Document:

exv10w2

 

Exhibit 10.2

CREDIT AGREEMENT

dated as of

April 3, 2007

among

WHITE ELECTRONIC DESIGNS CORPORATION,

an Indiana corporation

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	ARTICLE I	 	Definitions	 	 	2	 
	 
	 	Section 1.01	 	Defined Terms	 	 	2	 
	 
	 	Section 1.02	 	Classification of Loans and Borrowings	 	 	14	 
	 
	 	Section 1.03	 	Terms Generally	 	 	14	 
	 
	 	Section 1.04	 	Accounting Terms; GAAP	 	 	15	 
	ARTICLE II	 	The Credits	 	 	15	 
	 
	 	Section 2.01	 	Commitments	 	 	15	 
	 
	 	Section 2.02	 	Revolving Loans and Borrowings	 	 	15	 
	 
	 	Section 2.03	 	Requests for Revolving Loan Borrowings	 	 	16	 
	 
	 	Section 2.04	 	[Intentionally left blank]	 	 	17	 
	 
	 	Section 2.05	 	[Intentionally left blank]	 	 	17	 
	 
	 	Section 2.06	 	Letters of Credit	 	 	17	 
	 
	 	Section 2.07	 	Funding of Borrowings	 	 	21	 
	 
	 	Section 2.08	 	Interest Elections	 	 	22	 
	 
	 	Section 2.09	 	Termination and Reduction of Commitments	 	 	23	 
	 
	 	Section 2.10	 	Repayment of Loans; Evidence of Debt	 	 	23	 
	 
	 	Section 2.11	 	Prepayment of Loans	 	 	24	 
	 
	 	Section 2.12	 	Fees	 	 	25	 
	 
	 	Section 2.13	 	Interest	 	 	25	 
	 
	 	Section 2.14	 	Alternate Rate of Interest	 	 	26	 
	 
	 	Section 2.15	 	Increased Costs	 	 	26	 
	 
	 	Section 2.16	 	Break Funding Payments	 	 	27	 
	 
	 	Section 2.17	 	Taxes	 	 	28	 
	 
	 	Section 2.18	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	 	 	29	 
	 
	 	Section 2.19	 	Mitigation Obligations; Replacement of Lenders	 	 	31	 
	ARTICLE III	 	Representations and Warranties	 	 	31	 
	 
	 	Section 3.01	 	Organization; Powers	 	 	31	 
	 
	 	Section 3.02	 	Authorization; Enforceability	 	 	32	 
	 
	 	Section 3.03	 	Governmental Approvals; No Conflicts	 	 	32	 
	 
	 	Section 3.04	 	Financial Condition; No Material Adverse Change	 	 	32	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	 
	 	Section 3.05	 	Properties	 	 	32	 
	 
	 	Section 3.06	 	Litigation and Environmental Matters	 	 	33	 
	 
	 	Section 3.07	 	Compliance with Laws and Agreements	 	 	33	 
	 
	 	Section 3.08	 	Investment and Holding Company Status	 	 	33	 
	 
	 	Section 3.09	 	Taxes	 	 	33	 
	 
	 	Section 3.10	 	ERISA	 	 	33	 
	 
	 	Section 3.11	 	Disclosure	 	 	34	 
	 
	 	Section 3.12	 	Location of Collateral	 	 	34	 
	 
	 	Section 3.13	 	Subsidiaries	 	 	34	 
	ARTICLE IV	 	Conditions	 	 	34	 
	 
	 	Section 4.01	 	Effective Date	 	 	34	 
	 
	 	Section 4.02	 	Each Credit Event	 	 	35	 
	ARTICLE V	 	Affirmative Covenants	 	 	36	 
	 
	 	Section 5.01	 	Financial Statements; Ratings Change and Other Information	 	 	36	 
	 
	 	Section 5.02	 	Notices of Material Events	 	 	37	 
	 
	 	Section 5.03	 	Existence; Conduct of Business	 	 	38	 
	 
	 	Section 5.04	 	Payment of Obligations	 	 	38	 
	 
	 	Section 5.05	 	Maintenance of Properties; Insurance	 	 	38	 
	 
	 	Section 5.06	 	Books and Records; Inspection Rights	 	 	38	 
	 
	 	Section 5.07	 	Compliance with Laws	 	 	38	 
	 
	 	Section 5.08	 	Use of Proceeds and Letters of Credit	 	 	39	 
	 
	 	Section 5.09	 	Banking Relationship	 	 	39	 
	 
	 	Section 5.10	 	Security Documents	 	 	39	 
	 
	 	Section 5.11	 	Continuing Guarantees	 	 	39	 
	ARTICLE VI	 	Negative Covenants	 	 	39	 
	 
	 	Section 6.01	 	Indebtedness	 	 	40	 
	 
	 	Section 6.02	 	Liens	 	 	41	 
	 
	 	Section 6.03	 	Fundamental Changes	 	 	41	 
	 
	 	Section 6.04	 	Investments, Loans, Advances, Guarantees and Acquisitions	 	 	42	 
	 
	 	Section 6.05	 	Swap Agreements	 	 	43	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	 
	 	Section 6.06	 	Restricted Payments	 	 	43	 
	 
	 	Section 6.07	 	Transactions with Affiliates	 	 	43	 
	 
	 	Section 6.08	 	Restrictive Agreements	 	 	44	 
	 
	 	Section 6.09	 	Financial Covenants	 	 	44	 
	ARTICLE VII	 	Events of Default	 	 	44	 
	ARTICLE VIII	 	The Administrative Agent	 	 	47	 
	ARTICLE IX	 	Miscellaneous	 	 	49	 
	 
	 	Section 9.01	 	Notices	 	 	49	 
	 
	 	Section 9.02	 	Waivers; Amendments	 	 	50	 
	 
	 	Section 9.03	 	Expenses; Indemnity; Damage Waiver	 	 	51	 
	 
	 	Section 9.04	 	Successors and Assigns	 	 	52	 
	 
	 	Section 9.05	 	Survival	 	 	55	 
	 
	 	Section 9.06	 	Counterparts; Integration; Effectiveness; Prior Agreement	 	 	56	 
	 
	 	Section 9.07	 	Severability	 	 	56	 
	 
	 	Section 9.08	 	Right of Setoff	 	 	56	 
	 
	 	Section 9.09	 	Governing Law; Jurisdiction; Consent to Service of Process	 	 	56	 
	 
	 	Section 9.10	 	WAIVER OF JURY TRIAL	 	 	57	 
	 
	 	Section 9.11	 	Headings	 	 	57	 
	 
	 	Section 9.12	 	Confidentiality	 	 	57	 
	 
	 	Section 9.13	 	Interest Rate Limitation	 	 	58	 
	 
	 	Section 9.14	 	USA PATRIOT Act	 	 	59	 
	 
	 	 	 	 	 	 	 	 	 	 
	SCHEDULES:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Schedule 2.01  —  Commitments	 	 	 	 
	Schedule 3.06  —  Disclosed Matters	 	 	 	 
	Schedule 3.12  —  Location of Personal Property Collateral	 	 	 	 
	Schedule 3.13  —  Subsidiaries	 	 	 	 
	Schedule 6.01  —  Existing Indebtedness	 	 	 	 
	Schedule 6.02  —  Existing Liens	 	 	 	 
	Schedule 6.08  —  Existing Restrictions	 	 	 	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	EXHIBITS:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Exhibit “A”  —  Form of Assignment and Assumption	 	 
	Exhibit “B”  —  Form of Opinion of Borrower’s Counsel	 	 
	Exhibit “C”  —  Form of Compliance Certificate	 	 
	Exhibit “D”  —  Form of Security Agreement	 	 

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     CREDIT AGREEMENT dated as of April 3, 2007, among WHITE ELECTRONIC DESIGNS CORPORATION, an
Indiana corporation, the LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative
Agent.

     The parties hereto agree as follows:

ARTICLE I

DEFINITIONS

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

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

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMORGAN CHASE BANK, N.A., in its capacity as
administrative agent for the Lenders hereunder.

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

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

     “Agreement” means this Credit Agreement as it may be amended, modified, supplemented
or restated from time to time.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the Prime Rate in
effect on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate shall
be effective from and including the effective date of such change in the Prime Rate.

     “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments of a Class represented by such Lender’s applicable Commitment. If the applicable
Commitments have terminated or expired, the Applicable Percentages shall be determined based upon
the applicable Commitments most recently in effect, giving effect to any assignments.

     “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar Loan,
or with respect to the facility fees payable hereunder, as the case may be, the applicable rate per
annum set forth below under the caption “ABR Spread,” “Eurodollar Spread,” “Facility Fee Rate,” or
“LC Rate” as the case may be:

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	ABR	 	Eurodollar	 	Facility Fee	 	 
	Spread	 	Spread	 	Rate Per Annum	 	LC Rate
	0.0%
	 	 	1.50	%	 	 	0.125	%	 	 	1.50	%

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

     “Assessment Rate” means, for any day, the annual assessment rate in effect on such day
that is payable by a member of the Bank Insurance Fund classified as “well-capitalized” and within
supervisory subgroup “B” (or a comparable successor risk classification) within the meaning of 12
C.F.R. Part 327 (or any successor provision) to the Federal Deposit Insurance Corporation for
insurance by such Corporation of time deposits made in dollars at the offices of such member in the
United States; provided that if, as a result of any change in any law, rule or regulation,
it is no longer possible to determine the Assessment Rate as aforesaid, then the Assessment Rate
shall be such annual rate as shall be determined by the Administrative Agent to be representative
of the cost of such insurance to the Lenders.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit “A” or any other form approved by
the Administrative Agent.

     “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Revolving Loan Maturity Date and the date of termination of the
Commitments for Revolving Loans.

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

     “Borrower” means WHITE ELECTRONIC DESIGNS CORPORATION, an Indiana corporation.

     “Borrowing” means Loans of the same Type, made, converted or continued on the same
date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

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

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

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

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     “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of Equity Interests representing more than 51.0% of the aggregate ordinary voting
power represented by the issued and outstanding Equity Interests of the Borrower; (b) occupation of
a majority of the seats (other than vacant seats) on the board of directors of the Borrower by
Persons who were neither (i) nominated by the board of directors of the Borrower nor (ii) appointed
by directors so nominated; or (c) the acquisition of direct or indirect Control of the Borrower by
any Person or group.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

     “Class,” when used in reference to any Loan or Borrowing, refers to such Loan, or the
Loans comprising such Borrowing, as Revolving Loans.

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

     “Collateral” means all of the assets of the Borrower subject to the Security
Documents.

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount
representing the maximum amount of such Lender’s Revolving Credit Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.
The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment
and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. The
initial aggregate amount of the Lenders’ Commitments is $30,000,000.00 as to the Revolving Loans.

     “Consent Acquisitions” mean any and all Permitted Acquisitions that occur once the
aggregate amount of Permitted Acquisitions since the date of this Agreement exceeds $30,000,000.00,
including without limitation any Permitted Acquisition that causes such amount to exceed the
$30,000,000.00.

     “Continuing Guarantees” has the meaning assigned to such term in Section 5.11.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have
meanings correlative thereto.

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     “Credit Documents” means this Agreement, any Note requested by a Lender pursuant to
Section 2.10(e), the Security Documents, and any other documents, agreements or instruments
evidencing, securing or otherwise relating to the Loans, as such document, agreements or
instruments may be amended, modified, extended, renewed, supplemented or restated from time to
time.

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

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

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

     “EBITDA” means, as applied to any Person, the Net Income of such Person for the period
in question, plus its interest expense, income taxes, depreciation expense and amortization
expense, to the extent deducted from its net income, all as determined in accordance with GAAP.

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

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

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

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

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

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

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

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

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

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the Borrower is located and
(c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.19(b)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or is attributable to such Foreign Lender’s failure to comply with Section 2.17(e),
except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time
of designation of a new lending office (or assignment), to receive additional amounts from the
Borrower with respect to such withholding tax pursuant to Section 2.17(a).

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as

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published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Financial Covenants” means those covenants described in Section 6.09.

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

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

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

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

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

     “Guarantor” has the meaning assigned to such term in Section 5.11

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

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

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Information Memorandum” means the Confidential Information Memorandum, if any,
relating to the Borrower and the Transactions.

     “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.08.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the first day of each
month in arrears commencing May 1, 2007, and (b) with respect to any Eurodollar Loan, the last day
of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of
a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior
to the last day of such Interest Period that occurs at intervals of three months’ duration after
the first day of such Interest Period.

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

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     “Issuing Bank” means JPMORGAN CHASE BANK, N.A., in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i).
The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by
Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate.

     “JPMCB” means JPMORGAN CHASE BANK, N.A.

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

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

     “LC Rate” means the annual rate equal to the Applicable Rate.

     “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Assumption.

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

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is
not available at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by the principal
London office of the Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of
such Interest Period.

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

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     “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or condition, financial or otherwise, of the Borrower and the Subsidiaries
taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this
Agreement or (c) the rights of or benefits available to the Lenders under this Agreement.

     “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Borrower and its Subsidiaries in an aggregate principal amount exceeding $250,000.00. For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or
any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to
pay if such Swap Agreement were terminated at such time.

     “Maturity Date” means the Revolving Loan Maturity Date.

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

     “Net Income” means, as applied to any Person, the net income (or net loss) of such
Person for the period in question (after provision for income taxes) determined in accordance with
GAAP, provided that the impact of any extraordinary non-cash gains or losses, determined in
accordance with GAAP, shall be excluded from the determination of “Net Income.”

     “Net Worth” of any Person means the total shareholders’ equity (including capital
stock, additional paid-in capital and retained earnings, after deducting treasury stock) which
would appear as such on a balance sheet of such Person prepared in accordance with GAAP.

     “Non-Consent Acquisitions” mean any and all Permitted Acquisitions that occur prior to
the aggregate amount of all Permitted Acquisitions since the date of this Agreement exceeds
$30,000,000.00.

     “Note” has the meaning set forth in Section 2.10(e).

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

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

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

     “Permitted Acquisitions” means an acquisition or purchase of (in one transaction or a
series of transactions, whether by merger or otherwise) any other Person, all or substantially all

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assets of any Person or any assets of any other Person that constitute a business unit (each,
an “Acquisition”) so long as (i) the Acquisition is approved by the board of directors of such
Person, (ii) the entity acquiring the assets is the Borrower or a Subsidiary or following such
Acquisition would become a Subsidiary, and (iii) after giving effect to the Acquisition, no Default
shall have occurred and be continuing and all representations and warranties of the Borrower set
forth in this Agreement shall be true and correct in all material respects.

     “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes that are not yet due or are being contested
in compliance with Section 5.04;

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

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

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

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

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

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

     “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States of America (or by any
agency thereof to the extent such obligations are backed by the full faith and
credit of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

     (b) investments in commercial paper maturing within two hundred seventy (270)
days from the date of acquisition thereof and having, at such date of acquisition,
the highest credit rating obtainable from S&P or from Moody’s;

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

     (d) fully collateralized repurchase agreements with a term of not more than
thirty (30) days for securities described in clause (a) above and entered into with
a financial institution satisfying the criteria described in clause (c) above; and

     (e) money market funds that (i) comply with the criteria set forth in
Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of
1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets
of at least $5,000,000,000.

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

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

     “Pledgor” has the meaning set forth in Section 5.10(a).

     “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City;
each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

     “Prior Agreement” means that Loan and Security Agreement dated January 7, 2000 between
the Borrower and JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA (Main Office
Chicago), as amended from time to time.

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

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

     “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing at least 51.0% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time; provided, however, that such 51.0% shall include JPMCB.

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

     “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure at such time.

     “Revolving Loan” means a Loan made pursuant to Section 2.03.

     “Revolving Loan Maturity Date” means March 31, 2009.

     “Security Agreement” has the meaning set forth in Section 5.10(a).

     “Security Documents” has the meaning set forth in Section 5.10(b).

     “Significant Acquisition” means one or more acquisitions by the Borrower or an
existing Subsidiary of Borrower where:

     (i) one such acquisition becomes a new Subsidiary and has in excess of Ten
Million Dollars ($10,000,000.00) in net assets; or

     (ii) one or more such acquisitions become new Subsidiaries and the resulting
EBITDA on a trailing twelve month basis of all Subsidiaries of the Borrower that are
new since the Effective Date is equal to or exceeds ten percent (10%) of the
consolidated EBITDA on a trailing twelve month basis of the Borrower and all such
new Subsidiaries.

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

     “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other

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entity (a) of which securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than
50% of the general partnership interests are, as of such date, owned, controlled or held, or (b)
that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the
parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Borrower.

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

     “Tangible Net Worth” means, as applied to any Person, the consolidated Net Worth of
such Person at the time in question, after deducting therefrom the amount of all intangible items,
amounts due from Affiliates, employees and shareholders and all other items which should properly
be treated as intangibles in accordance with GAAP.

     “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

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

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

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

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

     Section 1.03 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The
word “will” shall be construed to have the same meaning and effect as the word “shall.”

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Unless the context requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns, (c) the
words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights.

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

ARTICLE II

THE CREDITS

     Section 2.01 Commitments.

          (a) Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving
Loans to the Borrower from time to time during the Availability Period in an aggregate principal
amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s
Commitment for Revolving Loans or (b) the sum of the total Revolving Credit Exposures exceeding the
total Commitments for Revolving Loans. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

          (b) [Intentionally left blank].

     Section 2.02 Revolving Loans and Borrowings.

          (a) Each Revolving Loan shall be made as part of a Borrowing for Revolving Loans consisting of
Revolving Loans made by the Lenders ratably in accordance with their respective Commitments for
Revolving Loans. The failure of any Lender to make any Revolving Loan required to be made by it
shall not relieve any other Lender of its obligations

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hereunder; provided that the Commitments for Revolving Loans of the Lenders are
several and no Lender shall be responsible for any other Lender’s failure to make Revolving Loans
as required.

          (b) Subject to Section 2.14, each Revolving Loan Borrowing shall be comprised entirely of ABR
Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its
option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not affect the
obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Revolving Loan Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000.00 and not
less than $500,000.00. Revolving Loan Borrowings of more than one Type and Class may be
outstanding at the same time; provided that there shall not at any time be more than a
total of six (6) Eurodollar Revolving Loan Borrowings outstanding.

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

     Section 2.03 Requests for Revolving Loan Borrowings. To request a Revolving Loan
Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in
the case of a Eurodollar Borrowing, not later than 11:00 a.m., Phoenix, Arizona time, three (3)
Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
later than 11:00 a.m., Phoenix, Arizona time, one Business Day before the date of the proposed
Borrowing; provided that any such notice of an ABR Revolving Loan Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be given not later than
10:00 a.m., Phoenix, Arizona time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy
to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative
Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

          (i) the aggregate amount of the requested Borrowing;

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

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

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

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          (v) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.07.

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

     Section 2.04 [Intentionally left blank].

     Section 2.05 [Intentionally left blank].

     Section 2.06 Letters of Credit.

          (a) General. Subject to the terms and conditions set forth herein, the Borrower may
request the issuance of Letters of Credit for its own account, in a form reasonably acceptable to
the Administrative Agent and the Issuing Bank, at any time and from time to time during the
Availability Period. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal
or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. The Borrower also shall submit a letter of
credit application on the Issuing Bank’s standard form in connection with any request for a Letter
of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon
issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment, renewal or extension
(i) the LC Exposure shall not exceed $3,000,000.00 and (ii) the sum of the total Revolving Credit
Exposures shall not exceed the total Commitments for Revolving Loans.

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          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five (5) Business Days prior to the Revolving Loan Maturity
Date.

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

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 12:00 noon, Phoenix, Arizona time, on
the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., Phoenix, Arizona time, on such date, or, if such notice has not
been received by the Borrower prior to such time on such date, then not later than 12:00 noon,
Phoenix, Arizona time, on (i) the Business Day that the Borrower receives such notice, if such
notice is received prior to 10:00 a.m., Phoenix, Arizona time, on the day of receipt, or (ii) the
Business Day immediately following the day that the Borrower receives such notice, if such notice
is not received prior to such time on the day of receipt; provided that the Borrower may,
subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03
that such payment be financed with an ABR Revolving Loan Borrowing in an equivalent amount and, to
the extent so financed, the Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Loan Borrowing. If the Borrower fails to make such payment
when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as
provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the
Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower
pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing

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

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

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

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          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph shall be
for the account of the Issuing Bank, except that interest accrued on and after the date of payment
by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for
the account of such Lender to the extent of such payment.

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

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall
deposit in an account with the Administrative Agent, in the name of the Administrative Agent and
for the benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to the Borrower described in clause (h) or (i) of Article VII. Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance of the obligations
of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and
control, including the exclusive right of withdrawal, over such account. Other than any interest
earned on the investment of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall
not bear interest. Interest or profits, if any, on such investments shall accumulate in such
account. Moneys in such account shall be applied by the Administrative Agent to reimburse the
Issuing Bank for LC

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Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at
such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other
obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount
of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business
Days after all Events of Default have been cured or waived.

          (k) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender a one time Letter of Credit fee in an amount equal to the LC Rate of the
initial stated amount, such fee to be payable on the date of the issuance of a Letter of Credit
and, if applicable, on the date of any increase as to the increased amount, and annually
thereafter. The Borrower shall also pay to the Issuing Bank for its own account at the time of
issuance of each Letter of Credit documentary and processing charges in connection with the
issuance or modification of and draws under such Letter of Credit in accordance with the Issuing
Bank’s standard schedule for such charges as in effect from time to time.

     Section 2.07 Funding of Borrowings.

          (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds by 12:00 noon, Phoenix, Arizona time, to the
account of the Administrative Agent most recently designated by it for such purpose by notice to
the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly
crediting the amounts so received, in like funds, to an account of the Borrower maintained with the
Administrative Agent in Phoenix, Arizona and designated by the Borrower in the applicable Borrowing
Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the
Issuing Bank.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender’s Loan included in such Borrowing.

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     Section 2.08 Interest Elections.

          (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing.

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

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

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

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

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

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

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

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

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

     Section 2.09 Termination and Reduction of Commitments.

          (a) Unless previously terminated, the Commitments shall terminate on the applicable Maturity
Date.

          (b) The Borrower may at any time terminate, or from time to time reduce, the Commitments for
Revolving Loans; provided that (i) each reduction of the Commitments for Revolving Loans
shall be in an amount that is an integral multiple of $100,000.00 and not less than $500,000.00 and
(ii) the Borrower shall not terminate or reduce the Commitments for Revolving Loans if, after
giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section 2.11,
the sum of the Revolving Credit Exposures would exceed the total Commitments for Revolving Loans.

          (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments for Revolving Loans under paragraph (b) of this Section at least three (3) Business
Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall
advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this
Section shall be irrevocable; provided that a notice of termination of the Commitments for
Revolving Loans delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower
(by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments for Revolving Loans
shall be permanent. Each reduction of the Commitments for Revolving Loans shall be made ratably
among the Lenders in accordance with their respective Commitments for Revolving Loans.

     Section 2.10 Repayment of Loans; Evidence of Debt.

          (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan on the Revolving
Loan Maturity Date.

          (b) 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.

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          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
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.

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

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

     Section 2.11 Prepayment of Loans.

          (a) The Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this
Section.

          (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than
11:00 a.m., Phoenix, Arizona time, three (3) Business Days before the date of prepayment, or (ii)
in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., Phoenix, Arizona time,
one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or portion thereof to be
prepaid; provided that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.
Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent
shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall
be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type.
Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section
2.13.

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     Section 2.12 Fees.

          (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
facility fee, which shall accrue at the Applicable Rate on the daily amount of the unused
Commitment for Revolving Loans of such Lender during the period from and including the Effective
Date to but excluding the date on which such Commitment for Revolving Loans terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure after its
Commitment for Revolving Loans terminates, then such facility fee shall continue to accrue on the
daily amount of such Lender’s Revolving Credit Exposure from and including the date on which its
Commitment for Revolving Loans terminates to but excluding the date on which such Lender ceases to
have any Revolving Credit Exposure. Accrued facility fees shall be payable in arrears on the first
day of April, July, October and January of each year and on the date on which the Commitments for
Revolving Loans terminate, commencing on the first such date to occur after the date hereof;
provided that any facility fees accruing after the date on which the Commitments for
Revolving Loans terminate shall be payable on demand. All facility fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

          (b) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent for distribution, in the case of facility fees, participation fees and
Letter of Credit fees, to the Lenders. Fees paid shall not be refundable under any circumstances.

     Section 2.13 Interest.

          (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate
plus the Applicable Rate.

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

          (c) [Intentionally left blank].

          (d) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

          (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon the applicable Maturity Date; provided that (i) interest accrued
pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan, accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the event of

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any conversion of any Eurodollar Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

          (f) All interest hereunder shall be computed on the basis of a year of 360 days, and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).
The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.

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

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

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

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

     Section 2.15 Increased Costs.

          (a) If any Change in Law shall:

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

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

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or

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the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

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

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

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrower shall not be required to compensate
a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than two hundred seventy (270) days prior to the date that such Lender or the Issuing
Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such increased
costs or reductions is retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.

     Section 2.16 Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section 2.11(b) and is
revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by the Borrower
pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for
the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such
loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender
to be

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the excess, if any, of (i) the amount of interest which would have accrued on the principal
amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for
the period that would have been the Interest Period for such Loan), over (ii) the amount of
interest which would accrue on such principal amount for such period at the interest rate which
such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the Eurodollar market. A certificate of any
Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days
after receipt thereof.

     Section 2.17 Taxes.

          (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be
made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions, and (iii) the Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be,
on or with respect to any payment by or on account of any obligation of the Borrower hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrower by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

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          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without withholding or at a
reduced rate.

          (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower
or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.17, it
shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.17 with respect to the Taxes or Other
Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or
such Lender and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental Authority. This Section shall not be construed
to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower or any other Person.

     Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section
2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon, Phoenix, Arizona time, on the date when due,
in immediately available funds, without setoff or counterclaim. Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices at 201 North Central Avenue,
21st Floor, Phoenix, Arizona 85004, Attention: Commercial Banking AZ1-1178, except payments to be
made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to
Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension. All payments hereunder shall be made in
dollars.

          (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance

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with the amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements then due to such parties.

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

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

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid.

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     Section 2.19 Mitigation Obligations; Replacement of Lenders.

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

          (b) If any Lender requests compensation under Section 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender defaults in its obligation to fund Loans hereunder, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have
received the prior written consent of the Administrative Agent (and if a Commitment is being
assigned, the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender
shall have received payment of an amount equal to the outstanding principal of its Loans and
participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts), and (iii) in the case of any
such assignment resulting from a claim for compensation under Section 2.15 or payments required to
be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Lenders that:

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

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     Section 3.02 Authorization; Enforceability. The Transactions are within the
Borrower’s corporate powers and have been duly authorized by all necessary corporate and, if
required, stockholder action. Each Loan Document to which it is a party has been duly executed and
delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law.

     Section 3.03 Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give
rise to a right thereunder to require any payment to be made by the Borrower or any of its
Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of the
Borrower or any of its Subsidiaries.

     Section 3.04 Financial Condition; No Material Adverse Change.

          (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended
September 30, 2006, reported on by independent public accountants, and (ii) as of and for the
fiscal quarter and the portion of the fiscal year ended December 30, 2006, certified by its chief
financial officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Borrower and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements referred to in clause
(ii) above.

          (b) Since December 30, 2006, there has been no material adverse change in the business,
assets, operations, prospects or condition, financial or otherwise, of the Borrower and its
Subsidiaries, taken as a whole.

     Section 3.05 Properties.

          (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests
in, all its real and personal property material to its business, except for minor defects in title
that do not interfere with its ability to conduct its business as currently conducted or to utilize
such properties for their intended purposes.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business, and the
use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

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     Section 3.06 Litigation and Environmental Matters.

          (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii)
that involve this Agreement or the Transactions.

          (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability, or (iv) knows of any
basis for any Environmental Liability.

          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

     Section 3.07 Compliance with Laws and Agreements. Each of the Borrower and its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

     Section 3.08 Investment and Holding Company Status. Neither the Borrower nor any of
its Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.

     Section 3.09 Taxes. Each of the Borrower and its Subsidiaries has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused
to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
has set aside on its books adequate reserves or (b) to the extent that the failure to do so could
not reasonably be expected to result in a Material Adverse Effect.

     Section 3.10 ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by more than $250,000.00 the fair
market value of the assets of such Plan, and the present value of all

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accumulated benefit obligations of all underfunded Plans (based on the assumptions used for
purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than $250,000.00 the fair
market value of the assets of all such underfunded Plans.

     Section 3.11 Disclosure. The Borrower has disclosed to the Lenders all Liens,
agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries
is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum
nor any of the other reports, financial statements, certificates or other information furnished by
or on behalf of the Borrower to the Administrative Agent or any Lender 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 they
were made, not misleading; provided that, with respect to projected financial information,
the Borrower represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

     Section 3.12 Location of Collateral. All Collateral consisting of personal property
is located at a location listed on Schedule 3.12 attached hereto.

     Section 3.13 Subsidiaries. All Subsidiaries of Borrower are listed on Schedule 3.13
attached hereto.

ARTICLE IV

CONDITIONS

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

          (a) The Administrative Agent (or its counsel) shall have received from each
party hereto either (i) a counterpart of this Agreement signed on behalf of such
party or (ii) written evidence satisfactory to the Administrative Agent (which
may include telecopy transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement.

          (b) The Administrative Agent shall have received (i) fully executed Security
Documents, and (ii) to the extent required by the Administrative Agent, landlord
subordination agreements for each location identified on Schedule 3.13(a) not
owned by the Borrower or a Subsidiary.

          (c) If requested by the Lenders, the Administrative Agent shall have
received a favorable written opinion (addressed to the Administrative Agent and
the Lenders and dated the Effective Date) of counsel for the Borrower,
substantially in the form of Exhibit “B”, and covering such

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other matters relating to the Borrower, this Agreement or the Transactions
as the Required Lenders shall reasonably request. The Borrower hereby requests
such counsel to deliver such opinion.

          (d) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Borrower, the
authorization of the Transactions and any other legal matters relating to the
Borrower, this Agreement or the Transactions, all in form and substance
satisfactory to the Administrative Agent and its counsel.

          (e) The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the President, a Vice President or a Financial
Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (a) and (b) of Section 4.02.

          (f) The Administrative Agent shall have received all fees and other amounts
due and payable on or prior to the Effective Date, including, to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder.

          (g) The Administrative Agent shall have received (i) satisfactory audited
consolidated financial statements of the Borrower for the two most recent fiscal
years ended prior to the Effective Date as to which such financial statements are
available, (ii) satisfactory unaudited interim consolidated financial statements
of the Borrower for each quarterly period ended subsequent to the date of the
latest financial statements delivered pursuant to clause (i) of this paragraph as
to which such financial statements are available, and (iii) satisfactory
unaudited interim consolidating financial statements of the Borrower for the
quarterly period ended December 30, 2006.

          (h) The Administrative Agent shall have received such legal opinions,
documents and other instruments as it may reasonably request.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding.

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

          (a) The representations and warranties of the Borrower set forth in this
Agreement shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of issuance, amendment, renewal or extension
of such Letter of Credit, as applicable.

          (b) At the time of and immediately after giving effect to such Borrowing or
the issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, no Default shall have occurred and be
continuing.

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

ARTICLE V

AFFIRMATIVE COVENANTS

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that:

     Section 5.01 Financial Statements; Ratings Change and Other Information. The
Borrower will furnish to the Administrative Agent and each Lender:

          (a) unless publicly filed with the U.S. Securities and Exchange Commission
which shall constitute delivery hereunder, within one hundred twenty (120) days
after the end of each fiscal year of the Borrower, (i) its audited consolidated
balance sheet and related statements of operations, stockholders’ equity and cash
flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by
independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, and (ii) its consolidating balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such
year, prepared by the Borrower and certified by one of its Financial Officers;

          (b) unless publicly filed with the U.S. Securities and Exchange Commission
which shall constitute delivery hereunder, within sixty (60) days after the end
of each of the first three fiscal quarters of each fiscal year of the Borrower,
its consolidated and consolidating balance sheets and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting forth in
each case in comparative form the figures for the corresponding period or periods
of (or, in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by one of its Financial Officers as presenting fairly in all
material respects the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal
year-end audit adjustments and the absence of footnotes;

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          (c) concurrently with any delivery of financial statements under clause (a)
or (b) above, a certificate of a Financial Officer of the Borrower substantially
in the form of Exhibit “C” (i) certifying as to whether a Default has occurred
and, if a Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Section 6.09 and (iii)
stating whether any change in GAAP or in the application thereof has occurred
since the date of the audited financial statements referred to in Section 3.04
and, if any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate; and

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

     Section 5.02 Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

          (a) the occurrence of any Default;

          (b) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or affecting the Borrower
or any Affiliate thereof that, if adversely determined, could reasonably be
expected to result in a Material Adverse Effect;

          (c) the occurrence of any ERISA Event that, alone or together with any other
ERISA Events that have occurred, could reasonably be expected to result in
liability of the Borrower and its Subsidiaries in an aggregate amount exceeding
$250,000.00;

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

          (e) any Permitted Acquisitions; provided that for purposes of this
subparagraph (e), “prompt written notice” shall mean written notice within five
(5) business days after

          (A) the execution of a final definitive agreement by Borrower
with respect to a Permitted Acquisition that is a Non-Consent
Acquisition; and

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          (B) the execution of any agreement, including without
limitation a letter of intent, by Borrower with respect to a
Permitted Acquisition that is a Consent Acquisition.

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

     Section 5.03 Existence; Conduct of Business. The Borrower will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.

     Section 5.04 Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in
a Material Adverse Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP, and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

     Section 5.05 Maintenance of Properties; Insurance. The Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted, and (b) maintain,
with financially sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations.

     Section 5.06 Books and Records; Inspection Rights. The Borrower will, and will cause
each of its Subsidiaries to, keep proper books of record and account in which full, true and
correct entries are made of all dealings and transactions in relation to its business and
activities. The Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice
and during normal business hours, to visit and inspect its properties, to examine and make extracts
from its books and records, and to discuss its affairs, finances and condition with its officers
and independent accountants, all at such reasonable times and as often as reasonably requested.

     Section 5.07 Compliance with Laws. The Borrower will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority
applicable to it or its property, including without limitation Environmental Laws, except where the
failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect.

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     Section 5.08 Use of Proceeds and Letters of Credit.

          (a) The proceeds of the Loans will be used only for general corporate purposes of the Borrower
and its Subsidiaries.

          (b) No part of the proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U
and X.

     Section 5.09 Banking Relationship. The Borrower will, and will cause each of its
Subsidiaries to, maintain its primary banking relationship with JPMCB.

     Section 5.10 Security Documents.

          (a) So long as any Lender has any Commitment outstanding to the Borrower and so long as any
Loan or other obligation hereunder is outstanding, the Borrower shall cause such Loan and the
Borrower’s other obligations under this Agreement to be secured at all times by a valid and
effective first priority security interest granted pursuant to a security agreement substantially
in the form attached hereto as Exhibit “D” (each a “Security Agreement”), duly executed and
delivered by or on behalf of the Borrower and, unless it is not required by the Lenders, each new
Subsidiary (each a “Pledgor”) that is a Significant Acquisition, granting the Administrative Agent
on behalf of the Lenders and the Issuing Bank a valid and enforceable security interest in all of
its personal property described therein, subject to no Lien other than Permitted Encumbrances.

          (b) All of the documents required by this Section 5.10 shall be in form satisfactory to the
Administrative Agent and its counsel, and, together with any financing statements for filing and/or
recording, and any other items required by the Administrative Agent to fully perfect and effectuate
the liens and security interests of the Administrative Agent contemplated by the Security Agreement
and this Agreement, may heretofore or hereinafter be referred to as the “Security
Documents.”

     Section 5.11 Continuing Guarantees. So long as any Commitment is outstanding, the
Borrower shall cause the Borrower’s obligations under this Agreement to be guaranteed at all times
by a continuing guarantee (each a “Continuing Guarantee”) from any new Subsidiary that is a
Significant Acquisition for the benefit of the Lenders (each a “Guarantor”) unless it is
not required by the Lenders.

ARTICLE VI

NEGATIVE COVENANTS

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that:

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     Section 6.01 Indebtedness. The Borrower will not, and will not permit any Subsidiary
to, create, incur, assume or permit to exist any Indebtedness, except:

          (a) Indebtedness created hereunder;

          (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01
and extensions, renewals and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof;

          (c) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to
the Borrower or any other Subsidiary;

          (d) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any
Subsidiary of Indebtedness of the Borrower or any other Subsidiary;

          (e) Indebtedness of the Borrower or any Subsidiary as an account party in
respect of trade letters of credit;

          (f) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets,
including Capital Lease Obligations, and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof; provided, that such Indebtedness is incurred
prior to or within ninety (90) days after such acquisition or the completion of
such construction or improvements or extensions, renewals, and replacements of
any such Indebtedness that do not increase the outstanding principal amount
thereof (immediately prior to giving effect to such extension, renewal or
replacement); provided further, that the aggregate outstanding principal amount
of such Indebtedness does not exceed $3,000,000.00 at any time prior to the
termination of this Agreement;

          (g) Indebtedness of any Person which becomes a Subsidiary after the date of
this Agreement (provided that such Indebtedness exists at the time that such
Person becomes a Subsidiary and is not created in contemplation of or in
connection with such Person becoming a Subsidiary) or extensions, renewals, and
replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (immediately prior to giving effect to such extension,
renewal or replacement; provided further that the aggregate outstanding principal
amount of such Indebtedness does not exceed $3,000,000.00 at any time prior to
the termination of this Agreement;

          (h) Swap Agreements permitted by Section 6.05; and

          (i) other secured or unsecured Indebtedness of Borrower or its Subsidiaries
in an aggregate outstanding principal amount not to exceed $3,000,000.00 at any
time prior to the termination of this Agreement.

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     Section 6.02 Liens. The Borrower will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

          (a) Permitted Encumbrances;

          (b) Liens, if any, securing the Credit Documents;

          (c) any Lien on any property or asset of the Borrower or any Subsidiary
existing on the date hereof and set forth in Schedule 6.02; provided that
(i) such Lien shall not apply to any other property or asset of the Borrower or
any Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the date hereof;

          (d) any Lien securing Indebtedness permitted by Section 6.01(f);

          (e) any Lien securing Indebtedness permitted by Section 6.01(g);

          (f) any Lien securing Indebtedness permitted by Section 6.01(i); and

          (g) extensions, renewals, or replacements of any Lien referred to in
paragraphs (a) through (e) of this Section; provided that the principal
amount of the Indebtedness secured thereby is not increased and that any such
extension, renewal or replacement is limited to the assets originally encumbered
thereby.

     Section 6.03 Fundamental Changes.

          (a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate with it, or sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all of its assets, or all or substantially all of the stock of any of its
Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto no Default shall
have occurred and be continuing (i) any Subsidiary may merge into the Borrower in a transaction in
which the Borrower is the surviving corporation, (ii) any Subsidiary may merge into any Subsidiary
in a transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to the Borrower or to another Subsidiary, and
(iv) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not materially
disadvantageous to the Lenders; provided that any such merger involving a Person that is
not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 6.04.

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          (b) The Borrower will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Borrower and its
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

     Section 6.04 Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower
will not, and will not permit any of its Subsidiaries to, without the written consent of the
Administrative Agent, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly owned Subsidiary prior to such merger); any capital stock, evidences of
indebtedness or other securities (including any option, warrant or other right to acquire any of
the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of,
or make or permit to exist any investment or any other interest in, any other Person, or purchase
or otherwise acquire (in one transaction or a series of transactions) any assets of any other
Person constituting a business unit, except:

          (a) Permitted Investments;

          (b) investments by the Borrower in the capital stock of its Subsidiaries;

          (c) loans or advances made by the Borrower to any Subsidiary and made by any
Subsidiary to the Borrower or any other Subsidiary;

          (d) Guarantees constituting Indebtedness permitted by Section 6.01;

          (e) Permitted Acquisitions that are Non-Consent Acquisitions;

          (f) investments of any Persons acquired in a Permitted Acquisition, in the
capital stock of such Person’s Subsidiaries;

          (g) advances in the ordinary course of business to any independent
contractor performing services for Borrower, any of its Subsidiaries or any of
their agents not to exceed $3,000,000.00 in the aggregate at any time outstanding
maturing not later than seven (7) years after the incurrence thereof;

          (h) short term loans and compensation advances to any independent contractor
performing services for Borrower or for any of its agents made in the ordinary
course of business that do not exceed the projected revenues to be paid to such
independent contractor within two (2) months of such loans or advances, and, in
the case of loans, which mature not later than two months after the making of
such loans;

          (i) loans or advances to employees of the Borrower or any Subsidiary in the
ordinary course of business for travel, relocation and related
expenses; provided, however, that the aggregate amount of all such loans and
advances does not exceed $250,000.00 at any time outstanding;

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          (j) Investments in notes and other securities received in full or partial
satisfaction of overdue debts and accounts payable in the ordinary course of
business and for amounts which, individually or in the aggregate, do not exceed
$3,000,000.00 at any time outstanding;

          (k) Swap Agreements permitted by Section 6.05;

          (l) Investments in stock of Borrower that do not exceed the amount permitted
pursuant to Section 6.06(d) hereof; and

          (m) other Investments not to exceed $3,000,000.00 at any time outstanding.

     Section 6.05 Swap Agreements. The Borrower will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in
respect of Equity Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements
entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with respect to any
interest-bearing liability or investment of the Borrower or any Subsidiary.

     Section 6.06 Restricted Payments. The Borrower will not, and will not permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except (a) the Borrower may declare and pay dividends with respect to its
Equity Interests payable solely in additional shares of its common stock, (b) Subsidiaries may
declare and pay dividends ratably with respect to their Equity Interests, (c) the Borrower may make
Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans
for management or employees of the Borrower and its Subsidiaries, (d) the Borrower may purchase,
redeem or otherwise acquire up to, but no more than, fifteen percent (15%) of its common stock
prior to the termination of this Agreement, and (e) cash dividends and distributions paid on the
common stock of Borrower; provided, for purpose of this clause (e), that (i) no Default has
occurred and is continuing at the time such dividend or distribution is paid, (ii) the aggregate
amount of all such Restricted Payments pursuant to this clause (e) made by Borrower in any fiscal
year does not exceed 50% of Net Income (if greater than $0) earned during the immediately preceding
fiscal year, and (iii) if Restricted Payments made pursuant to this clause (e) in any fiscal year
are less than permitted in such fiscal year, the excess permitted amount for such fiscal year may
be carried forward to the next succeeding fiscal year.

     Section 6.07 Transactions with Affiliates. The Borrower will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices
and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among
the Borrower and its wholly owned Subsidiaries not involving any other Affiliate, and (c) any
Restricted Payment permitted by Section 6.06.

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     Section 6.08 Restrictive Agreements. The Borrower will not, and will not permit any
of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to the Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary;
provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
law or by this Agreement, (ii) the foregoing shall not apply to restrictions and conditions
existing on the date hereof identified on Schedule 6.08 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such restriction or
condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained
in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions
and conditions apply only to the Subsidiary that is to be sold and such sale is permitted
hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed
by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions
or conditions apply only to the property or assets securing such Indebtedness, and (v) clause (a)
of the foregoing shall not apply to customary provisions in leases restricting the assignment
thereof.

     Section 6.09 Financial Covenants. The Borrower will not:

          (a) Fixed Charge Coverage Ratio. Permit at any time its ratio of
Net Income, plus the sum of interest expense, taxes, depreciation and
amortization expenses and rent on operating leases, less the sum of non-financed
capital expenditures and distributions for the twelve month period then ending,
to the sum of interest expense, Required Principal Payments on any Indebtedness,
taxes and rent on operating leases for the same such period, to be less than 1.15
to 1.00, where “Required Principal Payments” means the sum of the principal
amounts currently maturing of Borrower’s long-term Indebtedness, its Capital
Lease Obligations and its subordinate debt.

          (b) Liabilities to Tangible Net Worth Ratio. Permit at any time its
ratio of consolidated total liabilities to its Tangible Net Worth to exceed 1.50
to 1.00.

ARTICLE VII

EVENTS OF DEFAULT

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

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

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          (b) the Borrower shall fail to pay any interest on any Loan or any fee or
any other amount (other than an amount referred to in clause (a) of this Article)
payable under this Agreement, when and as the same shall become due and payable,
and such failure shall continue unremedied for a period of three (3) Business
Days;

          (c) any representation or warranty made or deemed made by or on behalf of
the Borrower or any Subsidiary in or in connection with this Agreement or any
amendment or modification hereof or waiver hereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with this Agreement or any amendment or modification hereof or waiver
hereunder, shall prove to have been materially incorrect when made or deemed
made;

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

          (e) the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement (other than those specified in clause (a),
(b) or (d) of this Article), and such failure shall continue unremedied for a
period of thirty (30) days after notice thereof from the Administrative Agent to
the Borrower (which notice will be given at the request of any Lender);

          (f) the Borrower or any Subsidiary shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable (after giving
effect to applicable cure and grace periods);

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

          (h) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) liquidation, reorganization or other relief in respect
of the Borrower or any Subsidiary or its debts, or of a substantial part of its
assets, under any Federal, state or foreign bankruptcy,

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insolvency, receivership or similar law now or hereafter in effect or (ii)
the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any Subsidiary or for a substantial part of
its assets, and, in any such case, such proceeding or petition shall continue
undismissed for sixty (60) days or an order or decree approving or ordering any
of the foregoing shall be entered;

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

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

          (k) one or more judgments for the payment of money in an aggregate amount in
excess of $1,000,000.00 shall be rendered against the Borrower, any Subsidiary or
any combination thereof and the same shall remain undischarged for a period of
sixty (60) consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to attach or
levy upon any assets of the Borrower or any Subsidiary to enforce any such
judgment;

          (l) an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred,
could reasonably be expected to result in liability to the Borrower and the
Subsidiaries in an aggregate amount exceeding $1,000,000.00; or

          (m) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and

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payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to
the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

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

     The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof
is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement, (ii) the contents of any
certificate, report or other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein, (iv) the validity, enforceability, effectiveness or genuineness of

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this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

     The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

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

     Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrower. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Borrower, to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment within thirty (30)
days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of
any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to
a successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for
the benefit of such retiring Administrative Agent, its subagents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them while it was acting
as Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it

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shall from time to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any related agreement or any document furnished
hereunder or thereunder.

ARTICLE IX

MISCELLANEOUS

     Section 9.01 Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given by
telephone (and subject to paragraph (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

	 	 	 
	(i)

	 	if to the Borrower, to it at:
	 
	 	 
	(ii)

	 	3601 East University Drive
	 

	 	Phoenix, Arizona 85034
	 

	 	Attention: Hamid Shokrgozar
	 

	 	Telecopy No.: (602) 437-1731
	 

	 	Attention: Roger Derse
	 

	 	Telecopy No.: (602) 437-0556
	 
	 	 
	(iii)

	 	if to the Administrative Agent, to:
	 
	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 

	 	201 North Central Avenue, 21st Floor
	 

	 	Phoenix, Arizona 85004
	 

	 	Attention: Commercial Banking AZ1-1178
	 

	 	Fax No.: (602) 221-1502
	 
	 	 
	(iv)

	 	if to the Issuing Bank, to it at:
	 
	 	 
	 

	 	201 North Central Avenue, 21st Floor
	 

	 	Phoenix, Arizona 85004
	 

	 	Attention: Commercial Banking AZ1-1178
	 

	 	Fax No.: (602) 221-1502

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

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices
or communications.

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          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

     Section 9.02 Waivers; Amendments.

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

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the
principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of expiration of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, or (v) change any of the provisions
of this Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent or the Issuing Bank hereunder
without the prior written consent of the Administrative Agent or the Issuing Bank, as the case may
be.

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     Section 9.03 Expenses; Indemnity; Damage Waiver.

          (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of this Agreement or any
amendments, modifications or waivers of the provisions hereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder, and (iii) all out-of-pocket expenses
incurred by the Administrative Agent, the Issuing Bank or any Lender, including the fees, charges
and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

          (b) The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and disbursements of any
counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement
or instrument contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit
if the documents presented in connection with such demand do not strictly comply with the terms of
such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on
or from any property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to
have resulted from the gross negligence or willful misconduct of such Indemnitee; and further
provided that no Indemnitee shall be indemnified for settlement of any claim which is based on an
alleged presence or release of Hazardous Materials or any Environmental Liability without the
consent of the Borrower, acting in good faith, which consent shall not be unreasonably withheld or
delayed.

          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent or the Issuing Bank, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable

-51-

 

unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent or the Issuing Bank
in its capacity as such.

          (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

     Section 9.04 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may
not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

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

          (A) the Borrower, provided that no consent of the
Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default
has occurred and is continuing, any other assignee;

          (B) the Administrative Agent, provided that no consent
of the Administrative Agent shall be required for an assignment of
Commitment to an assignee that is a Lender with a Commitment
immediately prior to giving effect to such assignment; and

-52-

 

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

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

          (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and
obligations under this Agreement, provided that this clause
shall not be construed to prohibit the assignment of a proportionate
part of all the assigning Lender’s rights and obligations in respect
of one Class of Commitments or Loans;

          (C) [Intentionally left blank]; and

          (D) the assignee, if it shall not be a Lender, shall deliver to
the Administrative Agent an Administrative Questionnaire.

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

     “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

          (i) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)
of this Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of

-53-

 

Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section
9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

          (ii) The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”). The entries in the Register shall be conclusive, and
the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower, the
Issuing Bank and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

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

     (c) (i) Any Lender may, without the consent of the Borrower, the Administrative
Agent or the Issuing Bank, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment and
the Loans owing to it); provided that (A) such Lender’s obligations under
this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and
(C) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders
shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement

-54-

 

and to approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that
affects such Participant. Subject to paragraph (c)(ii) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections
2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section
9.08 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.18(c) as though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent.
A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.17 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit
of the Borrower, to comply with Section 2.17(e) as though it were a Lender.

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

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

-55-

 

     Section 9.06 Counterparts; Integration; Effectiveness; Prior Agreement.

          (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Agreement and any separate letter agreements
with respect to fees payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof, including without
limitation the Prior Agreement. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

          (b) The Borrower hereby agrees that upon the Effective Date, all obligations of JPMorgan Chase
Bank, N.A., successor by merger to Bank One, NA (Main Office Chicago) under the Prior Agreement are
terminated, cancelled and of no further effect.

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

     Section 9.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have.

     Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement shall be construed in accordance with and governed by the law of the State
of Arizona.

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of the state or federal courts located in the City of Phoenix,
Arizona, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in

-56-

 

respect of any such action or proceeding may be heard and determined in such Arizona or, to
the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or
its properties in the courts of any jurisdiction.

          (c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

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

     Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

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

     Section 9.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in,

-57-

 

or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower, or (h) to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the Administrative Agent, the
Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower. For
the purposes of this Section, “Information” means all information received from the
Borrower relating to the Borrower or its business, other than any such information that is
available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis
prior to disclosure by the Borrower; provided that, in the case of information received
from the Borrower after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.

     Section 9.13 Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively,
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may
be contracted for, charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by
such Lender.

-58-

 

     Section 9.14 USA PATRIOT Act. Each Lender that is subject to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is
required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender to
identify the Borrower in accordance with the Act.

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

	 	 	 	 	 
	WHITE ELECTRONIC DESIGNS CORPORATION, an Indiana corporation
	 
	 	 	 	 
	By:
	 	/s/ Roger A. Derse	 	 
	 

	 	 	 	 
	Name:
	 	Roger A. Derse	 	 
	 

	 	 	 	 
	Title:
	 	Vice President and Chief Financial Officer	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, N.A., individually and as
Administrative Agent
	 
	 	 	 	 
	By:
	 	/s/ Amy Jay	 	 
	 

	 	 	 	 
	Name:
	 	Amy Jay	 	 
	 

	 	 	 	 
	Title:
	 	Vice President	 	 
	 

	 	 	 	 

-59-

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Commitments	 
	 
	 	 	 	 	 	 	Revolving Credit	 
	 	 	 	 	Lenders	 	Exposure	 
	 	 	 	 	 
	 	 	 	 
	 	1.	 	 	JPMorgan Chase Bank, N.A.
	 	$	30,000,000.00	 
	 	 	 	 	201 North Central Avenue
	 	 	 	 
	 	 	 	 	21st Floor
	 	 	 	 
	 	 	 	 	Phoenix, Arizona 85004
	 	 	 	 
	 	 	 	 	Attn: Commercial Banking Group
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	Total Commitments
	 	$	30,000,000.00	 

 

 

SCHEDULE 3.06

DISCLOSED MATTERS

Schedule 3.06

McJimsey v. White Electronic Designs Corporation, et al. (Case No. CV04-1499-PHX-SRB),

Afework v. White Electronic Designs Corporation, et al (Case No. CV04-1558-PHX-JWS),

Anders v. White Electronic Designs Corporation, et al. (Case No. CV04-1632-PHX-JAT), and

Sammarco v. White Electronic Designs Corporation, et al. (Case No. CV04-1744-PHX-EHC),

Dodt v. Shokrgozar, et al. (Case No. CV04-1674-PHX-NVW),

Christ v. Shokrgozar, et al. (Case No. CV04-1722-PHX-MHM),

ITEM 1 LEGAL PROCEEDINGS

On July 22, 2004, July 29, 2004, August 6, 2004 and August 20, 2004, shareholder class action
lawsuits entitled McJimsey v. White Electronic Designs Corporation, et al. (Case No.
CV04-1499-PHX-SRB), Afework v. White Electronic Designs Corporation, et al (Case No.
CV04-1558-PHX-JWS), Anders v. White Electronic Designs Corporation, et al. (Case No.
CV04-1632-PHX-JAT), and Sammarco v. White Electronic Designs Corporation, et al. (Case No.
CV04-1744-PHX-EHC), respectively, were filed in the United States District Court for the District
of Arizona against the Company and certain of its current and former officers and directors (the
“Defendants”). The actions were consolidated and the Wayne County Employees’ Retirement System was
appointed as lead plaintiff. A consolidated complaint was filed on or about February 14, 2005. The
Defendants’ motions to dismiss the consolidated complaint were granted on February 14, 2006. The
plaintiffs filed an amended complaint on April 17, 2006 (the “Complaint”). Like the dismissed
complaint, the new Complaint alleged, among other things, that between January 23, 2003 and June 9,
2004, the Company made false and misleading statements concerning its financial results and
business, and issued a misleading registration statement and prospectus in connection with the
Company’s July 2003 secondary offering. The Complaint sought unspecified monetary damages.
Defendants filed a motion to dismiss the new Complaint in June 2006. While Defendants’ motions were
pending, the parties reached an agreement to settle the lawsuit. Pursuant to the terms of the
agreement, the Company’s insurance carrier will pay the entire $5.7 million settlement amount (of
which at least $0.7 million will come from the derivative settlement agreement described below).
The Court granted preliminary approval of the settlement agreement on December 16, 2006. The
members of the settlement class will be notified of the settlement, and allowed an opportunity to
object before the Court grants final approval of the agreement. The Court has scheduled a hearing
on May 7, 2007, at which time it will consider whether the agreement should receive final approval.
The Company has recorded a liability in its financial statements for the proposed amount of the
settlement of $5.7 million. In addition, because the insurance carrier has agreed to pay the entire
$5.7 million settlement and recovery from the insurance carrier is probable, a receivable has also
been recorded for the same amount. Accordingly, there is no impact to the Company’s statements of
operations or cash flows because the amounts of the settlement and the insurance recovery fully
offset each other.

 

 

On August 12, 2004 and August 19, 2004, purported derivative actions entitled Dodt v. Shokrgozar,
et al. (Case No. CV04-1674-PHX-NVW) and Christ v. Shokrgozar, et al. (Case No. CV04-1722-PHX-MHM),
respectively, were filed in the United States District Court for the District of Arizona against
current and former directors and officers of the Company. The Company was also named as a nominal
defendant in both actions. The complaints alleged that between January 2003 and the date the
complaints were filed, defendants breached their fiduciary duties to the Company by causing the
Company to misrepresent its financial results and prospects. The complaints alleged claims for
breach of fiduciary duty, gross mismanagement, abuse of control, waste of corporate assets, insider
selling, and unjust enrichment, and sought unspecified damages, equitable relief, and restitution
against the individual defendants. On June 7, 2005, the Court dismissed Mr. Dodt’s action and on
June 15, 2005, the Court dismissed Mr. Christ’s action. Mr. Dodt appealed the dismissal of his
complaint. Mr. Dodt filed an appellate brief in June 2006. The Company’s response to Mr. Dodt’s
brief was filed on July 28, 2006. While plaintiff’s appeal was pending, the parties reached an
agreement to settle the lawsuit. Pursuant to the terms of the agreement, the Company’s insurance
carrier would pay the entire $0.3 million settlement amount (total amount of the settlement is $1.0
million; $0.7 million of which will be used to fund a portion of the $5.7 million class action
settlement described above). The Court granted preliminary approval of the settlement agreement on
January 26, 2007. Notice will be issued, and shareholders will be allowed an opportunity to object
before the Court grants final approval of the agreement. The Court has scheduled a hearing on May
7, 2007, at which time it will consider whether the agreement should receive final approval. The
Company has recorded a liability in its financial statements for the amount of the settlement. In
addition, because the insurance carrier has agreed to pay the entire $0.3 million settlement and
recovery from the insurance carrier is probable, a receivable has also been recorded for the same
amount. Accordingly, there is no impact to the Company’s statements of operations or cash flows
because the amounts of the settlement and the insurance recovery fully offset each other.

-2-

 

SCHEDULE 3.12

LOCATIONS OF PERSONAL PROPERTY COLLATERAL

	 	 	 
	(a)

	 	3601 E. University Drive
	 

	 	Phoenix, AZ 85034
	 
	 	 
	(b)

	 	8000 Bluffton Road
	 

	 	Fort Wayne, Indiana 46809

 

 

SCHEDULE 3.13

SUBSIDIARIES

PANELVIEW, INCORPORATED, an Oregon corporation

IDS ACQUISITION CORPORATION, an Arizona corporation

 

 

SCHEDULE 6.01

EXISTING INDEBTEDNESS

None.

 

 

SCHEDULE 6.02

EXISTING LIENS

None.

 

 

SCHEDULE 6.08

EXISTING RESTRICTIONS

None.

 

 

EXHIBIT “A”

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, included in such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i)
above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being
referred to herein collectively as the “Assigned Interest”). Such sale and assignment is
without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.

	 	Assignee:	 	 
	 

	 	 	 	 
	 

	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	WHITE ELECTRONIC DESIGNS CORPORATION
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	JPMORGAN CHASE BANK, N.A., as the
administrative agent under the Credit
Agreement

 

			
	1	 	Select as applicable.

 

 

	 	 	 	 	 
	5.

	 	Credit Agreement:
	 	[The Credit Agreement dated as of April 3,
2007 among White Electronic Designs
Corporation, the Lenders parties thereto,
JPMorgan Chase Bank, N.A., as
Administrative Agent, and the other agents
parties thereto]
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Percentage Assigned of
	Facility Assigned2	 	for all Lenders	 	Assigned	 	Commitment/Loans3
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 

Effective
Date:
                                        ,
20___ [ TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

     The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 
	ASSIGNOR
	 
	 	 
	[NAME OF ASSIGNOR]
	 
	 	 
	 
	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 
	 
	 	 
	ASSIGNEE
	 
	 	 
	[NAME OF ASSIGNEE]
	 
	 	 
	 
	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 

 

			
	2	 	Fill in the appropriate terminology for the
types of facilities under the Credit Agreement that are being assigned under
this Assignment (e.g., “Revolving Commitment”).
	 
	3	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

-2-

 

[Consented to and]4 Accepted:

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

	 	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 

[Consented to:]5

[NAME OF RELEVANT PARTY]

	 	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 

 

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

-3-

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Credit Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Credit Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Credit Document.

          1.2 Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender, attached to the Assignment and Assumption is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Credit Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Documents are required to be performed by it as a
Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date.

 

 

     3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Arizona.

-2-

 

EXHIBIT “B”

OPINION OF COUNSEL FOR THE BORROWER 

[Effective Date]

To the Lenders and the Administrative

  Agent Referred to Below

c/o JPMorgan Chase Bank, N.A., as

  Administrative Agent

201 North Central Avenue, 21st Floor

Phoenix, Arizona 85004

Attention: Commercial Banking AZ1-1178

Fax No.: (602) 221-1502

Dear Sirs:

     [I/We] have acted as counsel for WHITE ELECTRONIC DESIGNS CORPORATION, an Indiana corporation
(the “Borrower”), in connection with the Credit Agreement dated as of April 3, 2007 (the “Credit
Agreement”), among the Borrower, the banks and other financial institutions identified therein as
Lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent. Terms defined in the Credit
Agreement are used herein with the same meanings.

     [I, or individuals under my direction,/We] have examined originals or copies, certified or
otherwise identified to [my/our] satisfaction, of such documents, corporate records, certificates
of public officials and other instruments and have conducted such other investigations of fact and
law as [I/we] have deemed necessary or advisable for purposes of this opinion.

     Upon the basis of the foregoing, [I am/we are] of the opinion that:

     1. The Borrower (a) is a corporation duly organized, validly existing and in good standing
under the laws of Indiana, (b) has all requisite power and authority to carry on its business as
now conducted and (c) except where the failure to do so, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is required.

     2. The Transactions to which it is a party are within the Borrower’s corporate powers and have
been duly authorized by all necessary corporate and, if required, stockholder action. The Credit
Agreement has been duly executed and delivered by the Borrower and constitutes a legal, valid and
binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     3. The Transactions to which it is a party (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority, except such

 

 

as have been obtained or made and are in full force and effect, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational documents of the
Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the
Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require
any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result in the
creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.

     4. There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to [my/our] knowledge, threatened against or affecting the Borrower
or any of its Subsidiaries (a) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect (other than the Disclosed Matters) or (b) that
involve the Credit Agreement or the Transactions.

     5. Neither the Borrower nor any of its Subsidiaries is (a) an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company”
as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935.

     [I am a member/we are members] of the bar of the State of [                    ] and the foregoing
opinion is limited to the laws of the State of [                    ] and the Federal laws of the United
States of America. This opinion is rendered solely to you in connection with the above matter.
This opinion may not be relied upon by you for any other purpose or relied upon by any other Person
(other than your successors and assigns as Lenders and Persons that acquire participations in your
Loans) without our prior written consent.

	 	 	 	 	 
	 	Very truly yours,

[                    ]

 	 
	 	 	 
	 	 	 
	 	 	 

-2-

 

	 	 	 	 	 

EXHIBIT “C”

COMPLIANCE CERTIFICATE

     This Compliance Certificate (this “Certificate”) is executed and delivered pursuant to and in
accordance with the provisions of that certain Credit Agreement (as amended, modified, extended or
restated from time to time, the “Credit Agreement”) dated as of April 3, 2007, among WHITE
ELECTRONIC DESIGNS CORPORATION, an Indiana corporation (“Borrower”), the Lenders party thereto and
JPMORGAN CHASE BANK, N.A., as Administrative Agent (“Bank”). All capitalized terms used in this
Certificate, if not otherwise defined herein, shall have the respective meanings assigned to such
terms under the Credit Agreement.

     The undersigned hereby represents and warrants to Bank as follows:

     1. Authority. The undersigned is a Financial Officer of Borrower.

     2. Review. The undersigned has reviewed (a) the activities of Borrower during
Borrower’s fiscal period ending                     , 20___(the “Subject Fiscal Period”), (b) the
financial condition of Borrower as of the last day of the Subject Fiscal Period, and (c) the Credit
Agreement and all of the other Credit Documents.

     3. Compliance. Based upon my review of the financial condition of Borrower and the
other information and documents described in paragraph 2 above, Borrower (a) has observed,
performed and fulfilled its obligations and covenants contained in the Credit Agreement and the
other Credit Documents, and (b) no Default or Event of Default has occurred and is continuing or,
if any Default or Event of Default has occurred, the nature and status of such Default or Event of
Default is described as follows:

 

 

     4. GAAP. No change in GAAP or in the application thereof has occurred since the date
of the financial statements accompanying this certificate or if any change has occurred, the effect
of such change in the said financial statements is as follows:

 

 

     5. Financial Covenants. The financial information of Borrower that the undersigned
has provided below demonstrates the Borrower’s compliance with the financial covenants set forth in
Section 6.09 of the Credit Agreement. All of such financial information is true and correct as of
the last day of the Subject Fiscal Period (unless another date or a specific time period is
stated). The Subsections specifically referenced below have been provided to identify the
applicable provision in the Credit Agreement which covers the subject financial covenant. All
financial covenants are calculated on a consolidated basis:

 

 

     (a) Minimum Fixed Charge Coverage Ratio. Borrower shall not permit its
Fixed Charge Coverage Ratio at any time to be less than 1.15 to 1.00.

	 	 	 	 	 
	Net Income
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus interest expense
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus taxes
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus depreciation expense
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus amortization expense
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus rent on operating leases
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Less non-financed capital expenditures
	($	 	 	)
	 
	 	 	 
	 
	 	 	 	 
	Less distributions
	($	 	 	)
	 
	 	 	 
	 
	 	 	 	 
	Equals
	 	$	A	 
	 
	 	 	 
	 
	 	 	 	 
	Interest Expense
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus Required Principal Payments
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus taxes
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus rent on operating leases
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Equals
	 	$	B	 
	 
	 	 	 
	 
	 	 	 	 
	Fixed Charge Coverage Ratio
	 	A/B     to 1.0	 
	 
	 	 	 

     (b) Maximum Liabilities to Tangible Net Worth Ratio. Borrower shall
not permit its ratio of total liabilities to its Tangible Net Worth to be at any
time more than 1.50 to 1.0.

	 	 	 	 	 
	Consolidated total liabilities
	 	$	A	 
	 
	 	 	 
	 
	 	 	 	 
	Consolidated Tangible Net Worth
	 	$	B	 
	 
	 	 	 
	 
	 	 	 	 
	Ratio
	 	A/B     to 1.0	 
	 
	 	 	 

-2-

 

	 	 	 
	Dated:
	 	 
	 

	 	 

	 	 	 
	WHITE ELECTRONIC DESIGNS CORPORATION
	 
	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 

-3-

 

EXHIBIT “D”

FORM OF

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT is made and entered into as of the ___day of                                         ,
20___, by                                                                             
                                             (hereinafter called “Debtor”), whose chief
executive office is located at                                                                              
                                            , in favor of
JPMORGAN CHASE BANK, N.A. as Administrative Agent on behalf of the Lenders party to the hereinafter
defined Credit Agreement, and its successors and assigns (hereinafter called “Secured Party”),
whose address is 201 North Central Avenue, 21st Floor, Phoenix, Arizona 85004, Attention:
Commercial Banking AZ1-1178.

1. SECURITY INTEREST

     Debtor hereby grants to Secured Party on behalf of the Lenders a security interest
(hereinafter called the “Security Interest”) in all of Debtor’s right, title and interest in and to
the personal property described on Schedule “A” attached hereto (the “Collateral”).

2. OBLIGATION SECURED

     The Security Interest shall secure, in such order of priority as Secured Party may elect:

     (a) Payment of the sum of $30,000,000.00 according to the terms of those Notes
dated April ___, 2007, made by Debtor, payable to the order of the Lenders,
evidencing a revolving line of credit, all or any part of which may be advanced to
Debtor, repaid by Debtor and readvanced to Debtor, from time to time, subject to the
terms and conditions thereof, with interest thereon, extension and other fees, late
charges, prepayment premiums and attorneys’ fees, according to the terms thereof,
and all extensions, modifications, renewals or replacements thereof (hereinafter,
called the “Note”);

     (b) Payment, performance and observance by Debtor of each covenant, condition,
provision and agreement contained herein and of all monies expended or advanced by
Secured Party or the Lenders pursuant to the terms hereof, or to preserve any right
of Secured Party or the Lenders hereunder, or to protect or preserve the Collateral
or any part thereof;

     (c) Payment, performance and observance by Debtor of each covenant, condition,
provision and agreement contained in that Credit Agreement dated April ___, 2007,
by and among Debtor, the Lenders party thereto and JPMorgan Chase Bank, N.A. as
Administrative Agent (hereinafter called the “Credit Agreement”) and in any other
document or instrument related to the indebtedness described in subparagraph (a)
above and of all monies expended or

 

 

advanced by Secured Party or the Lenders pursuant to the terms thereof or to
preserve any right of Secured Party or the Lenders thereunder;

     (d) The full and timely payment of all amounts now or hereafter due and payable
by Debtor to the Lenders under any Swap Agreement (as defined in the Credit
Agreement), now or hereafter in effect between Debtor and the Lenders, whether such
amounts are due and payable on the date(s) scheduled therefor, or otherwise; and

     (e) Payment and performance of any and all other indebtedness, obligations and
liabilities of Debtor to Secured Party or the Lenders of every kind and character,
direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter incurred, whether such indebtedness is from time to time reduced and
thereafter increased or entirely extinguished and thereafter reincurred.

All of the indebtedness and obligations secured by this Agreement are hereinafter collectively
called the “Obligation.”

3. USE; LOCATION; CONSTRUCTION

     3.1 The Collateral is or will be used or produced primarily for business purposes:

     3.2 The Collateral will be kept at Debtor’s address set forth at the beginning of this
Agreement and/or at the location(s) listed on Schedule “B” attached hereto.

     3.3 Debtor’s records concerning the Collateral will be kept at Debtor’s address set forth at
the beginning of this Agreement.

4. REPRESENTATIONS AND WARRANTIES OF DEBTOR

     Debtor hereby represents and warrants that:

     4.1 If Debtor is a “registered organization” (as defined in the UCC), it (i) represents that
its name as described in the preamble to this Agreement is accurate; (ii) represents that its chief
executive office is located at the address described in the preamble to this Agreement; (iii) is
duly organized, validly existing and in good standing under the laws of the State of                                         
(the “State”) as a                                         ; (iv) is qualified to do business and is in good standing
under the laws of the state in which the Collateral is located and in each state in which it is
doing business; (v) has full power and authority to own its properties and assets and to carry on
its businesses as now conducted; and (vi) is fully authorized and permitted to execute and deliver
this Agreement and to enter into any transactions evidenced by any portion of the Collateral. The
execution, delivery and performance by Debtor of this Agreement and all other documents and
instruments relating to the Obligation will not result in any breach of the terms and conditions or
constitute a default under any agreement or instrument under which Debtor is a

-2-

 

     4.2 party or is obligated. Debtor is not in default in the performance or observance of any
covenants, conditions or provisions of any such agreement or instrument.

     4.3 The Debtor’s Federal employer identification number is                                         .

     4.4 If the Debtor is a registered organization, the Debtor’s State organization number is
                                        .

     4.5 Debtor is the owner of the Collateral free of all security interests or other encumbrances
except the Security Interest and no financing statement covering the Collateral is filed or
recorded in any public office.

     4.6 The Collateral is, and is intended to be, used, produced or acquired by Debtor for use
primarily for the purpose marked in Section 3 above. The address of Debtor set forth at the
beginning of this Agreement is the chief executive office of Debtor.

     4.7 Each account, chattel paper or general intangible included in the Collateral is genuine
and enforceable in accordance with its terms against the party named therein who is obligated to
pay the same (hereinafter called “Obligor”), and the security interests that are part of each item
of chattel paper included in the Collateral are valid, first and prior perfected security
interests. Each Obligor is solvent, and the amount that Debtor has represented to Secured Party as
owing by each Obligor is the amount actually and unconditionally owing by that Obligor, without
deduction except for normal cash discounts where applicable; no Obligor has any defense, setoff,
claim or counterclaim against Debtor that can be asserted against Secured Party whether in any
proceeding to enforce the Security Interest or otherwise. Each document, instrument and chattel
paper included in the Collateral is complete and regular on its face and free from evidence of
forgery or alteration. No default has occurred in connection with any instrument, document or
chattel paper included in the Collateral, no payment in connection therewith is overdue and no
presentment, dishonor or protest has occurred in connection therewith.

5. COVENANTS OF DEBTOR

     5.1 Debtor shall not sell, transfer, assign or otherwise dispose of any Collateral or any
interest therein (except as permitted herein or in the Credit Agreement) without obtaining the
prior written consent of Secured Party and shall keep the Collateral free of all security interests
or other encumbrances except the Security Interest and Permitted Encumbrances (as defined in the
Credit Agreement). Although proceeds of Collateral are covered by this Agreement, this shall not
be construed to mean that Secured Party consents to any sale of the Collateral.

     5.2 Debtor shall keep and maintain the Collateral in good condition and repair and shall not
use the Collateral in violation of any provision of this Agreement or any applicable statute,
ordinance or regulation or any policy of insurance insuring the Collateral.

     5.3 Debtor shall provide and maintain insurance insuring the Collateral against risks, with
coverage and in form and amount satisfactory to Secured Party. At Secured Party’s request, Debtor
shall deliver to Secured Party the original policies of insurance containing endorsements naming
Secured Party as a loss payee.

-3-

 

     5.4 Debtor shall pay when due all taxes, assessments and other charges which may be levied or
assessed against the Collateral except as permitted in the Credit Agreement.

     5.5 Debtor shall prevent any portion of the Collateral that is not a fixture from being or
becoming a fixture and shall prevent any portion of the Collateral from being or becoming an
accession to other goods that are not part of the Collateral.

     5.6 The Debtor will not sign or authorize the signing on its behalf or the filing of any
financing statement naming it as debtor covering all or any portion of the Collateral except as
permitted by the Credit Agreement.

     5.7 If the Collateral includes motor vehicles, Debtor shall not remove or permit such motor
vehicles to be removed from the state of its registration without the prior written consent of
Secured Party, shall keep all titled vehicles properly registered with and licensed by the state of
its registration, shall provide Secured Party with the license numbers of all titled vehicles,
shall cause the Security Interest to be shown as a valid first lien on the Certificate of Title for
all titled vehicles and shall deliver lien filing receipts to Secured Party as evidence thereof.

     5.8 Debtor, upon demand, shall promptly deliver to Secured Party all instruments, documents
and chattel paper included in the Collateral and all invoices, shipping or delivery records,
purchase orders, contracts or other items related to the Collateral. Debtor shall notify Secured
Party immediately of any default by any Obligor in the payment or performance of its obligations
with respect to any Collateral. Debtor, without Secured Party’s prior written consent, shall not
make or agree to make any alteration, modification or cancellation of, or substitution for, or
credit, adjustment or allowance on, any Collateral.

     5.9 Debtor shall give Secured Party immediate written notice of any change in the location of:
(i) Debtor’s chief executive office; (ii) the Collateral or any part thereof; (iii) Debtor’s
records concerning the Collateral; or (iv) the State of Debtor’s organization.

     5.10 Secured Party or its agents may inspect the Collateral at reasonable times and may enter
into any premises where the Collateral is or may be located. Debtor shall keep records concerning
the Collateral in accordance with generally accepted accounting principles and, unless waived in
writing by Secured Party, shall mark its records and the Collateral to indicate the Security
Interest. Secured Party shall have free and complete access to Debtor’s records and shall have the
right to make extracts therefrom or copies thereof. Upon request of Secured Party from time to
time, Debtor shall submit up-to-date schedules of the items comprising the Collateral in such
detail as Secured Party may require and shall deliver to Secured Party confirming specific
assignments of all accounts, instruments, documents and chattel paper included in the Collateral.

     5.11 Debtor, at its cost and expense, shall protect and defend this Agreement, all of the
rights of Secured Party hereunder, and the Collateral against all claims and demands of other
parties, including without limitation defenses, setoffs, claims and counterclaims asserted by any
Obligor against Debtor and/or Secured Party. Debtor shall pay all claims and charges that in the
opinion of Secured Party might prejudice, imperil or otherwise affect the Collateral or the
Security Interest. Debtor shall promptly notify Secured Party of any levy, distraint or other

-4-

 

seizure by legal process or otherwise of any part of the Collateral and of any threatened or
filed claims or proceedings that might in any way affect or impair the terms of this Agreement.

     5.12 The Security Interest, at all times, shall be perfected and shall be prior to any other
interests in the Collateral. Debtor shall act and perform as necessary and shall execute and file
all security agreements, financing statements, continuation statements and other documents
requested by Secured Party to establish, maintain and continue the perfected Security Interest.
Debtor, on demand, shall promptly pay all costs and expenses of filing and recording, including the
costs of any searches, deemed necessary by Secured Party from time to time to establish and
determine the validity and the continuing priority of the Security Interest.

     5.13 All rights, powers and remedies granted Secured Party herein, or otherwise available to
Secured Party, are for the sole benefit and protection of Secured Party, and Secured Party may
exercise any such right, power or remedy at its option and in its sole and absolute discretion
without any obligation to do so. In addition, if under the terms hereof, Secured Party is given
two or more alternative courses of action, Secured Party may elect any alternative or combination
of alternatives at its option and in its sole and absolute discretion. All monies advanced by
Secured Party under the terms hereof and all amounts paid, suffered or incurred by Secured Party in
exercising any authority granted herein, including reasonable attorneys’ fees, shall be added to
the Obligation, shall be secured by the Security Interest, shall bear interest at the highest rate
payable on any of the Obligation until paid, and shall be due and payable by Debtor to Secured
Party immediately without demand.

6. NOTIFICATION AND PAYMENTS; COLLECTION OF COLLATERAL; USE OF COLLATERAL BY DEBTOR

     6.1 Secured Party, after the occurrence of any Event of Default, defined below, and without
notice to Debtor, may notify any or all Obligors of the existence of the Security Interest and may
direct the Obligors to make all payments on the Collateral to Secured Party. Until Secured Party
has notified the Obligors to remit payments directly to it, Debtor, at Debtor’s own cost and
expense, shall collect or cause to be collected the accounts and monies due under the accounts,
documents, instruments and general intangibles or pursuant to the terms of the chattel paper.
Secured Party shall not be liable or responsible for any embezzlement, conversion, negligence or
default by Debtor or Debtor’s agents with respect to such collections; all agents used in such
collections shall be agents of Debtor and not agents of Secured Party. Unless Secured Party
notifies Debtor in writing that it waives one or more of the requirements set forth in this
sentence, any payments or other proceeds of Collateral received by Debtor, after notification to
Obligors, shall be held by Debtor in trust for Secured Party in the same form in which received,
shall not be commingled with any assets of Debtor and shall be turned over to Secured Party not
later than the next business day following the day of receipt. All payments and other proceeds of
Collateral received by Secured Party directly or from Debtor shall be applied to the Obligation in
such order and manner and at such time as Secured Party, in its sole discretion, shall determine.
In addition, Debtor shall promptly notify Secured Party of the return to or possession by Debtor of
goods underlying any Collateral; Debtor shall hold the same in trust for Secured Party and shall
dispose of the same as Secured Party directs.

-5-

 

     6.2 Secured Party, after the occurrence of an Event of Default and without notice to Debtor,
may demand, collect and sue on the Collateral (either in Debtor’s or Secured Party’s name),
enforce, compromise, settle or discharge the Collateral and endorse Debtor’s name on any
instruments, documents, or chattel paper included in or pertaining to the Collateral; Debtor hereby
irrevocably appoints Secured Party its attorney in fact for all such purposes.

     6.3 Until the occurrence of an Event of Default, Debtor may: (i) sell any equipment included
in the Collateral in any lawful manner, provided that all sales shall be at commercially reasonable
price; and (ii) without the written consent of Secured Party, sales of equipment shall not exceed,
prior to the termination of the Credit Agreement, $5,000,000.00 in the aggregate.

     6.4 Until the occurrence of an Event of Default, Debtor may: (i) use, consume and sell any
inventory included in the Collateral in any lawful manner in the ordinary course of Debtor’s
business; provided that all sales shall be at commercially reasonable prices; and (ii)
subject to Paragraphs 6.1 and 6.2 above, retain possession of any other Collateral and use it in
any lawful manner consistent with this Agreement.

7. COLLATERAL IN THE POSSESSION OF SECURED PARTY

     7.1 Secured Party shall use such reasonable care in handling, preserving and protecting the
Collateral in its possession as it uses in handling similar property for its own account. Secured
Party, however, shall have no liability for the loss, destruction or disappearance of any
Collateral unless there is affirmative proof of a lack of due care; the lack of due care shall not
be implied solely by virtue of any loss, destruction or disappearance.

     7.2 Debtor shall be solely responsible for taking any and all actions to preserve rights
against all Obligors; Secured Party shall not be obligated to take any such actions whether or not
the Collateral is in Secured Party’s possession. Debtor waives presentment and protest with
respect to any instrument included in the Collateral on which Debtor is in any way liable and
waives notice of any action taken by Secured Party with respect to any instrument, document or
chattel paper included in any Collateral that is in the possession of Secured Party.

8. EVENTS OF DEFAULT; REMEDIES

     8.1 The occurrence of any of the following events or conditions shall constitute and is hereby
defined to be an “Event of Default”:

     (a) Any failure or neglect to perform or observe any of the terms, provisions,
or covenants of this Agreement (other than a failure or neglect described in one or
more of the other provisions of this Paragraph 8.1) and such failure or neglect
either cannot be remedied or, if it can be remedied, it continues unremedied for a
period of thirty (30) days after notice thereof to Debtor.

     (b) Any warranty, representation or statement contained in this Agreement, that
shall be or shall prove to have been materially false when made or furnished.

-6-

 

     (c) Any attachment or garnishment of, or the existence or filing of any lien or
encumbrance against, any portion of the Collateral or any other collateral or
security for the Obligation that is not removed and released within thirty (30) days
after its creation.

     (d) The institution of any legal action or proceedings to enforce any lien or
encumbrance upon any portion of the Collateral or any other collateral or security
for the Obligation, that is not dismissed within thirty (30) days after its
institution.

     (e) The abandonment by Debtor of all or any substantial part of the Collateral.

     (f) The loss, theft or destruction of, or any substantial damage to, a
substantial portion of the Collateral or any other collateral or security for the
Obligation, that is not adequately covered by insurance.

     (g) The occurrence of any event of default under the Note, the Credit Agreement
or any other document or instrument executed or delivered in connection with the
Obligation.

     8.2 Upon the occurrence of any Event of Default and at any time while such Event of Default is
continuing, Secured Party shall have the following rights and remedies and may do one or more of
the following:

     (a) Declare all or any part of the Obligation to be immediately due and
payable, and the same, with all costs and charges, shall be collectible thereupon by
action at law.

     (b) Without further notice or demand and without legal process, take possession
of the Collateral wherever found and, for this purpose, enter upon any property
occupied by or in the control of Debtor. Debtor, upon demand by Secured Party,
shall assemble the Collateral and deliver it to Secured Party or to a place
designated by Secured Party that is reasonably convenient to both parties.

     (c) Operate the business of Debtor as a going concern, including, without
limitation, extend sales or services to new customers and advance funds for such
operation. Secured Party shall not be liable for any depreciation, loss, damage or
injury to the Collateral or other property of Debtor as a result of such action.
Debtor hereby waives any claim of trespass or replevin arising as a result of such
action.

     (d) Pursue any legal or equitable remedy available to collect the Obligation,
to enforce its title in and right to possession of the Collateral and to enforce any
and all other rights or remedies available to it.

     (e) Upon obtaining possession of the Collateral or any part thereof, after
notice to Debtor as provided in Paragraph 8.4 herein, sell such Collateral at

-7-

 

public or private sale either with or without having such Collateral at the
place of sale. The proceeds of such sale, after deducting therefrom all expenses of
Secured Party in taking, storing, repairing and selling the Collateral (including
reasonable attorneys’ fees) shall be applied to the payment of the Obligation, and
any surplus thereafter remaining shall be paid to Debtor or any other person that
may be legally entitled thereto. In the event of a deficiency between such net
proceeds from the sale of the Collateral and the total amount of the Obligation,
Debtor, upon demand, shall promptly pay the amount of such deficiency to Secured
Party.

     8.3 Secured Party, so far as may be lawful, may purchase all or any part of the Collateral
offered at any public or private sale made in the enforcement of Secured Party’s rights and
remedies hereunder.

     8.4 Any demand or notice of sale, disposition or other intended action hereunder or in
connection herewith, whether required by the Uniform Commercial Code or otherwise, shall be deemed
to be commercially reasonable and effective if such demand or notice is given to Debtor at least
five (5) days prior to such sale, disposition or other intended action, in the manner provided
herein for the giving of notices.

     8.5 Debtor shall pay all costs and expenses, including without limitation costs of Uniform
Commercial Code searches, court costs and reasonable attorneys’ fees, incurred by Secured Party in
enforcing payment and performance of the Obligation or in exercising the rights and remedies of
Secured Party hereunder. All such costs and expenses shall be secured by this Agreement and by all
deeds of trust and other lien and security documents securing the Obligation. In the event of any
court proceedings, court costs and attorneys’ fees shall be set by the court and not by jury and
shall be included in any judgment obtained by Secured Party.

     8.6 In addition to any remedies provided herein for an Event of Default, Secured Party shall
have all the rights and remedies afforded a secured party under the Uniform Commercial Code and all
other legal and equitable remedies allowed under applicable law. No failure on the part of Secured
Party to exercise any of its rights hereunder arising upon any Event of Default shall be construed
to prejudice its rights upon the occurrence of any other or subsequent Event of Default. No delay
on the part of Secured Party in exercising any such rights shall be construed to preclude it from
the exercise thereof at any time while that Event of Default is continuing. Secured Party may
enforce any one or more rights or remedies hereunder successively or concurrently. By accepting
payment or performance of any of the Obligation after its due date, Secured Party shall not thereby
waive the agreement contained herein that time is of the essence, nor shall Secured Party waive
either its right to require prompt payment or performance when due of the remainder of the
Obligation or its right to consider the failure to so pay or perform an Event of Default.

     8.7 Secured Party shall have no obligation to clean-up or otherwise prepare the Collateral for
sale.

-8-

 

9. MISCELLANEOUS PROVISIONS

     9.1 The acceptance of this Agreement by Secured Party shall not be considered a waiver of or
in any way to affect or impair any other security that Secured Party may have, acquire
simultaneously herewith, or hereafter acquire for the payment or performance of the Obligation, nor
shall the taking by Secured Party at any time of any such additional security be construed as a
waiver of or in any way to affect or impair the Security Interest; Secured Party may resort, for
the payment or performance of the Obligation, to its several securities therefor in such order and
manner as it may determine.

     9.2 Without notice or demand, without affecting the obligations of Debtor hereunder or the
personal liability of any person for payment or performance of the Obligation, and without
affecting the Security Interest or the priority thereof, Secured Party, from time to time, may:
(i) extend the time for payment of all or any part of the Obligation, accept a renewal note
therefor, reduce the payments thereon, release any person liable for all or any part thereof, or
otherwise change the terms of all or any part of the Obligation; (ii) take and hold other security
for the payment or performance of the Obligation and enforce, exchange, substitute, subordinate,
waive or release any such security; (iii) join in any extension or subordination agreement; or (iv)
release any part of the Collateral from the Security Interest.

     9.3 Debtor waives and agrees not to assert: (i) any right to require Secured Party to proceed
against any guarantor, to proceed against or exhaust any other security for the Obligation, to
pursue any other remedy available to Secured Party, or to pursue any remedy in any particular order
or manner; (ii) the benefits of any legal or equitable doctrine or principle of marshalling; (iii)
the benefits of any statute of limitations affecting the enforcement hereof; (iv) demand,
diligence, presentment for payment, protest and demand, and notice of extension, dishonor, protest,
demand and nonpayment, relating to the Obligation; and (v) any benefit of, and any right to
participate in, any other security now or hereafter held by Secured Party.

     9.4 The terms herein shall have the meanings in and be construed under the Uniform Commercial
Code as in effect in the State of Arizona from time to time (the “UCC”). This Agreement shall be
governed by and construed according to the laws of the State of Arizona except to the extent that
the laws of the State governing perfection, the effect of perfection or non-perfection and the
priority of security interests require that such laws be applied to such procedures. Each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be void or invalid, the same
shall not affect the remainder hereof which shall be effective as though the void or invalid
provision had not been contained herein.

     9.5 No modification, rescission, waiver, release or amendment of any provision of this
Agreement shall be made except by a written agreement executed by Debtor and a duly authorized
officer of Secured Party.

     9.6 This is a continuing Agreement which shall remain in full force and effect until actual
receipt by Secured Party of written notice of its revocation as to future transactions and shall
remain in full force and effect thereafter until all of the Obligation incurred before the

-9-

 

receipt of such notice, and all of the Obligation incurred thereafter under commitments
extended by Secured Party before the receipt of such notice, shall have been paid and performed in
full.

     9.7 No setoff or claim that Debtor now has or may in the future have against Secured Party
shall relieve Debtor from paying or performing the Obligation.

     9.8 Time is of the essence hereof. If more than one Debtor is named herein, the word “Debtor”
shall mean all and any one or more of them, severally and collectively. All liability hereunder
shall be joint and several. This Agreement shall be binding upon, and shall inure to the benefit
of, the parties hereto and their heirs, personal representatives, successors and assigns. The term
“Secured Party” shall include not only the original Secured Party hereunder but also any future
owner and holder, including pledgees, of note or notes evidencing the Obligation. The provisions
hereof shall apply to the parties according to the context thereof and without regard to the number
or gender of words or expressions used.

     9.9 All notices required or permitted to be given hereunder shall be in writing and may be
given as provided in the Credit Agreement.

     9.10 A carbon, photographic or other reproduced copy of this Agreement and/or any financing
statement relating hereto shall be sufficient for filing and/or recording as a financing statement.
Debtor hereby authorizes the filing of a financing statement with respect to the Collateral by the
Secured Party.

     IN WITNESS WHEREOF, these presents are executed as of the date indicated above.

	 	 	 
	 
	 
	 	 
	By:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Title:
	 	 
	 

	 	 
	 
	 	 
	 

	 	DEBTOR

-10-

 

SCHEDULE “A”

COLLATERAL

     All of Debtor’s right, title and interest in and to all Accounts (as defined in the Arizona
UCC), Chattel Paper (as defined in the Arizona UCC), Documents (as defined in the Arizona UCC),
Equipment (as defined in the Arizona UCC), Fixtures (as defined in the Arizona UCC), General
Intangibles (as defined in the Arizona UCC), Instruments (as defined in the Arizona UCC), Inventory
(as defined in the Arizona UCC), Investment Property (as defined in the Arizona UCC),
Letter-of-Credit Rights (as defined in the Arizona UCC), Supporting Obligations (as defined in the
Arizona UCC), any Deposit Accounts (as defined in the Arizona UCC) pledged to Secured Party,
Deposits, cash, letters of credit, stock rights and other deposits, it being intended that the
Collateral include all property of the Debtor other than real property, whether located in which
the Debtor now has or hereafter acquires any right or interest, and the proceeds, insurance
proceeds and products thereof, together with all books and records, customer lists, credit files,
computer files, programs, printouts and other computer materials and records related thereto,
together with (i) all policies or certificates of insurance covering any of the foregoing property,
and all awards, loss payments, proceeds and premium refunds that may become payable with respect to
such policies; (ii) all property of Debtor that is now or may hereafter be in the possession or
control of Secured Party in any capacity, including without limitation all monies owed or that
become owed by Secured Party to Debtor; and (iii) all proceeds and products of any of the foregoing
property, whether due or to become due from any sale, exchange or other disposition thereof,
whether cash or non-cash in nature, and whether represented by checks, drafts, notes or other
instruments for the payment of money, including, without limitation, all property, whether cash or
non-cash in nature, derived from tort, contractual or other claims arising in connection with any
of the foregoing property. The terms herein shall have the meaning in and be construed under the
Uniform Commercial Code as in effect in the State of Arizona from time to time (the “Arizona UCC”).
All property described above is hereinafter called the “Collateral.”

 

 

SCHEDULE “B”

LOCATION OF COLLATERALexv10w28

 

Exhibit 10.28

ONE VIPER WAY

SECOND AMENDMENT TO INDUSTRIAL/COMMERCIAL LEASE AGREEMENT

SINGLE TENANT — NET

     This Second Amendment to Industrial/Commercial Lease Agreement Multi Tenant — Net
(“Second Amendment”) is entered into and made effective this 31st day of March, 2006,
between GREENE PROPERTIES, INC., a California corporation (“Landlord”) and DIRECTED
ELECTRONICS, INC., a California corporation (“Tenant”) with reference to the following
facts:

RECITALS

     A. Landlord and Tenant entered into that certain Industrial/Commercial Lease Agreement Multi
Tenant — Net dated July 14, 2003, and that certain First Amendment to Industrial/Commercial Lease
Agreement Multi Tenant — Net dated September 8, 2004 (collectively, the “Lease”). The
Lease will expire on December 31, 2013.

     B. Landlord and Tenant desire to further amend the Lease as set forth hereinbelow.

     C. All capitalized terms used in this Second Amendment unless specifically defined herein
shall have the same meaning as the capitalized terms used in the Lease.

     NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are expressly
acknowledged, Landlord and Tenant agree as follows:

AGREEMENT

     1. Title. The title to the Lease is hereby amended to be:

         INDUSTRIAL/COMMERCIAL LEASE AGREEMENT

         SINGLE TENENT-NET

         (One Viper Way)

     2. Term. The Term of the Lease is hereby extended until December 31, 2016. Tenant shall
have one (1) Extension Option in accordance with the Addendum to Lease provided, however, that
Tenant may not deliver the Exercise Notice before December 31, 2015.

     3. Premises. Following Landlord and Tenant’s mutual execution of this Second Amendment
Landlord, at its sole cost and expense including design fees, permit fees, material costs and
construction costs, shall cause the Building to be expanded in accordance with the “Expansion Plans
& Tenant Improvements” prepared by Howard Anderson & Associates dated March 13, 2006, consisting of
sheet nos. 1-44, which plans Landlord and Tenant have heretofore approved
(the “Second Expansion Area”). The Second Expansion Area is generally depicted on
Exhibit “B” attached hereto and labeled Expansion Areas 1, 2, 3 & 4.

1

 

     4. Base Rent. On the date Landlord substantially completes the Second Expansion Area as
reasonably determined by Landlord’s architect (the “Second Expansion Date”), monthly Base
Rent due under the Lease shall be payable in accordance with the following schedule:

	 	 	 	 	 
	Year of Term	 	Base Rent/Mo.
	Second Expansion Date - 12/31/06
	 	$	161,073	 
	Year 1
	 	$	161,073	 
	Year 2
	 	$	165,905	 
	Year 3
	 	$	170,882	 
	Year 4
	 	$	176,009	 
	Year 5
	 	$	181,289	 
	Year 6
	 	$	186,728	 
	Year 7
	 	$	192,330	 
	Year 8
	 	$	198,099	 
	Year 9
	 	$	202,042	 
	Year 10
	 	$	210,164	 

     The anticipated Second Expansion Date is September 1, 2006. If the Second Expansion Date does
not occur on the first day of a calendar month, Tenant shall pay Base Rent for the fractional month
in which the Second Expansion Date occurs.

     5. Vehicle Parking Spaces. Tenant shall be entitled to the exclusive use of all vehicle
parking spaces located on the Premises provided, however, that during any period Landlord controls
the Leaseback Space (defined in paragraph 7 below) or any portion thereof, Landlord shall be
entitled to the use of a pro-rata share of vehicle parking spaces based upon the number of square
feet of the Leaseback Space controlled by Landlord in relation to the total number of square feet
of space in the Building.

     6. Security Deposit. No addition to the Security Deposit is required of Tenant by
Landlord because of this Second Amendment.

     7. Leaseback of Space. In consideration of Tenant’s agreement to lease the Second
Expansion Area, Landlord agrees to lease back from Tenant the areas depicted on Exhibit “B”
attached hereto labeled “Green” consisting of (i) the second floor of Expansion Area 2 consisting
of approximately 2,439 square feet of floor area, (ii) a portion of the second floor of Expansion
Area 4 consisting of approximately 3,436 square feet of floor area in the south east corner
thereof, and (iii) a
portion of the first floor of Expansion Area 4 consisting of approximately 3,527 square feet
of floor area in the south east corner thereof (collectively, the “Leaseback Space”). So
long as Tenant is not in default under the Lease, Tenant shall receive, as Tenant’s sole
compensation for the Leaseback Space, a credit against monthly Base Rent due under the Lease in
accordance with the following schedule:

2

 

	 	 	 
	Year of Term	 	Monthly Base Rent Credit
	Second Expansion Date - 12/31/06
	 	$7,495
	Year 1
	 	$7,495
	Year 2
	 	$7,720
	Year 3
	 	$7,952
	Year 4
	 	$8,190
	Year 5
	 	$8,436
	Year 6
	 	$8,689
	Year 7
	 	$8,950
	Year 8
	 	$9,218
	Year 9
	 	$9,495
	Year 10
	 	$9,780

     Landlord, its principals, affiliates, and assignees, may use the first floor of Expansion Area
4 for storage (including recreational vehicle) purposes and the second floor of Expansion Areas 2
and 4 for storage and campaign office uses. Landlord, its principals, affiliates, and assignees,
may use the second floor of Expansion Areas 2 and 4 for uses other than storage or campaign office
uses with the prior written consent of Tenant, which consent shall not be unreasonably conditioned,
withheld or delayed. Tenant shall have the right to terminate Landlord’s leaseback of all or any
portion of the Leaseback Space at anytime during the Term of the Lease, including extensions or
renewals thereof, upon ninety (90) days advance written notice by Tenant to Landlord. Landlord
shall vacate that portion of the Leaseback Space, which is recaptured by Tenant, within ninety (90)
days following Landlord’s receipt of Tenant’s notice of recapture and on the date. Landlord
vacates the Leaseback Space (or portion thereof) recaptured by Tenant, the Monthly Base Rent Credit
shall cease as to the recaptured space on a pro rata basis.

     8. Tenant Certification. By execution of this Second Amendment, Tenant hereby certifies
that as of the date hereof, and to the best of Tenant’s knowledge, that Landlord is not in default
of the performance of its obligations pursuant to the Lease, and Tenant has no claim, defense, or
offset with respect to the Lease.

     9. Confirmation. Except, as and to the extent modified by this Second Amendment to Lease
all provisions of the Lease shall remain in full force and effect.

	 	 	 	 	 	 	 	 	 
	LANDLORD	 	 	 	TENANT
	 
	 	 	 	 	 	 	 	 
	GREENE PROPERTIES, INC.,

a California corporation	 	 	 	DIRECTED ELECTRONICS, INC.,

a California corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Darrell E. Issa
	 	 	 	By:
	 	/s/ James E. Minarik
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Darrell E. Issa
	 	 	 	Name:
	 	James E. Minarik
	Title:

	 	President
	 	 	 	Title:
	 	President and Chief Executive Officer
	 

	 	 	 	 	 	 	 	

3

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