower will immediately prepay the Revolving Loans within 1 Business Day at any time
that the aggregate principal amount of all Revolving Loans plus the outstanding amount of all
Letter of Credit Obligations exceeds the lesser of (A) the Total Revolving Credit Commitment, and
(B) the Borrowing Base, to the full extent of any such excess. On each day that any Revolving
Loans or Letter of Credit Obligations are outstanding, the Borrower shall hereby be deemed to
represent and warrant to the Agents and the Lenders that the Borrowing Base calculated as of such
day equals or exceeds the aggregate principal amount of all Revolving Loans and Letter of Credit
Obligations outstanding on such day. If at any time after the Borrower has complied with the first
sentence of this Section 2.05(c)(i), the aggregate Letter of Credit Obligations is greater
than the lesser of (x) the Total Revolving Credit Commitment, and (y) the then current Borrowing
Base, the Borrower shall provide cash collateral to the Administrative Agent in an amount equal to
105% of such excess, which cash collateral shall be deposited in the Letter of Credit Collateral
Account and, provided that no Event of Default shall have occurred and be continuing,
returned to the Borrower, at such time as the aggregate Letter of Credit Obligations plus the
aggregate principal amount of all outstanding Revolving Loans no longer exceeds the then current
Borrowing Base.

               (ii) The Borrower will immediately prepay the outstanding principal amount of the Term Loan
and the outstanding principal amount of the Delayed Draw Term Loans in the event that the Total
Revolving Credit Commitment is terminated for any reason.

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               (iii) The Administrative Agent shall on each Business Day apply all funds transferred to or
deposited in the Administrative Agent’s Account, to the payment, in whole or in part, of the
outstanding principal amount of the Revolving Loans.

               (iv) Within 10 days of delivery to the Agents and the Lenders of audited annual financial
statements pursuant to Section 7.01(a)(iii), commencing with the delivery to the Agents and
the Lenders of the financial statements for the Fiscal Year ended December 31, 2007 or, if such
financial statements are not delivered to the Agents and the Lenders on the date such statements
are required to be delivered pursuant to Section 7.01(a)(iii), 10 days after the date such
statements are required to be delivered to the Agents and the Lenders pursuant to Section
7.01(a)(iii), the Borrower shall prepay the outstanding principal amount of the Loans in an
amount equal to (A) the greater of (x) 50% of Excess Cash Flow of the Parent and its Subsidiaries
for such Fiscal Year, and (y) 50% of North American Excess Cash Flow of the Parent and its North
American Subsidiaries for such Fiscal Year, minus (B) the sum of (x) the amount of all
voluntary prepayments of the Term Loan made during such period pursuant to Section
2.05(b)(ii), and (y) the amount of all voluntary prepayments of the Delayed Draw Term Loans
made during such period pursuant to Section 2.05(b)(iii).

               (v) Within 1 Business Day of delivery to the Agents and the Lenders of the Borrowing Base
Certificate pursuant to Section 7.01(a), the Borrower will immediately prepay the
outstanding principal amount of the Loans to the extent that the outstanding principal amount of
the Term Loan, plus the outstanding principal amount of the Delayed Draw Term Loans,
plus the aggregate outstanding principal amount of all Revolving Loans, plus the
aggregate outstanding amount of all Letter of Credit Obligations exceeds the aggregate amount of
Collections from Accounts Receivable of the Borrower and the Domestic Guarantors during the 180
days immediately preceding such date, to the full extent of any such excess.

               (vi) Within 1 Business Day of the receipt of any proceeds of any Disposition by the Parent or
any of its Domestic Subsidiaries and within 3 Business Days of the receipt of any proceeds of any
Disposition by any Foreign Subsidiary of the Parent, in each case other than a Permitted
Disposition (other than a Permitted Disposition of the type described in clauses (a), (b), and (s)
of the definition of “Permitted Dispositions”), the Borrower shall prepay the outstanding principal
amount of the Loans in an amount equal to 100% of the Net Cash Proceeds received by such Person in
connection with such Disposition to the extent that the aggregate amount of Net Cash Proceeds
received by all Loan Parties and their Subsidiaries (and not paid to the Administrative Agent as a
prepayment of the Loans) shall exceed $250,000 for all such Dispositions in any Fiscal Year.
Nothing contained in this subsection (vi) shall permit any Loan Party or any of its
Subsidiaries to make a Disposition of any property other than a Permitted Disposition.

               (vii) Within 1 Business Day of the receipt of any proceeds of any issuance or incurrence by
the Parent or any of its Domestic Subsidiaries of any Indebtedness and within 3 Business Days of
the receipt of any proceeds of any issuance or incurrence by any Foreign Subsidiary of any
Indebtedness (in each case, other than Indebtedness referred to in clauses (a), (b), (d) — (j), and
(l) — (s) of the definition of “Permitted Indebtedness”), the Borrower shall prepay the Loans in
an amount equal to 100% of the Net Cash Proceeds received by such Person in connection therewith.
The provisions of this subsection (vii) shall not be deemed to be

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implied consent to any such issuance or incurrence otherwise prohibited by the terms and
conditions of this Agreement.

               (viii) Within 1 Business Day of the sale or issuance by the Parent or any of its Domestic
Subsidiaries of any shares of its Capital Stock and within 3 Business Days of the sale or issuance
by any Foreign Subsidiary of any shares of its Capital Stock (in each case, other than issuances of
(A) common Capital Stock by any Subsidiary of the Parent to its parent, (B) Capital Stock issued by
the Parent pursuant to a stock incentive plan for its or its Subsidiaries’ officers, directors or
employees, or (C) common Capital Stock of the Parent issued upon conversion of the Senior
Convertible Notes in accordance with the Indenture for the 10% Senior Convertible Notes or the
Series A Preferred Stock), the Borrower shall prepay the Loans in an amount equal to 100% of the
Net Cash Proceeds received by such Person in connection therewith. The provisions of this
subsection (viii) shall not be deemed to be implied consent to any such sale or issuance
otherwise prohibited by the terms and conditions of this Agreement.

               (ix) Within 1 Business Day of the receipt by the Parent or any of its Domestic Subsidiaries of
any Extraordinary Receipts and within 3 Business Days of the receipt by any Foreign Subsidiary of
the Parent of any Extraordinary Receipts, the Borrower shall prepay the outstanding principal of
the Loans in an amount equal to 100% of such Extraordinary Receipts, net of any reasonable expenses
incurred in collecting such Extraordinary Receipts, to the extent that the aggregate amount of
Extraordinary Receipts received by all Loan Parties and their Subsidiaries (and not paid to the
Administrative Agent as a prepayment of the Loans) shall exceed $250,000 for all such Extraordinary
Receipts in any Fiscal Year.

               (x) If, at any time, (A) the sum of the outstanding principal amount of the aggregate
outstanding amount of all Term Loan Obligations, plus the aggregate outstanding amount of
all Revolving Loan Obligations, plus the aggregate outstanding amount of all Letter of
Credit Obligations exceeds (B) the product of (I) 2.00 times (II) TTM EBITDA calculated as of the
last month for which financial statements have most recently been delivered pursuant to Section
7.01(a) (such excess being referred to as the “Limiter Excess”), then the Borrower
shall immediately prepay the Loans in aggregate amount equal to the Limiter Excess.

          (d) Application of Payments.

               (i) Except as set forth in Section 2.05(d)(iii) below, each prepayment made pursuant
to subsections (c)(iv), (c)(vi), (c)(vii), (c)(viii), and
(c)(ix) above shall be applied, first, to the Term Loan, until paid in full, second, to the
Delayed Draw Term Loans until paid in full, third, to the Revolving Loans, until paid in full, and
fourth, to cash collateralization of the Letters of Credit in an amount up to 105% of the undrawn
amount of all outstanding Letters of Credit, until such Letters of Credit are cash collateralized
in an amount equal to 105% of the greatest amount for which such Letters of Credit may be drawn.
Each such prepayment of the Term Loan shall be applied against the remaining installments of
principal of the Term Loan in the inverse order of their maturity (for the avoidance of doubt, any
amount that is due and payable on the Final Maturity Date shall constitute an installment).

               (ii) Each prepayment made pursuant to subsections (c)(v) and (c)(x) above
shall be applied, first, to the Revolving Loans, until paid in full, second, to cash

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collateralization of the Letters of Credit in an amount up to 105% of the undrawn amount of
all outstanding Letters of Credit, until such Letters of Credit are cash collateralized in an
amount equal to 105% of the greatest amount for which such Letters of Credit may be drawn, third to
the Term Loan, until paid in full, and fourth, to the Delayed Draw Term Loans until paid in full.
Each such prepayment of the Term Loan shall be applied against the remaining installments of
principal of the Term Loan in the inverse order of their maturity (for the avoidance of doubt, any
amount that is due and payable on the Final Maturity Date shall constitute an installment).

               (iii) Each prepayment pursuant to Section 2.05(c)(vi), with respect to proceeds
resulting from the Disposition of Accounts Receivable or the Disposition of all or substantially
all of the assets or Capital Stock of any Person, which Disposition includes Accounts Receivable
and other assets, or pursuant to Section 2.05(c)(ix), with respect to insurance proceeds,
condemnation awards, or payments in lieu thereof related to a casualty or other loss which includes
the loss of Accounts Receivable, in each case, shall be applied as follows: (A) an amount up to
the book value of such Accounts Receivable (determined at the time of such Disposition or event
resulting in such insurance proceeds or condemnation award) shall be applied, (1) first, to the
outstanding principal amount of the Revolving Loans, until paid in full, (2) second, to cash
collateralization of the Letters of Credit in an amount up to 105% of the undrawn amount of all
outstanding Letters of Credit, until such Letters of Credit are cash collateralized in an amount
equal to 105% of the greatest amount for which such Letters of Credit may be drawn, (3) third, to
the outstanding principal amount of the Term Loan, until paid in full, and (4) fourth, the
outstanding principal amount of the Delayed Draw Term Loans, until paid in full, and (B) any
remaining proceeds shall be applied, (1) first, to the outstanding principal amount of the Term
Loan, until paid in full, (2) second, to the outstanding principal amount of the Delayed Draw Term
Loans, until paid in full, (3) third, to the outstanding principal amount of the Revolving Loans,
until paid in full, and (4) fourth, to cash collateralization of the Letters of Credit in an amount
up to 105% of the undrawn amount of all outstanding Letters of Credit, until such Letters of Credit
are cash collateralized in an amount equal to 105% of the greatest amount for which such Letters of
Credit may be drawn. Each such prepayment of the Term Loan shall be applied against the remaining
installments of principal of the Term Loan in the inverse order of their maturity (for the
avoidance of doubt, any amount that is due and payable on the Final Maturity Date shall constitute
an installment).

               (iv) The foregoing to the contrary notwithstanding, Borrower shall not be required to make a
prepayment otherwise required pursuant to Section 2.05(c)(vi) or Section
2.05(c)(ix) with Reinvestment Eligible Funds so long as: (A) no Default or Event of Default
has occurred and is continuing on the date such Person receives such Reinvestment Eligible Funds or
on the date such amounts are to be released to Borrower pursuant to this paragraph (iv), (B) the
Borrower delivers a notice (a “Reinvestment Notice”) on or prior to the date that the
applicable Person is required to apply the monies constituting such Reinvestment Eligible Funds
notifying the Agents of the intent of the applicable Person to use such Reinvestment Eligible Funds
(1) to repair, restore, or replace the assets that were the subject of the Disposition, casualty or
condemnation giving rise to such amounts with assets of equal or greater fair market value which
will be useful in the conduct of their business in the ordinary course of business, (2) within the
period specified in such notice, which period shall not to exceed the earlier of (x) 180 days after
the receipt of such Reinvestment Eligible Funds by the applicable Loan Party or its Subsidiary and
(y) the Final Maturity Date, and (C) pending the

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reinvestment described in clause (B)(1) above, such Reinvestment Eligible Amounts are deposited in a cash collateral account over
which Collateral Agent (on behalf of the Lenders) has a perfected first-priority Lien. If all or
any portion of such Reinvestment Eligible Funds are not used in accordance with the preceding
sentence within the period specified in the Reinvestment Notice, the remaining portion shall be
applied to the Loans in accordance with Section 2.05(d) on the last day of such specified
period.

          (e) Interest and Fees. Any prepayment made pursuant to this Section 2.05
(other than prepayments made pursuant to subsections (c)(i), (c)(ii), (c)(iii),
(c)(iv), (c)(v), and (c)(x) of this Section 2.05) shall be
accompanied by the payment of accrued interest on the principal amount being prepaid to the date of
prepayment, and if such prepayment would reduce the amount of the outstanding Loans to zero at a
time when the Total Revolving Credit Commitment has been terminated, such prepayment shall be
accompanied by the payment of all fees accrued to such date pursuant to Section 2.06.

          (f) Cumulative Prepayments. Except as otherwise expressly provided in this
Section 2.05, payments with respect to any subsection of this Section 2.05 are in
addition to payments made or required to be made under any other subsection of this Section
2.05.

     Section 2.06 Fees.

          (a) Unused Line Fee. From and after the Effective Date and until the date that the
Total Revolving Credit Commitment is terminated, the Borrower shall pay to the Administrative Agent
for the account of the Revolving Loan Lenders, in accordance with their Pro Rata Shares, an unused
line fee payable monthly in arrears on the first day of each month for the month just ended,
commencing October 1, 2007, equal to the product obtained by multiplying (a) (i) the Total
Revolving Credit Commitment minus (ii) the sum of the average daily principal amount of Revolving
Loans and Letter of Credit Obligations outstanding during such month, times (b) one-half of one
percent (0.50%) per annum for the number of days in said month.

          (b) Fee Letter. In addition to the fees set forth in this Agreement, the Borrower
shall pay to the Collateral Agent the fees set forth in the Fee Letter in the amounts and on the
dates set forth in the Fee Letter.

     Section 2.07 Securitization. The Borrower hereby acknowledges that the Lenders and
their Affiliates may sell or securitize the Loans (a “Securitization”) through the pledge
of the Loans as collateral security for loans to the Lenders or their Affiliates or through the
sale of the Loans or the issuance of direct or indirect interests in the Loans, which loans to the
Lenders or their Affiliates or direct or indirect interests will be rated by Moody’s, Standard &
Poor’s or one or more other rating agencies (the “Rating Agencies”). The Borrower shall
cooperate with the Lenders and their Affiliates to effect the Securitization including by (a)
amending this Agreement and the other Loan Documents, and executing such additional documents, as
reasonably requested by the Lenders in connection with the Securitization, provided that
(i) any such amendment or additional documentation does not impose material additional costs on the
Borrower and (ii) any such amendment or additional documentation does not materially adversely
affect the rights, or materially increase the obligations, of the Borrower under the Loan

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Documents or change or affect in a manner adverse to the Borrower the financial terms of the
Loans, (b) providing such information as may be reasonably requested by the Lenders in
connection with the rating of the Loans or the Securitization, and (c) providing in connection with
any rating of the Loans a certificate (i) agreeing to indemnify the Lenders and their Affiliates,
any of the Rating Agencies, or any party providing credit support or otherwise participating in the
Securitization (collectively, the “Securitization Parties”) for any losses, claims, damages
or liabilities (the “Liabilities”) to which the Lenders, their Affiliates or such
Securitization Parties may become subject insofar as the Liabilities arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained in any Loan
Document or in any writing delivered by or on behalf of any Loan Party to any Agent or Lender in
connection with any Loan Document or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein, or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading, and such indemnity shall survive any transfer by the Lenders or their successors or
assigns of the Loans and (ii) agreeing to reimburse the Agents, the Lenders and their Affiliates
for any legal or other expenses reasonably incurred by such Persons in connection with defending
the Liabilities.

     Section 2.08 Taxes.

          (a) Except as otherwise provided in this Section, any and all payments by any Loan Party
hereunder or under any other Loan Document shall be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and
all liabilities with respect thereto, excluding (i) taxes imposed on (or measured by) the net
income of any Agent, any Lender or the L/C Issuer (or any transferee or assignee thereof, including
a participation holder (any such entity, a “Transferee”)) as a result of a present or
former connection between such Person and the jurisdiction of the Governmental Authority imposing
the tax (other than any such connection arising solely from such recipient having executed,
delivered or performed its obligations or received a payment under, or enforced, any of the Loan
Documents), (ii) any branch profit taxes imposed by the United States, or (iii) by the jurisdiction
in which such Person is organized or has its principal lending office (all such nonexcluded taxes,
levies, imposts, deductions, charges withholdings and liabilities, collectively or individually,
“Taxes”). If any Loan Party shall be required to deduct any Taxes from or in respect of
any sum payable hereunder to any Agent, any Lender or the L/C Issuer (or any Transferee), (A) the
sum payable shall be increased by the amount (an “additional amount”) necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section 2.08) such Agent, such Lender or the L/C Issuer (or such Transferee) shall
receive an amount equal to the sum it would have received had no such deductions been made, (B)
such Loan Party shall make such deductions, and (C) such Loan Party shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, each Loan Party agrees to pay to the relevant Governmental Authority in
accordance with applicable law any present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies that arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this Agreement or any other
Loan Document (“Other Taxes”). Each Loan Party shall deliver to each

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Agent, each Lender and the L/C Issuer official receipts in respect of any Taxes or Other Taxes
payable hereunder promptly after payment of such Taxes or Other Taxes.

          (c) The Loan Parties hereby jointly and severally indemnify and agree to hold each Agent, each
Lender and the L/C Issuer harmless from and against Taxes and Other Taxes (including Taxes and
Other Taxes imposed on any amounts payable under this Section 2.08) paid by such Person,
whether or not such Taxes or Other Taxes were correctly or legally asserted. Such indemnification
shall be paid within 10 days from the date on which any such Person makes written demand therefore
specifying in reasonable detail the nature and amount of such Taxes or Other Taxes.

          (d) Each Lender that is organized under the laws of a jurisdiction outside the United States
(a “Non-U.S. Lender”) agrees that it shall, no later than the Effective Date (or, in the
case of a Lender which becomes a party hereto pursuant to Section 12.07 hereof after the
Effective Date, promptly after the date upon which such Lender becomes a party hereto) deliver to
the Agents (or, in the case of an assignee of a Lender which (x) is an Affiliate of such Lender or
a Related Fund of such Lender and (y) does not deliver an Assignment and Acceptance to the
Administrative Agent pursuant to the last sentence of Section 12.07(b) for recordation
pursuant to Section 12.07(c), to the assigning Lender only, and in the case of a
participant, to the Lender granting the participation only) a properly completed and duly executed
copy of either U.S. Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY or any subsequent
versions thereof or successors thereto, in each case claiming complete exemption from U.S. Federal
withholding tax and payments of interest hereunder. In addition, in the case of a Non-U.S. Lender
claiming exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of the Internal
Revenue Code, such Non-U.S. Lender hereby represents to the Agents and the Borrower that such
Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Internal Revenue Code, is not a
10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of
the Parent and is not a controlled foreign corporation related to the Parent (within the meaning of
Section 864(d)(4) of the Internal Revenue Code), and such Non-U.S. Lender agrees that it shall
promptly notify the Agents in the event any such representation is no longer accurate. Such forms
shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this
Agreement (or, in the case of a Lender which becomes a party hereto pursuant to Section
12.07 hereof after the Effective Date, promptly after the date upon which such Lender becomes a
party hereto) and on or before the date, if any, such Non-U.S. Lender changes its applicable
lending office by designating a different lending office (a “New Lending Office”). In addition,
such Non-U.S. Lender shall deliver such forms within 20 days after receipt of a written request
therefor from any Agent, the assigning Lender or the Lender granting a participation, as
applicable. Notwithstanding any other provision of this Section 2.08, a Non-U.S. Lender
shall not be required to deliver any form pursuant to this Section 2.08(d) that such
Non-U.S. Lender is not legally able to deliver.

          (e) The Loan Parties shall not be required to indemnify any Non-U.S. Lender, or pay any
additional amounts to any Non-U.S. Lender, in respect of United States Federal withholding tax
pursuant to this Agreement to the extent that (i) the obligation to withhold amounts with respect
to United States Federal withholding tax existed on the date such Non-U.S. Lender became a party to
this Agreement (or, in the case of a Transferee that is a participation holder, on the date such
participation holder became a Transferee hereunder) or, with respect to

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payments to a New Lending Office, the date such Non-U.S. Lender designated such New Lending
Office with respect to a Loan; provided, however, that this clause (i) shall not apply to the
extent the indemnity payment or additional amounts any Transferee, or Lender (or Transferee)
through a New Lending Office, would be entitled to receive (without regard to this clause (i)) do
not exceed the indemnity payment or additional amounts that the Person making the assignment,
participation or transfer to such Transferee, or Lender (or Transferee) making the designation of
such New Lending Office, would have been entitled to receive in the absence of such assignment,
participation, transfer or designation, or (ii) the obligation to pay such additional amounts would
not have arisen but for a failure by such Non-U.S. Lender to comply with the provisions of clause
(d) above.

          (f) The obligations of the Loan Parties under this Section 2.08 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

          (g) If any Loan Party is required to pay additional amounts to any Lender or any Governmental
Authority for the account of any Lender as a result of a change of law occurring after the date
hereof, then such Lender shall use reasonable efforts (consistent with legal and regulatory
restrictions) to file or provide to Agent any certificate or document reasonably requested in
writing by the Agent to change the jurisdiction of its applicable lending office if the making of
such a filing or change would avoid the need for or reduce the amount of any such indemnity payment
or additional amount that may thereafter accrue, would not require such Lender to disclose any
information such Lender deems confidential and would not, in the sole determination of such Lender,
be otherwise disadvantageous to such Lender; provided that the mere existence of fees,
charges, costs or expenses that such Loan Party has offered and agreed to pay on behalf of the
Lender shall not be deemed to be disadvantageous to the Lender.

          (h) If any additional amount payable by any Loan Party is made to or for the account of any
Lender on account of Taxes then, if any Lender receives a refund of such Taxes, such Lender shall
reimburse to the Borrower such refund, net of all out-of-pocket expenses of such Lender that are
related to such refund; provided that (i) such Lender shall not be obligated to disclose to
the Borrower any information regarding its tax affairs and computations, and (ii) nothing herein
shall be construed so as to interfere with the right of such Lender to arrange its tax affairs as
it deems appropriate; provided further that any Loan Party, upon request of any Agent or
Lender, agrees to repay the amount paid over to the Loan Party (plus any penalties, interest, or
other charges imposed by the relevant Governmental Authority) to such Agent or Lender in the event
such Agent or Lender is required to repay such refund to the relevant Governmental Authority.

     Section 2.09 Conversion Election. If the Delayed Draw Term Loan Amount is less than
$1,000,000, the Borrower may, so long as no Event of Default shall have occurred and be continuing,
effective as of the Delayed Draw Term Loan Commitment Expiry Date, elect to convert the Delayed
Draw Term Loans into a part of the Term Loan (the “Conversion Election”) by providing
written notice to the Agents on or prior to the Delayed Draw Term Loan Commitment Expiry Date. If
the Borrower makes the Conversion Election, effective as of the Delayed Draw Term Loan Commitment
Expiry Date, and without any further action or agreement by any Person, the Delayed Draw Term Loans
shall, for all purposes under this

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Agreement and the Loan Documents (including the applicable interest rate accruing from and
after such date), be converted into (and be re-designated as) a part of the Term Loan (such that
the principal amount of the Term Loan shall be increased by the aggregate principal amount of the
Delayed Draw Term Loans) and shall cease to be Delayed Draw Term Loans. Such conversion shall not
extinguish, release or discharge any Obligations (including accrued and unpaid interest)
outstanding under the Loan Documents, as in effect prior to such conversion, but instead shall be
considered, for all purposes to be a continuation (as converted) of such Obligations.

ARTICLE III.

LETTERS OF CREDIT

     Section 3.01 Letter of Credit Guaranty.

          (a) In order to assist the Borrower in establishing or opening standby letters of credit,
which shall not have expiration dates that exceed 12 months from the date of issuance (although,
subject to the terms and conditions hereof, any such standby letter of credit may be extendable for
successive periods of up to 12 months on terms and conditions reasonably satisfactory to the
Administrative Agent and subject to the conditions set forth in Article V) (each a “Letter of
Credit”), with the L/C Issuer, the Borrower has requested the Administrative Agent to join in
the applications for such Letters of Credit, or guarantee payment or performance of such Letters of
Credit and any drafts thereunder through the issuance of a Letter of Credit Guaranty, thereby
lending the Administrative Agent’s credit to that of the Borrower, and the Administrative Agent has
agreed (subject to the last sentence of this Section 3.01(a)) to do so. These arrangements
shall be coordinated by the Administrative Agent, subject to the terms and conditions set forth
below. The Administrative Agent shall not be required to be the issuer of any Letter of Credit.
The Borrower will be the account party for the application for each Letter of Credit, which shall
be on a computer transmission system approved by the Administrative Agent and the L/C Issuer, or
such other written form or computer transmission system as may from time to time be approved by the
Administrative Agent and the L/C Issuer, and shall be duly completed in a manner reasonably
satisfactory to the Administrative Agent, together with such other certificates, agreements,
documents and other papers and information as the Administrative Agent and the L/C Issuer may
reasonably request (the “Letter of Credit Application”). In the event of any conflict
between the terms of any Letter of Credit Application and this Agreement, for purposes of this
Agreement, the terms of this Agreement shall control. Notwithstanding anything herein to the
contrary, prior to the appointment of Wells Fargo Foothill, Inc. or another financial institution
capable of providing letters of credit as the Administrative Agent, the Agents and the Lenders
shall have no obligation whatsoever to issue or arrange for the issuance of any Letter of Credit,
even if Borrower has fully satisfied all of the conditions precedent in Section 5.02 (it
being understood and agreed that any request by Borrower to establish or open a Letter of Credit
may be declined for any reason or no reason in the sole and absolute discretion of the
Administrative Agent).

          (b) The aggregate Letter of Credit Obligations shall not exceed the lowest of (i) the
difference between (A) the Total Revolving Credit Commitment and (B) the aggregate principal amount
of all Revolving Loans then outstanding, (ii) the difference between (A) the

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Borrowing Base and (B) the aggregate principal amount of all Revolving Loans then outstanding,
and (iii) the L/C Subfacility. In addition, the terms and conditions of all Letters of Credit and
all changes or modifications thereof by the Borrower or the L/C Issuer shall in all respects be
subject to the prior approval of the Administrative Agent in the reasonable exercise of its sole
and absolute discretion; provided, however, that (i) the expiry date of all Letters of Credit shall
be no later than 5 days prior to the Final Maturity Date unless, on or prior to 5 days prior to the
Final Maturity Date either (A) such Letters of Credit shall be cash collateralized in an amount
equal to 105% of the face amount of such Letters of Credit by deposit of cash in such amount in an
account under the sole and exclusive control of the Administrative Agent for the benefit of the
Administrative Agent or the L/C Issuer (the “Letter of Credit Collateral Account”) or (B)
the Borrower shall provide the Administrative Agent and the Revolving Loan Lenders with an
indemnification, in form and substance reasonably satisfactory to the Administrative Agent, from a
commercial bank or other financial institution acceptable to the Agents for any Letter of Credit
Obligations with respect to such Letters of Credit and (ii) the Letters of Credit and all
documentation in connection therewith shall be in form and substance reasonably satisfactory to the
Administrative Agent and the L/C Issuer.

          (c) The Administrative Agent shall have the right, without notice to the Borrower, to charge
the Loan Account with the amount of any and all Indebtedness, liabilities and obligations of any
kind (including indemnification for breakage costs, capital adequacy and reserve requirement
charges) incurred by the Agents or the Revolving Loan Lenders under the Letter of Credit Guaranty
or incurred by the L/C Issuer with respect to a Letter of Credit at the earlier of (i) payment by
the Administrative Agent or the Revolving Loan Lenders under the Letter of Credit Guaranty or (ii)
the occurrence of any Default or Event of Default. Any amount charged to the Loan Account shall be
deemed a Revolving Loan hereunder made by the Revolving Loan Lenders to the Borrower, funded by the
Administrative Agent on behalf of the Revolving Loan Lenders and subject to Section 2.02 of
this Agreement. Any charges, fees, commissions, costs and expenses charged to the Administrative
Agent for the Borrower’s account by the L/C Issuer in connection with or arising out of Letters of
Credit or transactions relating thereto will be charged to the Loan Account in full when charged to
or paid by the Administrative Agent and, when charged, shall be conclusive on the Borrower absent
manifest error. Each of the Revolving Loan Lenders and the Borrower agrees that the Administrative
Agent shall have the right to make such charges regardless of whether any Default or Event of
Default shall have occurred and be continuing or whether any of the conditions precedent in
Section 5.02 have been satisfied.

          (d) The Borrower unconditionally indemnifies each Agent and each Lender and holds each Agent
and each Lender harmless from any and all loss, claim or liability incurred by any Agent or any
Lender arising from any transactions or occurrences relating to Letters of Credit, any drafts or
acceptances thereunder, the Collateral relating thereto, and all Obligations in respect thereof,
including any such loss or claim due to any action taken by the L/C Issuer, other than for any such
loss, claim or liability arising out of the gross negligence or willful misconduct of the L/C
Issuer, any Agent or any Lender as determined by a final non-appealable judgment of a court of
competent jurisdiction. The Borrower further agrees to jointly and severally hold each Agent and
each Lender harmless from any errors or omission, negligence or misconduct by the L/C Issuer;
provided that the foregoing shall not excuse any Agent or any Lender from any liability to the
Borrower to the extent of any direct damages suffered by the Borrower that are

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caused by such Agent’s or such Lender’s gross negligence or willful misconduct as determined
by a final non-appealable judgment of a court of competent jurisdiction. The Borrower’s
unconditional obligations to each Agent, each Lender and the L/C Issuer with respect to Letters of
Credit hereunder shall not be modified or diminished for any reason or in any manner whatsoever,
other than as a result of such Agent’s, such Lender’s or the L/C Issuer’s gross negligence or
willful misconduct as determined by a final non-appealable judgment of a court of competent
jurisdiction. The Borrower agrees that any charges incurred by the Administrative Agent or the L/C
Issuer for the Borrower’s account hereunder may be charged to the Loan Account.

          (e) Upon any payments made to the L/C Issuer under the Letter of Credit Guaranty, the Agents
or the Revolving Loan Lenders, as the case may be, shall, without prejudice to their rights under
this Agreement (including that such unreimbursed amounts shall constitute Loans hereunder), acquire
by subrogation, any rights, remedies, duties or obligations granted or undertaken by the Borrower
in favor of the L/C Issuer in any application for Letters of Credit, any standing agreement
relating to Letters of Credit or otherwise, all of which shall be deemed to have been granted to
the Agents and the Revolving Loan Lenders and apply in all respects to the Agents and the Revolving
Loan Lenders and shall be in addition to any rights, remedies, duties or obligations contained
herein.

     Section 3.02 Participations.

          (a) Purchase of Participations. Immediately upon issuance by the L/C Issuer of any
Letter of Credit pursuant to this Agreement, each Revolving Loan Lender shall be deemed to have
irrevocably and unconditionally purchased and received from the Administrative Agent, without
recourse or warranty, an undivided interest and participation, to the extent of such Revolving Loan
Lender’s Pro Rata Share, in all obligations of the Administrative Agent in such Letter of Credit
(including all Reimbursement Obligations of the Borrower with respect thereto pursuant to the
Letter of Credit Guaranty or otherwise).

          (b) Sharing of Payments. In the event that the Administrative Agent makes any payment
in respect of the Letter of Credit Guaranty and the Borrower shall not have repaid such amount to
the Administrative Agent, the Administrative Agent shall charge the Loan Account in the amount of
the Reimbursement Obligation, in accordance with Sections 3.01(c) and 4.02 of this
Agreement.

          (c) Obligations Irrevocable. The obligations of a Revolving Loan Lender to make
payments to the Administrative Agent for the account of the Agents, the Revolving Loan Lenders or
the L/C Issuer with respect to a Letter of Credit shall be irrevocable, without any qualification
or exception whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including any of the following circumstances:

               (i) any lack of validity or enforceability of this Agreement or any of the other Loan
Documents;

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               (ii) the existence of any claim, setoff, defense or other right which the Borrower may
have at any time against a beneficiary named in such Letter of Credit or any transferee of such
Letter of Credit (or any Person for whom any such transferee may be acting), any Agent, any Lender,
or any other Person, whether in connection with this Agreement, such Letter of Credit, the
transactions contemplated herein or any unrelated transactions (including any underlying
transactions between the Borrower or any other party and the beneficiary named in such Letter of
Credit);

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

               (iv) the surrender or impairment of any security for the performance or observance of any of
the terms of any of the Loan Documents;

               (v) any failure by any Agent to provide any notices required pursuant to this Agreement
relating to such Letter of Credit;

               (vi) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft
or certificate which does not comply with the terms of such Letter of Credit; or

               (vii) the occurrence of any Default or Event of Default.

     Section 3.03 Letters of Credit.

          (a) Request for Issuance. The Borrower may, upon notice not later than 12:00 noon,
New York City time, at least 2 Business Days in advance of the issuance thereof, request the
Administrative Agent to assist the Borrower in establishing or opening a Letter of Credit by
delivering to the Administrative Agent, with a copy to the L/C Issuer, a Letter of Credit
Application, together with any necessary related documents. The Administrative Agent shall not
provide support, pursuant to the Letter of Credit Guaranty, if the Administrative Agent shall have
received written notice from the Collateral Agent or the Required Lenders on the Business Day
immediately preceding the proposed issuance date for such Letter of Credit that one or more of the
conditions precedent in Section 5.02 will not have been satisfied on such date, and the
Administrative Agent shall not otherwise be required to determine that, or take notice whether, the
conditions precedent set forth in Section 5.02 have been satisfied.

          (b) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of the Revolving Loan Lenders, in accordance with the Revolving Loan Lenders’ Pro Rata
Shares (x) for any Letter of Credit issued hereunder, a non-refundable fee equal to 3.75 percentage
points per annum of the stated amount of such Letter of Credit, payable on the date such Letter of
Credit is issued or extended and (y) for any amendment to an existing Letter of Credit that
increases the stated amount of such Letter of Credit, a non-refundable fee equal to 3.75 percentage
points per annum of the increase in the stated amount of such Letter of Credit, payable on the date
of such increase (the “Letter of Credit Fees”).

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          (c) L/C Issuer Charges. The Borrower shall pay to the Administrative Agent the
standard charges assessed by the L/C Issuer in connection with the issuance, administration,
amendment, payment or cancellation of Letters of Credit.

          (d) Charges to the Loan Account. The Borrower hereby authorizes the Administrative
Agent to, and the Administrative Agent may, from time to time, charge the Loan Account pursuant to
Sections 3.01(c) and 4.02 of this Agreement with the amount of any Letter of Credit
Fees or charges due under this Section 3.03.

ARTICLE IV.

FEES, PAYMENTS AND OTHER COMPENSATION

     Section 4.01 [Intentionally Omitted].

     Section 4.02 Payments; Computations and Statements.

          (a) The Borrower will make each payment under this Agreement not later than 12:00 noon (New
York City time) on the day when due, in lawful money of the United States of America and in
immediately available funds, to the Administrative Agent’s Account. All payments received by the
Administrative Agent after 12:00 noon (New York City time) on any Business Day will be credited to
the Loan Account on the next succeeding Business Day. All payments shall be made by the Borrower
without set-off, counterclaim, deduction or other defense to the Agents and the Lenders. Except as
provided in Section 2.02, after receipt, the Administrative Agent will promptly thereafter
cause to be distributed like funds relating to the payment of principal ratably to the Lenders in
accordance with their Pro Rata Shares and like funds relating to the payment of any other amount
payable to any Lender to such Lender, in each case to be applied in accordance with the terms of
this Agreement, provided that the Administrative Agent will cause to be distributed all interest
and fees received from or for the account of the Borrower not less than once each month and in any
event promptly after receipt thereof. The Lenders and the Borrower hereby authorize the
Administrative Agent to, and the Administrative Agent may charge the Loan Account of the Borrower
with any amount due and payable by the Borrower under any Loan Document. Each of the Lenders and
the Borrower agrees that the Administrative Agent shall have the right to make such charges whether
or not any Default or Event of Default shall have occurred and be continuing or whether any of the
conditions precedent in Section 5.02 have been satisfied. Any amount charged to the Loan
Account of the Borrower shall be deemed a Revolving Loan hereunder made by the Revolving Loan
Lenders to the Borrower, funded by the Administrative Agent on behalf of the Revolving Loan Lenders
and subject to Section 2.02 of this Agreement; provided, however,
that without limiting the Administrative Agent’s obligation to charge items to the Loan
Account (including pursuant to the proviso of the next sentence), the foregoing shall not obligate
the Administrative Agent to make Revolving Loans if all of the conditions to funding under this
Agreement (including those set forth in Section 2.01 and Article V) have not been satisfied
or waived. The Lenders and the Borrowers confirm that any charges which the Administrative Agent
may so make to the Loan Account of the Borrowers as herein provided will be made as an
accommodation to the Borrowers and solely at the Administrative Agent’s discretion, provided that
the Administrative Agent shall from time to time upon the request of the Collateral Agent,

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charge the Loan Account of the Borrowers with any amount due and payable under any Loan
Document. Whenever any payment to be made under any such Loan Document shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next succeeding Business Day
and such extension of time shall in such case be included in the computation of interest or fees,
as the case may be. All computations of fees shall be made by the Administrative Agent on the
basis of a year of 360 days for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such fees are payable. Each determination by the
Administrative Agent of an interest rate or fees hereunder shall be conclusive and binding for all
purposes in the absence of manifest error.

          (b) The Administrative Agent shall provide the Borrower, promptly after the end of each
calendar month, a summary statement (in the form from time to time used by the Administrative
Agent) of the opening and closing daily balances in the Loan Account of the Borrower during such
month, the amounts and dates of all Loans made to the Borrower during such month, the amounts and
dates of all payments on account of the Loans to the Borrower during such month and the Loans to
which such payments were applied, the amount of interest accrued on the Loans to the Borrower
during such month, any Letters of Credit issued by the L/C Issuer for the account of the Borrower
during such month, specifying the face amount thereof and the amount of charges to the Loan Account
or Loans made to the Borrower during such month to reimburse the Revolving Loan Lenders for
drawings made under Letters of Credit, and the amount and nature of any charges to the Loan Account
made during such month on account of fees, commissions, expenses and other Obligations. All
entries on any such statement shall be presumed to be correct and, 30 days after the same is sent,
shall be final and conclusive absent manifest error.

     Section 4.03 Sharing of Payments, Etc. Except as provided in Section 2.02
hereof, if any Lender shall obtain any payment (whether voluntary, involuntary, through the
exercise of any right of set-off, or otherwise) on account of any Obligation in excess of its
ratable share of payments on account of similar obligations obtained by all the Lenders, such
Lender shall forthwith purchase from the other Lenders such participations in such similar
obligations held by them as shall be necessary to cause such purchasing Lender to share the excess
payment ratably with each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from such purchasing Lender, such purchase from each
Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price
to the extent of such recovery together with an amount equal to such Lender’s ratable share
(according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender of any interest or other amount paid by the
purchasing Lender in respect of the total amount so recovered). The Borrower agrees that any
Lender so purchasing a participation from another Lender pursuant to this Section 4.03 may,
to the fullest extent permitted by law, exercise all of its rights (including the Lender’s right of
set-off) with respect to such participation as fully as if such Lender were the direct creditor of
the Borrower in the amount of such participation.

     Section 4.04 Apportionment of Payments. Subject to Section 2.02 hereof and
to any written agreement among the Agents or the Lenders:

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          (a) All payments of principal and interest in respect of outstanding Loans, all payments in
respect of the Reimbursement Obligations, all payments of fees (other than the fees with respect to
Letters of Credit provided for in Section 3.03(b)(ii) and the audit and collateral
monitoring fees provided for in Section 4.01) and all other payments in respect of any
other Obligations, shall be allocated by the Administrative Agent among such of the Lenders as are
entitled thereto, in proportion to their respective Pro Rata Shares or otherwise as provided herein
or, in respect of payments not made on account of Loans or Letter of Credit Obligations, as
designated by the Person making payment when the payment is made.

          (b) After the occurrence and during the continuance of an Event of Default, the Administrative
Agent may, and upon the direction of the Required Lenders shall, apply all payments in respect of
any Obligations and all proceeds of the Collateral, subject to the provisions of this Agreement,
(i) first, ratably to pay the Obligations in respect of any fees, expense reimbursements,
indemnities and other amounts then due to the Agents or the L/C Issuer until paid in full; (ii)
second, ratably to pay interest due in respect of the Agent Advances until paid in full,
(iii) third, ratably to pay principal of Agent Advances until paid in full, (iv)
fourth, ratably to pay any fees, expense reimbursements, and indemnities then due to the
Revolving Loan Lenders until paid in full; (v) fifth, ratably to pay interest due in
respect of the Revolving Loans and Reimbursement Obligations until paid in full; (vi)
sixth, ratably to pay principal of the Revolving Loans and Letter of Credit Obligations
(or, to the extent such Obligations are contingent, to provide cash collateral in respect of such
Obligations (it being understood and agreed that with respect to any Letter of Credit, the amount
of such cash collateral must be equal to 105% of the greatest amount for which such Letter of
Credit may be drawn) until paid in full; (vii) seventh, ratably to pay any fees, expense
reimbursements, and indemnities then due to the Term Loan Lenders until paid in full; (viii)
eighth, ratably to pay interest due in respect of the Term Loan until paid in full; (ix)
ninth, ratably to pay principal of the Term Loan until paid in full, (x) tenth,
ratably to pay any fees, expense reimbursements, and indemnities then due to the Delayed Draw Term
Loan Lenders until paid in full; (xi) eleventh, ratably to pay interest due in respect of
the Delayed Draw Term Loans until paid in full; (xii) twelfth, ratably to pay principal of
the Delayed Draw Term Loans until paid in full; and (xiii) thirteenth, to the ratable
payment of all other Obligations then due and payable.

          (c) In each instance, so long as no Event of Default has occurred and is continuing,
Section 4.04(b) shall not be deemed to apply to any payment by the Borrower specified by
the Borrower to the Administrative Agent to be for the payment of Term Loan Obligations or the
Delayed Draw Term Loan Obligations then due and payable under any provision of this Agreement or
the prepayment of all or part of the principal of the Term Loan or the Delayed Draw Term Loans in
accordance with the terms and conditions of Section 2.05.

          (d) For purposes of Section 4.04(b), (other than clause (xiii) thereof) “paid in full”
means with respect to any Obligations, payment in cash of all amounts owing under the Loan
Documents in respect of such Obligations, including fees, interest, default interest, interest on
interest, expense reimbursements and indemnities, specifically including in each case any of the
foregoing which would accrue after the commencement of any Insolvency Proceeding irrespective of
whether a claim is allowable in such Insolvency Proceeding, except to the extent that default or
overdue interest (but not any other interest) and fees, each arising from or related to a default,
are disallowed in any Insolvency Proceeding; provided, however, that for purposes

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of such clause (xiii), “paid in full” means with respect to any Obligations, payment in cash
of all amounts owing under the Loan Documents in respect of such Obligations, including fees,
interest, default interest, interest on interest, expense reimbursements and indemnities,
specifically including in each case any of the foregoing which would accrue after the commencement
of any Insolvency Proceeding irrespective of whether a claim is allowable in such Insolvency
Proceeding.

          (e) In the event of a direct conflict between the priority provisions of this Section
4.04 and other provisions contained in any other Loan Document, it is the intention of the
parties hereto that both such priority provisions in such documents shall be read together and
construed, to the fullest extent possible, to be in concert with each other. In the event of any
actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of
this Section 4.04 shall control and govern.

     Section 4.05 Increased Costs and Reduced Return.

          (a) If any Lender, any Agent or the L/C Issuer shall have determined that the adoption or
implementation of, or any change in, any law, rule, treaty or regulation, or any policy, guideline
or directive of, or any change in, the interpretation or administration thereof by, any court,
central bank or other administrative or Governmental Authority, or compliance by any Lender, any
Agent or the L/C Issuer or any Person controlling any such Lender, any such Agent or the L/C Issuer
with any directive of, or guideline from, any central bank or other Governmental Authority or the
introduction of, or change in, any accounting principles applicable to any Lender, any Agent or the
L/C Issuer or any Person controlling any such Lender, any such Agent or the L/C Issuer (in each
case, whether or not having the force of law) (each, a “Change in Law”), shall (i) subject
any Lender, any Agent or the L/C Issuer, or any Person controlling any such Lender, any such Agent
or the L/C Issuer to any tax, duty or other charge with respect to this Agreement or any Loan made
by such Lender or such Agent or any Letter of Credit issued by the L/C Issuer, or change the basis
of taxation of payments to any Lender, any Agent or the L/C Issuer or any Person controlling any
such Lender, any such Agent or the L/C Issuer of any amounts payable hereunder (except for taxes on
the overall net income of any Lender, any Agent or the L/C Issuer or any Person controlling any
such Lender, any such Agent or the L/C Issuer), (ii) impose, modify or deem applicable any reserve,
special deposit or similar requirement against any Loan, any Letter of Credit or against assets of
or held by, or deposits with or for the account of, or credit extended by, any Lender, any Agent or
the L/C Issuer or any Person controlling any such Lender, any such Agent or the L/C Issuer or (iii)
impose on any Lender, any Agent or the L/C Issuer or any Person controlling any such Lender, any
such Agent or the L/C Issuer any other condition regarding this Agreement or any Loan or Letter of
Credit, and the result of any event referred to in clauses (i), (ii), or (iii) above shall be to
increase the cost to any Lender, any Agent or the L/C Issuer of making any Loan, issuing,
guaranteeing or participating in any Letter of Credit, or agreeing to make any Loan or issue,
guaranty or participate in any Letter of Credit, or to reduce any amount received or receivable by
any Lender, any Agent or the L/C Issuer hereunder, then, upon demand by any such Lender, any such
Agent or the L/C Issuer, the Borrower shall pay to such Lender, such Agent or the L/C Issuer such
additional amounts as will compensate such Lender, such Agent or the L/C Issuer for such increased
costs or reductions in amount.

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          (b) If any Lender, any Agent or the L/C Issuer shall have determined that any Change in Law
either (i) affects or would affect the amount of capital required or expected to be maintained by
any Lender, any Agent or the L/C Issuer or any Person controlling such Lender, such Agent or the
L/C Issuer, and any Lender, any Agent or the L/C Issuer determines that the amount of such capital
is increased as a direct or indirect consequence of any Loans made or maintained, Letters of Credit
issued or any guaranty or participation with respect thereto, any Lender’s, any Agent’s or the L/C
Issuer’s or any such other controlling Person’s other obligations hereunder, or (ii) has or would
have the effect of reducing the rate of return on any Lender’s, any Agent’s or the L/C Issuer’s any
such other controlling Person’s capital to a level below that which such Lender, such Agent or the
L/C Issuer or such controlling Person could have achieved but for such circumstances as a
consequence of any Loans made or maintained, Letters of Credit issued, or any guaranty or
participation with respect thereto or any agreement to make Loans, to issue Letters of Credit or
such Lender’s, such Agent’s or the L/C Issuer’s or such other controlling Person’s other
obligations hereunder (in each case, taking into consideration, such Lender’s, such Agent’s or the
L/C Issuer’s or such other controlling Person’s policies with respect to capital adequacy), then,
upon demand by any Lender, any Agent or the L/C Issuer, the Borrower shall pay to such Lender, such
Agent or the L/C Issuer from time to time such additional amounts as will compensate such Lender,
such Agent or the L/C Issuer for such cost of maintaining such increased capital or such reduction
in the rate of return on such Lender’s, such Agent’s or the L/C Issuer’s or such other controlling
Person’s capital.

          (c) All amounts payable under this Section 4.05 shall bear interest from the date that
is 10 days after the date of demand by any Lender, any Agent or the L/C Issuer until payment in
full to such Lender, such Agent or the L/C Issuer at the Reference Rate. A certificate of such
Lender, such Agent or the L/C Issuer claiming compensation under this Section 4.05, specifying the
event herein above described and the nature of such event shall be submitted by such Lender, such
Agent or the L/C Issuer to the Borrower, setting forth the additional amount due and an explanation
of the calculation thereof, and such Lender’s, such Agent’s or the L/C Issuer’s reasons for
invoking the provisions of this Section 4.05, and shall be final and conclusive absent
manifest error.

     Section 4.06 Joint and Several Liability of each Person Composing the Borrower.

          (a) Notwithstanding anything in this Agreement or any other Loan Document to the contrary,
each Person composing the Borrower hereby accepts joint and several liability hereunder and under
the other Loan Documents in consideration of the financial accommodations to be provided by the
Agents and the Lenders under this Agreement and the other Loan Documents, for the mutual benefit,
directly and indirectly, of each of the Persons composing the Borrower and in consideration of the
undertakings of the other Persons composing the Borrower to accept joint and several liability for
the Obligations. Each of the Persons composing the Borrower, jointly and severally, hereby
irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and
several liability with the other Persons composing the Borrower, with respect to the payment and
performance of all of the Obligations (including, without limitation, any Obligations arising under
this Section 4.06), it being the intention of the parties hereto that all of the
Obligations shall be the joint and several obligations of each of the Persons composing the
Borrower without preferences or distinction among them. If and to the extent that any of the
Persons composing the Borrower shall fail to

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make any payment with respect to any of the Obligations as and when due or to perform any of
the Obligations in accordance with the terms thereof, then in each such event, the other Persons
composing the Borrower will make such payment with respect to, or perform, such Obligation.
Subject to the terms and conditions hereof, the Obligations of each of the Persons composing the
Borrower under the provisions of this Section 4.06 constitute the absolute and
unconditional, full recourse Obligations of each of the Persons composing the Borrower, enforceable
against each such Person to the full extent of its properties and assets, irrespective of the
validity, regularity or enforceability of this Agreement, the other Loan Documents or any other
circumstances whatsoever.

          (b) The provisions of this Section 4.06 are made for the benefit of the Agents, the
Lenders and their successors and assigns, and may be enforced by them from time to time against any
or all of the Persons composing the Borrower as often as occasion therefor may arise and without
requirement on the part of the Agents, the Lenders or such successors or assigns first to marshal
any of its or their claims or to exercise any of its or their rights against any of the other
Persons composing the Borrower or to exhaust any remedies available to it or them against any of
the other Persons composing the Borrower or to resort to any other source or means of obtaining
payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this
Section 4.06 shall remain in effect until all of the Obligations shall have been paid in
full or otherwise fully satisfied.

          (c) No Person composing the Borrower will exercise any rights that it may now or hereafter
acquire against any Loan Party or any guarantor that arise from the existence, payment, performance
or enforcement of such Person’s obligations under this Agreement, including any right of
subrogation, reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Agents and the Lenders against any Loan Party or any
guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under
contract, statute or common law, including the right to take or receive from any Loan Party or any
guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner,
payment or security solely on account of such claim, remedy or right until all of the Obligations
shall have been paid in full; provided that, anything to the contrary contained in
foregoing notwithstanding, no Person composing the Borrower shall exercise any rights of
subrogation, contribution, indemnity, reimbursement or other similar rights against, and shall not
proceed or seek recourse against or with respect to any property or asset of, any Loan Party
(including after payment in full of the Obligations and any other amounts payable under this
Article or after termination of the Commitments) if all or any portion of the Obligations shall
have been satisfied in connection with an exercise of remedies in respect of the Capital Stock of
such Loan Party whether pursuant to the Security Agreement or otherwise.

ARTICLE V.

CONDITIONS TO LOANS

     Section 5.01 Conditions Precedent. The obligation of any Lender to make the initial
Loans (or any other Person to otherwise to extend any credit provided for hereunder), is subject to
the fulfillment, to the satisfaction or waiver of the Agents (the making of such initial extension

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of credit by any Lender being conclusively deemed to be its satisfaction or waiver of the
following), of each of the conditions precedent set forth below:

          (a) Payment of Fees, Etc. The Borrower shall have paid all fees, costs, expenses and
taxes then payable pursuant to Sections 2.06 or 12.04.

          (b) Representations and Warranties; No Event of Default. The following statements
shall be true and correct: (i) the representations and warranties contained in Article VI and in
each other Loan Document or certificate delivered to any Agent or any Lender pursuant hereto or
thereto on or prior to the Effective Date are true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) on and as of the Effective
Date as though made on and as of such date (it being understood and agreed that any representation
or warranty which by its terms is made as of a specified date shall be required to be true and
correct in all material respects only as of such specified date) and (ii) no Default or Event of
Default shall have occurred and be continuing on the Effective Date.

          (c) [Intentionally Omitted].

          (d) Delivery of Documents. The Collateral Agent shall have received on or before the
Effective Date the following, each in form and substance satisfactory to the Agents and, unless
indicated otherwise, dated the Effective Date:

               (i) the Fee Letter, duly executed by the Borrower;

               (ii) the Ratification Agreement, duly executed by each Loan Party;

               (iii) a Funds Flow Agreement, duly executed by each Loan Party;

               (iv) an amendment to, or an amendment and restatement of, the Agreement Re: Blocked Accounts
dated as of June 30, 2006 among The CIT Group/Business Credit, Inc., as the administrative agent,
Ableco, as the collateral agent, LaSalle Bank National Association, and PRG-Schultz USA;

               (v) certified copies of all effective financing statements and PPSA registration statements
which name as debtor any Loan Party, together with copies of such financing statements, none of
which, except for Permitted Liens and as otherwise agreed in writing by the Collateral Agent, shall
cover any of the Collateral and the results of searches for any tax Lien and judgment Lien filed
against such Person or its property, which results, except for Permitted Liens and as otherwise
agreed to in writing by the Collateral Agent, shall not show any such Liens;

               (vi) a copy of the resolutions of each Domestic Loan Party (other than the PR Partnership),
certified as of the Effective Date by a secretary or assistant secretary thereof, authorizing (A)
the transactions contemplated by the Loan Documents to which such Domestic Loan Party is or will be
a party, and (B) the execution, delivery and performance by such Domestic Loan Party of each Loan
Document to which such Domestic Loan Party is or will

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be a party and the execution and delivery of the other documents to be delivered by such
Person in connection herewith and therewith;

               (vii) a certificate of a secretary or assistant secretary of each Loan Party, certifying the
names and true signatures of the representatives of such Loan Party authorized to sign each Loan
Document to which such Loan Party is or will be a party and the other documents to be executed and
delivered by such Loan Party in connection herewith and therewith, together with evidence of the
incumbency of such authorized officers;

               (viii) a certificate of the appropriate official(s) of the state of organization and each
state of foreign qualification of each Domestic Loan Party (other than the PR Partnership)
certifying as of a recent date not more than 30 days prior to the Effective Date to the subsistence
in good standing of, and the payment of taxes by, such Domestic Loan Party in such states (except,
in the case of the states of foreign qualification, where the failure to be so qualified or in good
standing, or to pay such taxes, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect);

               (ix) a true and complete copy of the charter, certificate of formation, certificate of limited
partnership or other publicly filed organizational document of each Domestic Loan Party (other than
the PR Partnership), certified (A) as of a recent date prior to the Effective Date by an
appropriate official of the state of organization of such Domestic Loan Party, and (B) by a
secretary or assistant secretary of such Domestic Loan Party as being a true and complete copy of
the publicly filed organizational document for such Domestic Loan Party, which shall set forth the
same complete name of such Domestic Loan Party as is set forth herein and the organizational number
of such Domestic Loan Party, if an organized number is issued in such jurisdiction;

               (x) with respect to each Domestic Loan Party (other than the PR Partnership, (A) a copy of the
charter and by-laws, limited liability company agreement, operating agreement, agreement of limited
partnership or other organizational document of each Domestic Loan Party, together with all
amendments thereto, certified as of the Effective Date by a secretary or assistant secretary of
such Domestic Loan Party, or (B) a certification from a secretary or assistant secretary of such
Domestic Loan Party that the charter and by-laws, limited liability company agreement, operating
agreement, agreement of limited partnership or other organizational document has not been modified
since the date of the Original Financing Agreement;

               (xi) an opinion of Troutman Sanders LLP, counsel to the Loan Parties, substantially in the
form of Exhibit 5.01(d) and as to such other matters as the Agents may reasonably request;

               (xii) a certificate of an Authorized Officer of the Borrower, certifying as to the matters set
forth in Section 5.01(b);

               (xiii) a copy of the Financial Statements;

               (xiv) a copy of the financial projections described in Section 6.01(g)(ii) hereof;

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               (xv) a solvency certificate of the chief financial officer of the Borrower in the form of
Exhibit S-1;

               (xvi) evidence of the insurance coverage required by Section 7.01 and the terms of
each Security Agreement, with such endorsements as to the named insureds or lender loss payees
thereunder as the Agents may request and providing that such policy may be terminated or canceled
(by the insurer or the insured thereunder) only upon 30 days prior written notice to the Collateral
Agent and each such named insured or loss payee;

               (xvii) a certificate of an Authorized Officer of the Borrower, certifying the names and true
signatures of the persons that are authorized to provide Notices of Borrowing, Letter of Credit
Applications and all other notices under this Agreement and the other Loan Documents;

               (xviii) the Loan Parties shall have received all material licenses, approvals or evidence of
other actions required by any Governmental Authority in connection with the execution and delivery
by the Loan Parties of the Redemption Transaction Documents and with the consummation of the
transactions contemplated thereby; and

               (xix) a certificate of an Authorized Officer of the Parent, certifying that attached thereto
are complete and correct copies of the Redemption Transaction Documents;

          (e) Availability. After giving effect to all Loans to be made on the Effective Date
and the Letters of Credit to be issued on the Effective Date, the Availability shall not be less
than $10,000,000 (calculated without regard to any reserves imposed by the Administrative Agent).
The Borrower shall deliver to the Agents a certificate of the chief financial officer of the
Borrower certifying as to the calculation of Availability. No Revolving Loans shall be made on the
Effective Date.

          (f) Redemption Transaction. The Agents shall have received evidence reasonably
satisfactory to them that 100% of the Senior Notes shall be repayed on the Effective Date. Agents
shall have received and shall be reasonably satisfied with the Redemption Transaction Documents.
After giving effect to the Redemption Transaction, the capital structure of Parent and its
Subsidiaries shall be reasonably satisfactory to Agents.

     Section 5.02 Special Condition Precedent to Delayed Draw Term Loans. The obligation
of any Agent or any Lender to make a Delayed Draw Term Loan is subject to the fulfillment of each
of the following conditions precedent:

          (a) Redemption Transaction.

               (i) If such Delayed Draw Term Loan is to be used to repay Senior Convertible Notes, the Agents
shall have received evidence reasonably satisfactory to them that 100% of the Senior Convertible
Notes shall be redeemed on or prior to the Delayed Draw Term Loan Commitment Expiry Date or
converted to common Capital Stock of Parent.

               (ii) If such Delayed Draw Term Loan is to be used to redeem Series A Preferred Stock, the
Agents shall have received evidence reasonably satisfactory to them that

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100% of the Series A Preferred Stock shall be redeemed on or prior to the Delayed Draw Term Loan Commitment Expiry Date
or converted to common Capital Stock of Parent.

          (b) Funds Flow Agreement. The Collateral Agent shall have received, in form and
substance satisfactory to the Agents, a Funds Flow Agreement, duly executed by each Loan Party.

     Section 5.03 Conditions Precedent to All Loans and Letters of Credit. The obligation
of any Agent or any Lender to make any Loan or of the Administrative Agent to assist the Borrower
in establishing or opening any Letter of Credit is subject to the fulfillment of each of the
following conditions precedent:

          (a) Representations and Warranties; No Event of Default. The following statements
shall be true and correct, and the submission by the Borrower to the Administrative Agent of a
Notice of Borrowing with respect to each such Loan, and the Borrower’s acceptance of the proceeds
of such Loan, or the submission by the Borrower of a Letter of Credit Application with respect to a
Letter of Credit, and the issuance of such Letter of Credit, shall each be deemed to be a
representation and warranty by each Loan Party on the date of such Loan or the date of issuance of
such Letter of Credit that: (i) the representations and warranties contained in Article VI and in
each other Loan Document, certificate or other writing delivered any Agent or any Lender pursuant
hereto or thereto on or prior to the date of such Loan or such Letter of Credit are true and
correct in all material respects (except that such materiality qualifier shall not be applicable to
any representations and warranties that already are qualified or modified by materiality in the
text thereof) on and as of such date as though made on and as of such date (except to the extent
that any such representations or warranties expressly relate solely to an earlier date), and (ii)
at the time of and after giving effect to the making of such Loan and the application of the
proceeds thereof or at the time of issuance of such Letter of Credit, no Default or Event of
Default has occurred and is continuing or would result from the making of the Loan to be made, or
the issuance of such Letter of Credit to be issued, on such date.

          (b) Notices. The Administrative Agent shall have received (i) a Notice of Borrowing
pursuant to Section 2.02 hereof or (ii) a Letter of Credit Application pursuant to
Section 3.03 hereof, as applicable.

     Section 5.04 Conditions Subsequent to All Loans. The Loan Parties agree that, on or
before the date that is 45 days after the date of this Agreement, they shall deliver to the
Collateral Agent: (a) for each Foreign Guarantor and the PR Partnership, each of the items set
forth in Sections 5.01(d)(vi), 5.01(d)(viii), 5.01(d)(ix), and
5.01(d)(x), (b) an amendment to the Brazilian Pledge Agreement, in form and substance
reasonably satisfactory to the Agents, together with all other documentation, including an opinion
of counsel reasonably satisfactory to the Agents and an amendment to the governing documents of
Profit Recovery Brasil Ltda., a limited liability company duly incorporated under the laws of
Brazil, that is, in the opinion of the Agents, appropriate with respect to the execution and
delivery of such amendment, (c) amendments and restatements of the German Security Documents and
the German Pledge Agreement, in form and substance reasonably satisfactory to the Agents, together
with all other documentation, including an opinion of counsel reasonably satisfactory to the Agents,
that is, in the opinion of the Agents, appropriate with respect to the execution and delivery of such
amendments and restatements, and

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(d) amendments to, or amendments and restatements of, the Meridian Pledge Agreements, together
with all other documentation, including an opinion of counsel reasonably satisfactory to the
Agents, that is, in the opinion of the Agents, appropriate with respect to the execution and
delivery of such amendment or amendments and restatements (the failure by the Loan Parties to so
perform or cause to be performed the foregoing covenant to constitute an immediate Event of Default
hereunder).

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES

     Section 6.01 Representations and Warranties. Each Loan Party hereby represents and
warrants to the Agents, the Lenders and the L/C Issuer as follows:

          (a) Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited
liability company or limited partnership duly organized, validly existing and in good standing (in
each jurisdiction where to be so has legal significance) under the laws of the state or
jurisdiction of its organization, (ii) has all requisite power and authority to conduct its
business as now conducted and as currently contemplated and, in the case of the Borrower, to make
the borrowings hereunder, and to execute and deliver each Loan Document to which it is a party, and
to consummate the transactions contemplated thereby, and (iii) is duly qualified to do business and
is in good standing in each jurisdiction in which the character of the properties owned or leased
by it or in which the transaction of its business makes such qualification necessary, except, in
the case of jurisdictions of foreign qualification, where the failure to be so qualified or in good
standing, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect.

          (b) Authorization, Etc. The execution, delivery and performance by each Loan Party of
each Loan Document to which it is or will be a party, (i) have been duly authorized by all
necessary action, (ii) do not and will not contravene its charter or by-laws, its limited liability
company or operating agreement or its certificate of partnership or partnership agreement, as
applicable, (iii) do not violate any applicable law or any contractual restriction binding on or
otherwise affecting it or any of its properties, except where any violation could not reasonably be
expected to result in a Material Adverse Effect, (iv) do not and will not result in or require the
creation of any Lien (other than Permitted Liens) upon or with respect to any of its properties,
and (v) do not and will not result in any default, noncompliance, suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable
to its operations or any of its properties, except where any such default, noncompliance,
suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be expected to
result in a Material Adverse Effect.

          (c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Loan Party of any Loan Document to which it is or will
be a party except (i) such as have been obtained or made and are in full force and
effect, (ii) filings necessary to perfect Liens created by the Loan Documents, and (iii)

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authorizations, approvals or actions the failure to obtain or perform individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

          (d) Enforceability of Loan Documents. This Agreement is, and each other Loan Document
to which any Loan Party is or will be a party, when delivered hereunder, will be, a legal, valid
and binding obligation of such Person, enforceable against such Person in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law.

          (e) Subsidiaries. Schedule 6.01(e) is a complete and correct description of
the name, jurisdiction of incorporation and ownership of the outstanding Capital Stock of each
Subsidiary of the Parent as of the Effective Date. All of the issued and outstanding shares of
Capital Stock of such Subsidiaries have been validly issued and are fully paid and nonassessable,
and the holders thereof are not entitled to any preemptive, first refusal or other similar rights.
Except as indicated on such Schedule, all such Capital Stock is owned by the Parent or one or more
of its wholly-owned Subsidiaries, free and clear of all Liens, except nonconsensual Permitted
Liens. Except as indicated on Section 6.01(e) as of the Effective Date, there are no
outstanding equity securities of the Parent or any of its Subsidiaries and no outstanding
obligations of the Parent or any of its Subsidiaries convertible into or exchangeable for, or
warrants, options or other rights for the purchase or acquisition from the Parent or any of its
Subsidiaries, or other obligations of any Subsidiary to issue, directly or indirectly, any shares
of Capital Stock of any Subsidiary of the Parent.

          (f) Litigation; Commercial Tort Claims. Except as set forth in Schedule
6.01(f), (i) there is no pending or, to the knowledge of any Loan Party, threatened action,
suit or proceeding affecting any Loan Party before any court or other Governmental Authority or any
arbitrator that (A) could reasonably be expected to result in a Material Adverse Effect or (B) as
of the Effective Date, calls into question the validity or enforceability of, or otherwise seeks to
invalidate, this Agreement or any other Loan Document, and (ii) except as set forth on Schedule
6.01(f), as of the Effective Date, none of the Loan Parties holds any commercial tort claims in
respect of which a claim has been filed in a court of law or a written notice by an attorney has
been given to a potential defendant.

          (g) Financial Condition.

               (i) The Financial Statements, copies of which have been delivered to each Agent and each
Lender, fairly present, in all material respects, the consolidated financial condition of the
Parent and its Subsidiaries as at the respective dates thereof and the consolidated results of
operations of the Parent and its Subsidiaries for the fiscal periods ended on such respective
dates, all in accordance with GAAP, and since June 30, 2007 no event or development has occurred
that has had or could reasonably be expected to result in a Material Adverse Effect.

               (ii) The Parent has heretofore furnished to each Agent and each Lender (A) projected quarterly
balance sheets, income statements and statements of cash flows of the Parent and its Subsidiaries
for the period from July 1, 2007 through December 31, 2008, and (B) projected annual balance sheets,
income statements and statements of cash flows of the

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Parent and its Subsidiaries for the Fiscal Years ending in 2009 through 2011, which projected financial
statements shall be updated from time to time pursuant to Section 7.01(a)(x). Such
projections, as so updated, are believed by the Parent at the time furnished to be reasonable, have
been prepared on a reasonable basis and in good faith by the Parent, and have been based on
assumptions believed by the Parent to be reasonable at the time made and upon the best information
then reasonably available to the Parent (it being understood that actual results may vary from such
projections and that such variations may be material).

          (h) Compliance with Law, Etc. No Loan Party is in violation of its organizational
documents, any law, rule, regulation, judgment or order of any Governmental Authority applicable to
it or any of its property or assets, or any material term of any agreement or instrument (including
any Material Contract) binding on or otherwise affecting it or any of its properties where such
violation could reasonably be expected to result in a Material Adverse Effect, and no Default or
Event of Default has occurred and is continuing.

          (i) ERISA. Except as set forth on Schedule 6.01(i), (i) each Employee Plan is
in substantial compliance with ERISA and the IRC, (ii) no Termination Event has occurred nor is
reasonably expected to occur with respect to any Employee Plan, (iii) the most recent annual report
(Form 5500 Series) with respect to each Employee Plan, including any required Schedule B
(Actuarial Information) thereto, copies of which have been filed with the Internal Revenue Service
and delivered to the Agents, is complete and correct in all material respects and fairly presents
the funding status of such Employee Plan, and since the date of such report there has been no
material adverse change in such funding status, (iv) copies of each agreement entered into with the
PBGC, the U.S. Department of Labor or the Internal Revenue Service with respect to any Employee
Plan have been delivered to the Agents, (v) no Employee Plan had an accumulated or waived funding
deficiency or permitted decrease which would create a deficiency in its funding standard account or
has applied for an extension of any amortization period within the meaning of Section 412 of the
IRC at any time during the previous 60 months, and (vi) no Lien imposed under the IRC or ERISA
exists or is likely to arise on account of any Employee Plan within the meaning of Section 412 of
the IRC. Except as set forth on Schedule 6.01(i), no Loan Party or any of its ERISA
Affiliates has incurred any withdrawal liability under ERISA with respect to any Multiemployer
Plan, or is aware of any facts indicating that it or any of its ERISA Affiliates may in the future
incur any such withdrawal liability. Except as set forth on Schedule 6.01(i), no Loan
Party or any of its ERISA Affiliates nor any fiduciary of any Employee Plan has (A) engaged in a
nonexempt prohibited transaction described in Sections 406 of ERISA or 4975 of the IRC, (B) failed
to pay any required installment or other payment required under Section 412 of the IRC on or before
the due date for such required installment or payment, (C) engaged in a transaction within the
meaning of Section 4069 of ERISA or (D) incurred any liability to the PBGC which remains
outstanding other than the payment of premiums, and there are no premium payments which have become
due which are unpaid. Except as set forth on Schedule 6.01(i), there are no pending or, to
the knowledge of any Loan Party, threatened claims, actions, proceedings or lawsuits (other than
claims for benefits in the normal course) asserted or instituted against (1) any Employee Plan or
its assets, (2) any fiduciary with respect to any Employee Plan, or (3) any Loan Party or any of
its ERISA Affiliates with respect to any Employee Plan. Except as required by Section 4980B of the
Internal Revenue Code or as set forth on Schedule 6.01(i), no Loan Party or any of its
ERISA Affiliates maintains an employee welfare benefit plan (as defined in Section 3(1) of ERISA)

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which provides health or life insurance benefits (through the purchase of insurance or otherwise)
for any retired or former employee of any Loan Party or any of its ERISA Affiliates or coverage
after a participant’s termination of employment.

          (j) Taxes, Etc. (i) All Federal (including the federal government of Canada) and all
material state, provincial, and local tax returns and other reports required by applicable law to
be filed by any Loan Party have been filed, or extensions have been obtained, and (ii) all taxes,
assessments and other governmental charges imposed upon any Loan Party or any property of any Loan
Party and which have become due and payable have been paid, except (A) taxes, assessments or other
governmental charges contested in good faith by proper proceedings which stay the enforcement of
any Lien resulting from the non-payment thereof and with respect to which adequate reserves have
been set aside for the payment thereof in accordance with GAAP, or (B) taxes, assessments or other
governmental charges in an aggregate amount not to exceed $50,000.

          (k) Regulations T, U and X. No Loan Party is or will be engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation T, U or X), and no proceeds of any Loan will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying any margin stock.

          (l) [Intentionally Omitted].

          (m) [Intentionally Omitted].

          (n) Permits, Etc. Each Loan Party has, and is in compliance with, all permits,
licenses, authorizations, approvals, entitlements and accreditations required for such Person
lawfully to own, lease, manage or operate, or to acquire, each business currently owned, leased,
managed or operated, or to be acquired, by such Person, except to the extent such failure to obtain
or noncompliance could not reasonably be expected to result in a Material Adverse Effect. No
condition exists or event has occurred which, in itself or with the giving of notice or lapse of
time or both, would result in the suspension, revocation, impairment, forfeiture or non-renewal of
any such permit, license, authorization, approval, entitlement or accreditation, and there is no
claim that any thereof is not in full force and effect, except to the extent such suspension,
revocation, impairment, forfeiture or non-renewal could not reasonably be expected to result in a
Material Adverse Effect.

          (o) Properties. (i) Each Loan Party has good and marketable title to, valid leasehold
interests in, or valid licenses to use, all property and assets material to its business, free and
clear of all Liens, except Permitted Liens and minor irregularities or deficiencies in title that,
individually or in the aggregate, do not interfere with its ability to conduct its business as
currently conducted or to utilize such property for its intended purpose. Except as could not
reasonably be expected to result in a Material Adverse Effect, all such properties and assets are
in good working order and condition, ordinary wear and tear excepted. Schedule 6.01(o)
sets forth a complete and accurate list, as of the Effective Date, of the location, by state and
street address, of all real property that is located in the United States and owned or leased by
any Loan

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Party. As of the Effective Date, each Loan Party has valid leasehold interests in the Leases
described on Schedule 6.01(o) to which it is a party.

               (ii) Schedule 6.01(o) sets forth as of the Effective Date with respect to each such
Lease located in the United States, the commencement date and termination date. Each such Lease is
valid and enforceable in accordance with its terms in all material respects and is in full force
and effect, except to the extent that the failure of such Lease to be valid and enforceable or in
full force and effect could not reasonably be expected to result in a Material Adverse Change. No
consent or approval of any landlord or other third party in connection with any such Lease is
necessary for any Loan Party to enter into and execute the Loan Documents to which it is a party,
except as set forth on Schedule 6.01(o) or except to the extent that the failure to obtain
any consent or approval of any landlord could not reasonably be expected to result in a Material
Adverse Effect.

          (p) Full Disclosure. Each Loan Party has disclosed to the Agents all agreements,
instruments and corporate or other restrictions to which it 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. None of the other reports, financial statements, certificates or other information
(other than to the extent comprised of projections and other forward looking statements) furnished
by or on behalf of any Loan Party to the Agents in connection with the negotiation of this
Agreement or delivered hereunder (as modified or supplemented by other information so furnished)
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 it was made, not materially
misleading as of the date such information is dated or certified; provided that, with
respect to projected financial information and other forward looking statements, each Loan Party
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time (it being understood that actual results may vary from such projections
and forward looking statements and such variances may be material). As of the Effective Date, to
the Borrower’s knowledge there is no contingent liability or fact that could reasonably be expected
to result in a Material Adverse Effect which has not been set forth in a footnote included in the
Financial Statements or a Schedule hereto.

          (q) [Intentionally Omitted].

          (r) Environmental Matters. Except as set forth on Schedule 6.01(r), (i) the
operations of each Loan Party are in compliance with all Environmental Laws except for any
non-compliance which could not reasonably be expected to result in a Material Adverse Effect; (ii)
there has been no Release at any of the properties owned or operated by any Loan Party or a
predecessor in interest whose liabilities the Borrower is legally responsible, or at any disposal
or treatment facility which received Hazardous Materials generated by any Loan Party or any
predecessor in interest which could reasonably be expected to result in a Material Adverse Effect;
(iii) no Environmental Action has been asserted against any Loan Party or any predecessor in
interest whose liabilities the Borrower is legally responsible nor does any Loan Party have
knowledge or notice of any threatened or pending Environmental Action against any Loan Party or any
predecessor in interest which could reasonably be expected to result in a Material Adverse Effect;
(iv) no Environmental Actions have been asserted against any facilities that may have received
Hazardous Materials generated by any Loan Party or any predecessor in

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interest which could reasonably be expected to result in a Material Adverse Effect; (v) no
property now or formerly owned or occupied by a Loan Party has been used as a treatment or disposal
site for any Hazardous Material; (vi) no Loan Party has failed to report to the proper Governmental
Authority the occurrence of any Release which is required to be so reported by any Environmental
Laws which could reasonably be expected to result in a Material Adverse Effect; (vii) each Loan
Party holds all licenses, permits and approvals required under any Environmental Laws in connection
with the operation of the business carried on by it, except for such licenses, permits and
approvals as to which a Loan Party’s failure to maintain or comply with could not reasonably be
expected to result in a Material Adverse Effect; and (viii) no Loan Party has received any
notification pursuant to any Environmental Laws that (A) any work, repairs, construction or Capital
Expenditures are required to be made as a condition of continued compliance with any Environmental
Laws, or any license, permit or approval issued pursuant thereto or (B) any license, permit or
approval referred to above is about to be reviewed, made subject to limitations or conditions,
revoked, withdrawn or terminated, in each case, except as could not reasonably be expected to
result in a Material Adverse Effect.

          (s) Insurance. Each Loan Party keeps its property adequately insured in accordance
with the insurance requirements set forth in Section 7.01(h). Schedule 6.01(s)
sets forth a list of all insurance maintained by each Loan Party on the Effective Date.

          (t) Use of Proceeds. The proceeds of the Revolving Loans and the Term Loan shall be
used (i) on the Effective Date, to partially finance the redemption of the Senior Notes and to pay
fees and expenses in connection with the transactions contemplated hereby and such redemption, and
(ii) thereafter, to fund working capital of the Borrower. The proceeds of the Delayed Draw Term
Loans shall be used to finance the redemption of the Senior Convertible Notes and the Series A
Preferred Stock not converted to common Capital Stock of the Parent and to pay fees and expenses in
connection with the transactions contemplated hereby and such redemption.

          (u) Solvency. After giving effect to the transactions contemplated by this Agreement
and before and after giving effect to each Loan and Letter of Credit, the Loan Parties taken as a
whole on a consolidated basis are Solvent.

          (v) Location of Bank Accounts. Schedule 6.01(v) sets forth a complete and
accurate list as of the Effective Date of all deposit, checking and other bank accounts, all
securities and other accounts maintained with any broker dealer and all other similar accounts
maintained by each Loan Party, together with a description thereof (i.e., the bank or broker dealer
at which such deposit or other account is maintained and the account number and the purpose
thereof).

          (w) Intellectual Property. Except as set forth on Schedule 6.01(w), each Loan
Party owns or licenses or otherwise has the right to use all material licenses, permits, patents,
patent applications, trademarks, trademark applications, service marks, tradenames, copyrights,
copyright applications, franchises, authorizations, non-governmental licenses and permits and other
intellectual property rights that are necessary for the operation of its business, without
infringement upon or conflict with the rights of any other Person with respect thereto, except, in
each case, which, individually or in the aggregate, could not reasonably be expected to result in a

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Material Adverse Effect. Set forth on Schedule 6.01(w) is a complete and accurate
list as of the Effective Date of all such material licenses, permits, patents, patent applications,
trademarks, trademark applications, service marks, tradenames, copyrights, copyright applications,
franchises, authorizations, non-governmental licenses and permits and other intellectual property
rights of each Loan Party that are registered or issued by any Governmental Authority. No slogan
or other advertising device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by any Loan Party infringes upon or conflicts with
any rights owned by any other Person, and no claim or litigation regarding any of the foregoing is
pending or threatened, except for such infringements and conflicts which could not reasonably be
expected to result in, individually or in the aggregate, a Material Adverse Effect. To the
knowledge of each Loan Party, no patent, invention, device, application, principle or any statute,
law, rule, regulation, standard or code is pending or proposed, which, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

          (x) Material Contracts. Set forth on Schedule 6.01(x) is a complete and
accurate list as of the Effective Date of all Material Contracts, showing the parties and subject
matter thereof. Each such Material Contract (i) is in full force and effect and is binding upon
and enforceable against each Loan Party that is a party thereto and, to the knowledge of such Loan
Party, all other parties thereto in accordance with its terms, except to the extent that failure of
such Material Contract to be in full force and effect or binding upon and enforceable against the
parties thereto could not reasonably be expected to result in a Material Adverse Effect, (ii) has
not been otherwise amended or modified, except for amendments or modifications which could not
reasonably be expected to result in a Material Adverse Effect, and (iii) is not in default due to
the action of any Loan Party or, to the knowledge of any Loan Party, any other party thereto,
except to the extent that any such default could not reasonably be expected to result in a Material
Adverse Effect.

          (y) Investment Company Act. None of the Loan Parties is an “investment company” or
“controlled” by an “investment company”, as such terms are defined in the Investment Company Act of
1940, as amended.

          (z) Employee and Labor Matters. Except as could not, individually or in the
aggregate, reasonably to be expected to result in a Material Adverse Effect, there is (i) no unfair
labor practice complaint pending or, to the knowledge of any Loan Party, threatened against any
Loan Party before any Governmental Authority and no grievance or arbitration proceeding pending or
threatened against any Loan Party which arises out of or under any collective bargaining agreement,
(ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or
threatened against any Loan Party or (iii) to the knowledge of any Loan Party, no union
representation question existing with respect to the employees of any Loan Party and no union
organizing activity taking place with respect to any of the employees of any Loan Party. No Loan
Party or any of its ERISA Affiliates has incurred any liability or obligation under the Worker
Adjustment and Retraining Notification Act (“WARN”) or similar state law, which remains
unpaid or unsatisfied. The hours worked and payments made to employees of any Loan Party have not
been in violation of the Fair Labor Standards Act or any other applicable legal requirements,
except to the extent such violations could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect. All material payments due from any Loan Party on
account of wages and employee health and welfare

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insurance and other benefits have been paid or accrued as a liability on the books of such
Loan Party, except where the failure to do so could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

          (aa) [Intentionally Omitted].

          (bb) No Bankruptcy Filing. No board of directors of any Loan Party has taken any
action to authorize the filing of a petition by it under any state, provincial, federal (including
the federal government of Canada) or foreign bankruptcy or insolvency laws or the liquidation
(except as expressly permitted by Section 7.02(c)) of all or a major portion of such Loan
Party’s assets or property.

          (cc) [Intentionally Omitted].

          (dd) Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of
Business; Chief Executive Office; FEIN. Schedule 6.01(dd) sets forth a complete and
accurate list as of the date hereof of (i) the exact legal name of each Loan Party, (ii) the
jurisdiction of organization of each Loan Party, (iii) the organizational identification number of
each Loan Party (or indicates that such Loan Party has no organizational identification number),
(iv) each place of business of each Loan Party, (v) the chief executive office of each Loan Party
and (vi) the federal employer identification number of each Loan Party (or, in the case of the
Canadian Guarantor, the Canada Customs and Revenue Agency business number).

          (ee) [Intentionally Omitted].

          (ff) Locations of Collateral. There is no location at which any Loan Party has any
Collateral other than (i) those locations listed on Schedule 6.01(ff), (ii) warehouses or
other facilities where records not pertinent to the current business of the Loan Parties are
stored; (iii) customer locations, employee home offices or similar locations where miscellaneous
office equipment may be maintained, and (iv) any other locations approved in writing by the Agents
from time to time or otherwise permitted under Section 7.01(l). Schedule 6.01(ff)
hereto contains a true, correct and complete list, as of the Effective Date, of the legal names and
addresses of each warehouse at which Collateral of each Loan Party is stored other than warehouses
or other facilities where records not pertinent to the current business of the Loan Parties are
stored. None of the receipts received by any Loan Party from any warehouse states that the goods
covered thereby are to be delivered to bearer or to the order of a named Person or to a named
Person and such named Person’s assigns.

          (gg) Security Interests. Each Security Agreement creates in favor of the Collateral
Agent, for the benefit of the Agents and the Lenders, a legal, valid and enforceable security
interest in the Collateral covered thereby (except as enforcement may be limited by equitable
principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or
limiting creditors’ rights generally). Upon (i) the filing of the financing statements described
in Section 5.01(d)(v), (ii) the filings in the United States Patent and Trademark Office
and United States Copyright Office, and (iii) taking of possession or control by the Collateral
Agent of the Collateral with respect to which a security interest may be perfected only by
possession or control (which possession or control shall be given to the Collateral Agent to the

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extent possession or control by the Collateral Agent is required herein or in the Security
Agreement), such security interests in and Liens on substantially all of the Collateral granted
thereby (other than assets in which the Collateral Agent has determined in its Permitted Discretion
that the cost or burden of obtaining a security interest in such assets or perfection thereof is
excessive in relation to the practical benefit afforded thereby) shall be perfected, first priority
security interests (subject to Permitted Liens), and no further recordings or filings are or will
be required in connection with the creation, perfection or enforcement of such security interests
and Liens.

          (hh) [Intentionally Omitted].

          (ii) [Intentionally Omitted].

          (jj) Redemption Transaction Documents. As of the Effective Date, the Borrower has
delivered to the Agents a complete and correct copy of the material Redemption Transaction
Documents (including all schedules, exhibits, amendments, supplements, modifications, and
assignments). As of the Effective Date, no Loan Party that is a party thereto is in default in the
performance or compliance with any provisions thereof. The Redemption Transaction Documents comply
in all material respects with all applicable laws. As of the Effective Date, the Redemption
Transaction Documents are in full force and effect and have not been terminated, rescinded or
withdrawn. The execution, delivery and performance of the Redemption Transaction Documents do not
and will not require any registration with, consent, or approval of, or notice to, or other action
with or by, any Governmental Authority, other than consents or approvals that have been obtained
and that are still in full force and effect. To the best of the Loan Parties’ knowledge, as of the
Effective Date, none of the representations or warranties of any other Person in any Redemption
Transaction Document are untrue.

          (kk) Canadian Withholdings and Remittances. Each applicable Loan Party has withheld
from each payment made to any of their present or former employees, officers and directors, and to
all persons who are non-residents of Canada for the purposes of the Income Tax Act (Canada) all
material amounts required by law to be withheld, including all payroll deductions required to be
withheld, and furthermore, remitted such withheld amounts within the prescribed periods to the
appropriate Governmental Authority, except to the extent that failure to do so could not reasonably
be expected to result in a Material Adverse Effect. Each applicable Loan Party has remitted all
material contributions required pursuant to the Canada Pension Plan (Canada), provincial pension
plan contributions, workers compensation assessments, employment insurance premiums, employer
health taxes, municipal real estate taxes and other taxes and obligations payable under the
applicable law by it and has remitted such amounts to the proper Governmental Authority within the
time required under the applicable law, except to the extent that failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

          (ll) [Intentionally Omitted].

          (mm) Inactive Subsidiaries. No Inactive Subsidiary owns any assets (other than assets
of de minimis value), has any liabilities (other than de minimis liabilities), or engages in any
business activity.

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ARTICLE VII.

COVENANTS OF THE LOAN PARTIES

     Section 7.01 Affirmative Covenants. So long as any principal of or interest on any
Loan, Reimbursement Obligation, Letter of Credit Obligation or any other Obligation (whether or not
due) (other than unasserted contingent indemnification Obligations) shall remain unpaid or any
Lender shall have any Commitment hereunder, each Loan Party will and will cause each of its
Subsidiaries to:

          (a) Reporting Requirements. Furnish to each Agent and each Lender:

               (i) as soon as available and in any event within 47 days (or 62 days if an extension has been
obtained for the filing of an equivalent periodic report under Rule 12b-25 of the General Rules and
Regulations under the Exchange Act) after the end of the first 3 fiscal quarters of each Fiscal
Year of the Parent and its Subsidiaries, consolidated balance sheet, consolidated and consolidating
statements of operations and consolidated statements of cash flows of the Parent and its
Subsidiaries as at the end of such quarter, and for the period commencing at the end of the
immediately preceding Fiscal Year and ending with the end of such quarter, setting forth in each
case in comparative form the figures for the corresponding date or period of the immediately
preceding Fiscal Year, all in reasonable detail and certified by an Authorized Officer of the
Parent as fairly presenting, in all material respects, the financial position of the Parent and its
Subsidiaries as of the end of such quarter and the results of operations and cash flows of the
Parent and its Subsidiaries for such quarter, in accordance with GAAP applied in a manner
consistent with that of the most recent audited financial statements of the Parent and its
Subsidiaries furnished to the Agents and the Lenders, subject to normal year-end audit adjustments
and the absence of footnotes;

               (ii) as soon as available, and in any event within 45 days after the end of the last fiscal
quarter of each Fiscal Year of the Parent and its Subsidiaries, internally prepared consolidated
balance sheets and consolidating statements of operations as at the end of such fiscal month, and
for the period commencing at the end of the immediately preceding Fiscal Year and ending with the
end of such fiscal month, all in reasonable detail and certified by an Authorized Officer of the
Parent as fairly presenting, in all material respects, the financial position of the Parent and its
Subsidiaries as at the end of such fiscal month and the results of operations, of the Parent and
its Subsidiaries for such fiscal month, in accordance with GAAP applied in a manner consistent with
that of the most recent audited financial statements furnished to the Agents and the Lenders,
subject to normal year-end audit adjustments and the absence of footnotes;

               (iii) as soon as available, and in any event within 90 days (or 105 days if an extension has
been obtained for the filing of an equivalent periodic report under Rule 12b-25 of the General
Rules and Regulations under the Exchange Act) after the end of each Fiscal Year of the Parent and
its Subsidiaries, consolidated balance sheets, consolidated and consolidating statements of
operations, a consolidated statement of retained earnings, and a consolidated statement of cash
flows of the Parent and its Subsidiaries as at the end of such Fiscal Year, setting forth in each
case in comparative form the corresponding figures for the

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immediately preceding Fiscal Year, all in reasonable detail and prepared in accordance with
GAAP, and accompanied by a report and an opinion, prepared in accordance with generally accepted
auditing standards, of independent certified public accountants of recognized standing selected by
the Parent and reasonably satisfactory to the Agents (which opinion shall be without (A) a “going
concern” or like qualification or exception, (B) any qualification or exception as to the scope of
such audit, or (C) any qualification which relates to the treatment or classification of any item
and which, as a condition to the removal of such qualification, would require an adjustment to such
item, the effect of which would be to cause any noncompliance with the provisions of Section
7.03, together with a written statement of such accountants (1) to the effect that, in making
the examination necessary for their audit of such financial statements, they have not obtained any
knowledge of the existence of an Event of Default or a Default under Section 7.03 and (2)
if such accountants shall have obtained any knowledge of the existence of an Event of Default or
such Default under Section 7.03, describing the nature thereof;

               (iv) as soon as available, and in any event within 30 days after the end of the first two
fiscal months in each fiscal quarter of the Parent and its Subsidiaries, internally prepared
consolidated balance sheets, consolidating statements of operations as at the end of such fiscal
month, and for the period commencing at the end of the immediately preceding Fiscal Year and ending
with the end of such fiscal month, all in reasonable detail and certified by an Authorized Officer
of the Parent as fairly presenting, in all material respects, the financial position of the Parent
and its Subsidiaries as at the end of such fiscal month and the results of operations of the Parent
and its Subsidiaries for such fiscal month, in accordance with GAAP applied in a manner consistent
with that of the most recent audited financial statements furnished to the Agents and the Lenders,
subject to normal year-end audit adjustments and the absence of footnotes;

               (v) simultaneously with the delivery of the financial statements of the Parent and its
Subsidiaries required by clauses (i), (ii), and (iii) of this Section 7.01(a), a
certificate of an Authorized Officer of the Parent (A) stating that such Authorized Officer has
reviewed the provisions of this Agreement and the other Loan Documents and has made or caused to be
made under his or her supervision a review of the condition and operations of the Parent and its
Subsidiaries during the period covered by such financial statements with a view to determining
whether the Parent and its Subsidiaries were in compliance with all of the provisions of this
Agreement and such Loan Documents at the times such compliance is required hereby and thereby, and
that such review has not disclosed, and such Authorized Officer has no knowledge of, the existence
during such period of an Event of Default or Default or, if an Event of Default or Default existed,
describing the nature and period of existence thereof and the action which the Parent and its
Subsidiaries propose to take or have taken with respect thereto and (B) attaching a schedule
showing the calculation of the financial covenants specified in Section 7.03;

               (vi) as soon as available and in any event within 15 days after the end of each fiscal month
of the Parent and its Subsidiaries, reports in form and detail satisfactory to the Agents (A)
listing all Accounts Receivable of the Borrower and the Domestic Guarantors in the United States,
Canada, and the United Kingdom as of the end of such fiscal month, which shall include the amount
and age of each Account Receivable, showing separately those which are more than 30, 60, 90 and 120
days old and a description of all Liens, set-offs, defenses and

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counterclaims with respect thereto,
and such other information as any Agent may reasonably
request, (B) setting forth the amount of the Collections from Accounts Receivable of the
Borrower and the Domestic Guarantors during such fiscal month and during the 180 days immediately
preceding the last day of such fiscal month, and (C) detailing the 6 month U.S. Retail Key Client
WIP as of the end of such fiscal month;

               (vii) as soon as available and in any event within 15 days after the end of each fiscal month
of the Parent and its Subsidiaries, a Borrowing Base Certificate certified by an Authorized Officer
of the Borrower as being accurate and complete, current as of the close of business as of the end
of such fiscal month, supported by schedules showing the derivation thereof and containing such
detail and other information as any Agent may reasonably request from time to time, provided that
(A) the Borrowing Base set forth in the Borrowing Base Certificate shall be effective from and
including the date such Borrowing Base Certificate is duly received by the Agents to but not
including the date on which a subsequent Borrowing Base Certificate is received by the Agents,
unless any Agent disputes the eligibility of any property included in the calculation of the
Borrowing Base or the valuation thereof or any other information contained therein by notice of
such dispute to the Borrower, and (B) in the event of any dispute about the eligibility of any
property included in the calculation of the Borrowing Base or the valuation thereof, such Agent’s
Permitted Discretion shall control or any other information contained therein;

               (viii) simultaneously with the delivery of the financial statements of the Parent and its
Subsidiaries required by clauses (i) and (ii) of this Section 7.01(a), reports in form and
detail reasonably satisfactory to the Agents setting forth (A) the U.S. Retail Key Client Effective
Fee Rate for such fiscal quarter, and (B) the U.S. Retail Key Client Claim Retention Rate for such
fiscal quarter.

               (ix) as soon as available and in any event within 30 days after the end of each fiscal month
of the Parent and its Subsidiaries, reports in form and detail reasonably satisfactory to the
Agents and certified by an Authorized Officer of the Parent setting forth (A) the intercompany
receivables of the Parent and its Subsidiaries, (B) accounts payable of the Borrower and the
Domestic Guarantors as of the end of such fiscal month which shall include the amount and age of
each account payable, and such other information as any Agent may reasonably request, and (C) the
general ledger reconciliation for the United States;

               (x) no later than 30 days after the commencement of each Fiscal Year, financial projections
for such Fiscal Year, displayed on a month by month basis for such Fiscal Year for the Parent and
its Subsidiaries, all such financial projections to be prepared on a reasonable basis and in good
faith, and to be based on assumptions believed by the Parent to be reasonable at the time made and
from the best information then available to the Parent;

               (xi) promptly after any Authorized Officer of any Person composing the Borrower knows or has
reason to know that any Loan Party or any of its Subsidiaries is being investigated by a
Governmental Authority (other than routine inquiries or audits), notice of such investigation and,
thereafter, prompt reporting of any information relative to such investigation requested by either
of the Agents; provided that if such Loan Party is prohibited under applicable

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law, rule,
or regulation from disclosing such investigation to the Agents, then it shall not be obligated to
provide such notice and reporting to the Agents;

               (xii) as soon as possible, and in any event within 3 Business Days of any Authorized Officer
of any Person composing the Borrower having knowledge of or reason to have knowledge of an Event of
Default or Default or the occurrence of any event or development that could reasonably be expected
to result in a Material Adverse Effect, the written statement of an Authorized Officer of the
Parent setting forth the details of such Event of Default or Default or other event or development
having a Material Adverse Effect and the action which the affected Loan Party proposes to take with
respect thereto;

               (xiii) (A) as soon as possible and in any event within 10 days after any Authorized Officer of
any Person composing the Borrower knows or has reason to know that (1) any Reportable Event with
respect to any Employee Plan has occurred, (2) any Termination Event with respect to any Employee
Plan has occurred, or (3) an accumulated funding deficiency has been incurred or an application has
been made to the Secretary of the Treasury for a waiver or modification of the minimum funding
standard (including installment payments) or an extension of any amortization period under Section
412 of the IRC with respect to an Employee Plan, a statement of an Authorized Officer of the
Borrower setting forth the details of such occurrence and the action, if any, which such Loan Party
or such ERISA Affiliate proposes to take with respect thereto, (B) promptly and in any event within
3 days after receipt thereof, or the obtaining of knowledge thereof, by any Authorized Officer of
any Loan Party or any ERISA Affiliate thereof from the PBGC, copies of each notice received by any
Loan Party or any ERISA Affiliate thereof of the PBGC’s intention to terminate any Plan or to have
a trustee appointed to administer any Plan, (C) promptly and in any event within 10 days after the
filing thereof with the Internal Revenue Service if requested by any Agent, copies of each
Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to
each Employee Plan and Multiemployer Plan (in the case of Multiemployer Plans, as soon as
commercially reasonably possible, but in no event later than 30 days following such request), (D)
promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof knows
or has reason to know that a required installment within the meaning of Section 412 of the IRC has
not been made when due with respect to an Employee Plan, (E) promptly and in any event within 3
days after receipt thereof by any Loan Party or any ERISA Affiliate thereof from a sponsor of a
Multiemployer Plan or from the PBGC, a copy of each notice received by any Loan Party or any ERISA
Affiliate thereof concerning the imposition or amount of withdrawal liability under Section 4202 of
ERISA or indicating that such Multiemployer Plan may enter reorganization status under Section 4241
of ERISA, and (F) promptly and in any event within 10 days after any Loan Party or any ERISA
Affiliate thereof sends notice of a plant closing or mass layoff (as defined in WARN) to employees,
copies of each such notice sent by such Loan Party or such ERISA Affiliate thereof;

               (xiv) promptly after the commencement thereof but in any event not later than 10 Business Days
after service of process with respect thereto on, or the obtaining of knowledge thereof by, any
Authorized Officer of any Loan Party, notice of each action, suit or proceeding before any court or
other Governmental Authority or other regulatory body or any arbitrator which could reasonably be
expected to result in a Material Adverse Effect;

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               (xv) as soon as possible and in any event within 5 Business Days after execution, receipt or
delivery thereof, (A) copies of any material notices that an Authorized Officer of any Loan Party
executes or receives (or obtains knowledge of) in connection with any
Material Contract, and (B) copies of any default notices with respect to the Parent’s lease
for the premises located at 600 Galleria Parkway, Atlanta, GA 30339;

               (xvi) promptly after the sending or filing thereof, copies of all statements, reports and
other information any Loan Party sends to any holders of its Indebtedness or its securities or
files with the SEC or any national (domestic or foreign) securities exchange;

               (xvii) promptly upon receipt thereof, copies of any “final” management letters submitted to
any Loan Party by its auditors in connection with any annual or interim audit of the books thereof;
and

               (xviii) promptly upon request, such other information concerning the condition or operations,
financial or otherwise, of any Loan Party as any Agent may from time to time may reasonably
request.

          (b) Additional Guaranties and Collateral Security. Cause:

               (i) each Subsidiary of any Loan Party formed or acquired after the date hereof (a “New
Subsidiary”) to execute and deliver to the Collateral Agent promptly and in any event within 20
days (or such longer period (which longer period shall not exceed 15 days) as the Collateral Agent
is willing, in its Permitted Discretion, to accommodate from time to time) after the formation or
acquisition thereof (A) a Guaranty guaranteeing the Obligations, (B) a Security Agreement, together
with (x) if such New Subsidiary has any Domestic Subsidiaries, (I) certificates (if any)
evidencing all of the Capital Stock of such Subsidiaries owned by such New Subsidiary, (II) undated
stock powers executed in blank, and (III) such opinions of counsel and such approving certificate
of such Subsidiary as either Agent may reasonably request in respect of complying with any legend
on any such certificate or any other matter relating to such shares, and (y) if such New Subsidiary
has any first-tier Subsidiaries that are CFCs, (I) certificates (if any) evidencing all (or, 65% of
the outstanding voting Capital Stock of such Subsidiary if pledging or hypothecating more than 65%
of the total outstanding voting Capital Stock of such Subsidiary reasonably could be expected to
result in material adverse tax consequences as determined by the Agents in consultation with the
Loan Parties) of the outstanding voting Capital Stock of such Subsidiaries, (II) undated stock
powers executed in blank with signature guaranteed, and (III) such opinions of counsel and such
approving certificate of such Subsidiary as either Agent may reasonably request in respect of
complying with any legend on any such certificate or any other matter relating to such shares, (C)
if such New Subsidiary has a fee interest in any real property that would constitute After Acquired
Real Property if it were acquired by a Loan Party, one or more Mortgages creating on such real
property a perfected, first priority Lien on such real property, a Title Insurance Policy covering
such real property, a current ALTA survey of such real property and a surveyor’s certificate, a
Phase I Environmental Site Assessment with respect to such real property, certified to the
Collateral Agent by a company reasonably satisfactory to the Collateral Agent, each in form and
substance reasonably satisfactory to the Agents, together with such other agreements, instruments
and documents as the either Agent may reasonably require whether comparable to

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the documents
required under Section 7.01(o) or otherwise; provided that the Agents shall not
require a Mortgage and other documents for any parcel of real property if the mortgage recording
tax associated therewith is material (in the reasonable judgment of the Agents) in relation to the
Current Value of such real
property, and (D) such other agreements, instruments, approvals, legal opinions, or other
documents reasonably requested by either Agent in order to create, perfect, establish the first
priority of or otherwise protect any Lien purported to be covered by any such Security Agreement or
Mortgage, or otherwise to effect the intent that such New Subsidiary shall become bound by all of
the terms, covenants and agreements contained in the Loan Documents and that all property and
assets of such New Subsidiary shall become Collateral for the Obligations; provided that
the foregoing Guaranty and Security Agreement shall not be required to be provided to the
Collateral Agent (1) with respect to any New Subsidiary of a Loan Party that is an Insignificant
Subsidiary at the time of formation or acquisition thereof (provided that if, on any date,
such New Subsidiary becomes a Non-Insignificant Subsidiary, such New Subsidiary shall execute and
deliver to the Collateral Agent such Guaranty and Security Agreement, together with any other
documents required under this Section 7.01(b)(i), within 20 days of such date), or (2) with
respect to any New Subsidiary of a Loan Party that is a CFC if providing such documents would
result in material adverse tax consequences as determined by the Agents in consultation with the
Loan Parties; and

               (ii) each Loan Party that is the owner of the Capital Stock of such New Subsidiary to execute
and deliver promptly and in any event within 20 days (or such longer period (which longer period
shall not exceed 15 days) as the Collateral Agent is willing, in its Permitted Discretion, to
accommodate from time to time) after the formation or acquisition of such New Subsidiary a joinder
to the Security Agreement (if it is not already a party thereto), together with (A) if such New
Subsidiary is not a CFC or is a CFC and the pledge of 100% of the voting Capital Stock of such CFC
would not result in material adverse tax consequences as determined by the Agents in consultation
with the Loan Parties, (w) certificates (if any) evidencing all of the Capital Stock of such New
Subsidiary, (x) undated stock powers or other appropriate instruments or assignment executed in
blank with signature guaranteed, (y) such opinions of counsel and such approving certificate of
such New Subsidiary as the Agents may reasonably request in respect of complying with any legend on
any such certificate or any other matter relating to such shares, and (z) such other agreements,
instruments, approvals, legal opinions, or other documents, or (B) if such New Subsidiary is a CFC
and the granting of a pledge of more than 65% of the voting Capital Stock of such CFC would result
in material adverse tax consequences as determined by the Agents in consultation with the Loan
Parties, (w) certificates (if any) evidencing 65% of the outstanding voting Capital Stock of such
New Subsidiary, (x) undated stock powers or other appropriate instruments or assignment executed in
blank with signature guarantee, (y) such opinions of counsel and such approving certificate of such
New Subsidiary as the Agents may reasonably request in respect of complying with any legend on any
such certificate or any other matter relating to such shares, and (z) such other agreements,
instruments, approvals, legal opinions, or other documents reasonably requested by either Agent;
provided that delivery of the foregoing items shall not be required with respect to any New
Subsidiary of a Loan Party that is an Insignificant Subsidiary at the time of formation or
acquisition thereof (provided that if, on any date, such New Subsidiary becomes a
Non-Insignificant Subsidiary, the items required under this Section 7.01(b)(ii) shall be
delivered to the Collateral Agent within 20 days of such date).

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          (c) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply,
in all material respects with all applicable laws, rules, regulations, orders, judgments and awards
(including any settlement of any claim that, if breached, could give rise to any of the
foregoing) (except, in each case, to the extent that non-compliance could not, individually or
in the aggregate, reasonably be expected to result in a Material Adverse Effect), such compliance
to include (i) paying before the same become delinquent all taxes, assessments and governmental
charges or levies (other than those that are in de minimis amounts) imposed upon it or upon its
income or profits or upon any of its properties, and (ii) paying all other lawful claims which if
unpaid might become a Lien or charge upon any of its properties, except, in each case, (A) to the
extent contested in good faith by proper proceedings which stay the enforcement of any Lien
resulting from the non-payment thereof and with respect to which adequate reserves have been set
aside for the payment thereof in accordance with GAAP, or (B) taxes, assessments and governmental
charges or levies or any other such lawful claims in an aggregate amount not to exceed $50,000.

          (d) Preservation of Existence, Etc. Other than as expressly set forth in Section
7.02(c), maintain and preserve, and cause each of its Subsidiaries to maintain and preserve,
its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to
become or remain, duly qualified and in good standing in each jurisdiction in which the character
of the properties owned or leased by it or in which the transaction of its business makes such
qualification necessary, except to the extent failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect; provided that
nothing in this Section 7.01(d) shall prevent the withdrawal by the Parent or any
Subsidiary of the Parent of its qualification as a foreign corporation in any jurisdiction where
such withdrawal, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect.

          (e) Keeping of Records and Books of Account. Keep, and cause each of its Subsidiaries
to keep, adequate records and books of account, with complete entries, in all material respects,
made to permit the preparation of financial statements in accordance with GAAP.

          (f) Inspection Rights. Permit, and cause each of its Subsidiaries to permit, the
agents and representatives of any Agent at any time and from time to time during normal business
hours and, so long as no Default or Event of Default shall have occurred and be continuing, upon
reasonable advance notice to the Borrower, at the expense of the Borrower, to examine and make
copies of and abstracts from its records and books of account, to visit and inspect its properties,
to verify leases, notes, accounts receivable, deposit accounts and its other assets, to conduct
audits, physical counts, valuations, appraisals, Phase I Environmental Site Assessments (and, (i)
if an Event of Default shall have occurred and be continuing and if requested by the Collateral
Agent based upon the results of any such Phase I Environmental Site Assessment, or (ii) in the
event a Governmental Authority so orders and the Borrower does not timely respond, a Phase II
Environmental Site Assessment of any real property owned by the Borrower), field examinations, or
enterprise valuations and to discuss its affairs, finances and accounts with any of its directors,
officers, managerial employees, independent accountants or any of its other representatives;
provided that the Borrower shall be given the opportunity to be present in any discussions
with the Borrower’s independent accountants. The Borrower shall pay (i) $1,500 per day per
examiner plus the examiner’s out-of-pocket costs and reasonable

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expenses incurred in connection
with all such visits, audits, inspections, valuations, and field examinations, and (ii) the cost of
all audits, appraisals and business valuations (including enterprise valuation appraisals)
conducted by third party auditors or appraisers on behalf of the
Agents; provided that so long as no Event of Default shall have occurred and be
continuing and so long as Revolving Loans have not been outstanding for more than 30 consecutive
days in any Fiscal Year, the Borrower shall not be obligated to pay for more than 2 such audits and
examinations in such Fiscal Year.

          (g) Maintenance of Properties, Etc. (i) Maintain and preserve, and cause each of its
Subsidiaries to maintain and preserve, all of its properties which are necessary or useful in the
proper conduct of its business in good working order and condition, ordinary wear and tear
excepted, and (ii) comply, and cause each of its Subsidiaries to comply, at all times with the
provisions of all leases to which it is a party as lessee or under which it occupies property, so
as to prevent any loss or forfeiture thereof or thereunder, in each case, except to the extent that
failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect; provided that nothing in this Section 7.01(g) shall
prevent Permitted Dispositions or liquidations, dissolutions, consolidations, or mergers that are
expressly permitted by, and effected in accordance with, Section 7.02(c).

          (h) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations (including
comprehensive general liability, hazard, and business interruption insurance) with respect to its
properties and business, in such amounts and covering such risks as is required by any Governmental
Authority having jurisdiction with respect thereto or as is carried generally in accordance with
sound business practice by companies in similar businesses similarly situated and in any event in
amount, adequacy and scope reasonably satisfactory to the Collateral Agent. All policies covering
the Collateral are to be made payable to the Collateral Agent for the benefit of the Agents and the
Lenders, as its interests may appear, in case of loss, under a standard non contributory “lender”
or “secured party” clause and are to contain such other provisions as the Collateral Agent may
require to fully protect the Collateral Agent’s interest in the Collateral and to any payments to
be made under such policies. All certificates of insurance are to be delivered to the Collateral
Agent and the policies are to be premium prepaid, with the loss payable and additional insured
endorsement in favor of the Collateral Agent and such other Persons as the Collateral Agent may
designate from time to time, and shall provide for not less than 30 days prior written notice to
the Collateral Agent of the exercise of any right of cancellation. If any Loan Party or any of its
Subsidiaries fails to maintain such insurance, the Collateral Agent may arrange for such insurance,
but at the Borrower’s expense and without any responsibility on the Collateral Agent’s part for
obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or
the collection of claims. Upon the occurrence and during the continuance of an Event of Default,
the Collateral Agent shall have the sole right, in the name of the Lenders, any Loan Party and its
Subsidiaries, to file claims under any insurance policies, to receive, receipt and give acquittance
for any payments that may be payable thereunder, and to execute any and all endorsements, receipts,
releases, assignments, reassignments or other documents that may be necessary to effect the
collection, compromise or settlement of any claims under any such insurance policies.

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          (i) Obtaining of Permits, Etc. Obtain, maintain and preserve, and cause each of its
Subsidiaries to obtain, maintain and preserve, and take all necessary action to timely renew, all
permits, licenses, authorizations, approvals, entitlements and accreditations which are
necessary or useful in the proper conduct of its business, except to the extent failure to do
so could not reasonably be expected to result in a Material Adverse Effect.

          (j) Environmental. (i) Keep any property either owned or operated by it or any of
its Subsidiaries free of any Environmental Liens; (ii) comply, and cause each of its Subsidiaries
to comply, with Environmental Laws except where any failure to comply could not reasonably be
expected to result in a Material Adverse Effect; (iii) provide the Agents written notice within 10
Business Days after any Release of a Hazardous Material in excess of any reportable quantity under
Environmental Laws from or onto property owned or operated by it or any of its Subsidiaries and
take any Remedial Actions required to abate said Release; (iv) provide the Agents with written
notice within 10 Business Days after the receipt of any of the following: (A) notice that an
Environmental Lien has been filed against any owned property of any Loan Party or any of its
Subsidiaries; (B) commencement of an Environmental Action or notice that an Environmental Action
will be filed against any Loan Party or any of its Subsidiaries; and (C) notice of a violation,
citation or other administrative order which could reasonably be expected to result in a Material
Adverse Effect and (v) defend, indemnify and hold harmless the Agents and the Lenders and their
transferees, and their respective employees, agents, officers and directors, from and against any
claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses (including
attorney and consultant fees, investigation and laboratory fees, court costs and litigation
expenses) incurred by or asserted against such Person to the extent arising out of (A) the
presence, disposal, release or threatened release of any Hazardous Materials on any property at any
time owned or occupied by any Loan Party or any of its Subsidiaries (or its predecessors in
interest or title), (B) any personal injury (including wrongful death) or property damage (real or
personal) arising out of or related to such Hazardous Materials, (C) any investigation, lawsuit
brought or threatened, settlement reached or government order relating to such Hazardous Materials,
(D) any violation of any Environmental Law or (E) any Environmental Action filed against any Agent
or any Lender; provided that no Loan Party shall have any obligation under clause (v) to
the extent that the condition arises out of or relates to the gross negligence or willful
misconduct of any indemnified party or its agents or representatives or results in a violation of
Environmental Laws or the presence or release of Hazardous Materials that first occur at a
particular property after that property has been transferred to any indemnified party or their
successors or assigns.

          (k) Further Assurances.

               (i) Take such action and execute, acknowledge and deliver, and cause each of its Subsidiaries
to take such action and execute, acknowledge and deliver, at its sole cost and expense, such
agreements, instruments or other documents as any Agent may reasonably require from time to time in
order (A) to carry out more effectively the purposes of this Agreement and the other Loan
Documents, (B) to subject to valid and perfected first priority Liens (subject to Permitted Liens)
any of the Collateral or any other property of any Loan Party and its Subsidiaries (including
commercial tort claims, deposit accounts, securities accounts, and commodities accounts), (C) to
establish and maintain the validity and effectiveness of any of the Loan Documents and the
validity, perfection and priority of the Liens intended to be created

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thereby, and (D) to better
assure, convey, grant, assign, transfer and confirm unto each Agent, each Lender and the L/C Issuer
the rights now or hereafter intended to be granted to it under this Agreement or any other Loan
Document. In furtherance of the foregoing, to the maximum
extent permitted by applicable law, each Loan Party (x) authorizes each Agent to execute any
such agreements, instruments or other documents in such Loan Party’s name and to file such
agreements, instruments or other documents in any appropriate filing office, (y) authorizes each
Agent to file any financing statement required hereunder or under any other Loan Document, and any
continuation statement or amendment with respect thereto, in any appropriate filing office without
the signature of such Loan Party, and (z) ratifies the filing of any financing statement, and any
continuation statement or amendment with respect thereto, filed without the signature of such Loan
Party prior to the date hereof.

               (ii) Without limiting the generality of clause (i) above, at the Agents request, take such
action, and cause each of its Subsidiaries to take such action, at its sole cost and expense to
cause counsel to the PR Partnership to execute and deliver to the Agents and Lenders an opinion
substantially in the form of Exhibit 5.01(d) and as to such other matters as the Agents may
reasonably request.

          (l) Change in Collateral; Collateral Records. (i) Give the Agents not less than 10
days prior written notice of any change in the location of any material portion Collateral, other
than to (or in-transit between) locations set forth on Schedule 6.01(ff) and with respect
to which the Collateral Agent has filed financing statements and otherwise fully perfected its
Liens thereon, and (ii) execute and deliver, and cause each of its Subsidiaries to execute and
deliver, to the Agents for the benefit of the Agents and the Lenders from time to time, solely for
the Agents’ convenience in maintaining a record of Collateral, such written statements and
schedules as the Agents may reasonably request, designating, identifying or describing the
Collateral.

          (m) Landlord Waivers; Collateral Access Agreements.

               (i) At any time any Collateral related to the Borrowing Base is located on any real property
of the Borrower or any other Loan Party that is acquired after the Effective Date and which is not
owned by the Borrower or any other Loan Party (excluding temporary use of office space of
customers), use commercially reasonable efforts to obtain written subordinations or waivers, in
form and substance reasonably satisfactory to the Agents, of all present and future Liens to which
the owner or lessor of such premises may be entitled to assert against the Collateral located at
such premises; provided, that in the event the Loan Parties are unable to obtain any such
written subordination or waiver the Administrative Agent may, in its reasonable discretion,
establish such reserves as it deems necessary with respect to any such Collateral; and

               (ii) Use commercially reasonable efforts to obtain written access agreements, in form and
substance reasonably satisfactory to the Agents, providing access to Collateral related to the
Borrowing Base located on any new premises not owned by the Borrower or any other Loan Party
(excluding temporary use of office space of customers) in order to remove such Collateral or books
and records from such premises during an Event of Default; provided, that in the event the
Loan Parties are unable to obtain any such written access

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agreements, the Administrative Agent may,
in its reasonable discretion, establish such reserves as it deems necessary with respect to any
such Collateral.

          (n) Subordination. Cause all Indebtedness and other obligations now or hereafter owed
by any Loan Party to Parent or any of its Subsidiaries, to be subordinated in right of payment and
security to the Indebtedness and other Obligations owing to the Agents and the Lenders in
accordance with a subordination agreement in form and substance satisfactory to the Agents.

          (o) After Acquired Property. Upon the acquisition by it or any of its Subsidiaries of
any After Acquired Property, immediately so notify the Agents, setting forth with specificity a
description of the interest acquired, the location of the real property, any structures or
improvements thereon and either an appraisal or such Loan Party’s good-faith estimate of the
current value of such real property (for purposes of this Section, the “Current Value”).
The Collateral Agent shall notify such Loan Party whether it intends to require a Mortgage and the
other documents referred to below. Upon receipt of such notice requesting a Mortgage, the Person
which has acquired such After Acquired Property shall as promptly as practicable furnish to the
Collateral Agent the following, each in form and substance reasonably satisfactory to the
Collateral Agent: (i) a Mortgage with respect to such real property and related assets located at
the After Acquired Property, each duly executed by such Person and in recordable form; (ii)
evidence of the recording of the Mortgage referred to in clause (i) above in such office or offices
as may be necessary or, in the opinion of the Collateral Agent, desirable to create and perfect a
valid and enforceable first priority lien on the property purported to be covered thereby or to
otherwise protect the rights of the Agents and the Lenders thereunder, (iii) a Title Insurance
Policy, (iv) a survey of such real property, certified to the Collateral Agent and to the issuer of
the Title Insurance Policy by a licensed professional surveyor reasonably satisfactory to the
Collateral Agent, (v) Phase I Environmental Site Assessments with respect to such real property,
certified to the Collateral Agent by a company reasonably satisfactory to the Collateral Agent, ,
and (vi) such other documents or instruments (including guarantees and opinions of counsel) as the
Collateral Agent may reasonably require. The Borrower shall pay all fees and expenses, including
reasonable attorneys fees and expenses, and all title insurance charges and premiums, in connection
with each Loan Party’s obligations under this Section 7.01(o). Anything to the contrary
contained herein notwithstanding, the Collateral Agent shall not require (A) a Mortgage on any
leased real property, or (B) a Mortgage on any real property owned in fee if the mortgage recording
tax associated therewith is material (in the reasonable judgment of the Agents) in relation to the
Current Value

          (p) Fiscal Year. Cause the Fiscal Year of the Parent and its Subsidiaries to end on
December 31st of each calendar year unless the Agents consent to a change in such fiscal year of
Parent and its Subsidiaries (and appropriate related changes to this Agreement).

          (q) Intellectual Property. Notify the Agents prior to filing an application for the
registration of any copyright with the United States Copyright Office and, upon the request of the
Collateral Agent, promptly execute such documents and do such other acts or things deemed necessary
or desirable by Collateral Agent to perfect Collateral Agent’s Liens therein.

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     Section 7.02 Negative Covenants. So long as any principal of or interest on any
Loan, Reimbursement Obligation, Letter of Credit Obligation or any other Obligation (whether or not
due) (other than unasserted contingent indemnification Obligations) shall remain unpaid or any
Lender shall have any Commitment hereunder, each Loan Party shall not and shall not permit any
of its Subsidiaries to:

          (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its
Subsidiaries to create, incur, assume or suffer to exist, any Lien upon or with respect to any of
its properties, whether now owned or hereafter acquired; file or authorize under the Uniform
Commercial Code or any similar law or statute of any jurisdiction, a financing statement (or the
equivalent thereof) that names it or any of its Subsidiaries as debtor (other than in connection
with a potential refinancing of the Obligations); sign or suffer to exist any security agreement
authorizing any secured party thereunder to file such financing statement (or the equivalent
thereof); other than, as to all of the above, Permitted Liens.

          (b) Indebtedness. Create, incur, assume, guarantee or suffer to exist, or otherwise
become or remain liable with respect to, or permit any of its Subsidiaries to create, incur,
assume, guarantee or suffer to exist or otherwise become or remain liable with respect to, any
Indebtedness other than Permitted Indebtedness.

          (c) Fundamental Changes; Dispositions. Wind-up, liquidate or dissolve, or merge,
consolidate or amalgamate with any Person, or convey, sell, lease or sublease, transfer or
otherwise dispose of, whether in one transaction or a series of related transactions, all or any
part of its business, property or assets, whether now owned or hereafter acquired, or purchase or
otherwise acquire, whether in one transaction or a series of related transactions, all or
substantially all of the assets of any Person (or any division thereof), or permit any of its
Subsidiaries to do any of the foregoing; provided, however, that

               (i) the Parent and its Subsidiaries may enter into Permitted Mergers;

               (ii) the Parent and its Subsidiaries may enter into Permitted Reorganization Transactions; and

               (iii) the Parent and its Subsidiaries may make Permitted Dispositions.

          (d) Change in Nature of Business; Change in Independent Certified Public Accountant.
Make, or permit any of its Subsidiaries to make, any change in the nature of its business described
on Schedule 7.02(d) or acquire any properties or assets that are not reasonably related to
the conduct of such business activities or ancillary thereto. Make any change in its independent
certified public accountant without the prior written consent (which consent shall not be
unreasonably withheld) of the Agents.

          (e) Loans, Advances, Investments, Etc. Make any loan, advance, other extension of
credit or capital contributions to, or hold or invest in, or purchase or otherwise acquire any
shares of the Capital Stock, bonds, notes, debentures or other securities of, or make any other
investment in, any other Person, or purchase or own any futures contract or otherwise become liable
for the purchase or sale of currency or other commodities at a future date in the nature of a
futures contract, or permit any of its Subsidiaries to do any of the foregoing, except

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for: (i)
investments existing on the date hereof, as set forth on Schedule 7.02(e) hereto, but not
any increase in the amount thereof as set forth in such Schedule or any other modification of the
terms thereof, and (ii) Permitted Investments.

          (f) Lease Obligations. Create, incur or suffer to exist, or permit any of its
Subsidiaries to create, incur or suffer to exist, any obligations as lessee for the payment of rent
for any real or personal property in connection with any sale and leaseback transaction.

          (g) [Intentionally Omitted]

          (h) Restricted Payments. (i) Declare or pay any dividend or other distribution,
direct or indirect, on account of any Capital Stock of any Loan Party or any of its Subsidiaries,
now or hereafter outstanding, (ii) make any repurchase, redemption, retirement, defeasance, sinking
fund or similar payment, purchase or other acquisition for value, direct or indirect, of any
Capital Stock of any Loan Party or any direct or indirect parent of any Loan Party, now or
hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights for the purchase or acquisition of shares of any
class of Capital Stock of any Loan Party, now or hereafter outstanding, or (iv) pay any management
fees or any other fees or expenses (including the reimbursement thereof by any Loan Party or any of
its Subsidiaries) pursuant to any management agreement to any Affiliate of any Loan Party or any
Subsidiary of an Affiliate of a Loan Party; provided, however, that (A) any
Subsidiary of the Parent may pay dividends to its shareholders, (B) the Parent may pay dividends
in the form of common Capital Stock, and (C) common Capital Stock of the Parent may be issued upon
the conversion of the Senior Convertible Notes in accordance with the Indenture for the 10% Senior
Convertible Notes or the conversion of the Series A Preferred Stock into common Capital Stock.

          (i) Federal Reserve Regulations. Permit any Loan or the proceeds of any Loan under
this Agreement to be used for any purpose that would cause such Loan to be a margin loan under the
provisions of Regulation T, U or X of the Board.

          (j) Transactions with Affiliates. Enter into, renew, extend or be a party to, or
permit any of its Subsidiaries to enter into, renew, extend or be a party to, any transaction or
series of related transactions (including the purchase, sale, lease, transfer or exchange of
property or assets of any kind or the rendering of services of any kind) with any Affiliate, except
(i) in the ordinary course of business and necessary or desirable for the prudent operation of its
business, for fair consideration and on terms no less favorable to it or its Subsidiaries than
would be obtainable in a comparable arm’s length transaction with a Person that is not an Affiliate
thereof, (ii) transactions with another Loan Party, (iii) the payment of reasonable and customary
fees and out-of-pocket expenses of the members of the board of directors or officers of the Parent
or any of its Subsidiaries, (iv) reasonable and customary director, officer and employee
compensation (including bonuses) and other benefits (including retirement, health, stock option,
severance and other benefit plans) and, in the case of senior officers, indemnification
arrangements approved in good faith by the board of directors of the Parent, (iv) employment and
severance arrangements between the Parent and its Subsidiaries and their respective directors,
officers and employees, to the extent approved in good faith by the board of directors of the
Parent, (v) transactions permitted by Section 7.02(e) or (h), and (vi) transactions
contemplated by that certain 2007

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Amended and Restated Standstill Agreement dated as of July 16,
2007 among the Parent and the parties identified as “Investors” on the signature pages thereof as
of the date hereof.

          (k) Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries.
Create or otherwise cause, incur, assume, suffer or permit to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of any Subsidiary of any Loan
Party (i) to pay dividends or to make any other distribution on any shares of Capital Stock of such
Subsidiary owned by any Loan Party or any of its Subsidiaries, (ii) to pay or prepay or to
subordinate any Indebtedness owed to any Loan Party or any of its Subsidiaries, (iii) to make loans
or advances to any Loan Party or any of its Subsidiaries or (iv) to transfer any of its property or
assets to any Loan Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any of
the foregoing; provided, however, that nothing in any of clauses (i) through (iv)
of this Section 7.02(k) shall prohibit or restrict compliance with:

                    (A) this Agreement and the other Loan Documents;

                    (B) any agreements in effect on the date of this Agreement and described on
Schedule 7.02(k);

                    (C) any applicable law, rule or regulation (including applicable currency
control laws and applicable state corporate statutes restricting the payment of
dividends in certain circumstances);

                    (D) in the case of clause (iv), any agreement setting forth customary
restrictions on the subletting, assignment or transfer of any property or asset that
is leased or licensed;

                    (E) in the case of clause (iv), any agreement, instrument or other document
evidencing a Permitted Lien that restricts, on customary terms, the transfer of any
property or assets subject thereto;

                    (F) encumbrances or restrictions imposed by any Permitted Refinancing that is
otherwise permitted by the Loan Documents; provided that the encumbrances or
restrictions in the Indebtedness as extended, refinanced or modified are not
materially more restrictive than those that existed prior to such extension,
refinancing, or modification;

                    (G) customary restrictions and conditions contained in any agreement relating
to the sale of any property permitted under Section 7.02(c) pending
consummation of such sale;

                    (H) customary restrictions related to deposits or net worth imposed by
suppliers or landlords under contracts entered into in the ordinary course of
business;

                    (I) agreements evidencing Permitted Indebtedness incurred by a Subsidiary that
is not a Loan Party; or

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                    (J) subordination of intercompany indebtedness or restrictions on transfers,
dividends or loans to the extent required by applicable law or thin capitalization
rules.

          (l) Limitation on Issuance of Preferred Stock. Except for the issuance or sale of
Permitted Preferred Stock by the Parent, issue or sell or enter into any agreement or arrangement
for the issuance and sale of, or permit any of its Subsidiaries to issue or sell or enter into any
agreement or arrangement for the issuance and sale of, any shares of Preferred Stock, any
securities convertible into or exchangeable for Preferred Stock or any warrants, except, in each
case, to the Parent or a wholly owned Subsidiary of the Parent so long as such sale or issuance is
made subject to the Collateral Agent’s Liens on such Preferred Stock.

          (m) Modifications of Indebtedness, Organizational Documents and Certain Other Agreements;
Etc. (i) Amend, modify or otherwise change (or permit the amendment, modification or other
change in any manner of) its or any of its Subsidiaries’ Subordinated Debt or of any instrument or
agreement (including any purchase agreement, indenture, loan agreement or security agreement)
relating to any such Subordinated Debt if such amendment, modification or change would shorten the
final maturity or average life to maturity of, or require any payment to be made earlier than the
date originally scheduled on, such Subordinated Debt, would increase the interest rate applicable
to such Subordinated Debt, would change the subordination provisions of such Subordinated Debt, or
would otherwise be adverse to the Lenders or the issuer of such Subordinated Debt in any material
respect, (ii) except for the Obligations, make any voluntary or optional payment, prepayment,
redemption, defeasance, sinking fund payment, repurchase or other acquisition for value of any of
its or its Subsidiaries’ Indebtedness described in clauses (i) — (l) of the definition of
“Permitted Indebtedness” (including by way of depositing money or securities with the trustee
therefor before the date required for the purpose of paying any portion of such Indebtedness when
due), or refund, refinance, replace or exchange any other Indebtedness for any such Indebtedness
(except to the extent such refunded, refinanced, replaced, or exchanged Indebtedness is otherwise
expressly permitted by the definition of “Permitted Indebtedness”), or make any payment,
prepayment, redemption, defeasance, sinking fund payment or repurchase of any such Indebtedness as
a result of any asset sale, change of control, issuance and sale of debt or equity securities or
similar event, or give any notice with respect to any of the foregoing, (iii) except as permitted
by Section 7.02(c), amend, modify or otherwise change its name, jurisdiction of
organization, organizational identification number or FEIN, or (iv) amend, modify or otherwise
change its certificate of incorporation or bylaws (or other similar organizational documents),
including by the filing or modification of any certificate of designation, or any agreement or
arrangement entered into by it, with respect to any of its Capital Stock (including any
shareholders’ agreement), or enter into any new agreement with respect to any of its Capital Stock,
except any such amendments, modifications or changes or any such new agreements or arrangements
pursuant to this clause (iv) that either individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

          (n) Investment Company Act of 1940. Engage in any business, enter into any
transaction, use any securities or take any other action or permit any of its Subsidiaries to do
any of the foregoing, that would cause it or any of its Subsidiaries to become subject to the
registration requirements of the Investment Company Act of 1940, as amended, by virtue of

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being an
“investment company” or a company “controlled” by an “investment company” not entitled to an
exemption within the meaning of such Act.

          (o) Compromise of Accounts Receivable. Compromise or adjust any Account Receivable
(or extend the time of payment thereof) or grant any discounts, allowances or credits
or permit any of its Subsidiaries to do so other than, provided no Default or Event of Default
has occurred and is continuing, in the ordinary course of its business; provided,
however, in no event shall any such discount, allowance or credit exceed $200,000 in the
aggregate and no such extension of the time for payment extend beyond 60 days from the original due
date thereof.

          (p) ERISA. (i) Engage, or permit any ERISA Affiliate to engage, in any transaction
described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to engage, in any
prohibited transaction described in Section 406 of ERISA or 4975 of the IRC for which a statutory
or class exemption is not available or a private exemption has not previously been obtained from
the U.S. Department of Labor; (iii) adopt or permit any ERISA Affiliate to adopt any employee
welfare benefit plan within the meaning of Section 3(1) of ERISA which provides health or life
insurance benefits to employees after termination of employment other than as required by Section
601 of ERISA or applicable law; (iv) fail to make any contribution or payment to any Multiemployer
Plan which it or any ERISA Affiliate may be required to make under any agreement relating to such
Multiemployer Plan, or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to
fail, to pay any required installment or any other payment required under Section 412 of the IRC on
or before the due date for such installment or other payment.

          (q) Environmental. Permit the use, handling, generation, storage, treatment, release
or disposal of Hazardous Materials at any property owned or leased by it or any of its
Subsidiaries, unless such use, handling, generation, storage, treatment, release or disposal of
Hazardous Materials does not result in a Material Adverse Effect.

          (r) Certain Agreements. Agree to any material amendment or other material change to
or material waiver of any of its rights under any Material Contract, in each case that could
reasonably be expected to result in a Material Adverse Effect.

          (s) Canadian Employee Benefits. Incur any material liability or obligation under the
Canadian Employee Benefit Laws or establish any pension plan, deferred compensation plan,
retirement income plan, stock option or stock purchase plan, profit sharing plan, bonus plan or
policy, employee group insurance plan, program, policy or practice, formal or informal, with
respect to their respective employees in Canada, that in any such case, is equivalent or
substantially equivalent to a “defined benefit plan” (as defined in Section 3(35) of ERISA).

          (t) Inactive Subsidiaries. Permit any of the Inactive Subsidiaries to own any assets
(other than assets with a de minimis value), incur any liabilities (other than de minimis
liabilities), or engage in any business activity.

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          (u) Transfer Pricing. Other than as required by applicable law, modify, or permit any
Subsidiary to modify, its Transfer Pricing arrangements in a manner that has, or is reasonably
likely to have, a Material Adverse Effect on any Loan Party.

     Section 7.03 Financial Covenants. So long as any principal of or interest on any
Loan, Reimbursement Obligation, Letter of Credit Obligation or any other Obligation (whether or not
due) (other than unasserted contingent indemnification Obligations) shall remain unpaid or any
Lender shall have any Commitment hereunder, each Loan Party shall not:

          (a) Leverage Ratio. Permit the ratio of Consolidated Senior Debt of the Parent and
its Subsidiaries as of the last day of each fiscal quarter set forth below to TTM EBITDA of the
Parent and its Subsidiaries for the period ended as of the last day of such fiscal quarter to be
greater than the applicable ratio set forth opposite such period:

	 	 	 
	Applicable Period	 	Leverage Ratio
	For the 12 month period
ending September 30, 2007

	 	3.70:1.00
	For the 12 month period
ending December 31, 2007

	 	1.70:1.00
	For the 12 month period
ending March 31, 2008

	 	1.90:1.00
	For the 12 month period
ending June 30, 2008

	 	1.90:1.00
	For the 12 month period
ending September 30, 2008

	 	1.70:1.00
	For the 12 month period
ending December 31, 2008

	 	1.50:1.00
	For the 12 month period
ending March 31, 2009

	 	1.40:1.00
	For the 12 month period
ending June 30, 2009

	 	1.30:1.00
	For the 12 month period
ending September 30, 2009

	 	1.20:1.00
	For the 12 month period
ending December 31, 2009

	 	1.10:1.00
	For the 12 month period
ending March 31, 2010

	 	1.00:1.00
	For the 12 month period
ending June 30, 2010

	 	1.00:1.00
	For the 12 month period
ending September 30, 2010

	 	1.00:1.00
	For the 12 month period
ending December 31, 2010

	 	1.00:1.00
	For the 12 month period
ending March 31, 2011

	 	1.00:1.00

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	Applicable Period	 	Leverage Ratio
	For the 12 month period ending June 30, 2011

	 	1.00:1.00
	For the 12 month period
ending September 30, 2011

	 	1.00:1.00
	For the 12 month period
ending December 31, 2011

	 	1.00:1.00

          (b) Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio of the Parent
and its Subsidiaries for the period of 4 consecutive fiscal quarters ended as of the last day of
each fiscal quarter set forth below to be less than the applicable ratio set forth opposite such
date:

	 	 	 
	Fiscal Quarter End	 	Fixed Charge Coverage Ratio
	September 30, 2007

	 	1.40:1.00
	December 31, 2007

	 	1.30:1.00
	March 31, 2008

	 	1.50:1.00
	June 30, 2008

	 	1.30:1.00
	September 30, 2008

	 	1.90:1.00
	December 31, 2008

	 	1.90:1.00
	March 31, 2009

	 	1.90:1.00
	June 30, 2009

	 	1.90:1.00
	September 30, 2009

	 	1.90:1.00
	December 31, 2009

	 	1.90:1.00
	March 31, 2010

	 	1.90:1.00
	June 30, 2010

	 	1.90:1.00
	September 30, 2010

	 	1.90:1.00
	December 31, 2010

	 	1.90:1.00
	March 31, 2011

	 	1.90:1.00
	June 30, 2011

	 	1.90:1.00
	September 30, 2011

	 	1.90:1.00
	December 31, 2011

	 	1.90:1.00

          (c) Consolidated EBITDA. Permit Consolidated EBITDA of the Parent and its
Subsidiaries for the four quarter period ending on the date set forth below to be less than the
applicable amount set forth opposite such date for such four quarter period:

	 	 	 	 	 
	Fiscal Quarter End	 	Consolidated EBITDA
	September 30, 2007

	 	$	29,100,000	 
	December 31, 2007

	 	$	28,400,000	 
	March 31, 2008

	 	$	25,700,000	 
	June 30, 2008

	 	$	25,000,000	 
	September 30, 2008

	 	$	26,900,000	 
	December 31, 2008

	 	$	29,300,000	 
	March 31, 2009

	 	$	29,700,000	 
	June 30, 2009

	 	$	30,100,000	 
	September 30, 2009

	 	$	30,500,000	 

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	Fiscal Quarter End	 	Consolidated EBITDA
	December 31, 2009

	 	$	31,000,000	 
	March 31, 2010

	 	$	31,700,000	 
	June 30, 2010

	 	$	32,400,000	 
	September 30, 2010

	 	$	33,100,000	 
	December 31, 2010

	 	$	33,800,000	 
	March 31, 2011

	 	$	34,500,000	 
	June 30, 2011

	 	$	35,200,000	 
	September 30, 2011

	 	$	35,900,000	 
	December 31, 2011

	 	$	36,400,000	 

          (d) Capital Expenditures. Make Capital Expenditures in any Fiscal Year in excess of
the amount set forth in the following table for the applicable period:

	 	 	 	 	 
	Fiscal Year 2007

	 	$	6,700,000	 
	Fiscal Year 2008

	 	$	7,000,000	 
	Fiscal Year 2009

	 	$	5,900,000	 
	Fiscal Year 2010

	 	$	5,900,000	 
	Fiscal Year 2011

	 	$	5,900,000	 

ARTICLE VIII.

MANAGEMENT, COLLECTION AND STATUS OF

ACCOUNTS RECEIVABLE AND OTHER COLLATERAL

     Section 8.01 Collection of Accounts Receivable; Management of Collateral.

          (a) On or prior to the Effective Date, the Borrower and the Domestic Guarantors shall assist
the Administrative Agent in (i) establishing, and, during the term of this Agreement, maintaining
one or more lockboxes identified on Schedule 8.01 hereto (collectively, the
“Lockboxes”) with the financial institutions set forth on Schedule 8.01 hereto or
such other financial institutions selected by the Borrower and approved by the Administrative Agent
(which approval shall not be unreasonably withheld) (each being referred to as a “Lockbox
Bank”), and (ii) establishing, and during the term of this Agreement, maintaining an account
(the “Collection Account”) with each Lockbox Bank as set forth on Schedule 8.01.
The Borrower and the Domestic Guarantors shall irrevocably instruct their Account Debtors, with
respect to Accounts Receivable of the Borrower and the Domestic Guarantors, to remit all payments
to be made by checks or other drafts to the Lockboxes and to remit all payments to be made by wire
transfer or by Automated Clearing House, Inc. payment as directed by the Administrative Agent and
shall instruct each Lockbox Bank to deposit all amounts received in its Lockbox to the Collection
Account at such Lockbox Bank on the day received or, if such day is not a Business Day, on the next
succeeding Business Day. Until the Administrative Agent has advised the Borrower to the contrary
after the occurrence and during the continuance of an Event of Default, the Borrower and the
Domestic Guarantors may and will enforce, collect and receive all amounts owing on the

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Accounts Receivable of the Borrower and such Domestic Guarantors for the Administrative
Agent’s benefit and on the Administrative Agent’s behalf, but at the Borrower’s expense; such
privilege shall terminate, at the election of any Agent, upon the occurrence and during the
continuance of an Event of Default. All checks, drafts, notes, money orders, acceptances, cash and
other evidences of Indebtedness received directly by the Borrower or any Domestic Guarantor from
any Account Debtor, as proceeds from Accounts Receivable of the Borrower or such Domestic
Guarantor, or as proceeds of any other Collateral, shall be held by the Borrower or such Domestic
Guarantor in trust for the Agents and the Lenders and upon receipt be deposited by the Borrower or
such Domestic Guarantor in original form and no later than the next Business Day after receipt
thereof into a Collection Account. Neither the Borrower nor any Domestic Guarantor shall commingle
such collections with the Borrower’s or such Domestic Guarantor’s (as the case may be) own funds or
the funds of any Subsidiary or Affiliate of the Borrower or such Domestic Guarantor (as the case
may be) or with the proceeds of any assets not included in the Collateral. All funds received in
the Collection Account shall be sent by wire transfer or Automated Clearing House, Inc. payment to
the Payment Office to be credited to the Administrative Agent’s Account for application at the end
of each Business Day to reduce the then principal balance of the Revolving Loans, conditional upon
final payment to the Administrative Agent. No checks, drafts or other instruments received by the
Administrative Agent shall constitute final payment to the Administrative Agent unless and until
such checks, drafts or instruments have actually been collected.

          (b) After the occurrence and during the continuance of an Event of Default, the Collateral
Agent may, and at the request of the Administrative Agent or the Required Lenders, the Collateral
Agent shall, send a notice of assignment or notice of the Lenders’ security interest to any and all
Account Debtors and, thereafter, the Collateral Agent shall have the sole right to collect the
Accounts Receivable and payment intangibles of the Borrower and the Domestic Guarantors or take
possession of the Collateral and the books and records relating thereto. After the occurrence and
during the continuation of an Event of Default, the Borrower and the Domestic Guarantors shall not,
without prior written consent of the Agents, grant any extension of time of payment of any Account
Receivable or payment intangible, compromise or settle any Account Receivable or payment intangible
for less than the full amount thereof, release, in whole or in part, any Person or property liable
for the payment thereof, or allow any credit or discount whatsoever thereon.

          (c) The Borrower and each Domestic Guarantor hereby appoints each Agent or its designee on
behalf of such Agent as the Borrower’s and such Domestic Guarantor’s attorney-in-fact provided that
each Agent agrees not to exercise such power except upon the occurrence and during the continuance
of an Event of Default to (i) endorse the Borrower’s or such Domestic Guarantor’s name upon any
notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the
Accounts Receivable or payment intangibles of the Borrower or such Domestic Guarantor, (ii) sign
the Borrower’s or such Domestic Guarantor’s name on any invoice or bill of lading relating to any
of the Accounts Receivable or payment intangibles of the Borrower or such Domestic Guarantor,
drafts against Account Debtors with respect to Accounts Receivable or payment intangibles of the
Borrower or such Domestic Guarantor, assignments and verifications of Accounts Receivable or
payment intangibles and notices to Account Debtors with respect to Accounts Receivable or payment
intangibles of the Borrower or such Domestic Guarantor, (iii) send verification of Accounts
Receivable of the

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Borrower or such Domestic Guarantor, and (iv) notify the Postal Service authorities to change
the address for delivery of mail addressed to the Borrower or such Domestic Guarantor to such
address as such Agent may designate and to do all other acts and things necessary to carry out this
Agreement; provided that such Agent or designees shall use reasonable efforts to simultaneously
provide a copy of such notification to the Borrower or such Domestic Guarantor (it being understood
that failure of such Agent or designee to provide such notice to the Borrower shall not result in
liability to such Agent or designee hereunder). All acts of said attorney or designee are hereby
ratified and approved, and said attorney or designee shall not be liable for any acts of omission
or commission (other than acts of omission or commission constituting gross negligence or willful
misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction),
or for any error of judgment or mistake of fact or law; this power being coupled with an interest
is irrevocable until all of the Loans and other Obligations under the Loan Documents are paid in
full and all of the Commitments are terminated.

          (d) Nothing herein contained shall be construed to constitute any Agent as agent of the
Borrower or any Domestic Guarantor for any purpose whatsoever, and the Agents shall not be
responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the
Collateral wherever the same may be located and regardless of the cause thereof (other than from
acts of omission or commission constituting gross negligence or willful misconduct as determined by
a final non-appealable judgment of a court of competent jurisdiction). The Agents shall not, under
any circumstance or in any event whatsoever, have any liability for any error or omission or delay
of any kind occurring in the settlement, collection or payment of any of the Accounts Receivable of
the Borrower or the Domestic Guarantors or any instrument received in payment thereof or for any
damage resulting therefrom (other than acts of omission or commission constituting gross negligence
or willful misconduct as determined by a final non-appealable judgment of a court of competent
jurisdiction). The Agents, by anything herein or in any assignment or otherwise, do not assume any
of the obligations under any contract or agreement assigned to any Agent and shall not be
responsible in any way for the performance by the Borrower or any Domestic Guarantor of any of the
terms and conditions thereof.

          (e) If any Account Receivable of the Borrower or any Domestic Guarantor includes a charge for
any tax payable to any Governmental Authority, each Agent is hereby authorized (but in no event
obligated) in its discretion to pay the amount thereof to the proper taxing authority for the
Borrower’s account and to charge the Borrower therefor. The Borrower and the Domestic Guarantors
shall notify the Agents if any Account Receivable of the Borrower or the Domestic Guarantors
includes any taxes due to any such Governmental Authority and, in the absence of such notice, the
Agents shall have the right to retain the full proceeds of such Account Receivable and shall not be
liable for any taxes that may be due by reason of the sale and delivery creating such Account
Receivable.

          (f) Notwithstanding any other terms set forth in the Loan Documents, the rights and remedies
of the Agents and the Lenders herein provided, and the obligations of the Loan Parties set forth
herein, are cumulative of, may be exercised singly or concurrently with, and are not exclusive of,
any other rights, remedies or obligations set forth in any other Loan Document or as provided by
law.

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     Section 8.02 Accounts Receivable Documentation. The Borrower and the Domestic
Guarantors will at such intervals as the Administrative Agent may require, execute and deliver
confirmatory written assignments of the Accounts Receivable to the Administrative Agent and furnish
such further schedules or information as the Administrative Agent may reasonably request relating
to the Accounts Receivable, including sales invoices or the equivalent, credit memos issued,
remittance advices, reports and copies of deposit slips and copies of original shipping or delivery
receipts for all merchandise sold. In addition, the Borrower and the Domestic Guarantors shall
notify the Administrative Agent of any non compliance in respect of the representations, warranties
and covenants contained in Section 8.03. The items to be provided under this Section
8.02 are to be in form reasonably satisfactory to the Administrative Agent and are to be
executed and delivered to the Administrative Agent from time to time solely for their convenience
in maintaining records of the Collateral. The Borrower’s or any Domestic Guarantor’s failure to
give any of such items to the Administrative Agent shall not affect, terminate, modify or otherwise
limit the Collateral Agent’s Lien on the Collateral. Neither the Borrower nor any Domestic
Guarantor shall re-date any invoice or sale or make sales on extended dating beyond that customary
in the Borrower’s or such Domestic Guarantor’s industry, and shall not re-bill any Accounts
Receivable without promptly disclosing the same to the Administrative Agent and providing the
Administrative Agent with a copy of such re-billing, identifying the same as such. If the Borrower
or any Domestic Guarantor becomes aware of anything materially detrimental to any of the Borrower’s
or any Domestic Guarantor’s customers’ credit, the Borrower or such Domestic Guarantor will
promptly advise the Administrative Agent thereof.

     Section 8.03 Status of Accounts Receivable. With respect to Accounts Receivable of
any Loan Party at the time the Accounts Receivable becomes subject to the Collateral Agent’s Lien,
each Loan Party covenants, represents and warrants: (a) such Loan Party shall be the sole owner,
free and clear of all Liens (except for the Liens granted in the favor of the Collateral Agent for
the benefit of the Agents and the Lenders and Permitted Liens); (b) unless otherwise indicated in
writing to the Administrative Agent, each Account Receivable identified by Borrower as an Eligible
Account Receivable in a Borrowing Base report submitted to either Agent shall be a good and valid
account representing a bona fide indebtedness incurred by the Account Debtor therein named, for a
fixed sum as set forth in the invoice relating thereto; (c) no Eligible Account Receivable
identified by the Borrower or a Domestic Guarantor as an Eligible Account Receivable in a Borrowing
Base report submitted to either Agent shall be subject to any defense, offset, counterclaim,
discount or allowance except as may be stated in the invoice relating thereto, discounts and
allowances as may be customary in such Loan Party’s business and as otherwise disclosed to the
Agents; (d) none of the transactions underlying or giving rise to any Account Receivable identified
by the Borrower or a Domestic Guarantor as an Eligible Account Receivable in a Borrowing Base
report submitted to either Agent shall violate any applicable state or federal laws or regulations,
and all documents relating thereto shall be legally sufficient under such laws or regulations and
shall be legally enforceable in accordance with their terms; (e) no agreement under which any
deduction or offset of any kind, other than normal trade discounts, may be granted or shall have
been made by such Loan Party at or before the time any Account Receivable identified by the
Borrower or a Domestic Guarantor as an Eligible Account Receivable in a Borrowing Base report
submitted to either Agent is created; (f) all agreements, instruments and other documents relating
to any Account Receivable identified by the Borrower or a Domestic Guarantor as an Eligible Account
Receivable in a Borrowing Base

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report submitted to either Agent shall be true and correct in all material respects and in all
material respects what they purport to be; (g) to such Loan Party’s knowledge, all signatures and
endorsements that appear on all material agreements, instruments and other documents relating to
any Account Receivable identified by the Borrower or a Domestic Guarantor as an Eligible Account
Receivable in a Borrowing Base report submitted to either Agent shall be genuine and all
signatories and endorsers shall have full capacity to contract; (h) such Loan Party shall maintain
books and records pertaining to said Collateral in such detail, form and scope as the Agents shall
reasonably require; (i) such Loan Party shall promptly (and in any event within 5 Business Days)
notify the Agents if any Account Receivable identified by the Borrower or any Domestic Guarantor as
an Eligible Account Receivable in a Borrowing Base report submitted to either Agent arises out of
contracts with any Governmental Authority, and will execute any instruments and take any steps
required by the Agents in order that all monies due or to become due under any such contract shall
be assigned to the Collateral Agent and notice thereof given to such Governmental Authority under
the Federal Assignment of Claims Act or any similar state or local law; (j) such Loan Party will,
immediately upon learning thereof, report to the Agents any material loss or destruction of, or
substantial damage to, any of the Collateral, and any demand, notice, document or other information
received by it that question or calls into doubt the validity, enforceability or collectability of
any of the Eligible Accounts Receivable; (k) if any amount payable under or in connection with any
Account Receivable is evidenced by a promissory note or other instrument, such promissory note or
instrument shall be immediately pledged, endorsed, assigned and delivered to the Collateral Agent
for the benefit of the Agents and the Lenders as additional Collateral; (l) such Loan Party shall
not re-date any invoice or sale or make sales on extended dating beyond that which is customary in
the ordinary course of its business and in the industry; and (m) such Loan Party is not and shall
not be entitled to pledge any Agent’s or any Lender’s credit on any purchases or for any purpose
whatsoever.

     Section 8.04 Collateral Custodian. Upon the occurrence and during the continuance of
any Event of Default, the Collateral Agent may, and at the request of the Administrative Agent or
the Required Lenders, the Collateral Agent shall, at any time and from time to time employ and
maintain on the premises of any Loan Party a custodian selected by the Collateral Agent who shall
have full authority to do all acts necessary to protect the Agents’ and the Lenders’ interests.
Each Loan Party hereby agrees to, and to cause its Subsidiaries to, cooperate with any such
custodian and to do whatever the Collateral Agent may reasonably request to preserve the
Collateral. All costs and expenses incurred by the Collateral Agent by reason of the employment of
the custodian shall be the responsibility of the Borrower and charged to the Loan Account in
accordance with Section 4.02(a).

ARTICLE IX.

EVENTS OF DEFAULT

     Section 9.01 Events of Default. If any of the following Events of Default shall
occur and be continuing:

          (a) the Borrower shall fail to pay (i) any principal of any Loan when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise), or (ii) any interest
on any Loan, any Collateral Agent Advance, any Reimbursement Obligation, or

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any fee, indemnity or other amount payable under this Agreement or any other Loan Document when
due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise);

          (b) any representation or warranty made or deemed made by or on behalf of any Loan Party or by
any officer of the foregoing under or in connection with any Loan Document or under or in
connection with any report, certificate, or other document delivered to any Agent, any Lender or
the L/C Issuer pursuant to any Loan Document shall have been incorrect in any material respect when
made or deemed made;

          (c) any Loan Party shall fail to perform or comply with any covenant or agreement contained in
Section 7.01(a), Sections 7.02(a) — (m), Section 7.02(o),
Section 7.02(r), Section 7.03, Section 8.01(a), or Section 8.01(b);

          (d) any Loan Party shall fail to perform or comply with any other term, covenant or agreement
contained in any Loan Document to be performed or observed by it and, except as set forth in
subsections (a), (b), and (c), of this Section 9.01, such failure, if capable of being
remedied, shall remain unremedied for 20 days after the earlier of the date a senior officer of any
Loan Party becomes aware of such failure and the date written notice of such default shall have
been given by any Agent to such Loan Party;

          (e) the Parent or any of its Subsidiaries shall fail to pay any principal of or interest or
premium on any of its Indebtedness (excluding the Obligations) to the extent that the aggregate
principal amount of all such Indebtedness exceeds $1,000,000 when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument relating to
such Indebtedness, or any other default under any agreement or instrument relating to any such
Indebtedness, or any other event, shall occur and shall continue after the applicable grace period,
if any, specified in such agreement or instrument, if the effect of such default or event is to
accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such
Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a
regularly scheduled required prepayment), redeemed, purchased or defeased or an offer to prepay,
redeem, purchase or defease such Indebtedness shall be required to be made, in each case, prior to
the stated maturity thereof;

          (f) the Parent or any of its Subsidiaries (i) shall institute any proceeding or voluntary case
seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under
any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar
official for any such Person or for any substantial part of its property, (ii) shall be generally
not paying its debts as such debts become due or shall admit in writing its inability to pay its
debts generally, (iii) shall make a general assignment for the benefit of creditors, or (iv) shall
take any action to authorize or effect any of the actions set forth above in this subsection (f);

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          (g) any proceeding shall be instituted against the Parent or any of its Subsidiaries seeking
to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee, custodian or other
similar official for any such Person or for any substantial part of its property, and either such
proceeding shall remain undismissed or unstayed for a period of 30 days or any of the actions
sought in such proceeding (including the entry of an order for relief against any such Person or
the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property) shall occur;

          (h) any provision of any Loan Document shall at any time for any reason (other than pursuant
to the express terms thereof) cease to be valid and binding on or enforceable against any Loan
Party intended to be a party thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by any Loan Party or any Governmental
Authority having jurisdiction over any of them, seeking to establish the invalidity or
unenforceability thereof, or any Loan Party shall deny in writing that it has any liability or
obligation purported to be created under any Loan Document;

          (i) any Security Agreement, any Mortgage or any other security document, after delivery
thereof pursuant hereto, shall for any reason fail or cease to create a valid and perfected and,
except to the extent permitted by the terms hereof or thereof, first priority Lien in favor of the
Collateral Agent for the benefit of the Agents and the Lenders on any Collateral purported to be
covered thereby (other than Collateral with an aggregate fair market value not in excess of
$500,000);

          (j) any bank at which any deposit account, blocked account, or lockbox account of any Loan
Party is maintained shall fail to comply with any of the terms of any deposit account, blocked
account, lockbox account or similar agreement to which such bank is a party or any securities
intermediary, commodity intermediary or other financial institution at any time in custody, control
or possession of any investment property of any Loan Party shall fail to comply with any of the
terms of any investment property control agreement to which such Person is a party, and such Loan
Party fails to move the funds in such deposit account, blocked account, or lockbox account or the
investment property in control of such securities intermediary, commodity intermediary or other
financial institution (as the case may be) as soon as possible (but in no event later than 30 days)
after the date that any Agent or any Lender informs such Loan Party of such failure to comply;

          (k) one or more judgments, awards, or orders (or any settlement of any claim that, if
breached, could result in a judgment, order, or award) for the payment of money exceeding
$2,500,000 in the aggregate shall be rendered against Parent or any of its Subsidiaries and remain
unsatisfied, or the Parent or any of its Subsidiaries shall agree to the settlement of any one or
more pending or threatened actions, suits, or proceedings affecting any Loan Party before any court
or other Governmental Authority or any arbitrator or mediator, providing for the payment of money
exceeding $2,500,000 in the aggregate, and in the case of any such judgment, order, award or
settlement either (i) enforcement proceedings shall have been commenced by any creditor upon any
such judgment, order, award or settlement, or (ii) there shall be a period of 30 consecutive days
after entry thereof during which a stay of enforcement of any such

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judgment, order, award or settlement, by reason of a pending appeal or otherwise, shall not be in effect; provided, however,
that any such judgment, order, award or settlement shall not give rise to an
Event of Default under this subsection if and for so long as (A) the amount of such judgment,
order, award or settlement is covered by a valid and binding policy of insurance between the
defendant and the insurer covering full payment thereof and (B) such insurer has been notified, and
has not disputed the claim made for payment, of the amount of such judgment, order, award or
settlement;

          (l) the Parent or any of its Subsidiaries is enjoined, restrained or in any way prevented by
the order of any court or any Governmental Authority from conducting all or any material part of
the business of the Loan Parties taken as a whole for more than 30 consecutive days;

          (m) any cessation of a substantial part of the business of any Loan Party for a period of more
than 30 consecutive days which materially and adversely affects the ability of any Loan Party to
continue its business on a profitable basis;

          (n) the indictment of the Parent or any of its Subsidiaries under any criminal statute, or
commencement of criminal or civil proceedings against any Loan Party, pursuant to which statute or
proceedings the penalties or remedies sought or available include forfeiture to any Governmental
Authority of any material portion of the property of such Person, in each case, that could
reasonably be expected to result in a Material Adverse Effect;

          (o) any Loan Party or any of its ERISA Affiliates shall have made a complete or partial
withdrawal from a Multiemployer Plan, and, as a result of such complete or partial withdrawal, any
Loan Party or any of its ERISA Affiliates incurs a withdrawal liability in an annual amount
exceeding $1,000,000; or a Multiemployer Plan enters reorganization status under Section 4241 of
ERISA, and, as a result thereof any Loan Party’s or any of its ERISA Affiliates’ annual
contribution requirements with respect to such Multiemployer Plan increases in an annual amount
exceeding $1,000,000;

          (p) any Termination Event with respect to any Employee Plan shall have occurred, and, 30 days
after notice thereof shall have been given to any Loan Party by any Agent, (i) such Termination
Event (if correctable) shall not have been corrected, and (ii) the then current value of such
Employee Plan’s vested benefits exceeds the then current value of assets allocable to such benefits
in such Employee Plan by more than $1,000,000 (or, in the case of a Termination Event involving
liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of
ERISA or Section 4971 or 4975 of the IRC, the liability is in excess of such amount);

          (q) the Parent or any of its Subsidiaries shall be liable for any Environmental Liabilities
and Costs the payment of which could reasonably be expected to result in a Material Adverse Effect;
or

          (r) a Change of Control shall have occurred;

then, and in any such event, the Collateral Agent may, and shall at the request of the Required
Lenders, by notice to the Borrower, (i) terminate or reduce all Commitments, whereupon all

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Commitments shall immediately be so terminated or reduced, (ii) declare all or any portion of the
Loans and Reimbursement Obligations then outstanding to be due and payable, whereupon all or
such portion of the aggregate principal of all Loans and Reimbursement Obligations, all accrued and
unpaid interest thereon, all fees and all other amounts payable under this Agreement and the other
Loan Documents shall become due and payable immediately, without presentment, demand, protest or
further notice of any kind, all of which are hereby expressly waived by each Loan Party, and (iii)
exercise any and all of its other rights and remedies under applicable law, hereunder and under the
other Loan Documents; provided, however, that upon the occurrence of any Event of
Default described in subsection (f) or (g) of this Section 9.01, without
any notice to any Loan Party or any other Person or any act by any Agent or any Lender, all
Commitments shall automatically terminate and all Loans and Reimbursement Obligations then
outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts
due under this Agreement and the other Loan Documents shall become due and payable automatically
and immediately, without presentment, demand, protest or notice of any kind, all of which are
expressly waived by each Loan Party. Upon demand by the Administrative Agent after the occurrence
and during the continuation of any Event of Default, the Borrower shall deposit with the
Administrative Agent with respect to each Letter of Credit then outstanding cash in an amount equal
to 105% of the greatest amount for which such Letter of Credit may be drawn. Such deposits shall
be held by the Administrative Agent in the Letter of Credit Collateral Account as security for, and
to provide for the payment of, the Letter of Credit Obligations.

ARTICLE X.

AGENTS

     Section 10.01 Appointment. Each Lender (and each subsequent maker of any Loan by its
making thereof) hereby irrevocably appoints and authorizes the Administrative Agent and the
Collateral Agent to perform the duties of each such Agent as set forth in this Agreement including:
(i) to receive on behalf of each Lender any payment of principal of or interest on the Loans
outstanding hereunder and all other amounts accrued hereunder for the account of the Lenders and
paid to such Agent, and, subject to Section 2.02 of this Agreement, to distribute promptly
to each Lender its Pro Rata Share of all payments so received; (ii) to distribute to each Lender
copies of all material notices and agreements received by such Agent and not required to be
delivered to each Lender pursuant to the terms of this Agreement, provided that the Agents
shall not have any liability to the Lenders for any Agent’s inadvertent failure to distribute any
such notices or agreements to the Lenders; (iii) to maintain, in accordance with its customary
business practices, ledgers and records reflecting the status of the Obligations, the Loans, and
related matters and to maintain, in accordance with its customary business practices, ledgers and
records reflecting the status of the Collateral and related matters; (iv) to execute or file any
and all financing or similar statements or notices, amendments, renewals, supplements, documents,
instruments, proofs of claim, notices and other written agreements with respect to this Agreement
or any other Loan Document; (v) to make the Loans and Agent Advances, for such Agent or on behalf
of the applicable Lenders as provided in this Agreement or any other Loan Document; (vi) to
perform, exercise, and enforce any and all other rights and remedies of the Lenders with respect to
the Loan Parties, the Obligations, or otherwise related to any of same to the extent reasonably
incidental to the exercise by such Agent of the rights and remedies specifically authorized to be
exercised by such Agent by the terms of this Agreement or any

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other Loan Document; (vii) to incur
and pay such fees necessary or appropriate for the performance and fulfillment of its functions and
powers pursuant to this Agreement or any other Loan Document; and (viii) subject to Section 10.03 of this Agreement, to take such
action as such Agent deems appropriate on its behalf to administer the Loans and the Loan Documents
and to exercise such other powers delegated to such Agent by the terms hereof or the other Loan
Documents (including the power to give or to refuse to give notices, waivers, consents, approvals
and instructions and the power to make or to refuse to make determinations and calculations)
together with such powers as are reasonably incidental thereto to carry out the purposes hereof and
thereof. As to any matters not expressly provided for by this Agreement and the other Loan
Documents (including enforcement or collection of the Loans), the Agents shall not be required to
exercise any discretion or take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting) upon the instructions of the
Required Lenders, and such instructions of the Required Lenders shall be binding upon all Lenders
and all makers of Loans; provided, however, that the L/C Issuer shall not be
required to refuse to honor a drawing under any Letter of Credit and the Agents shall not be
required to take any action which, in the reasonable opinion of any Agent, exposes such Agent to
liability or which is contrary to this Agreement or any other Loan Document or applicable law.

     Section 10.02 Nature of Duties. The Agents shall have no duties or responsibilities
except those expressly set forth in this Agreement or in the other Loan Documents. The duties of
the Agents shall be mechanical and administrative in nature. The Agents shall not have by reason
of this Agreement or any other Loan Document a fiduciary relationship in respect of any Lender.
Nothing in this Agreement or any other Loan Document, express or implied, is intended to or shall
be construed to impose upon the Agents any obligations in respect of this Agreement or any other
Loan Document except as expressly set forth herein or therein. Each Lender shall make its own
independent investigation of the financial condition and affairs of the Loan Parties in connection
with the making and the continuance of the Loans hereunder and shall make its own appraisal of the
creditworthiness of the Loan Parties and the value of the Collateral, and the Agents shall have no
duty or responsibility, either initially or on a continuing basis, to provide any Lender with any
credit or other information with respect thereto, whether coming into their possession before the
initial Loan hereunder or at any time or times thereafter, provided that, upon the
reasonable request of a Lender, each Agent shall provide to such Lender any documents or reports
delivered to such Agent by the Loan Parties pursuant to the terms of this Agreement or any other
Loan Document. If any Agent seeks the consent or approval of the Required Lenders to the taking or
refraining from taking any action hereunder, such Agent shall send notice thereof to each Lender.
Each Agent shall promptly notify each Lender any time that the Required Lenders have instructed
such Agent to act or refrain from acting pursuant hereto.

     Section 10.03 Rights, Exculpation, Etc. The Agents and their directors, officers,
agents or employees shall not be liable for any action taken or omitted to be taken by them under
or in connection with this Agreement or the other Loan Documents, except for their own gross
negligence or willful misconduct as determined by a final non-appealable judgment of a court of
competent jurisdiction. Without limiting the generality of the foregoing, the Agents (i) may treat
the payee of any Loan as the owner thereof until the Collateral Agent receives written notice of
the assignment or transfer thereof, pursuant to Section 12.07 hereof, signed by such payee
and in form satisfactory to the Collateral Agent; (ii) may consult with legal counsel (including
counsel to any Agent or counsel to the Loan Parties), independent public accountants, and other
experts

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selected by any of them and shall not be liable for any action taken or omitted to be taken
in good faith by any of them in accordance with the advice of such counsel or experts; (iii) make
no warranty or representation to any Lender and shall not be responsible to any Lender for any
statements, certificates, warranties or representations made in or in connection with this
Agreement or the other Loan Documents; (iv) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions of this Agreement or
the other Loan Documents on the part of any Person, the existence or possible existence of any
Default or Event of Default, or to inspect the Collateral or other property (including the books
and records) of any Person; (v) shall not be responsible to any Lender for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or the
other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and
(vi) shall not be deemed to have made any representation or warranty regarding the existence, value
or collectability of the Collateral, the existence, priority or perfection of the Collateral
Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor
shall the Agents be responsible or liable to the Lenders for any failure to monitor or maintain any
portion of the Collateral. The provisions of this Section 10.03 are subject to, and shall
not limit in any respect, the provisions of Section 12.07. The Agents shall not be liable
for any apportionment or distribution of payments made in good faith pursuant to Section
4.04, and if any such apportionment or distribution is subsequently determined to have been
made in error the sole recourse of any Lender to whom payment was due but not made, shall be to
recover from other Lenders any payment in excess of the amount which they are determined to be
entitled. The Agents may at any time request instructions from the Lenders with respect to any
actions or approvals which by the terms of this Agreement or of any of the other Loan Documents the
Agents are permitted or required to take or to grant, and if such instructions are promptly
requested, the Agents shall be absolutely entitled to refrain from taking any action or to withhold
any approval under any of the Loan Documents until they shall have received such instructions from
the Required Lenders. Without limiting the foregoing, no Lender shall have any right of action
whatsoever against any Agent as a result of such Agent acting or refraining from acting under this
Agreement or any of the other Loan Documents in accordance with the instructions of the Required
Lenders.

     Section 10.04 Reliance. Each Agent shall be entitled to rely upon any written
notices, statements, certificates, orders or other documents or any telephone message believed by
it in good faith to be genuine and correct and to have been signed, sent or made by the proper
Person, and with respect to all matters pertaining to this Agreement or any of the other Loan
Documents and its duties hereunder or thereunder, upon advice of counsel selected by it.

     Section 10.05 Indemnification. To the extent that any Agent or the L/C Issuer is not
reimbursed and indemnified by any Loan Party, the Lenders will reimburse and indemnify such Agent
and the L/C Issuer from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, advances or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against such Agent or the L/C
Issuer in any way relating to or arising out of this Agreement or any of the other Loan Documents
or any action taken or omitted by such Agent or the L/C Issuer under this Agreement or any of the
other Loan Documents, in proportion to each Lender’s Pro Rata Share, including advances and
disbursements made pursuant to Section 10.08; provided, however, that no
Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions,

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judgments, suits, costs, expenses, advances or disbursements for which there
has been a final judicial determination that such liability resulted from such Agent’s or the L/C
Issuer’s gross negligence or willful misconduct. The obligations of the Lenders under this Section
10.05 shall survive the payment in full of the Loans and the termination of this Agreement.

     Section 10.06 Agents Individually. With respect to its Pro Rata Share of the Total
Commitment hereunder and the Loans made by it, each Agent shall have and may exercise the same
rights and powers hereunder and is subject to the same obligations and liabilities as and to the
extent set forth herein for any other Lender or maker of a Loan. The terms “Lenders” or
“Required Lenders” or any similar terms shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity as a Lender or one of the Required
Lenders. Each Agent and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of banking, trust or other business with the Borrower as if it were not acting
as an Agent pursuant hereto without any duty to account to the other Lenders.

     Section 10.07 Successor Agent.

          (a) Each Agent may resign from the performance of all its functions and duties hereunder and
under the other Loan Documents at any time by giving at least 30 Business Days prior written notice
to the Borrower and each Lender; provided that the Borrower and each Lender agree that Ableco may
resign as the Administrative Agent without any notice if Wells Fargo Foothill, Inc. or its
Affiliates is appointed as the successor Administrative Agent. Such resignation shall take effect
upon the acceptance by a successor Agent of appointment pursuant to clauses (b) and (c) below or as
otherwise provided below.

          (b) Upon any such notice of resignation, the Required Lenders shall appoint a successor Agent
which successor Agent shall, so long as no Event of Default shall have occurred and be continuing,
be reasonably acceptable to the Borrower (which consent shall not be unreasonably withheld,
delayed, or conditioned); provided that the Borrower hereby agrees that any of Wells Fargo
Foothill, Inc. or its Affiliates is an acceptable successor Administrative Agent. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under
this Agreement and the other Loan Documents. After any Agent’s resignation hereunder as an Agent,
the provisions of this Article X shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was an Agent under this Agreement and the other Loan Documents.

          (c) If a successor Agent shall not have been so appointed within said thirty (30) Business Day
period, the retiring Agent, with the consent (which consent shall not be unreasonably withheld,
delayed, or conditioned) of the other Agent shall then appoint a successor Agent who shall serve as
an Agent until such time, if any, as the Required Lenders, with the consent of the other Agent,
appoint a successor Agent as provided above.

     Section 10.08 Collateral Matters.

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          (a) Either Agent may from time to time make such disbursements and advances (“Agent
Advances”) which such Agent, in its sole discretion, deems necessary or desirable to preserve,
protect, prepare for sale or lease or dispose of the Collateral or any portion
thereof, to enhance the likelihood or maximize the amount of repayment by the Borrower of the
Loans, reimbursement obligations with respect to the Letters of Credit, and other Obligations or to
pay any other amount chargeable to the Borrower pursuant to the terms of this Agreement, including
costs, fees and expenses as described in Section 12.04; provided, however,
that (i) the Agents shall not make any Agent Advance that would cause the aggregate
principal amount of all Agent Advances outstanding at such time to exceed the lesser of (A)
$2,000,000, and (B) an amount equal to 10% of the Borrowing Base then in effect, without the prior
consent of the Required Lenders, (ii) the Administrative Agent shall not make any Agent Advance
that would cause the aggregate principal amount of all Agent Advances made by the Administrative
Agent outstanding at such time to exceed the lesser of (A) $1,000,000, and (B) an amount equal to
5% of the Borrowing Base then in effect, without the prior consent of the Collateral Agent, (iii)
the Collateral Agent shall not make any Agent Advance that would cause the aggregate principal
amount of all Agent Advances made by the Collateral Agent outstanding at such time to exceed the
lesser of (A) $1,000,000, and (B) an amount equal to 5% of the Borrowing Base then in effect,
without the prior consent of the Administrative Agent. The Agent Advances shall be repayable on
demand and be secured by the Collateral. The Agent Advances shall constitute Obligations hereunder
which may be charged to the Loan Account in accordance with Section 4.02. The Agent making such
Agent Advance shall notify each Lender and the Borrower in writing of each such Agent Advance,
which notice shall include a description of the purpose of such Agent Advance.

          (b) The Administrative Agent shall not make any Revolving Loans or provide any Letters of
Credit or Letter of Credit Guaranties to the Borrower intentionally and with actual knowledge that
such Revolving Loans, Letters of Credit, or Letter of Credit Guaranties (as the case may be) would
cause the aggregate amount of the total outstanding Revolving Loans and Letter of Credit
Obligations to exceed the Borrowing Base, without the prior consent of all Lenders, except that the
Administrative Agent may make such additional Revolving Loans or provide such additional Letters of
Credit or Letter of Credit Guaranties, intentionally and with actual knowledge that such Revolving
Loans, Letters of Credit, or Letter of Credit Guaranties (as the case may be) will cause the total
outstanding Revolving Loans and Letter of Credit Obligations to exceed the Borrowing Base, as the
Administrative Agent may deem necessary or advisable in its discretion; provided, however: (i) the
total principal amount of the additional Revolving Loans, Letters of Credit, or Letter of Credit
Guaranties (as the case may be) which the Administrative Agent may make or provide after obtaining
such actual knowledge that the aggregate principal amount of the Revolving Loans and Letter of
Credit Obligations equal or exceed the Borrowing Base shall not (A) exceed, when taken together
with Agent Advances made by the Administrative Agent, the lesser of (x) $1,000,000, and (y) an
amount equal to 5% of the Borrowing Base, and (B) cause the total principal amount of the Revolving
Loans and Letter of Credit Obligations to exceed the Total Revolving Credit Commitment, and (ii) no
such additional Revolving Loans, Letters of Credit, or Letter of Credit Guaranties (as the case may
be) shall be outstanding more than ninety (90) days from the date such additional Revolving Loan,
Letter of Credit, or Letter of Credit Guaranty was made or issued (as the case may be), except as
the Required Lenders may otherwise agree. Without limiting its obligations under Section 10.05,
each Revolving Loan Lender agrees that it shall make available to the Administrative Agent,

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upon the Administrative Agent’s demand, in Dollars in immediately available funds, an amount equal to
such Revolving Lender’s Pro Rata Share of each such Revolving Loan or obligation of the
Administrative Agent in respect of each such Letter of Credit or Letter of Credit Guaranty (as
the case may be). If such funds are not made available to the Administrative Agent by such
Revolving Loan Lender, the Administrative Agent shall be entitled to recover such funds on demand
from such Revolving Loan Lender, together with interest thereon for each day from the date such
payment was due until the date such amount is paid to the Administrative Agent, at the Federal
Funds Rate for 3 Business Days and thereafter at the Reference Rate. For the avoidance of doubt,
it is understood that, subject to the limitation set forth in clause (i)(A) above, this Section
10.08(b) shall not restrict the Administrative Agent’s ability to make Agent Advances.

          (c) The Lenders hereby irrevocably authorize the Collateral Agent, at its option and in its
discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral upon
termination of the Total Commitment and payment in full in cash of all Obligations; or constituting
property being sold or disposed of in compliance with the terms of this Agreement and the other
Loan Documents; or constituting property in which the Loan Parties owned no interest at the time
the Lien was granted or at any time thereafter; or if approved, authorized or ratified in writing
by the Lenders. Upon request by the Collateral Agent at any time, the Lenders will confirm in
writing the Collateral Agent’s authority to release particular types or items of Collateral
pursuant to this Section 10.08(c).

          (d) Without in any manner limiting the Collateral Agent’s authority to act without any
specific or further authorization or consent by the Lenders (as set forth in Section
10.08(c)), each Lender agrees to confirm in writing, upon request by the Collateral Agent, the
authority to release Collateral conferred upon the Collateral Agent under Section 10.08(c).
Upon receipt by the Collateral Agent of confirmation from the Lenders of its authority to release
any particular item or types of Collateral, and upon prior written request by any Loan Party, the
Collateral Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such
documents as may be necessary to evidence the release of the Liens granted to the Collateral Agent
for the benefit of the Agents and the Lenders upon such Collateral; provided, however, that (i) the
Collateral Agent shall not be required to execute any such document on terms which, in the
Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any
obligations or entail any consequence other than the release of such Liens without recourse or
warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations
or any Lien upon (or obligations of any Loan Party in respect of) all interests in the Collateral
retained by any Loan Party.

          (e) The Collateral Agent shall have no obligation whatsoever to any Lender to assure that the
Collateral exists or is owned by the Loan Parties or is cared for, protected or insured or has been
encumbered or that the Lien granted to the Collateral Agent pursuant to this Agreement or any other
Loan Document has been properly or sufficiently or lawfully created, perfected, protected or
enforced or is entitled to any particular priority, or to exercise at all or in any particular
manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to the Collateral Agent in this Section
10.08 or in any other Loan Document, it being understood and agreed that in respect of the
Collateral, or any act, omission or event related thereto, the Collateral Agent may act in any
manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest

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in the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or
liability whatsoever to any other Lender, except as otherwise provided herein.

     Section 10.09 Agency for Perfection. Each Lender hereby appoints each Agent and each
other Lender as agent and bailee for the purpose of perfecting the security interests in and liens
upon the Collateral in assets which, in accordance with Article 9 of the Code, can be perfected
only by possession or control (or where the security interest of a secured party with possession or
control has priority over the security interest of another secured party) and each Agent and each
Lender hereby acknowledges that it holds possession or control of any such Collateral for the
benefit of the Collateral Agent as secured party. Should any Lender obtain possession or control
of any such Collateral, such Lender shall notify the Collateral Agent thereof, and, promptly upon
the Collateral Agent’s request therefor shall deliver possession or control of such Collateral to
the Collateral Agent or in accordance with the Collateral Agent’s instructions. Each Loan Party by
its execution and delivery of this Agreement hereby consents to the foregoing.

ARTICLE XI.

GUARANTY

     Section 11.01 Guaranty. Each Guarantor hereby jointly and severally unconditionally
and irrevocably guarantees the punctual payment when due, whether at stated maturity, by
acceleration or otherwise, of all Obligations of the Borrower now or hereafter existing under any
Loan Document, whether for principal, interest (including all interest that accrues after the
commencement of any Insolvency Proceeding irrespective of whether a claim therefor is allowed in
such case or proceeding), fees, expenses or otherwise (such obligations, to the extent not paid by
the Borrower, being the “Guaranteed Obligations”), and agrees to pay any and all expenses
(including reasonable counsel fees and expenses of one primary counsel and any local counsel for
the Collateral Agent and one primary counsel and any local counsel for the Administrative Agent)
incurred by the Agents, the Lenders and the L/C Issuer (or any of them) in enforcing any rights
under the guaranty set forth in this Article. Without limiting the generality of the foregoing,
each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed
Obligations and would be owed by the Borrower to the Agents, the Lenders and the L/C Issuer under
any Loan Document but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving any Loan Party.

     Section 11.02 Guaranty Absolute. Each Guarantor jointly and severally guarantees
that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Loan
Documents, regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the Agents, the Lenders or the L/C Issuer
with respect thereto. Each Guarantor agrees that this Article constitutes a guaranty of payment
when due and not of collection and waives any right to require that any resort be made by any Agent
or any Lender to any Collateral. The obligations of each Guarantor under this Article are
independent of the Guaranteed Obligations, and a separate action or actions may be brought and
prosecuted against each Guarantor to enforce such obligations, irrespective of whether any action
is brought against any Loan Party or whether any Loan Party is joined in any such action or
actions. The liability of each Guarantor under this Article shall be irrevocable, absolute and

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unconditional irrespective of, and, to the extent permitted by law, each Guarantor hereby
irrevocably waives any defenses it may now or hereafter have in any way relating to, any or all of
the following:

          (a) any lack of validity or enforceability of any Loan Document or any agreement or instrument
relating thereto;

          (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from
any Loan Document, including any increase in the Guaranteed Obligations resulting from the
extension of additional credit to any Loan Party or otherwise;

          (c) any taking, exchange, release or non-perfection of any Collateral, or any taking, release
or amendment or waiver of or consent to departure from any other guaranty, for all or any of the
Guaranteed Obligations;

          (d) the existence of any claim, set-off, defense or other right that any Guarantor may have at
any time against any Person, including, without limitation, any Agent, any Lender or the L/C
Issuer;

          (e) any change, restructuring or termination of the corporate, limited liability company or
partnership structure or existence of any Loan Party; or

          (f) any other circumstance (including any statute of limitations) or any existence of or
reliance on any representation by the Agents, the Lenders or the L/C Issuer that might otherwise
constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or
surety.

          This Article shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by
the Agents, the Lenders, the L/C Issuer or any other Person upon the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, all as though such payment had not been made.

     Section 11.03 Waiver. To the extent permitted by law, each Guarantor hereby waives
(i) promptness and diligence, (ii) notice of acceptance and any other notice with respect to any
of the Guaranteed Obligations and this Article and any requirement that the Agents, the Lenders or
the L/C Issuer exhaust any right or take any action against any Loan Party or any other Person or
any Collateral, (iii) any right to compel or direct any Agent, any Lender or the L/C Issuer to seek
payment or recovery of any amounts owed under this Article from any one particular fund or source
or to exhaust any right or take any action against any other Loan Party, any other Person or any
Collateral, (iv) any requirement that any Agent, any Lender or the L/C Issuer protect, secure,
perfect or insure any security interest or Lien on any property subject thereto or exhaust any
right to take any action against any Loan Party, any other Person or any Collateral, and (v) any
other defense available to any Guarantor. Each Guarantor agrees that the Agents, the Lenders and
the L/C Issuer shall have no obligation to marshal any assets in favor of any Guarantor or against,
or in payment of, any or all of the Obligations. Each Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements

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contemplated herein and that the waiver set forth in this Section 11.03 is knowingly made in contemplation of such benefits.
To the extent permitted by law, each Guarantor hereby waives any right to revoke this Article, and acknowledges that this Article is continuing in nature
and applies to all Guaranteed Obligations, whether existing now or in the future.

     Section 11.04 Continuing Guaranty; Assignments. This Article is a continuing
guaranty and shall (a) remain in full force and effect until the later of (i) the cash payment in
full of the Guaranteed Obligations (other than indemnification obligations as to which no claim has
been made) and all other amounts payable under this Article and (ii) the Final Maturity Date, (b)
be binding upon each Guarantor, its successors and assigns and (c) inure to the benefit of and be
enforceable by the Agents, the Lenders and the L/C Issuer and their successors, pledgees,
transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender
may pledge, assign or otherwise transfer all or any portion of its rights and obligations under
this Agreement (including all or any portion of its Commitments, its Loans, the Reimbursement
Obligations and the Letter of Credit Obligations owing to it) to any other Person, and such other
Person shall thereupon become vested with all the benefits in respect thereof granted such Lender
herein or otherwise, in each case as provided in Section 12.07.

     Section 11.05 Subrogation. No Guarantor will exercise any rights that it may now or
hereafter acquire against any Loan Party or any other guarantor that arise from the existence,
payment, performance or enforcement of such Guarantor’s obligations under this Article, including
any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right
to participate in any claim or remedy of the Agents and the Lenders against any Loan Party or any
other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or
under contract, statute or common law, including the right to take or receive from any Loan Party
or any other guarantor, directly or indirectly, in cash or other property or by set-off or in any
other manner, payment or security solely on account of such claim, remedy or right, unless and
until all of the Guaranteed Obligations and all other amounts payable under this Article shall have
been paid in full in cash and the Final Maturity Date shall have occurred. If any amount shall be
paid to any Guarantor in violation of the immediately preceding sentence at any time prior to the
later of the payment in full in cash of the Guaranteed Obligations and all other amounts payable
under this Article and the Final Maturity Date, such amount shall be held in trust for the benefit
of the Agents and the Lenders and shall forthwith be paid to the Agents and the Lenders to be
credited and applied to the Guaranteed Obligations and all other amounts payable under this
Article, whether matured or unmatured, in accordance with the terms of this Agreement, or to be
held as Collateral for any Guaranteed Obligations or other amounts payable under this Article
thereafter arising. If (i) any Guarantor shall make payment to the Agents and the Lenders of all
or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other
amounts payable under this Article shall be paid in full in cash and (iii) all Commitments have
been terminated, the Agents and the Lenders will, at such Guarantor’s request and expense, execute
and deliver to such Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the
Guaranteed Obligations resulting from such payment by such Guarantor. Notwithstanding anything to
the contrary contained in this Section 11.05, no Guarantor shall exercise any rights of
subrogation, contribution, indemnity, reimbursement or other similar rights against, and shall not
proceed or seek recourse against or with respect to any property or asset of, any Loan Party
(including after payment in full of the

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Guaranteed Obligations and any other amounts payable under this Article or after termination of the Commitments) if all or any portion of the Obligations
shall have been satisfied in connection with an exercise of remedies in respect of the Capital Stock of such Loan Party whether
pursuant to the Security Agreement or otherwise.

     Section 11.06 German Guarantor.

          (a) Each Agent and each Lender agrees to restrict the enforcement of any guarantee or
indemnity granted by a Guarantor which is organized under the laws of Germany and constituted in
the form of a German limited liability company “Gesellschaft mit beschränkter Haftung — GmbH”
(each, a “Relevant German Guarantor”) only if and only to the extent (sofern und soweit)
that (i) such guarantee or indemnity secures the liabilities of an Affiliate other than the
liabilities of any Subsidiary of a Relevant German Guarantor and — for the avoidance of doubt —
the liabilities of such Relevant German Guarantor and (ii) the payment under such guarantee or
indemnity towards the secured obligation would otherwise cause the Relevant German Guarantor’s net
assets, taking into account good will and other hidden reserves in its assets, to fall not only
temporarily below its registered share capital “Stammkapital”. For the purposes of the calculation
of any sums to be enforced, loans or other liabilities incurred in violation of the provisions of
the Loan Documents shall be disregarded.

          (b) In a situation where a Relevant German Guarantor does not have sufficient assets to
maintain its registered share capital as described in clause (a) above, such Relevant German
Guarantor shall, to the extent permitted by the applicable Insolvency Laws, dispose, in
consultation with the Agents, of all assets which are not necessary for its business “n“icht
betriebsnotwendig” on market terms where the relevant assets are shown in the balance sheet of such
Relevant German Guarantor with a book value which is lower than the market value of such assets.

          (c) The limitation pursuant to this Section 11.06 shall not apply if following the
call of guarantee obligations “Inanspruchnahme” or the enforcement of security interests by an
Agent or a Lender, the Relevant German Guarantor does not provide conclusive evidence to such Agent
or Lender, in particular by submitting interim financial statements for the last completed month
within 10 Business Days following receipt of such call of guarantee obligations or enforcement of
security interests, or, following receipt of interim financial statements, by submitting audited
financial statements up to the same month within 25 Business Days following a further request by an
Agent or a Lender.

ARTICLE XII.

MISCELLANEOUS

     Section 12.01 Notices, Etc. All notices and other communications provided for
hereunder shall be in writing and shall be mailed, telecopied or delivered, if to any Loan Party,
at the following address:

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PRG-SCHULTZ USA, INC.

600 Galleria Parkway, Suite 100

Atlanta, GA 30339

Attention: Peter Limeri; Vic Allums

Telephone: 770-779-3243; 770-779-6610

Telecopier: 770-779-3034

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with a copy to:

TROUTMAN SANDERS LLP

Suite 5200

600 Peachtree Street, N.E.

Atlanta, GA 30308-2216

Attention: Hazen H. Dempster

Telephone: 404-885-3126

Telecopier: 404-962-6544

if to the Administrative Agent, to it at the following address:

ABLECO FINANCE LLC

299 Park Avenue, 22nd Floor

New York, New York 10171

Attention: Eric Miller

Telephone: 212-891-1549

Telecopier: 212-891-1541

with a copy to:

PAUL, HASTINGS, JANOFSKY & WALKER LLP

515 South Flower Street

Los Angeles, CA 90071

Attention: John Francis Hilson, Esq.

Telephone: 213-683-6300

Telecopier: 213-996-3300

if to the Collateral Agent, to it at the following address:

ABLECO FINANCE LLC

299 Park Avenue, 22nd Floor

New York, New York 10171

Attention: Eric Miller

Telephone: 212-891-1549

Telecopier: 212-891-1541

with a copy to:

PAUL, HASTINGS, JANOFSKY & WALKER LLP

515 South Flower Street

Los Angeles, CA 90071

Attention: John Francis Hilson, Esq.

Telephone: 213-683-6300

Telecopier: 213-996-3300

or, as to each party, at such other address as shall be designated by such party in a written
notice to the other parties complying as to delivery with the terms of this Section 12.01.
All such

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notices and other communications shall be effective, (i) if mailed, when received or 3 days after
deposited in the mails, whichever occurs first, (ii) if telecopied, when transmitted and
confirmation received, or (iii) if delivered, upon delivery, except that notices to any Agent or
the L/C Issuer pursuant to Articles II and III shall not be effective until received by such Agent
or the L/C Issuer, as the case may be.

     Section 12.02 Amendments, Etc.

          (a) Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be
amended, waived, or modified except in accordance with the provisions of this Section 12.02.
Subject to the additional requirements of Sections 12.02(b), the Required Lenders and each
Loan Party party to the relevant Loan Document may (or, with the consent of the Required Lenders,
the Collateral Agent and each Loan Party party to the relevant Loan Document), from time to time,
(i) enter into written amendments, waivers, or modifications hereto or to the other Loan Documents,
or written consents to any departure herefrom or therefrom, or (ii) enter into written waivers, on
such terms and conditions as the Required Lenders (or, with the consent of the Required Lenders,
the Collateral Agent) may specify in such waivers, of any of the terms or provisions of this
Agreement or the other Loan Documents or of any Default or Event of Default and its consequences.

          (b) No amendment, waiver, modification, or consent shall:

               (i) increase the amount or extend the expiration date of any Commitment of any Lender, forgive
the principal amount or extend the final scheduled date of maturity of any Loan or Reimbursement
Obligation, extend the scheduled date of any amortization payment in respect of any Loan, reduce
the stated rate of interest on any Loan or any fee payable hereunder (except (x) in connection with
the waiver of applicability of the Post-Default Rate (which waiver shall be effective with the
written consent of the Required Lenders), and (y) that any amendment or modification of defined
terms used in the financial covenants in this Agreement shall not constitute a reduction in the
stated rate of interest or a reduction of fees for purposes of this clause (i)) or extend the
scheduled date of payment thereof, in each case without the written consent of each Lender directly
affected thereby,

               (ii) increase the Total Commitment without the written consent of each Lender,

               (iii) eliminate or change the voting rights of any Lender under this Section 12.02
without the written consent of such Lender,

               (iv) reduce the percentage specified in the definition of “Required Lenders” or amend the
definition of “Pro Rata Share”, without the written consent of each Lender,

               (v) amend the definitions of “Borrowing Base”, “Eligible Accounts Receivable”,
“Eligible Backlog”, or “Net Amount of Eligible Accounts Receivable”, in each case,
in a manner that increases the borrowing availability of the Borrower, without the written consent
of each Lender,

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               (vi) release the Borrower or consent to the assignment or transfer by the Borrower of any of
its rights or duties under this Agreement or the other Loan Documents, release all or substantially
all of the Collateral, release all or substantially all of the Guarantors from their obligations
under the Loan Documents, or subordinate any Lien granted in to the Collateral Agent (other than in
respect of Permitted Liens), in each case without the written consent of each Lender,

               (vii) amend, modify or waive Section 4.04 or this Section 12.02 of this
Agreement, without the written consent of each Lender,

               (viii) amend, modify, or waive any provision of Section 10 pertaining to the
Collateral Agent, the definition of, or the terms or provisions of, the Fee Letter, or any other
rights or duties of the Collateral Agent under this Agreement or the other Loan Documents, without
the written consent of the Collateral Agent, and

               (ix) amend, modify, or waive any provision of Section 10 pertaining to the
Administrative Agent or any other rights or duties of the Administrative Agent under this Agreement
or the other Loan Documents, without the written consent of the Administrative Agent.

     Section 12.03 No Waiver; Remedies, Etc. No failure on the part of any Agent or any
Lender to exercise, and no delay in exercising, any right hereunder or under any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right
under any Loan Document preclude any other or further exercise thereof or the exercise of any other
right. The rights and remedies of the Agents and the Lenders provided herein and in the other Loan
Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies
provided by law. The rights of the Agents and the Lenders under any Loan Document against any
party thereto are not conditional or contingent on any attempt by the Agents and the Lenders to
exercise any of their rights under any other Loan Document against such party or against any other
Person.

     Section 12.04 Expenses; Taxes; Attorneys Fees. The Borrower will pay on demand, all
reasonable out-of-pocket costs and expenses incurred by or on behalf of each Agent (and, in the
case of clauses (b) through (m) below, each Lender), regardless of whether the transactions
contemplated hereby are consummated, including reasonable out-of-pocket fees, costs, client charges
and expenses of one primary counsel and any local counsel for the Collateral Agent and one primary
counsel and any local counsel for the Administrative Agent, accounting, due diligence, periodic
field audits, physical counts, valuations, investigations, searches and filings, monitoring of
assets, appraisals of Collateral, title searches and reviewing environmental assessments,
miscellaneous disbursements, examination, travel, lodging and meals, arising from or relating to:
(a) the negotiation, preparation, execution, delivery, performance and administration of this
Agreement and the other Loan Documents (including the preparation of any additional Loan Documents
pursuant to Section 7.01(b) or the review of any of the agreements, instruments and
documents referred to in Section 7.01(f)), (b) any requested amendments, waivers or
consents to this Agreement or the other Loan Documents whether or not such documents become
effective or are given, (c) the preservation and protection of any of the Lenders’ rights under
this Agreement or the other Loan Documents, (d) the defense of any claim

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or action asserted or brought against any Agent or any Lender by any Person that arises from
or relates to this Agreement, any other Loan Document, the Agents’ or the Lenders’ claims against
any Loan Party, or any and all matters in connection therewith, (e) the commencement or defense of,
or intervention in, any court proceeding arising from or related to this Agreement or any other
Loan Document, (f) the filing of any petition, complaint, answer, motion or other pleading by any
Agent or any Lender, or the taking of any action in respect of the Collateral or other security, in
connection with this Agreement or any other Loan Document, (g) the protection, collection, lease,
sale, taking possession of or liquidation of, any Collateral or other security in connection with
this Agreement or any other Loan Document, (h) any attempt to enforce any Lien or security interest
in any Collateral or other security in connection with this Agreement or any other Loan Document,
(i) any attempt to collect from any Loan Party, (j) all liabilities and costs arising from or in
connection with the past, present or future operations of any Loan Party involving any damage to
real or personal property or natural resources or harm or injury alleged to have resulted from any
Release of Hazardous Materials on, upon or into such property, (k) any Environmental Liabilities
and Costs incurred in connection with the investigation, removal, cleanup or remediation of any
Hazardous Materials present or arising out of the operations of any facility owned or operated by
any Loan Party, (l) any Environmental Liabilities and Costs incurred in connection with any
Environmental Lien, or (m) the receipt by any Agent or any Lender of any advice from professionals
with respect to any of the foregoing. Without limitation of the foregoing or any other provision
of any Loan Document: (x) the Borrower agrees to pay all stamp, document, transfer, recording or
filing taxes or fees and similar impositions now or hereafter determined by any Agent or any Lender
to be payable in connection with this Agreement or any other Loan Document, and the Borrower agrees
to save each Agent and each Lender harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or delay in paying any
such taxes, fees or impositions, (y) the Borrower agrees to pay all broker fees that may become due
in connection with the transactions contemplated by this Agreement and the other Loan Documents,
and (z) if the Borrower fails to perform any covenant or agreement contained herein or in any other
Loan Document, any Agent may itself perform or cause performance of such covenant or agreement, and
the expenses of such Agent incurred in connection therewith shall be reimbursed on demand by the
Borrower.

     Section 12.05 Right of Set-off.

          (a) Each of the Lenders agrees that it shall not, without the express written consent of the
Agents, and that it shall, to the extent it is lawfully entitled to do so, upon the written request
of either Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or
any deposit accounts of Borrower now or hereafter maintained with such Lender. Each of the Lenders
further agrees that it shall not, unless specifically requested to do so in writing by either
Agent, take or cause to be taken any action, including, the commencement of any legal or equitable
proceedings, to foreclose any Lien on, or otherwise enforce any security interest in, any of the
Collateral.

          (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for
any such proceeds or payments received by such Lender from Administrative Agent pursuant to the
terms of this Agreement, or (ii) payments from

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Administrative Agent in excess of such Lender’s ratable portion of all such distributions by
Administrative Agent, such Lender promptly shall (1) turn the same over to Administrative Agent, in
kind, and with such endorsements as may be required to negotiate the same to Administrative Agent,
or in immediately available funds, as applicable, for the account of all of the Lenders and for
application to the Obligations in accordance with the applicable provisions of this Agreement, or
(2) purchase, without recourse or warranty, an undivided interest and participation in the
Obligations owed to the other Lenders so that such excess payment received shall be applied ratably
as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to the
extent that such excess payment received by the purchasing party is thereafter recovered from it,
those purchases of participations shall be rescinded in whole or in part, as applicable, and the
applicable portion of the purchase price paid therefor shall be returned to such purchasing party,
but without interest except to the extent that such purchasing party is required to pay interest in
connection with the recovery of the excess payment.

     Section 12.06 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

     Section 12.07 Assignments and Participations.

          (a) This Agreement and the other Loan Documents shall be binding upon and inure to the benefit
of each Loan Party and each Agent and each Lender and their respective successors and permitted
assigns; provided, however, that none of the Loan Parties may assign or transfer
any of its rights hereunder or under the other Loan Documents without the prior written consent of
each Lender and any such assignment without the Lenders’ prior written consent shall be null and
void.

          (b) Each Lender may (x) with the written consent of the Collateral Agent (which consent shall
not be unreasonably withheld, conditioned or delayed), assign to one or more other lenders or other
entities all or a portion of its rights and obligations under this Agreement with respect to (A)
all or a portion of its Term Loan Commitment and any Term Loan made by it, or (B) all or a portion
of its Delayed Draw Term Loan Commitment and any Delayed Draw Term Loan made by it, and (y) with
the written consent of each Agent (which consent shall not be unreasonably withheld, conditioned or
delayed), assign to one or more other lenders or other entities all or a portion of its rights and
obligations under this Agreement with respect to all or a portion of its Revolving Credit
Commitment and the Revolving Loans made by it; provided, however, that (i) such
assignment is in an amount which is at least $5,000,000 or a multiple of $1,000,000 in excess
thereof (or the remainder of such Lender’s Commitment) (except such minimum amount shall not apply
to an assignment by a Lender to (x) an Affiliate of such Lender or a Related Fund of such Lender or
(y) a group of new Lenders, each of whom is an Affiliate or Related Fund of each other of each
other to the extent the aggregate amount to be assigned to all such new Lenders is at least
$5,000,000 or a multiple of $1,000,000 in excess thereof), (ii) so long as no Event of Default has
occurred and is continuing, such assignment is made in consultation with (but without the
requirement of consent of) the Borrower (except such consultation shall not be required in
connection with an assignment by a Lender to another Lender, an Affiliate of such Lender, a Related
Fund of such Lender, or Wells Fargo Foothill, Inc.

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or its Affiliates), (iii) except as provided in the last sentence of this Section
12.07(b), the parties to each such assignment shall execute and deliver to the Collateral Agent
(and the Administrative Agent, if applicable), for its acceptance, an Assignment and Acceptance,
together with any promissory note subject to such assignment and such parties shall deliver to the
Collateral Agent, for the benefit of the Collateral Agent, a processing and recordation fee of
$5,000 (except the payment of such fee shall not be required (y) in connection with an assignment
by a Lender to an Affiliate of such Lender or to a Related Fund of such Lender or (z) if Collateral
Agent, in its sole discretion, waives payment of such fee), and (iv) no written consent of the
Collateral Agent or the Administrative Agent shall be required (1) in connection with any
assignment by a Lender to an Affiliate of such Lender or a Related Fund of such Lender or (2) if
such assignment is in connection with any merger, consolidation, sale, transfer, or other
disposition of all or any substantial portion of the business or loan portfolio of such Lender.
Upon such execution, delivery and acceptance, from and after the effective date specified in each
Assignment and Acceptance, which effective date shall be at least 3 Business Days after the
delivery thereof to the Collateral Agent (or such shorter period as shall be agreed to by the
Collateral Agent and the parties to such assignment), (A) the assignee thereunder shall become a
“Lender” hereunder and, in addition to the rights and obligations hereunder held by it immediately
prior to such effective date, have the rights and obligations hereunder that have been assigned to
it pursuant to such Assignment and Acceptance and (B) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment
and Acceptance, relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto). Notwithstanding anything to the contrary contained in this Section
12.07(b), a Lender may assign any or all of its rights under the Loan Documents to an Affiliate
of such Lender or a Related Fund of such Lender without delivering an Assignment and Acceptance to
the Agents or to any other Person (a “Related Party Assignment”); provided,
however, that (I) the Borrower and the Administrative Agent may continue to deal solely and
directly with such assigning Lender until an Assignment and Acceptance has been delivered to the
Administrative Agent for recordation on the Register, (II) the Collateral Agent may continue to
deal solely and directly with such assigning Lender until receipt by the Collateral Agent of a copy
of the fully executed Assignment and Acceptance pursuant to Section 12.07(e), (III) the
failure of such assigning Lender to deliver an Assignment and Acceptance to the Agents shall not
affect the legality, validity, or binding effect of such assignment, and (IV) an Assignment and
Acceptance between the assigning Lender and an Affiliate of such Lender or a Related Fund of such
Lender shall be effective as of the date specified in such Assignment and Acceptance and recorded
on the Related Party Register (as such term is defined in Section 12.07(d) herein).

          (c) By executing and delivering an Assignment and Acceptance, the assigning Lender and the
assignee thereunder confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other Loan Document furnished pursuant hereto; (ii) the assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
any Loan Party or any of its Subsidiaries or the performance

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or observance by any Loan Party of any of its obligations under this Agreement or any other
Loan Document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy
of this Agreement and the other Loan Documents, together with such other documents and information
it has deemed appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the
assigning Lender, any Agent or any 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 this Agreement and the other Loan Documents; (v) such assignee appoints and authorizes
the Agents to take such action as agents on its behalf and to exercise such powers under this
Agreement and the other Loan Documents as are delegated to the Agents by the terms hereof and
thereof, together with such powers as are reasonably incidental hereto and thereto; and (vi) such
assignee agrees that it will perform in accordance with their terms all of the obligations which by
the terms of this Agreement and the other Loan Documents are required to be performed by it as a
Lender.

          (d) The Administrative Agent shall, acting solely for this purpose as a non-fiduciary agent of
the Borrower, maintain, or cause to be maintained at the Payment Office, a copy of each Assignment
and Acceptance delivered to and accepted by it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders and the Commitments of, and the principal
amount of the Loans (and stated interest thereon) (the “Registered Loans”) and Letter of
Credit Obligations owing to each Lender from time to time. Subject to the last sentence of this
Section 12.07(d), the entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and the Borrower, the Agents and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.
The Register shall be available for inspection by the Borrower and any Lender at any reasonable
time and from time to time upon reasonable prior notice. In the case of an assignment pursuant to
the last sentence of Section 12.07(b) as to which an Assignment and Acceptance is not
delivered to the Administrative Agent, the assigning Lender shall, acting solely for this purpose
as a non-fiduciary agent of the Borrower, maintain a register (the “Related Party
Register”) comparable to the Register on behalf of the Borrower. Any such Related Party
Register shall be available for inspection by the Borrower, any Agent and any Lender at any
reasonable time and from time to time upon reasonable prior notice.

          (e) Upon receipt by the Administrative Agent of an Assignment and Acceptance, and subject to
any consent required from the Administrative Agent or the Collateral Agent pursuant to Section
12.07(b) (which consent of the Collateral Agent must be evidenced by the Collateral Agent’s
execution of an acceptance to such Assignment and Acceptance), the Administrative Agent shall
accept such assignment, record the information contained therein in the Register and provide to the
Collateral Agent a copy of the fully executed Assignment and Acceptance.

          (f) A Registered Loan (and the registered note, if any, evidencing the same) may be assigned
or sold in whole or in part only by registration of such assignment or sale on the Register or the
Related Party Register (and each registered note shall expressly so provide). Any assignment or
sale of all or part of such Registered Loan (and the registered note, if any, evidencing the same)
may be effected only by registration of such assignment or sale on the Register or the Related
Party Register, together with the surrender of the registered note, if any,

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evidencing the same duly endorsed by (or accompanied by a written instrument of assignment or
sale duly executed by) the holder of such registered note, whereupon, at the request of the
designated assignee(s) or transferee(s), one or more new registered notes in the same aggregate
principal amount shall be issued to the designated assignee(s) or transferee(s). Prior to the
registration of assignment or sale of any Registered Loan (and the registered note, if any,
evidencing the same), the Agents shall treat the Person in whose name such Registered Loan (and the
registered note, if any, evidencing the same) is registered as the owner thereof for the purpose of
receiving all payments thereon, notwithstanding notice to the contrary.

          (g) In the event that any Lender sells participations in a Registered Loan, such Lender shall
maintain a register for this purpose as a non-fiduciary agent of the Borrower on which it enters
the name of all participants in the Registered Loans held by it and the principal amount (and
stated interest thereon) of the portion of the Registered Loan that is the subject of the
participation (the “Participant Register”). A Registered Loan (and the registered note, if
any, evidencing the same) may be participated in whole or in part only by registration of such
participation on the Participant Register (and each registered note shall expressly so provide).
Any participation of such Registered Loan (and the registered note, if any, evidencing the same)
may be effected only by the registration of such participation on the Participant Register. Any
such Participant Register shall be available for inspection by the Borrower, any Agent and any
Lender at any reasonable time and from time to time upon reasonable prior notice.

          (h) Any Non-U.S. Lender who is assigned an interest in any portion of such Registered Loan
pursuant to an Assignment and Acceptance shall comply with Section 2.08(d).

          (i) Each Lender may sell participations to one or more banks or other entities in or to all or
a portion of its rights and obligations under this Agreement and the other Loan Documents
(including, all or a portion of its Commitments, the Loans made by it, and its Pro Rata Share of
the Letter of Credit Obligations); provided, that (i) such Lender’s obligations under this
Agreement (including without limitation, its Commitments hereunder) and the other Loan Documents
shall remain unchanged; (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, and the Borrower, the Agents 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 and the other Loan Documents; and (iii) a participant shall
not be entitled to require such Lender to take or omit to take any action hereunder except (A)
action directly effecting an extension of the maturity dates or decrease in the principal amount of
the Loans or the Letter of Credit Obligations, (B) action directly effecting an extension of the
due dates or a decrease in the rate of interest payable on the Loans or the fees payable under this
Agreement, or (C) actions directly effecting a release of all or a substantial portion of the
Collateral or any Loan Party (except as set forth in Section 10.08 of this Agreement or any
other Loan Document). The Loan Parties agree that each participant shall be entitled to the
benefits of Section 2.08 and Section 4.05 of this Agreement with respect to its
participation in any portion of the Commitments and the Loans as if it was a Lender.

     Section 12.08 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of this Agreement by telefacsimile shall be

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equally as effective as delivery of an original executed counterpart of this Agreement. Any
party delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an
original executed counterpart of this Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.
The foregoing shall apply to each other Loan Document mutatis mutandis.

     Section 12.09 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS
EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT)
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE
TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

     Section 12.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. EACH OF THE
PARTIES HERETO AGREE THAT ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW
YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY IRREVOCABLY ACCEPTS IN RESPECT
OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS; PROVIDED,
HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT,
AT COLLATERAL AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE COLLATERAL AGENT ELECTS TO
BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH PARTY HERETO
HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES, AND
DOCUMENTS IN ANY SUIT, ACTION, OR PROCEEDING BROUGHT IN THE UNITED STATES OF AMERICA ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS BY THE MAILING (BY
REGISTERED MAIL OR CERTIFIED MAIL, POSTAGE PREPAID) OR DELIVERING OF A COPY OF SUCH PROCESS TO (i)
WITH RESPECT TO LOAN PARTIES, C/O THE BORROWER, AT THE BORROWER’S ADDRESS FOR NOTICES AS SET FORTH
IN SECTION 12.01, AND (ii) WITH RESPECT TO OTHER PARTIES HERETO AT THE ADDRESS FOR NOTICES
FOR SUCH PARTY SET FORTH IN SECTION 12.01. THE PARTIES HERETO AGREE 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 HEREIN SHALL AFFECT THE RIGHT
OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY HERETO IN ANY OTHER JURISDICTION. EACH PARTY
HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS
BEEN BROUGHT IN AN INCONVENIENT

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FORUM. TO THE EXTENT THAT ANY PARTY HERETO HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     Section 12.11 WAIVER OF JURY TRIAL, ETC. EACH LOAN PARTY, EACH AGENT AND EACH LENDER
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY
RIGHTS UNDER THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT,
INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN
CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS
AGREEMENT, AND AGREES THAT ANY SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY. EACH LOAN PARTY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT OR ANY
LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE
FOREGOING WAIVERS. EACH LOAN PARTY HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE AGENTS AND THE LENDERS ENTERING INTO THIS AGREEMENT.

     Section 12.12 Consent by the Agents and Lenders. Except as otherwise expressly set
forth herein to the contrary, if the consent, approval, satisfaction, determination, judgment,
acceptance or similar action (an “Action”) of any Agent or any Lender shall be permitted or
required pursuant to any provision hereof or any provision of any other agreement to which any Loan
Party is a party and to which any Agent or any Lender has succeeded thereto, such Action shall be
required to be in writing (which may be by electronic mail) and may be withheld or denied by such
Agent or such Lender, in its sole discretion, with or without any reason, and without being subject
to question or challenge on the grounds that such Action was not taken in good faith.

     Section 12.13 No Party Deemed Drafter. Each of the parties hereto agrees that no
party hereto shall be deemed to be the drafter of this Agreement.

     Section 12.14 Reinstatement; Certain Payments. If any claim is ever made upon any
Agent, any Lender or the L/C Issuer for repayment or recovery of any amount or amounts received by
such Agent, such Lender or the L/C Issuer in payment or on account of any of the Obligations, such
Agent, such Lender or the L/C Issuer shall give prompt notice of such claim to each other Agent and
Lender and the Borrower, and if such Agent, such Lender or the L/C Issuer repays all or part of
such amount by reason of (i) any judgment, decree or order of any court or administrative body
having jurisdiction over such Agent, such Lender or the L/C Issuer or any of its property, or (ii)
any good faith settlement or compromise of any such claim effected by such

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Agent, such Lender or the L/C Issuer with any such claimant, then and in such event each Loan
Party agrees that (A) any such judgment, decree, order, settlement or compromise shall be binding
upon it notwithstanding the cancellation of any Indebtedness hereunder or under the other Loan
Documents or the termination of this Agreement or the other Loan Documents, and (B) it shall be and
remain liable to such Agent, such Lender or the L/C Issuer hereunder for the amount so repaid or
recovered to the same extent as if such amount had never originally been received by such Agent,
such Lender or the L/C Issuer.

     Section 12.15 Indemnification. In addition to each Loan Party’s other Obligations
under this Agreement, each Loan Party agrees to, jointly and severally, defend, protect, indemnify
and hold harmless each Agent, each Lender and the L/C Issuer and all of their respective officers,
directors, employees, attorneys, consultants and agents (collectively called the
“Indemnitees”) from and against any and all losses, damages, liabilities, obligations,
penalties, fees, reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket
attorneys fees, costs and expenses of one primary counsel and any local counsel for the Collateral
Agent and one primary counsel and any local counsel for the Administrative Agent) incurred by such
Indemnitees, whether prior to or from and after the Effective Date, whether direct, indirect or
consequential, as a result of or arising from or relating to or in connection with any of the
following: (i) the negotiation, preparation, execution or performance or enforcement of this
Agreement, any other Loan Document or of any other document executed in connection with the
transactions contemplated by this Agreement, (ii) any Agent’s or any Lender’s furnishing of funds
to the Borrower or the L/C Issuer’s issuing of Letters of Credit for the account of the Borrower
under this Agreement or the other Loan Documents, including the management of any such Loans, the
Reimbursement Obligations or the Letter of Credit Obligations, (iii) any matter relating to the
financing transactions contemplated by this Agreement or the other Loan Documents or by any
document executed in connection with the transactions contemplated by this Agreement or the other
Loan Documents, or (iv) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto (collectively, the “Indemnified
Matters”); provided, however, that the Loan Parties shall not have any
obligation to any Indemnitee under this Section 12.15 for any Indemnified Matter caused by
the gross negligence or willful misconduct of such Indemnitee, as determined by a final
non-appealable judgment of a court of competent jurisdiction or caused by a breach of such
Indemnitee’s obligations hereunder or under any Loan Document. Such indemnification for all of the
foregoing losses, damages, fees, costs and expenses of the Indemnitees are chargeable against the
Loan Account. To the extent that the undertaking to indemnify, pay and hold harmless set forth in
this Section 12.15 may be unenforceable because it is violative of any law or public
policy, each Loan Party shall, jointly and severally, contribute the maximum portion which it is
permitted to pay and satisfy under applicable law, to the payment and satisfaction of all
Indemnified Matters incurred by the Indemnitees. This Indemnity shall survive the repayment of the
Obligations and the discharge of the Liens granted under the Loan Documents.

     Section 12.16 Records. The unpaid principal of and interest on the Loans, the
interest rate or rates applicable to such unpaid principal and interest, the duration of such
applicability, the Commitments, and the accrued and unpaid fees payable pursuant to Sections
2.06 or 3.03 hereof, shall at all times be ascertained from the records of the Agents,
which shall be conclusive and binding absent manifest error.

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     Section 12.17 Binding Effect. This Agreement shall become effective when it shall
have been executed by each Loan Party, each Agent and each Lender and thereafter shall be binding
upon and inure to the benefit of each Loan Party, each Agent and each Lender, and their respective
successors and permitted assigns, except that the Loan Parties shall not have the right to assign
their rights hereunder or any interest herein without the prior written consent of each Lender, and
any assignment by any Lender shall be governed by Section 12.07 hereof.

     Section 12.18 Interest. It is the intention of the parties hereto that each Agent
and each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the
transactions contemplated hereby or by any other Loan Document would be usurious as to any Agent or
any Lender under laws applicable to it (including the laws of the United States of America and the
State of New York or any other jurisdiction whose laws may be mandatorily applicable to such Agent
or such Lender notwithstanding the other provisions of this Agreement), then, in that event,
notwithstanding anything to the contrary in this Agreement or any other Loan Document or any
agreement entered into in connection with or as security for the Obligations, it is agreed as
follows: (i) the aggregate of all consideration which constitutes interest under law applicable to
any Agent or any Lender that is contracted for, taken, reserved, charged or received by such Agent
or such Lender under this Agreement or any other Loan Document or agreements or otherwise in
connection with the Obligations shall under no circumstances exceed the maximum amount allowed by
such applicable law, any excess shall be canceled automatically and if theretofore paid shall be
credited by such Agent or such Lender on the principal amount of the Obligations (or, to the extent
that the principal amount of the Obligations shall have been or would thereby be paid in full,
refunded by such Agent or such Lender, as applicable, to the Borrower); and (ii) in the event that
the maturity of the Obligations is accelerated by reason of any Event of Default under this
Agreement or otherwise, or in the event of any required or permitted prepayment, then such
consideration that constitutes interest under law applicable to any Agent or any Lender may never
include more than the maximum amount allowed by such applicable law, and excess interest, if any,
provided for in this Agreement or otherwise shall be canceled automatically by such Agent or such
Lender, as applicable, as of the date of such acceleration or prepayment and, if theretofore paid,
shall be credited by such Agent or such Lender, as applicable, on the principal amount of the
Obligations (or, to the extent that the principal amount of the Obligations shall have been or
would thereby be paid in full, refunded by such Agent or such Lender to the Borrower). All sums
paid or agreed to be paid to any Agent or any Lender for the use, forbearance or detention of sums
due hereunder shall, to the extent permitted by law applicable to such Agent or such Lender, be
amortized, prorated, allocated and spread throughout the full term of the Loans until payment in
full so that the rate or amount of interest on account of any Loans hereunder does not exceed the
maximum amount allowed by such applicable law. If at an time and from time to time (i) the amount
of interest payable to any Agent or any Lender on any date shall be computed at the Highest Lawful
Rate applicable to such Agent or such Lender pursuant to this Section 12.18 and (ii) in
respect of any subsequent interest computation period the amount of interest otherwise payable to
such Agent or such Lender would be less than the amount of interest payable to such Agent or such
Lender computed at the Highest Lawful Rate applicable to such Agent or such Lender, then the amount
of interest payable to such Agent or such Lender in respect of such subsequent interest computation
period shall continue to be computed at the Highest Lawful Rate applicable to such Agent or such
Lender until the total amount of interest payable to such Agent or such Lender shall equal the
total amount of interest which would have been payable to such Agent or such

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Lender if the total amount of interest had been computed without giving effect to this
Section 12.18.

          For purposes of this Section 12.18, the term “applicable law” shall mean that law in
effect from time to time and applicable to the loan transaction between the Borrower, on the one
hand, and the Agents and the Lenders, on the other, that lawfully permits the charging and
collection of the highest permissible, lawful non-usurious rate of interest on such loan
transaction and this Agreement, including laws of the State of New York and, to the extent
controlling, laws of the United States of America.

          The right to accelerate the maturity of the Obligations does not include the right to
accelerate any interest that has not accrued as of the date of acceleration.

     Section 12.19 Confidentiality. Each Agent and each Lender agrees (on behalf of
itself and each of its affiliates, directors, officers, employees and representatives) to keep
confidential, in accordance with its customary procedures for handling confidential information of
this nature and in accordance with safe and sound practices of comparable companies, any material
non-public information supplied to it by the Loan Parties pursuant to this Agreement or the other
Loan Documents (and which at the time is not, and does not thereafter become, publicly available or
available to such Person from another source not known to be subject to a confidentiality
obligation to such Person not to disclose such information), provided that nothing herein
shall limit the disclosure of any such information (i) to the extent required by statute, rule,
regulation or judicial process, (ii) to counsel for any Agent or any Lender (it being understood
that the person to whom such disclosure is made will be informed of the confidential nature of such
information and instructed to keep such information confidential), (iii) to examiners, auditors,
accountants or Securitization Parties (it being understood that the person to whom such disclosure
is made will be informed of the confidential nature of such information and instructed to keep such
information confidential), (iv) in connection with any litigation to which any Agent or any Lender
is a party or (v) to any assignee or participant (or prospective assignee or participant) so long
as such assignee or participant (or prospective assignee or participant) first agrees, in writing,
to be bound by confidentiality provisions similar in substance to this Section 12.19. Each
Agent and each Lender agrees that, upon receipt of a request or identification of the requirement
for disclosure pursuant to clause (iv) hereof, it will make reasonable efforts to keep the Loan
Parties informed of such request or identification; provided that each Loan Party
acknowledges that each Agent and each Lender may make disclosure as required or requested by any
Governmental Authority or representative thereof and that each Agent and each Lender may be subject
to review by Securitization Parties or other regulatory agencies and may be required to provide to,
or otherwise make available for review by, the representatives of such parties or agencies any such
non-public information.

     Section 12.20 Section Headings. Headings and numbers have been set forth herein for
convenience only. Unless the contrary is compelled by the context, everything contained in each
Section applies equally to this entire Agreement.

     Section 12.21 Integration. This Agreement, together with the other Loan Documents,
reflects the entire understanding of the parties with respect to the transactions contemplated

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hereby and shall not be contradicted or qualified by any other agreement, oral or written,
before the date hereof.

     Section 12.22 Release of Security Interest or Guaranty. Upon the sale or other
disposition of any Collateral that is expressly permitted by this Agreement or which has been
expressly consented to in accordance with the terms hereof, or the sale or other disposition of all
of the Capital Stock of a Guarantor that is permitted by this Agreement or to which has been
consented to in accordance with the terms hereof, for which a Loan Party desires to obtain a
release, such Loan Party shall deliver to the Agents a certificate of an Authorized Officer (a)
stating that the Collateral or the Capital Stock subject to such disposition is being sold or
otherwise disposed of in compliance with the terms hereof and (b) specifying the Collateral or
Capital Stock being sold or otherwise disposed of in the proposed transaction. Upon the receipt of
such certificate the Collateral Agent shall, at such Loan Party’s expense, so long as the
Collateral Agent (i) has no reason to believe that the facts stated in such certificate are not
true and correct, and (ii) shall have received evidence satisfactory to it that arrangements
reasonably satisfactory to it have been made for delivery of the Net Cash Proceeds if and as
required by Section 2.05(c), execute and deliver such releases as may be reasonably
requested by such Loan Party. Upon payment in full in cash of the Obligations in accordance with
the provisions of this Agreement and the expiration or termination of the Commitments, the Liens
granted by any Loan Document shall terminate and all rights to the Collateral shall revert to the
Loan Parties or any other Person entitled thereto. At such time, Collateral Agent will execute and
deliver such documents and termination statements to terminate such Liens as any Loan Party
reasonably requests to evidence such termination.

     Section 12.23 Acknowledgment of Prior Obligations and Continuation Thereof. Each
Loan Party (a) consents to the amendment and restatement of the Original Financing Agreement by
this Agreement; (b) acknowledges and agrees that (i) its obligations owing to Agents and Lenders,
and (ii) the prior grant or grants of security interests in favor of Agents and Lenders in its
properties and assets, under each “Loan Document” as defined in the Original Financing Agreement
(the “Original Loan Documents”), and each Loan Document to which it is a party shall be in
respect of the obligations of such Loan Party under this Agreement and the other Loan Documents;
(c) reaffirms (i) all of its obligations owing to Agents and Lenders, and (ii) all prior grants of
security interests in favor of Agents and Lenders under each Original Loan Document, each Loan
Document, or any instrument securing the obligations under the Original Loan Documents or the Loan
Documents; and (d) agrees that, except as expressly amended hereby or in connection herewith, each
of the Original Loan Documents to which it is a party is and shall remain in full force and effect.
The Borrower hereby confirms and agrees that all outstanding principal (if any), interest (if any)
and fees and other obligations under the Original Financing Agreement immediately prior to the
Effective Date shall, to the extent not paid on the Effective Date, from and after the Effective
Date, be, without duplication, Obligations owing and payable pursuant to this Agreement and the
other Loan Documents as in effect from time to time, shall accrue interest thereon as specified in
this Agreement, and shall be secured by this Agreement and the other Loan Documents. Although each
Loan Party has been informed of the matters set forth herein and has acknowledged and agreed to
same, it understands that Agents and Lenders shall have no obligation to inform it of such matters
in the future or to seek its acknowledgement or agreement to future amendments or modifications,
and nothing herein shall create such a duty.

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     Section 12.24 No Novation. This Agreement does not extinguish the obligations for
the payment of money outstanding under the Original Financing Agreement or discharge or release the
obligations or the liens or priority of any mortgage, pledge, security agreement or any other
security therefor. Nothing herein contained shall be construed as a substitution or novation of
the obligations outstanding under the Original Financing Agreement, the other Original Loan
Documents or instruments securing the same, which shall remain in full force and effect, except as
modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in
this Agreement shall be construed as a release or other discharge of the Borrower or any Guarantor
from any of its obligations or liabilities under the Original Financing Agreement or any of the
security agreements, pledge agreements, mortgages, guaranties or other loan documents executed in
connection therewith. Each Loan Party hereby (a) confirms and agrees that each Original Loan
Document to which it is a party that is not being amended and restated concurrently herewith is,
and shall continue to be, in full force and effect and is hereby ratified and confirmed in all
respects except that on and after the Effective Date, all references in any such Original Loan
Document to “the Financing Agreement,” “thereto,” “thereof,” “thereunder” or words of like import
referring to the Original Financing Agreement shall mean the Original Financing Agreement as
amended and restated by this Agreement; and (b) confirms and agrees that to the extent that any
such Original Loan Document purports to assign or pledge to any Agent or Lenders or to grant to any
Agent or Lenders a security interest in or lien on, any collateral as security for the obligations
of such Loan Party from time to time existing in respect of the Original Financing Agreement or the
Original Loan Document, such pledge or assignment or grant of the security interest or lien is
hereby ratified and confirmed in all respects with respect to this Agreement and the Loan
Documents.

     Section 12.25 Judgment Currency.

          (a) Each payment in respect of any obligation of the Borrower or any Guarantor hereunder or
any other Loan Document shall be made in Dollars (the “Obligation Currency”) with respect
to such Obligation. The specification under this Agreement of Dollars is of the essence. The Loan
Parties’ obligations hereunder and under the other Loan Documents to make payments in the
Obligation Currency shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation Currency, except to
the extent that such tender or recovery results in the effective receipt by the Administrative
Agent or the respective Lender of the full amount of the Obligation Currency expressed to be
payable to the Administrative Agent or such Lender under this Agreement or the other Loan
Documents. If, for the purpose of obtaining or enforcing judgment against any Loan Party in any
court or in any jurisdiction, it becomes necessary to convert into or from any currency other than
the Obligation Currency (such other currency being hereinafter referred to as the “Judgment
Currency”) an amount due in the Obligation Currency, the conversion shall be made at the Dollar
Equivalent determined as of the Business Day immediately preceding the day on which the judgment is
given (such Business Day being hereinafter referred to as the “Judgment Currency Conversion
Date”).

          (b) If there is a change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, the Loan Parties covenant and
agree to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser
amount) as may be necessary to ensure that the amount paid in the

132

 

Judgment Currency, when converted at the rate of exchange prevailing on the date of payment,
will produce the amount of the Obligation Currency which could have been purchased with the amount
of Judgment Currency stipulated in the judgment or judicial award at the rate of exchange
prevailing on the Judgment Currency Conversion Date.

          (c) For purposes of determining the Dollar Equivalent or any other rate of exchange for this
Section 12.25, such amounts shall include any premium and costs payable in connection with
the purchase of the Obligation Currency.

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

133

 

	 	 	 	 	 
	 	BORROWER: 

PRG-SCHULTZ INTERNATIONAL, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ USA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GUARANTORS:

PRG-SCHULTZ CANADA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP MEXICO, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

134

 

	 	 	 	 	 
	 	PRG-SCHULTZ PUERTO RICO, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP COSTA RICA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ CHILE, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG INTERNATIONAL, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRGFS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

135

 

	 	 	 	 	 
	 	PRGTS, LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HS&A ACQUISITION — UK, INC.,

a Texas corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ AUSTRALIA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ BELGIUM, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ EUROPE, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

136

 

	 	 	 	 	 
	 	THE PROFIT RECOVERY GROUP GERMANY, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ FRANCE, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP NETHERLANDS, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP NEW ZEALAND, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ SCANDINAVIA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

137

 

	 	 	 	 	 
	 	PRG-SCHULTZ PORTUGAL, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ SWITZERLAND, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP ITALY, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP SPAIN, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE PROFIT RECOVERY GROUP ASIA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

138

 

	 	 	 	 	 
	 	THE PROFIT RECOVERY GROUP SOUTH AFRICA, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ JAPAN, INC.,

a Georgia corporation

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PRG-SCHULTZ PUERTO RICO,

a Puerto Rico foreign partnership

 	 
	 	By:  	/s/
Peter Limeri 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

139

 

	 	 	 	 	 
	 	COLLATERAL AGENT, ADMINISTRATIVE AGENT AND
LENDER:

ABLECO FINANCE LLC,

a Delaware limited liability company, on behalf of

itself and its affiliate assign

 	 
	 	By:  	/s/
Eric Miller 	 
	 	 	Name:  	Eric Miller 	 
	 	 	Title:  	Senior Vice President 	 
	 

140

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