Document:

exv10w49

 

Exhibit 10.49

FAIR ISAAC CORPORATION

Terms and Conditions of Restricted Stock Units Agreement

          These are the terms and conditions applicable to the restricted stock units (the
“Award”) granted by Fair Isaac Corporation, a Delaware corporation (“Fair Isaac”), to you, the
participant, listed on the Notice of Grant of Award attached hereto as the cover page (the “Cover
Page”), effective as of the date specified on the Cover Page. The Cover Page together with these
Terms and Conditions of Restricted Stock Units Agreement constitute the Restricted Stock Units
Agreement (the “Agreement”). The Award is granted pursuant to the terms of Fair Isaac’s 1992
Long-term Incentive Plan (the “Plan”).

	 	 	 
	Vesting Schedule

	 	The shares subject to the Award (the “Shares”) will vest on the
vesting dates specified on the Cover Page. In addition, the Shares
will vest in full in the event that:
	 

	 	   •  your employment with Fair Isaac (or any subsidiary)
terminates by reason of death or Disability, or

	 

	 	   •  any written employment agreement between you and Fair Isaac
provides for acceleration of this Award upon a change in control of
Fair Isaac or upon any other specified event or combination of
events.

	Issuance Schedule

	 	The Shares in which you vest in accordance with the vesting
schedule specified on the Cover Page will be issued as soon as
practicable following the vesting date. The issuance of the Shares
will be subject to the collection of the applicable Withholding
Taxes. In no event will any fractional shares be issued.
	Cessation of Service

	 	Should you cease employment with Fair Isaac (or any subsidiary) for
any reason (other than death or Disability) prior to vesting in one
or more Shares, then except to the extent otherwise provided in any
written agreement between you and Fair Isaac, the Award will be
immediately forfeited with respect to those unvested Shares, and
the number of restricted stock units will be reduced accordingly.
You will thereupon cease to have any right or entitlement to
receive any Shares under those forfeited units.
	Leaves of Absence

	 	For purposes of this Award, your service does not terminate when
you go on a military leave, a sick leave or another bona fide leave
of absence, if the leave was approved by Fair Isaac in writing.
	 

	 	Unless you return to active work upon termination of your approved
leave, your service will be treated as terminating on the later of
90 days after you went on leave or the date that your right to
return to active work is guaranteed by law or by a contract. Fair
Isaac will determine which leaves count for this purpose.
	Collection of
Withholding Taxes

	 	Until such time as Fair Isaac provides you with notice to the
contrary, Fair Isaac will collect the Withholding Taxes required to
be withheld with respect to the issuance of the vested Shares
hereunder through an automatic Share withholding procedure (the
“Share Withholding Method”). Under such procedure, Fair Isaac will
withhold, at the time of such issuance, a portion of the Shares
with a Fair Market Value (measured as of the issuance date)
sufficient to cover the amount of such taxes; provided, however,
that the amount of any Shares so withheld shall not exceed the
amount necessary to satisfy Fair Isaac’s required tax withholding
obligations using the minimum statutory withholding rates for
federal and state tax purposes that are applicable to supplemental
taxable income. Fair Isaac will notify you in writing in the event
the Share Withholding Method is no longer available.

 

 

	 	 	 
	 

	 	Should any Shares be issued at a time when the Share Withholding
Method is not available, then the Withholding Taxes required to be
withheld with respect to such Shares will be collected from you
through one of the following alternatives:
	 

	 	•     delivery of your authorization to E*Trade to transfer to
Fair Isaac from your account at E*Trade the amount of such
Withholding Taxes,

	 

	 	•     the use of the proceeds from a next-day sale of the Shares
issued to you, provided and only if (i) such a sale is permissible
under Fair Isaac’s trading policies governing the sale of Common
Stock, (ii) you make an irrevocable commitment, on or before the
vesting date for those Shares, to effect such sale of the Shares
and (iii) the transaction is not otherwise deemed to constitute a
prohibited loan under Section 402 of the Sarbanes-Oxley Act of
2002, or

	 

	 	•     any other method permitted by Fair Isaac.

	Limited
Transferability

	 	Prior to actual receipt of the Shares which vest hereunder, you may
not transfer any interest in the Award or the underlying Shares.
Any Shares which vest hereunder but which otherwise remain unissued
at the time of your death may be transferred pursuant to the
provisions of your will or the laws of inheritance or to a
beneficiary designated by you pursuant to a written designation
filed with Fair Isaac on the proper form.
	Stockholder Rights

	 	You will not have any stockholder rights, including voting or
dividend rights, with respect to the Shares subject to the Award
until you become the record holder of those Shares following their
actual issuance upon Fair Isaac’s collection of the applicable
Withholding Taxes.
	Adjustment in Shares

	 	In the event of any adjustments to the Common Stock as described in
Section 10.1 of the Plan, appropriate adjustments shall be made to
the total number and/or class of securities issuable pursuant to
this Award as the Committee shall deem appropriate.
	Compliance with
Laws and
Regulations

	 	The issuance of shares of Common Stock pursuant to the Award will
be subject to compliance by Fair Isaac and you with all applicable
requirements of law relating thereto and with all applicable
regulations of any stock exchange on which the Common Stock may be
listed for trading at the time of such issuance
	Notices

	 	Any notice required to be given or delivered to Fair Isaac under
the terms of this Agreement will be delivered by e-mail to
stockadministration@fairisaac.com. Any notice required to be given
or delivered to you will be delivered by e-mail to your e-mail
address at Fair Isaac. All notices will be deemed effective upon
electronic delivery.
	Successors and
Assigns

	 	Except to the extent otherwise provided in this Agreement, the
provisions of this Agreement will inure to the benefit of, and be
binding upon, Fair Isaac and its successors and assigns and you,
your assigns, the legal representatives, heirs and legatees of your
estate and any beneficiaries of the Award designated by you.
	Construction

	 	This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject
to the terms of the Plan. If there is any discrepancy between the
provisions of this Agreement and the Plan, the provisions of the
Plan will govern. All decisions of the Committee with respect to
any question or issue arising under the Plan or this Agreement will
be conclusive and binding on all persons having an interest in the
Award.
	Other Agreements

	 	This Agreement, the Plan and any written agreement between you and
Fair Isaac (or any subsidiaries) providing for acceleration of
awards granted to you by Fair Isaac upon a change in control of
Fair Isaac constitute the entire understanding between you and Fair
Isaac regarding this Award. Any other prior agreements,
commitments or negotiations concerning this Award are superseded.
This

 

 

	 	 	 
	 

	 	Agreement may be amended only in writing.
	Governing Law

	 	The interpretation, performance and enforcement of this Agreement
will be governed by the laws of the State of Delaware without
resort to that State’s conflict-of-laws rules.
	Employment At Will

	 	Nothing in this Agreement or in the Plan will confer upon you any
right to continue in service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of Fair
Isaac (or any subsidiary) or your rights, which rights are hereby
expressly reserved by each, to terminate your employment at any
time for any reason, with or without cause, subject to applicable
law and the terms of any written employment agreement signed by you
and Fair Isaac (or any subsidiary).
	Further Instruments

	 	The parties agree to execute such further instruments and to take
such further action as may be reasonably necessary to carry out the
purposes and intent of this Agreement.
	Electronic Delivery

	 	Fair Isaac may deliver any documents related to the Award, the Plan
or future awards that may be granted under the Plan by electronic
means. Such means of electronic delivery include, but do not
necessarily include, the delivery of a link to a Fair Isaac
intranet or the internet site of a third party involved in
administering the Plan, the delivery of the documents via e-mail or
such other means of electronic delivery specified by Fair Isaac.
You hereby acknowledge that you have read this provision and
consent to the electronic delivery of the documents. You
acknowledge that you may receive from Fair Isaac a paper copy of
any documents delivered electronically at no cost to you by
contacting Fair Isaac. You further acknowledge that you will be
provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, you
understand that you must provide Fair Isaac with a paper copy of
any documents if the attempted electronic delivery of such
documents fails.
	Definitions

	 	“Committee” means the committee acting as administrator of the Plan.
	 

	 	“Common Stock” means shares of Fair Isaac’s common stock.
	 

	 	“Disability” means your inability to engage in any substantial
gainful activity by reason of a medically determinable, physical or
mental impairment which can be expected to result in death or which
has lasted (or can be expected to last) for a continuous period of
not less than 12 months.
	 

	 	“Fair Market Value” per share of Common Stock on any relevant date
means the closing price per share of Common Stock on the New York
Stock Exchange on such date as determined by the Committee. If
there is no closing selling price for the Common Stock on the
relevant date, then Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.
	 

	 	“Withholding Taxes” means (i) the employee portion of the federal,
state and local employment taxes required to be withheld by Fair
Isaac in connection with the vesting of the shares of Common Stock
under the Award and (ii) the federal, state and local income taxes
required to be withheld by Fair Isaac in connection with the
issuance of those vested shares.

By accepting this Award in the manner prescribed by Fair Isaac, you agree to all the terms and
conditions described in the Agreement and in the Plan.exv10w1

 

EXHIBIT 10.1

 

CREDIT AGREEMENT

by and among

JOHN B. SANFILIPPO & SON, INC.

as Borrower,

THE LENDERS THAT ARE SIGNATORIES HERETO

as the Lenders,

WELLS FARGO FOOTHILL, LLC

as the Arranger and Administrative Agent,

and

WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL),

as Documentation Agent

Dated as of February 7, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1.	 	DEFINITIONS AND CONSTRUCTION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	1.2	 	Accounting Terms	 	 	1	 
	 
	 	1.3	 	Code	 	 	1	 
	 
	 	1.4	 	Construction	 	 	1	 
	 
	 	1.5	 	Schedules and Exhibits	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	2.	 	LOAN AND TERMS OF PAYMENT	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	Revolver Advances	 	 	2	 
	 
	 	2.2	 	[Reserved.]	 	 	2	 
	 
	 	2.3	 	Borrowing Procedures and Settlements	 	 	2	 
	 
	 	2.4	 	Payments	 	 	7	 
	 
	 	2.5	 	Overadvances	 	 	9	 
	 
	 	2.6	 	Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations	 	 	9	 
	 
	 	2.7	 	Cash Management	 	 	10	 
	 
	 	2.8	 	Crediting Payments; Clearance Charge	 	 	11	 
	 
	 	2.9	 	Designated Account	 	 	11	 
	 
	 	2.10	 	Maintenance of Loan Account; Statements of Obligations	 	 	11	 
	 
	 	2.11	 	Fees	 	 	12	 
	 
	 	2.12	 	Letters of Credit	 	 	12	 
	 
	 	2.13	 	LIBOR Option	 	 	14	 
	 
	 	2.14	 	Capital Requirements	 	 	16	 
	 
	 	2.15	 	Maximum Revolver Amount Increases	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	3.	 	CONDITIONS; TERM OF AGREEMENT	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Conditions Precedent to the Initial Extension of Credit	 	 	17	 
	 
	 	3.2	 	Conditions Precedent to all Extensions of Credit	 	 	17	 
	 
	 	3.3	 	Term	 	 	18	 
	 
	 	3.4	 	Effect of Termination	 	 	18	 
	 
	 	3.5	 	Early Termination by Borrower	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	4.	 	REPRESENTATIONS AND WARRANTIES	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1	 	No Encumbrances	 	 	19	 
	 
	 	4.2	 	Eligible Accounts	 	 	19	 
	 
	 	4.3	 	Eligible Inventory	 	 	19	 
	 
	 	4.4	 	Equipment	 	 	19	 
	 
	 	4.5	 	[Reserved.]	 	 	19	 
	 
	 	4.6	 	Inventory Records	 	 	19	 
	 
	 	4.7	 	Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims	 	 	19
	 
	 	4.8	 	Due Organization and Qualification; Subsidiaries	 	 	20	 
	 
	 	4.9	 	Due Authorization; No Conflict	 	 	20	 
	 
	 	4.10	 	Litigation	 	 	21	 
	 
	 	4.11	 	Financial Statements and Condition	 	 	21	 
	 
	 	4.12	 	Fraudulent Transfer	 	 	21	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	4.13	 	Employee Benefits	 	 	22	 
	 
	 	4.14	 	Environmental Condition	 	 	22	 
	 
	 	4.15	 	Intellectual Property	 	 	22	 
	 
	 	4.16	 	Leases	 	 	22	 
	 
	 	4.17	 	Deposit Accounts and Securities Accounts	 	 	22	 
	 
	 	4.18	 	Complete Disclosure	 	 	22	 
	 
	 	4.19	 	Indebtedness	 	 	23	 
	 
	 	4.20	 	Growers’ Liens	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	5.	 	AFFIRMATIVE COVENANTS	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1	 	Accounting System	 	 	23	 
	 
	 	5.2	 	Collateral Reporting	 	 	23	 
	 
	 	5.3	 	Financial Statements, Reports, Certificates	 	 	23	 
	 
	 	5.4	 	Guarantor Reports	 	 	23	 
	 
	 	5.5	 	Inspection	 	 	23	 
	 
	 	5.6	 	Maintenance of Properties	 	 	23	 
	 
	 	5.7	 	Taxes	 	 	24	 
	 
	 	5.8	 	Insurance	 	 	24	 
	 
	 	5.9	 	Location of Inventory and Equipment	 	 	24	 
	 
	 	5.10	 	Compliance with Laws	 	 	24	 
	 
	 	5.11	 	[Reserved.]	 	 	24	 
	 
	 	5.12	 	Existence	 	 	24	 
	 
	 	5.13	 	Environmental	 	 	25	 
	 
	 	5.14	 	Disclosure Updates	 	 	25	 
	 
	 	5.15	 	Control Agreements	 	 	25	 
	 
	 	5.16	 	Formation of Subsidiaries	 	 	25	 
	 
	 	5.17	 	Further Assurances	 	 	25	 
	 
	 	5.18	 	Existing Letter of Credit	 	 	26	 
	 
	 	5.19	 	Growers’ Liens	 	 	26	 
	 
	 	5.20	 	Post-Closing Conditions	 	 	26	 
	 
	 	5.21	 	Term Lender Collateral Account	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	6.	 	NEGATIVE COVENANTS	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1	 	Indebtedness	 	 	26	 
	 
	 	6.2	 	Liens	 	 	27	 
	 
	 	6.3	 	Restrictions on Fundamental Changes	 	 	27	 
	 
	 	6.4	 	Disposal of Assets	 	 	27	 
	 
	 	6.5	 	Change Name	 	 	27	 
	 
	 	6.6	 	Nature of Business	 	 	27	 
	 
	 	6.7	 	Prepayments and Amendments	 	 	27	 
	 
	 	6.8	 	Change of Control	 	 	27	 
	 
	 	6.9	 	Consignments	 	 	27	 
	 
	 	6.10	 	Distributions	 	 	28	 
	 
	 	6.11	 	Accounting Methods	 	 	28	 
	 
	 	6.12	 	Investments	 	 	28	 
	 
	 	6.13	 	Transactions with Affiliates	 	 	28	 
	 
	 	6.14	 	Use of Proceeds	 	 	28	 
	 
	 	6.15	 	Equipment	 	 	28	 
	 
	 	6.16	 	Financial Covenants	 	 	28	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	7.	 	EVENTS OF DEFAULT	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	8.	 	THE LENDER GROUP’S RIGHTS AND REMEDIES	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1	 	Rights and Remedies	 	 	31	 
	 
	 	8.2	 	Remedies Cumulative	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	9.	 	TAXES AND EXPENSES	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	10.	 	WAIVERS; INDEMNIFICATION	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 
	 	10.1	 	Demand; Protest; Etc.	 	 	32	 
	 
	 	10.2	 	The Lender Group’s Liability for Collateral	 	 	32	 
	 
	 	10.3	 	Indemnification	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	11.	 	NOTICES	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	12.	 	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	13.	 	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	13.1	 	Assignments and Participations	 	 	34	 
	 
	 	13.2	 	Successors	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	14.	 	AMENDMENTS; WAIVERS	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	 
	 	14.1	 	Amendments and Waivers	 	 	36	 
	 
	 	14.2	 	Replacement of Holdout Lender	 	 	37	 
	 
	 	14.3	 	No Waivers; Cumulative Remedies	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	15.	 	AGENT; THE LENDER GROUP	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	 
	 	15.1	 	Appointment and Authorization of Agent	 	 	38	 
	 
	 	15.2	 	Delegation of Duties	 	 	38	 
	 
	 	15.3	 	Liability of Agent	 	 	39	 
	 
	 	15.4	 	Reliance by Agent	 	 	39	 
	 
	 	15.5	 	Notice of Default or Event of Default	 	 	39	 
	 
	 	15.6	 	Credit Decision	 	 	39	 
	 
	 	15.7	 	Costs and Expenses; Indemnification	 	 	40	 
	 
	 	15.8	 	Agent in Individual Capacity	 	 	40	 
	 
	 	15.9	 	Successor Agent	 	 	40	 
	 
	 	15.10	 	Lender in Individual Capacity	 	 	41	 
	 
	 	15.11	 	Collateral Matters	 	 	41	 
	 
	 	15.12	 	Restrictions on Actions by Lenders; Sharing of Payments	 	 	42	 
	 
	 	15.13	 	Agency for Perfection	 	 	42	 
	 
	 	15.14	 	Payments by Agent to the Lenders	 	 	42	 
	 
	 	15.15	 	Concerning the Collateral and Related Loan Documents	 	 	42	 
	 
	 	15.16	 	Field Audits and Examination
Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	 	 	43	 
	 
	 	15.17	 	Several Obligations; No Liability	 	 	43	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	16.	 	WITHHOLDING TAXES	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	17.	 	GENERAL PROVISIONS	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	17.1	 	Effectiveness	 	 	45	 
	 
	 	17.2	 	Section Headings	 	 	45	 
	 
	 	17.3	 	Interpretation	 	 	46	 
	 
	 	17.4	 	Severability of Provisions	 	 	46	 
	 
	 	17.5	 	Bank Product Providers	 	 	46	 
	 
	 	17.6	 	Lender-Creditor Relationship	 	 	46	 
	 
	 	17.7	 	Counterparts; Electronic Execution	 	 	46	 
	 
	 	17.8	 	Revival and Reinstatement of Obligations	 	 	46	 
	 
	 	17.9	 	Confidentiality	 	 	46	 
	 
	 	17.10	 	Lender Group Expenses	 	 	47	 
	 
	 	17.11	 	USA PATRIOT Act	 	 	47	 
	 
	 	17.12	 	Integration	 	 	47	 

iv

 

EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A-1

	 	Form of Assignment and Acceptance
	Exhibit B-1

	 	Form of Borrowing Base Certificate
	Exhibit C-1

	 	Form of Compliance Certificate
	Exhibit G-1

	 	Form of Guaranty
	Exhibit L-1

	 	Form of LIBOR Notice
	 
	 	 
	Schedule A-1

	 	Agent’s Account
	Schedule A-2

	 	Authorized Persons
	Schedule C-1

	 	Commitments
	Schedule D-1

	 	Designated Account
	Schedule E-1

	 	Eligible Inventory and Equipment Locations
	Schedule P-1

	 	Permitted Holders
	Schedule P-2

	 	Permitted Liens
	Schedule 1.1

	 	Definitions
	Schedule 2.7(a)

	 	Cash Management Banks
	Schedule 3.1

	 	Conditions Precedent
	Schedule 4.7(a)

	 	States of Organization
	Schedule 4.7(b)

	 	Chief Executive Offices
	Schedule 4.7(c)

	 	Organizational Identification Numbers
	Schedule 4.7(d)

	 	Commercial Tort Claims
	Schedule 4.8(b)

	 	Capitalization of Borrower
	Schedule 4.8(c)

	 	Capitalization of Borrower’s Subsidiaries
	Schedule 4.10

	 	Litigation
	Schedule 4.13

	 	Employee Benefits
	Schedule 4.14

	 	Environmental Matters
	Schedule 4.15

	 	Intellectual Property
	Schedule 4.17

	 	Deposit Accounts and Securities Accounts
	Schedule 4.19

	 	Permitted Indebtedness
	Schedule 5.2

	 	Collateral Reporting
	Schedule 5.3

	 	Financial Statements, Reports, Certificates
	Schedule 5.20

	 	Post-Closing Conditions

i

 

CREDIT AGREEMENT

          THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of February 7, 2008, by
and among the lenders identified on the signature pages hereof (such lenders, together with their
respective successors and permitted assigns, are referred to hereinafter each individually as a
“Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, LLC, a Delaware
limited liability company, as the arranger and administrative agent for the Lenders (in such
capacity, together with its successors and assigns in such capacity, “Agent”), WACHOVIA
CAPITAL FINANCE CORPORATION (CENTRAL), an Illinois corporation, in its capacity as documentation
agent, and JOHN B. SANFILIPPO & SON, INC., a Delaware corporation (“Borrower”).

          The parties agree as follows:

1. DEFINITIONS AND CONSTRUCTION.

     1.1 Definitions. Capitalized terms used in this Agreement shall have the meanings
specified therefor on Schedule 1.1.

     1.2 Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP. When used herein, the term “financial statements” shall include
the notes and schedules thereto. Whenever the term “Borrower” is used in respect of a financial
covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a
consolidated basis, unless the context clearly requires otherwise.

     1.3 Code. Any terms used in this Agreement that are defined in the Code shall be
construed and defined as set forth in the Code unless otherwise defined herein; provided,
however, that to the extent that the Code is used to define any term herein and such term
is defined differently in different Articles of the Code, the definition of such term contained in
Article 9 of the Code shall govern.

     1.4 Construction. Unless the context of this Agreement or any other Loan Document
clearly requires otherwise, references to the plural include the singular, references to the
singular include the plural, the terms “includes” and “including” are not limiting, and the term
“or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be,
as a whole and not to any particular provision of this Agreement or such other Loan Document, as
the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan
Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and
supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders,
and supplements set forth herein). Any reference herein or in any other Loan Document to the
satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or,
in the case of Letters of Credit or Bank Products, the cash collateralization or support by a
standby letter of credit in accordance with the terms hereof) of all Obligations other than
unasserted contingent indemnification Obligations and other than any Bank Product Obligations that,
at such time, are allowed by the applicable Bank Product Provider to remain outstanding and that are not required by the
provisions of this Agreement to be repaid or cash collateralized. Any reference herein to any
Person shall be construed to include such Person’s successors and assigns. Any requirement of a
writing contained herein or in any other Loan Document shall be satisfied by the transmission of a
Record and any Record so transmitted shall constitute a representation and warranty as to the
accuracy and completeness of the information contained therein. Any reference herein to the
knowledge of Borrower and/or its Subsidiaries shall mean the knowledge of the Responsible Officers.

 

 

     1.5 Schedules and Exhibits. All of the schedules and exhibits attached to this
Agreement shall be deemed incorporated herein by reference.

2. LOAN AND TERMS OF PAYMENT.

     2.1 Revolver Advances.

          (a) Subject to the terms and conditions of this Agreement, and during the term of this
Agreement, each Lender with a Revolver Commitment agrees (severally, not jointly or jointly and
severally) to make advances (“Advances”) to Borrower in an amount at any one time
outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the
Maximum Revolver Amount less the Letter of Credit Usage at such time, and (ii) the Borrowing Base
at such time less the Letter of Credit Usage at such time. The Lenders with Revolver Commitments
shall have no obligation to make additional Advances hereunder to the extent that such additional
Advances would cause Revolver Usage to exceed the Maximum Revolver Amount.

          (b) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the
right to establish reserves against the Borrowing Base (including, without limitation, reserves in
the amount of any taxes or tax liens that are the subject of a Permitted Protest) in such amounts,
and with respect to such matters, as Agent in its Permitted Discretion shall deem necessary or
appropriate, including reserves with respect to (i) sums that Borrower or its Subsidiaries are
required to pay under any Section of this Agreement or any other Loan Document (such as taxes,
assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable
under such leases) and has failed to pay, and (ii) amounts owing by Borrower or its Subsidiaries to
any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a
Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have a
priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords,
warehousemen, carriers, mechanics, materialmen, laborers, suppliers or growers of agricultural
products, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority
under applicable law) in and to such item of the Collateral, except, in the case of any landlord or
warehouseman, to the extent that Agent shall have received an acceptable Collateral Access
Agreement from such Person pursuant to which such Person waives or subordinates such Person’s Lien
rights on terms satisfactory to Agent.

          (c) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the
terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement.
The outstanding principal amount of the Advances, together with interest accrued thereon, shall be
due and payable on the Maturity Date or, if earlier, on the date on which they are declared due and
payable pursuant to the terms of this Agreement.

     2.2 [Reserved.]

     2.3 Borrowing Procedures and Settlements.

          (a) Procedure for Borrowing. Each Borrowing shall be made by an irrevocable written
request by an Authorized Person delivered to Agent. Unless Swing Lender is not obligated to make a
Swing Loan pursuant to Section 2.3(b) below, such notice must be received by Agent no later
than 1:00 p.m. (Georgia time) on the Business Day that is the requested Funding Date specifying (i)
the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day;
provided, however, that if Swing Lender is not obligated to make a Swing Loan as to
a requested Borrowing, such notice must be received by Agent no later than 1:00 p.m. (Georgia time)
on the Business Day prior to the date that is the requested Funding Date. At Agent’s election, in
lieu of delivering the above-described written request, any Authorized Person may give Agent
telephonic notice of such request by the required time. In such circumstances, Borrower agrees
that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such
telephonic notice, but the failure to provide such written confirmation shall not affect the
validity of the request.

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          (b) Making of Swing Loans. In the case of a request for an Advance and so long as the
outstanding amount of Swing Loans, plus the amount of the requested Advance does not exceed
$10,000,000, Swing Lender shall make an Advance in the amount of such Borrowing (any such Advance
made solely by Swing Lender pursuant to this Section 2.3(b) being referred to as a
“Swing Loan” and such Advances being referred to collectively as “Swing Loans”)
available to Borrower on the Funding Date applicable thereto by transferring immediately available
funds to Borrower’s Designated Account. Each Swing Loan shall be deemed to be an Advance hereunder
and shall be subject to all the terms and conditions applicable to other Advances, except that all
payments on any Swing Loan shall be payable to Swing Lender solely for its own account. Subject to
the provisions of Section 2.3(d)(ii), Swing Lender shall not make and shall not be
obligated to make any Swing Loan if Swing Lender has actual knowledge that (i) one or more of the
applicable conditions precedent set forth in Section 3 will not be satisfied on the
requested Funding Date for the applicable Borrowing, or (ii) the requested Borrowing would exceed
the Availability on such Funding Date. Swing Lender shall not otherwise be required to determine
whether the applicable conditions precedent set forth in Section 3 have been satisfied on
the Funding Date applicable thereto prior to making any Swing Loan. The Swing Loans shall be
secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate
applicable from time to time to Advances that are Base Rate Loans.

          (c) Making of Loans.

               (i) In the event that Swing Lender is not obligated to make a Swing Loan, then promptly after
receipt of a request for a Borrowing pursuant to Section 2.3(a), Agent shall notify the
Lenders, not later than 4:00 p.m. (Georgia time) on the Business Day immediately preceding the
Funding Date applicable thereto, by telecopy, telephone, or other similar form of transmission, of
the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the
requested Borrowing available to Agent in immediately available funds, to Agent’s Account, not
later than 1:00 p.m. (Georgia time) on the Funding Date applicable thereto. After Agent’s receipt
of the proceeds of such Advances, Agent shall make the proceeds thereof available to Borrower on
the applicable Funding Date by transferring immediately available funds equal to such proceeds
received by Agent to the Designated Account; provided, however, that, subject to
the provisions of Section 2.3(d)(ii), Agent shall not request any Lender to make, and no
Lender shall have the obligation to make, any Advance if Agent shall have actual knowledge that (1)
one or more of the applicable conditions precedent set forth in Section 3 will not be
satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been
waived, or (2) the requested Borrowing would exceed the Availability on such Funding Date.

               (ii) Unless Agent receives notice from a Lender prior to 12:00 p.m. (Georgia time) on the date
of a Borrowing, that such Lender will not make available as and when required hereunder to Agent
for the account of Borrower the amount of that Lender’s Pro Rata Share of the Borrowing, Agent may
assume that each Lender has made or will make such amount available to Agent in immediately
available funds on the Funding Date and Agent may (but shall not be so required), in reliance upon
such assumption,
make available to Borrower on such date a corresponding amount. If and to the extent any
Lender shall not have made its full amount available to Agent in immediately available funds and
Agent in such circumstances has made available to Borrower such amount, that Lender shall on the
Business Day following such Funding Date make such amount available to Agent, together with
interest at the Defaulting Lender Rate for each day during such period. A notice submitted by
Agent to any Lender with respect to amounts owing under this subsection shall be conclusive, absent
manifest error. If such amount is so made available, such payment to Agent shall constitute such
Lender’s Advance on the date of Borrowing for all purposes of this Agreement. If such amount is
not made available to Agent on the Business Day following the Funding Date, Agent will notify
Borrower of such failure to fund and, upon demand by Agent, Borrower shall pay such amount to Agent
for Agent’s account, together with interest thereon for each day elapsed since the date of such
Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Advances
composing such Borrowing (it being understood that the amount of such interest shall be payable
only once). The failure of any Lender to make any Advance on any Funding Date shall not relieve
any other Lender of any obligation hereunder to

3

 

make an Advance on such Funding Date, but no Lender
shall be responsible for the failure of any other Lender to make the Advance to be made by such
other Lender on any Funding Date.

               (iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments made by
Borrower to Agent for the Defaulting Lender’s benefit, and, in the absence of such transfer to the
Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender
member of the Lender Group ratably in accordance with their Commitments (but only to the extent
that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if
so directed by Borrower and if no Default or Event of Default had occurred and is continuing (and
to the extent such Defaulting Lender’s Advance was not funded by the Lender Group), retain same to
be re-advanced to Borrower as if such Defaulting Lender had made Advances to Borrower. Subject to
the foregoing, Agent may hold and, in its Permitted Discretion, re-lend to Borrower for the account
of such Defaulting Lender the amount of all such payments received and retained by Agent for the
account of such Defaulting Lender. Solely for the purposes of voting or consenting to matters with
respect to the Loan Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such
Lender’s Commitment shall be deemed to be zero. This Section shall remain effective with respect
to such Lender until (x) the Obligations under this Agreement shall have been declared or shall
have become immediately due and payable, (y) the non-Defaulting Lenders, Agent, and Borrower shall
have waived such Defaulting Lender’s default in writing, or (z) the Defaulting Lender makes its Pro
Rata Share of the applicable Advance and pays to Agent all amounts owing by Defaulting Lender in
respect thereof. The operation of this Section shall not be construed to increase or otherwise
affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender
or any other Lender of its duties and obligations hereunder, or to relieve or excuse the
performance by Borrower of its duties and obligations hereunder to Agent or to the Lenders other
than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a
material breach by such Defaulting Lender of this Agreement and shall entitle Borrower at its
option, upon written notice to Agent, to arrange for a substitute Lender to assume the Commitment
of such Defaulting Lender, such substitute Lender to be acceptable to Agent. In connection with
the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to
be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and
Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have executed
and delivered such document if it fails to do so) subject only to being repaid its share of the
outstanding Obligations (other than Bank Product Obligations, but including an assumption of its
Pro Rata Share of the Risk Participation Liability) without any premium or penalty of any kind
whatsoever; provided, however, that any such assumption of the Commitment of such
Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or
Borrower’s rights or remedies against any such Defaulting Lender arising out of or in relation to
such failure to fund.

          (d) Protective Advances and Optional Overadvances.

               (i) Agent hereby is authorized by Borrower and the Lenders, from time to time in Agent’s sole
discretion, (A) after the occurrence and during the continuance of a Default or an Event of
Default, or (B) at any time that any of the other applicable conditions precedent set forth in
Section 3 are not satisfied, to make Advances to Borrower on behalf of the Lenders that
Agent, in its Permitted Discretion, deems necessary or desirable (1) to preserve or protect the
Collateral, or any portion thereof, but only so long as an Event of Default has occurred and
remains continuing, (2) to enhance the likelihood of repayment of the Obligations (other than the
Bank Product Obligations), but only so long as an Event of Default has occurred and remains
continuing, or (3) to pay any other amount chargeable to Borrower pursuant to the terms of this
Agreement, including Lender Group Expenses and the costs, fees, and expenses described in
Section 9 (any of the Advances described in this Section 2.3(d)(i) shall be
referred to as “Protective Advances”); provided, however, that after giving
effect to any such Protective Advance, the total amount of Protective Advances then outstanding
shall not exceed $8,000,000, less the amount of any then outstanding Overadvances.

               (ii) Any contrary provision of this Agreement notwithstanding, the Lenders hereby authorize
Agent or Swing Lender, as applicable, and either Agent or Swing Lender, as applicable, may,

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but is
not obligated to, knowingly and intentionally, continue to make Advances (including Swing Loans) to
Borrower notwithstanding that an Overadvance exists or thereby would be created, so long as (A)
after giving effect to such Advances, the outstanding Revolver Usage does not exceed the Borrowing
Base by more than $8,000,000, less the amount of any then outstanding Protective Advances,
and (B) after giving effect to such Advances, the outstanding Revolver Usage (except for and
excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does
not exceed the Maximum Revolver Amount. In the event Agent obtains actual knowledge that the
Revolver Usage exceeds the amounts permitted by the immediately foregoing provisions, regardless of
the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable
(and prior to making any (or any additional) intentional Overadvances (except for and excluding
amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Agent
determines that prior notice would result in imminent harm to the Collateral or its value), and the
Lenders with Revolver Commitments thereupon shall, together with Agent, jointly determine the terms
of arrangements that shall be implemented with Borrower intended to reduce, within a reasonable
time, the outstanding principal amount of the Advances to Borrower to an amount permitted by the
preceding sentence. In such circumstances, if any Lender with a Revolver Commitment objects to the
proposed terms of reduction or repayment of any Overadvance, the terms of reduction or repayment
thereof shall be implemented according to the determination of the Required Lenders. Each Lender
with a Revolver Commitment shall be obligated to settle with Agent as provided in Section
2.3(e) for the amount of such Lender’s Pro Rata Share of any unintentional Overadvances by
Agent reported to such Lender, any intentional Overadvances made as permitted under this
Section 2.3(d)(ii), and any Overadvances resulting from the charging to the Loan Account of
interest, fees, or Lender Group Expenses.

               (iii) Each Protective Advance and each Overadvance shall be deemed to be an Advance hereunder,
except that no Protective Advance or Overadvance shall be eligible to be a LIBOR Rate Loan and,
prior to Settlement therefor, all payments on the Protective Advances shall be payable to Agent
solely for its own account. The Protective Advances and Overadvances shall be repayable on demand,
secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate
applicable from time to time to Advances that are Base Rate Loans. The provisions of this
Section 2.3(d) are for the exclusive benefit of Agent, Swing Lender, and the Lenders and
are not intended to benefit Borrower in any way.

          (e) Settlement. It is agreed that each Lender’s funded portion of the Advances is
intended by the Lenders to equal, at all times, such Lender’s Pro Rata Share of the outstanding
Advances. Such agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which
agreement shall not be for the benefit of Borrower) that in order to facilitate the administration
of this Agreement and the other Loan Documents, settlement among the Lenders as to the Advances,
the Swing Loans, and the Protective Advances shall take place on a periodic basis in accordance
with the following provisions:

               (i) Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis,
or on a more frequent basis if so determined by Agent (1) on behalf of Swing Lender, with respect
to the outstanding Swing Loans, (2) for itself, with respect to the outstanding Protective
Advances, and (3) with
respect to Borrower’s or its Subsidiaries’ Collections or payments received, as to each by
notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such
requested Settlement, no later than 5:00 p.m. (Georgia time) on the Business Day immediately prior
to the date of such requested Settlement (the date of such requested Settlement being the
“Settlement Date”). Such notice of a Settlement Date shall include a summary statement of
the amount of outstanding Advances, Swing Loans, and Protective Advances for the period since the
prior Settlement Date. Subject to the terms and conditions contained herein (including Section
2.3(c)(iii)): (y) if a Lender’s balance of the Advances (including Swing Loans and Protective
Advances) exceeds such Lender’s Pro Rata

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Share of the Advances (including Swing Loans and
Protective Advances) as of a Settlement Date, then Agent shall, by no later than 3:00 p.m. (Georgia
time) on the Settlement Date, transfer in immediately available funds to a Deposit Account of such
Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of
such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Swing
Loans and Protective Advances), and (z) if a Lender’s balance of the Advances (including Swing
Loans and Protective Advances) is less than such Lender’s Pro Rata Share of the Advances (including
Swing Loans and Protective Advances) as of a Settlement Date, such Lender shall no later than 3:00
p.m. (Georgia time) on the Settlement Date transfer in immediately available funds to the Agent’s
Account, an amount such that each such Lender shall, upon transfer of such amount, have as of the
Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective
Advances). Such amounts made available to Agent under clause (z) of the immediately preceding
sentence shall be applied against the amounts of the applicable Swing Loans or Protective Advances
and, together with the portion of such Swing Loans or Protective Advances representing Swing
Lender’s Pro Rata Share thereof, shall constitute Advances of such Lenders. If any such amount is
not made available to Agent by any Lender on the Settlement Date applicable thereto to the extent
required by the terms hereof, Agent shall be entitled to recover for its account such amount on
demand from such Lender together with interest thereon at the Defaulting Lender Rate.

               (ii) In determining whether a Lender’s balance of the Advances, Swing Loans, and Protective
Advances is less than, equal to, or greater than such Lender’s Pro Rata Share of the Advances,
Swing Loans, and Protective Advances as of a Settlement Date, Agent shall, as part of the relevant
Settlement, apply to such balance the portion of payments actually received in good funds by Agent
with respect to principal, interest, fees payable by Borrower and allocable to the Lenders
hereunder, and proceeds of Collateral. To the extent that a net amount is owed to any such Lender
after such application, such net amount shall be distributed by Agent to that Lender as part of
such next Settlement.

               (iii) Between Settlement Dates, Agent, to the extent Protective Advances or Swing Loans are
outstanding, may pay over to Agent or Swing Lender, as applicable, any Collections or payments
received by Agent, that in accordance with the terms of this Agreement would be applied to the
reduction of the Advances, for application to the Protective Advances or Swing Loans. Between
Settlement Dates, Agent, to the extent no Protective Advances or Swing Loans are outstanding, may
pay over to Swing Lender any Collections or payments received by Agent, that in accordance with the
terms of this Agreement would be applied to the reduction of the Advances, for application to Swing
Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections or payments of
Borrower or its Subsidiaries received since the then immediately preceding Settlement Date have
been applied to Swing Lender’s Pro Rata Share of the Advances other than to Swing Loans, as
provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the
Lenders, and Agent shall pay to the Lenders, to be applied to the outstanding Advances of such
Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such
Settlement Date, its Pro Rata Share of the Advances. During the period between Settlement Dates,
Swing Lender with respect to Swing Loans, Agent with respect to Protective Advances, and each
Lender (subject to the effect of agreements between Agent and individual Lenders) with respect to
the Advances other than Swing Loans and Protective Advances, shall be entitled to interest at the
applicable rate or rates payable under this Agreement on the daily amount of funds employed by
Swing Lender, Agent, or the Lenders, as applicable.

          (f) Notation. Agent shall record on its books the principal amount of the Advances
owing to each Lender, including the Swing Loans owing to Swing Lender, and Protective Advances
owing to
Agent, and the interests therein of each Lender, from time to time and such records shall,
absent manifest error, conclusively be presumed to be correct and accurate.

          (g) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Protective
Advances) shall be made by the Lenders contemporaneously and in accordance with their Pro Rata
Shares. It is understood that (i) no Lender shall be responsible for any failure by any other
Lender to perform its obligation to make any Advance (or other extension of credit) hereunder, nor
shall any Commitment of any Lender be increased or decreased as a result of any failure by any
other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its
obligations hereunder shall excuse any other Lender from its obligations hereunder.

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     2.4 Payments.

          (a) Payments by Borrower.

               (i) Except as otherwise expressly provided herein, all payments by Borrower shall be made to
Agent’s Account for the account of the Lender Group and shall be made in immediately available
funds, no later than 2:00 p.m. (Georgia time) on the date specified herein. Any payment received
by Agent later than 2:00 p.m. (Georgia time) shall be deemed to have been received on the following
Business Day and any applicable interest or fee shall continue to accrue until such following
Business Day.

               (ii) Unless Agent receives notice from Borrower prior to the date on which any payment is due
to the Lenders that Borrower will not make such payment in full as and when required, Agent may
assume that Borrower has made (or will make) such payment in full to Agent on such date in
immediately available funds and Agent may (but shall not be so required), in reliance upon such
assumption, distribute to each Lender on such due date an amount equal to the amount then due such
Lender. If and to the extent Borrower does not make such payment in full to Agent on the date when
due, each Lender severally shall repay to Agent on demand such amount distributed to such Lender,
together with interest thereon (i) at the Federal Funds Rate for each day from the date such amount
is distributed to such Lender until the earlier of (x) three (3) days after such amount is
distributed and (y) the date repaid and (ii) at the Defaulting Lender Rate for each day from the
third day after such amount is distributed to such Lender until the date repaid.

          (b) Apportionment and Application.

               (i) So long as no Application Event has occurred and is continuing and except as otherwise
provided with respect to Defaulting Lenders, all principal and interest payments shall be
apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations
to which such payments relate held by each Lender) and all payments of fees and expenses (other
than fees or expenses that are for Agent’s separate account) shall be apportioned ratably among the
Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee
or expense relates. All payments to be made hereunder by Borrower shall be remitted to Agent and
all (subject to Section 2.4(b)(iv) hereof) such payments, and all proceeds of Collateral
received by Agent, shall be applied, so long as no Application Event has occurred and is
continuing, to reduce the balance of the Advances outstanding and, thereafter, to Borrower (to be
wired to the Designated Account) or such other Person entitled thereto under applicable law.

               (ii) At any time that an Application Event has occurred and is continuing and except as
otherwise provided with respect to Defaulting Lenders, all payments remitted to Agent and all
proceeds of Collateral received by Agent shall be applied as follows:

                    (A) first, to pay any Lender Group Expenses (including cost or expense reimbursements) or
indemnities then due to Agent under the Loan Documents, until paid in full,

                    (B) second, to pay any fees or premiums then due to Agent under the Loan Documents until paid
in full,

                    (C) third, to pay interest due in respect of all Protective Advances until paid in full,

                    (D) fourth, to pay the principal of all Protective Advances until paid in full,

                    (E) fifth, ratably to pay any Lender Group Expenses (including cost or expense reimbursements)
or indemnities then due to any of the Lenders under the Loan Documents, until paid in full,

7

 

                    (F) sixth, ratably to pay any fees or premiums then due to any of the Lenders under the Loan
Documents until paid in full,

                    (G) seventh, ratably to pay interest due in respect of the Advances (other than Protective
Advances) and the Swing Loans until paid in full,

                    (H) eighth, ratably (i) to pay the principal of all Swing Loans until paid in full, (ii) to
pay the principal of all Advances until paid in full, (iii) to Agent, to be held by Agent, for the
ratable benefit of Issuing Lender and those Lenders having a Revolver Commitment, as cash
collateral in an amount up to 105% of the Letter of Credit Usage, and (iv) to Agent, to be held by
Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the
amount of the Bank Product Reserve established prior to the occurrence of, and not in contemplation
of, the subject Application Event,

                    (I) ninth, to pay any other Obligations (including the provision of amounts to Agent, to be
held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to
the amount determined by Agent in its Permitted Discretion as the amount necessary to secure
Borrower’s and its Subsidiaries’ obligations in respect of Bank Products), and

                    (J) tenth, to Borrower (to be wired to the Designated Account) or such other Person entitled
thereto under applicable law.

               (iii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive,
subject to a Settlement delay as provided in Section 2.3(e).

               (iv) In each instance, so long as no Application Event has occurred and is continuing,
Section 2.4(b)(i) shall not apply to any payment made by Borrower to Agent and specified by
Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under
any provision of this Agreement.

               (v) For purposes of Section 2.4(b)(ii), “paid in full” means payment of all amounts
owing under the Loan Documents according to the terms thereof, including loan fees, service fees,
professional fees, interest (and specifically including interest accrued after the commencement of
any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements,
whether or not any of the foregoing would be or is allowed or disallowed in whole or in part in any
Insolvency Proceeding.

               (vi) In the event of a direct conflict between the priority provisions of this Section
2.4 and any other provision contained in any other Loan Document, it is the intention of the
parties hereto that such provisions be read together and construed, to the fullest extent possible,
to be in concert with
each other. In the event of any actual, irreconcilable conflict that cannot be resolved as
aforesaid, the terms and provisions of this Section 2.4 shall control and govern.

          (c) Mandatory Prepayments. Immediately upon the receipt by Borrower or any of its
Subsidiaries of the proceeds of any voluntary or involuntary sale or disposition (including
casualty losses but excluding sales or dispositions which qualify as Permitted Dispositions) by
Borrower or any of its Subsidiaries of property or assets constituting Collateral, Borrower shall
prepay the outstanding principal amount of the Obligations in accordance with Section
2.4(d) in an amount equal to 100% of the Net Cash Proceeds received by such Person in
connection with such sales or dispositions. Immediately after giving effect to any such prepayment
and, in any event, after receipt of notice by Borrower of any sale or disposition of Eligible
Equipment having a book value in excess of $150,000, the Agent shall recalculate the Borrowing Base
to reflect that such sale or disposition has occurred. Nothing contained in this Section
2.4(c) shall permit Borrower or any of its Subsidiaries to sell or otherwise dispose of any
property or assets other than in accordance with Section 6.4.

8

 

          (d) Application of Payments. Each prepayment pursuant to Section 2.4(c) above
shall (A) so long as no Application Event shall have occurred and be continuing, be applied, first,
to the outstanding principal amount of the Advances (without a corresponding permanent reduction in
the Maximum Revolver Amount), until paid in full, and second, to cash collateralize the Letters of
Credit in an amount equal to 105% of the then extant Letter of Credit Usage (without a
corresponding permanent reduction in the Maximum Revolver Amount), and (B) if an Application Event
shall have occurred and be continuing, be applied in the manner set forth in Section
2.4(b)(ii).

     2.5 Overadvances. If, at any time or for any reason, the amount of Obligations owed
by Borrower to the Lender Group pursuant to Section 2.1 or Section 2.12 is greater
than any of the limitations set forth in Section 2.1 or Section 2.12, as applicable
(an “Overadvance”), Borrower immediately shall pay to Agent, in cash, the amount of such
excess, which amount shall be used by Agent to reduce the Obligations in accordance with the
priorities set forth in Section 2.4(b). Notwithstanding the foregoing, the provisions of
the prior sentence shall not apply to optional Overadvances under Section 2.3(d). Borrower
promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in
Dollars in full on the Maturity Date or, if earlier, on the date on which the Obligations are
declared due and payable pursuant to the terms of this Agreement.

     2.6 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations.

          (a) Interest Rates. Except as provided in Section 2.6(c), all Obligations
(except for undrawn Letters of Credit and except for Bank Product Obligations) that have been
charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance
thereof as follows:

               (i) if the relevant Obligation is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR
Rate plus the LIBOR Rate Margin, and

               (ii) otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin.

          (b) Letter of Credit Fee. Borrower shall pay Agent (for the ratable benefit of the
Lenders with a Revolver Commitment, subject to any agreements between Agent and individual
Lenders), a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set
forth in Section 2.12(e)) which shall accrue at a rate equal to the L/C Margin times the
Daily Balance of the undrawn amount of all outstanding Letters of Credit.

          (c) Default Rate. Upon the occurrence and during the continuation of an Event of
Default (and at the election of the Supermajority Lenders),

               (i) all Obligations (except for undrawn Letters of Credit and except for Bank Product
Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear
interest on the Daily Balance thereof at a per annum rate equal to 2 percentage points above the
per annum rate otherwise applicable hereunder, and

               (ii) the Letter of Credit fee provided for in Section 2.6(b) shall be increased to 2
percentage points above the per annum rate otherwise applicable hereunder.

          (d) Payment. Except as provided to the contrary in Section 2.11 or
Section 2.13(a), interest, Letter of Credit fees, and all other fees payable hereunder
shall be due and payable, in arrears, on the first day of each month at any time that Obligations
or Commitments are outstanding. Borrower hereby authorizes Agent, from time to time without prior
notice to Borrower, to charge all interest and fees (when due and payable), all Lender Group
Expenses (as and when incurred), all charges, commissions, fees, and costs provided for in
Section 2.12(e) (as and when accrued or incurred), all fees and costs provided for in
Section 2.11

9

 

(as and when accrued or incurred), and all other payments as and when due and
payable under any Loan Document (including any amounts due and payable to the Bank Product
Providers in respect of Bank Products up to the amount of the Bank Product Reserve) to the Loan
Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at
the rate then applicable to Advances that are Base Rate Loans. Any interest not paid when due
shall be compounded by being charged to the Loan Account and shall thereafter constitute Advances
hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate
Loans.

          (e) Computation. All interest and fees chargeable under the Loan Documents shall be
computed on the basis of a 360 day year for the actual number of days elapsed. In the event the
Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the
Base Rate automatically and immediately shall be increased or decreased by an amount equal to such
change in the Base Rate.

          (f) Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest
rate or rates payable under this Agreement, plus any other amounts paid in connection herewith,
exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in
a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering
this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment
stated within it; provided, however, that, anything contained herein to the
contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the
maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement,
Borrower is and shall be liable only for the payment of such maximum as allowed by law, and payment
received from Borrower in excess of such legal maximum, whenever received, shall be applied to
reduce the principal balance of the Obligations to the extent of such excess.

     2.7 Cash Management.

          (a) Borrower shall and shall cause each of its Subsidiaries to (i) establish and maintain cash
management services of a type and on terms satisfactory to Agent at one or more of the banks set
forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall request in
writing and otherwise take such reasonable steps to ensure that all of its and its Subsidiaries’
Account Debtors forward payment of the amounts owed by them directly to such Cash Management Bank,
(ii) deposit or cause to be deposited promptly, and in any event no later than the first Business
Day after the date of receipt thereof, all of their Collections (including those sent directly by
their Account Debtors to Borrower or one of its Subsidiaries) into a bank account in the name of
Borrower or a Guarantor (a “Cash Management Account”) at one of the Cash
Management Banks and (iii) as soon as practicable but in any event not later than 150 calendar
days after the Closing Date, close all Deposit Accounts of Borrower and its Subsidiaries at LaSalle
Bank N.A. and U.S. Bank National Association and cause all funds in such Deposit Accounts to be
transferred to one or more Cash Management Banks, and shall request in writing and otherwise take
such reasonable steps to ensure that all of its and its Subsidiaries’ Account Debtors forward
payment of the amounts owed by them directly to such Cash Management Banks. Without limiting the
foregoing, Borrower shall and shall cause each of its Subsidiaries to cause all Canadian dollar
Collections to be deposited into a Cash Management Account at a Cash Management Bank established
for the purpose of holding Canadian dollars and not attempt to deposit Canadian dollar Collections
in any other Deposit Account.

          (b) Each Cash Management Bank shall establish and maintain Cash Management Agreements with
Agent and Borrower. Each such Cash Management Agreement shall provide, among other things, that
(i) the Cash Management Bank will comply with any instructions originated by Agent directing the
disposition of the funds in such Cash Management Account without further consent by Borrower or its
Subsidiaries, as applicable, (ii) the Cash Management Bank has no rights of setoff or recoupment or
any other claim against the applicable Cash Management Account other than for payment of its
service fees and other charges directly related to the administration of such Cash Management
Account and for returned checks or other items of payment, and (iii) the Cash Management Bank will
forward, by daily sweep, all amounts in the applicable Cash Management Account to the Agent’s
Account.

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          (c) So long as no Event of Default has occurred and is continuing, Borrower may amend
Schedule 2.7(a) to add or replace a Cash Management Bank or Cash Management Account;
provided, however, that (i) such prospective Cash Management Bank shall be
reasonably satisfactory to Agent, and (ii) prior to the time of the opening of such Cash Management
Account, Borrower (or its Subsidiary, as applicable) and such prospective Cash Management Bank
shall have executed and delivered to Agent a Cash Management Agreement. Borrower (or its
Subsidiaries, as applicable) shall close any of its Cash Management Accounts (and establish
replacement cash management accounts in accordance with the foregoing sentence) promptly and in any
event within 30 days of notice from Agent that such Cash Management Bank is in material breach of
its obligations under its Cash Management Agreement with Agent.

     2.8 Crediting Payments; Clearance Charge. The receipt of any payment item by Agent
(whether from transfers to Agent by the Cash Management Banks pursuant to the Cash Management
Agreements or otherwise) shall not be considered a payment on account unless such payment item is a
wire transfer of immediately available federal funds made to the Agent’s Account or unless and
until such payment item is honored when presented for payment. Should any payment item not be
honored when presented for payment, then Borrower shall be deemed not to have made such payment and
interest shall be calculated accordingly. Anything to the contrary contained herein
notwithstanding, any payment item shall be deemed received by Agent only if it is received into the
Agent’s Account on a Business Day on or before 2:00 p.m. (Georgia time). If any payment item is
received into the Agent’s Account on a non-Business Day or after 2:00 p.m. (Georgia time) on a
Business Day, it shall be deemed to have been received by Agent as of the opening of business on
the immediately following Business Day. From and after the Closing Date, Agent shall be entitled
to charge Borrower for one (1) Business Day of ‘clearance’ at the rate then applicable under
Section 2.6 to Advances that are Base Rate Loans on all Collections that are received by
Borrower and its Subsidiaries (regardless of whether forwarded by the Cash Management Banks to
Agent). This across-the-board one (1) Business Day clearance charge on all Collections of Borrower
and its Subsidiaries is acknowledged by the parties to constitute an integral aspect of the pricing
of the financing of Borrower and shall apply irrespective of whether or not there are any
outstanding monetary Obligations; the effect of such clearance charge being the equivalent of
charging interest on such Collections through the completion of a period ending one (1) Business
Day after the receipt thereof. The parties acknowledge and agree that the economic benefit of the
foregoing provisions of this Section 2.8 shall be for the exclusive benefit of Agent.

     2.9 Designated Account. Agent is authorized to make the Advances, and Issuing Lender
is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other
instructions received from anyone purporting to be an Authorized Person or, without instructions,
if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the Designated
Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances
requested by Borrower and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent
and Borrower, any Advance, Protective Advance, or Swing Loan requested by Borrower and made by
Agent or the Lenders hereunder shall be made to the Designated Account.

     2.10 Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an
account on its books in the name of Borrower (the “Loan Account”) on which Borrower will be
charged with all Advances (including Protective Advances and Swing Loans) made by Agent, Swing
Lender, or the Lenders to Borrower or for Borrower’s account, the Letters of Credit issued by
Issuing Lender for Borrower’s account, and with all other payment Obligations hereunder or under
the other Loan Documents (except for Bank Product Obligations), including accrued interest, fees
and Lender Group Expenses. In accordance with Section 2.8, the Loan Account will be
credited with all payments received by Agent from Borrower or for Borrower’s account, including all
amounts received in the Agent’s Account from any Cash Management Bank. Agent shall render
statements regarding the Loan Account to Borrower, including principal, interest, fees, and
including an itemization of all charges and expenses constituting Lender Group Expenses owing, and
such statements, absent manifest error, shall be conclusively presumed to be correct and accurate
and constitute an account stated between Borrower and the Lender Group unless, within 30 days after
receipt thereof by

11

 

Borrower, Borrower shall deliver to Agent written objection thereto describing
the error or errors contained in any such statements.

     2.11 Fees. Borrower shall pay to Agent, as and when due and payable under the terms
of the Fee Letter, the fees set forth in the Fee Letter.

     2.12 Letters of Credit.

          (a) Subject to the terms and conditions of this Agreement, the Issuing Lender agrees to issue
letters of credit for the account of Borrower (each, an “L/C”) or to purchase
participations or execute indemnities or reimbursement obligations (each such undertaking, an
“L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of
the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of
Borrower. Each request for the issuance of a Letter of Credit, or the amendment, renewal, or
extension of any outstanding Letter of Credit, shall be made in writing by an Authorized Person and
delivered to the Issuing Lender and Agent via hand delivery, telefacsimile, or other electronic
method of transmission reasonably in advance of the requested date of issuance, amendment, renewal,
or extension. Each such request shall be in form and substance satisfactory to the Issuing Lender
in its Permitted Discretion and shall specify (i) the amount of such Letter of Credit, (ii) the
date of issuance, amendment, renewal, or extension of such Letter of Credit, (iii) the expiration
date of such Letter of Credit, (iv) the name and address of the beneficiary thereof (or the
beneficiary of the Underlying Letter of Credit, as applicable), and (v) such other information
(including, in the case of an amendment, renewal, or extension, identification of the outstanding
Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend,
renew, or extend such Letter of Credit. If requested by the Issuing Lender, Borrower also shall be
an applicant under the application with respect to any Underlying Letter of Credit that is to be
the subject of an L/C Undertaking. The Issuing Lender shall have no obligation to issue a Letter
of Credit if any of the following would result after giving effect to the issuance of such
requested Letter of Credit:

               (i) the Letter of Credit Usage would exceed the Borrowing Base less the outstanding amount of
Advances, or

               (ii) the Letter of Credit Usage would exceed $20,000,000, or

               (iii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the outstanding
amount of Advances less the Bank Product Reserve, and less the aggregate amount of reserves, if
any, established by Agent under Section 2.1(b).

          Borrower and the Lender Group acknowledge and agree that certain Underlying Letters of Credit
may be issued to support letters of credit that already are outstanding as of the Closing Date.
Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be in form and
substance acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including
the requirement that the amounts payable thereunder must be payable in Dollars. If Issuing Lender
is obligated to advance funds under a Letter of Credit, Borrower immediately shall reimburse such
L/C Disbursement to Issuing Lender by paying to Agent an amount equal to such L/C Disbursement not
later than 2:00 p.m. (Georgia time) on the date that such L/C Disbursement is made, if Borrower
shall have received written or telephonic notice of such L/C Disbursement prior to 1:00 p.m.
(Georgia time) on such date, or, if such notice has not been received by Borrower prior to such
time on such date, then not later than 2:00 p.m. (Georgia time), on the Business Day that Borrower
receives such notice, if such notice is received prior to 1:00 p.m. (Georgia time) on the date of
receipt, and, in the absence of such reimbursement, the L/C Disbursement immediately and
automatically shall be deemed to be an Advance hereunder and, initially, shall bear interest at the
rate then applicable to Advances that are Base Rate Loans. To the extent an L/C Disbursement is
deemed to be an Advance hereunder, Borrower’s obligation to reimburse such L/C Disbursement shall
be discharged and replaced by the resulting Advance. Promptly following receipt by Agent of any
payment from Borrower pursuant to this paragraph, Agent shall distribute such payment to the
Issuing Lender or, to the extent that Lenders have made payments pursuant to Section

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2.12(b) to reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as their
interests may appear.

          (b) Promptly following receipt of a notice of L/C Disbursement pursuant to Section
2.12(a), each Lender with a Revolver Commitment agrees to fund its Pro Rata Share of any
Advance deemed made pursuant to the foregoing subsection on the same terms and conditions as if
Borrower had requested such Advance and Agent shall promptly pay to Issuing Lender the amounts so
received by it from the Lenders. 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 Lender or the Lenders with Revolver Commitments, the Issuing Lender shall be deemed to have
granted to each Lender with a Revolver Commitment, and each Lender with a Revolver Commitment shall
be deemed to have purchased, a participation in each Letter of Credit, in an amount equal to its
Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender
agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of any
payments made by the Issuing Lender under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Lender with a Revolver Commitment hereby absolutely and
unconditionally agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro
Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by Borrower on
the date due as provided in Section 2.12(a), or of any reimbursement payment required to be
refunded to Borrower for any reason. Each Lender with a Revolver Commitment acknowledges and
agrees that its obligation to deliver to Agent, for the account of the Issuing Lender, an amount
equal to its respective Pro Rata Share of each L/C Disbursement made by the Issuing Lender pursuant
to this Section 2.12(b) shall be absolute and unconditional and such remittance shall be
made notwithstanding the occurrence or continuation of an Event of Default or Default or the
failure to satisfy any condition set forth in Section 3. If any such Lender fails to make
available to Agent the amount of such Lender’s Pro Rata Share of each L/C Disbursement made by the
Issuing Lender in respect of such Letter of Credit as provided in this Section, such Lender shall
be deemed to be a Defaulting Lender and Agent (for the account of the Issuing Lender) shall be
entitled to recover such amount on demand from such Lender together with interest thereon at the
Defaulting Lender Rate until paid in full.

          (c) Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless from
any loss, cost, expense, or liability, and reasonable attorneys fees incurred by the Lender Group
arising out of or in connection with any Letter of Credit; provided, however, that
Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to
the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or
any other member of the Lender Group. Borrower agrees to be bound by the Underlying Issuer’s
regulations and interpretations of any Underlying Letter of Credit or by Issuing Lender’s
interpretations of any L/C issued by Issuing Lender to or for Borrower’s account, even though this
interpretation may be different from Borrower’s own, and Borrower understands and agrees that the
Lender Group shall not be liable for any error, negligence, or mistake, whether of omission or
commission, in following Borrower’s instructions or those contained in the Letter of Credit or any
modifications, amendments, or supplements thereto. Borrower understands that the L/C Undertakings
may require Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities
arising out of claims by Borrower against such Underlying Issuer. Borrower hereby agrees to
indemnify, save, defend, and hold the Lender Group harmless with respect to any loss, cost, expense
(including reasonable attorneys fees), or liability incurred by the Lender Group under any L/C
Undertaking as a result of the Lender Group’s indemnification of any Underlying Issuer;
provided, however, that Borrower shall not be obligated hereunder to indemnify for
any loss, cost, expense, or liability to the extent that it is caused by the gross negligence or
willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower hereby
acknowledges and agrees that neither the Lender Group nor the Issuing Lender shall be responsible
for delays, errors, or omissions resulting from the malfunction of equipment in connection with any
Letter of Credit.

          (d) Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing
Lender all instruments, documents, and other writings and property received by such Underlying
Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing
Lender’s instructions with respect to all matters arising in connection with such Underlying Letter
of Credit and the related application.

13

 

          (e) Any and all issuance charges, commissions, fees, and costs incurred by the Issuing Lender
relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this
Agreement and immediately shall be reimbursable by Borrower to Agent for the account of the Issuing
Lender; it being acknowledged and agreed by Borrower that, as of the Closing Date, the issuance
charge imposed by the prospective Underlying Issuer is 0.25% per annum times the undrawn amount of
each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and
that the Underlying Issuer also imposes a schedule of charges for amendments, extensions, drawings,
and renewals.

          (f) If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule,
or regulation or any change in the interpretation or application thereof by any Governmental
Authority, or (ii) compliance by the Underlying Issuer or the Lender Group with any direction,
request, or requirement (irrespective of whether having the force of law) of any Governmental
Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time
to time in effect (and any successor thereto):

               (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect
of any Letter of Credit issued hereunder, or

               (ii) there shall be imposed on the Underlying Issuer or the Lender Group any other condition
regarding any Underlying Letter of Credit or any Letter of Credit issued pursuant hereto,

and the result of the foregoing is to increase, directly or indirectly, the cost to the Lender
Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount
receivable in respect thereof by the Lender Group, then, and in any such case, Agent may, at any
time within a reasonable period after the additional cost is incurred or the amount received is
reduced, notify Borrower, and Borrower shall pay on demand such amounts as Agent may specify to be
necessary to compensate the Lender Group for such additional cost or reduced receipt, together with
interest on such amount from the date of such demand until
payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The
determination by Agent of any amount due pursuant to this Section, as set forth in a certificate
setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or
demonstrable error, be final and conclusive and binding on all of the parties hereto.

     2.13 LIBOR Option.

          (a) Interest and Interest Payment Dates. In lieu of having interest charged at the
rate based upon the Base Rate, Borrower shall have the option (the “LIBOR Option”) to have
interest on all or a portion of the Advances be charged (whether at the time when made (unless
otherwise provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or upon
continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR
Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the
Interest Period applicable thereto (provided, however, that, subject to the
following clauses (ii) and (iii), in the case of any Interest Period greater than 3 months in
duration, interest shall be payable at 3 month intervals after the commencement of the applicable
Interest Period and on the last day of such Interest Period), (ii) the date on which all or any
portion of the Obligations are accelerated pursuant to the terms hereof, or (iii) the date on which
this Agreement is terminated pursuant to the terms hereof. On the last day of each applicable
Interest Period, unless Borrower properly has exercised the LIBOR Option with respect thereto, the
interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of
interest then applicable to Base Rate Loans of the same type hereunder. At any time that an Event
of Default has occurred and is continuing, Borrower no longer shall have the option to request that
Advances bear interest at a rate based upon the LIBOR Rate and Borrower shall not have the right to
renew or extend any then outstanding LIBOR Rate Loans at the end of the Interest Period applicable
thereto unless, in each case, the Required Lenders shall have provided their written consent
thereto.

          (b) LIBOR Election.

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               (i) Borrower may, at any time and from time to time, so long as no Event of Default has
occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior to 2:00
p.m. (Georgia time) at least 3 Business Days prior to the commencement of the proposed Interest
Period (the “LIBOR Deadline”). Notice of Borrower’s election of the LIBOR Option for a
permitted portion of the Advances and an Interest Period pursuant to this Section shall be made by
delivery to Agent of a LIBOR Notice received by Agent before the LIBOR Deadline, or by telephonic
notice received by Agent before the LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR
Notice received by Agent prior to 5:00 p.m. (Georgia time) on the same day). Promptly upon its
receipt of each such LIBOR Notice, Agent shall provide a copy thereof to each of the affected
Lenders.

               (ii) Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with each
LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against
any loss, cost, or expense incurred by Agent or any Lender as a result of (A) the payment of any
principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan
other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow,
convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered
pursuant hereto (such losses, costs, or expenses, “Funding Losses”). Funding Losses shall,
with respect to Agent or any Lender, be deemed to equal the amount determined by Agent or such
Lender to be the excess, if any, of (1) the amount of interest that would have accrued on the
principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would
have been applicable thereto, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow, convert, or
continue, for the period that would have been the Interest Period therefor), minus (2) the amount
of interest that would accrue on such principal amount for such period at the interest rate which
Agent or such Lender would be offered were it
to be offered, at the commencement of such period, Dollar deposits of a comparable amount and
period in the London interbank market. A certificate of Agent or a Lender delivered to Borrower
setting forth any amount or amounts that Agent or such Lender is entitled to receive pursuant to
this Section 2.13 shall be conclusive absent manifest error.

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

          (c) Conversion. Borrower may convert LIBOR Rate Loans to Base Rate Loans at any time;
provided, however, that in the event that LIBOR Rate Loans are converted or prepaid
on any date that is not the last day of the Interest Period applicable thereto, including as a
result of any automatic prepayment through the required application by Agent of proceeds of
Borrower’s and its Subsidiaries’ Collections in accordance with Section 2.4(b) or for any
other reason, including early termination of the term of this Agreement or acceleration of all or
any portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend, and
hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in
accordance with Section 2.13 (b)(ii) above.

          (d) Special Provisions Applicable to LIBOR Rate.

               (i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis
to take into account any additional or increased costs to such Lender of maintaining or obtaining
any eurodollar deposits or increased costs, in each case, due to changes in applicable law
occurring subsequent to the commencement of the then applicable Interest Period, including changes
in tax laws (except changes of general applicability in corporate income tax laws) and changes in
the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any
successor), excluding the Reserve Percentage, which additional or increased costs would increase
the cost of funding or maintaining loans bearing interest at the LIBOR Rate. In any such event,
the affected Lender shall give Borrower and Agent notice of such a determination and adjustment and
Agent promptly shall transmit the notice to each other

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Lender and, upon its receipt of the notice
from the affected Lender, Borrower may, by notice to such affected Lender (y) require such Lender
to furnish to Borrower a statement setting forth the basis for adjusting such LIBOR Rate and the
method for determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans with
respect to which such adjustment is made (together with any amounts due under Section
2.13(b)(ii)).

               (ii) In the event that any change in market conditions or any law, regulation, treaty, or
directive, or any change therein or in the interpretation of application thereof, shall at any time
after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for
such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to
determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed
circumstances to Agent and Borrower and Agent promptly shall transmit the notice to each other
Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date
specified in such Lender’s notice shall be deemed to be the last day of the Interest Period of such
LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue
interest at the rate then applicable to Base Rate Loans, and (z) Borrower shall not be entitled to
elect the LIBOR Option until such Lender determines that it would no longer be unlawful or
impractical to do so.

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

     2.14 Capital Requirements. If, after the date hereof, any Lender determines that (i)
the adoption of or change in any law, rule, regulation or guideline regarding capital requirements
for banks or bank holding companies, or any change in the interpretation or application thereof by
any Governmental Authority charged with the administration thereof, or (ii) compliance by such
Lender or its parent bank holding company with any guideline, request, or directive of any such
entity regarding capital adequacy (whether or not having the force of law), has the effect of
reducing the return on such Lender’s or such holding company’s capital as a consequence of such
Lender’s Commitments hereunder to a level below that which such Lender or such holding company
could have achieved but for such adoption, change, or compliance (taking into consideration such
Lender’s or such holding company’s then existing policies with respect to capital adequacy and
assuming the full utilization of such entity’s capital) by any amount deemed by such Lender to be
material, then such Lender may notify Borrower and Agent thereof. Following receipt of such
notice, Borrower agrees to pay such Lender on demand the amount of such reduction of return of
capital as and when such reduction is determined, payable within 90 days after presentation by such
Lender of a statement in the amount and setting forth in reasonable detail such Lender’s
calculation thereof and the assumptions upon which such calculation was based (which statement
shall be deemed true and correct absent manifest error). In determining such amount, such Lender
may use any reasonable averaging and attribution methods.

     2.15 Maximum Revolver Amount Increases. At any time and from time to time during the
period commencing on the Closing Date and ending on the second anniversary of the Closing Date,
Borrower may elect to increase the Maximum Revolver Amount (a “Maximum Revolver Amount
Increase”); provided that (a) lenders acceptable to the Agent and Borrower shall have
committed in writing to provide the Maximum Revolver Amount Increase being requested; (b) the
Maximum Revolver Amount, after giving effect to such Maximum Revolver Amount Increase, shall not be
more than the Borrowing Base at such time; (c) no Default or Event of Default shall have occurred
and be continuing; (d) Borrower shall elect Maximum Revolver Amount Increases in increments of no
less than $5,000,000; provided that the aggregate of all Maximum Revolver Amount Increases
shall not exceed $15,000,000; and (e) upon the consummation of any Maximum Revolver Amount
Increase, the Borrower shall pay to Agent a closing fee equal to the closing fee percentage set
forth in the Fee Letter times the amount of such Maximum Revolver Amount Increase. Subject

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to the
preceding sentence, any Maximum Revolver Amount Increase may be provided by any existing Lender or
by any other bank or other financial institution (any such other bank or other financial
institution being called an “Additional Lender”). Commitments in respect of Maximum
Revolver Amount Increases shall become Commitments (or in the case of a Maximum Revolver Amount
Increase to be provided by an existing Lender, an increase in such Lender’s Revolver Commitment)
under this Agreement pursuant to an amendment (an “Incremental Amendment”) to this
Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each Lender
agreeing to provide such Commitment, if any, each Additional Lender, if any, and the Agent. The
Incremental Amendment may, without the consent of any other Lenders, effect such amendments to this
Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable
opinion of the Agent to effect the provisions of this Section. The effectiveness of any
Incremental Amendment shall be subject to the satisfaction on the date thereof of each of the
conditions set forth in Section 3.2 (it being understood that all references to “extending
credit” or similar language in such Section 3.2 shall be deemed to refer to the effective
date of such Incremental Amendment). The Borrower will use the proceeds of the Maximum Revolver
Amount Increases for any purpose not prohibited by this Agreement. Upon each Maximum Revolver
Amount Increase pursuant to this Section, each Lender immediately prior to such increase will
automatically and without further act be deemed to have assigned to each Lender providing a portion
of the Maximum Revolver Amount Increase (each a “Revolver Commitment Increase Lender”) in
respect of such increase, and each such Revolver Commitment Increase Lender will automatically and
without further act be deemed to have assumed, a portion of such Lender’s participations hereunder
in outstanding Letters of Credit and Swing Loans such that, after giving effect to each such deemed
assignment and assumption of participations, the percentage of the aggregate outstanding (i)
participations hereunder in Letters of Credit and (ii) participations hereunder in Swing Loans held by each Lender (including each such Revolver
Commitment Increase Lender) will equal the percentage of the aggregate Commitments of all Lenders
represented by such Lender’s Commitment and if, on the date of such increase, there are any
Advances outstanding, such Advances shall on or prior to the effectiveness of such Maximum Revolver
Amount Increase be prepaid from the proceeds of additional Advances made hereunder (reflecting such
increase in Commitments), which prepayment shall be accompanied by accrued interest on the Advances
being prepaid and any costs incurred by any Lender in accordance with Section 2.13. This
Section 2.15 shall supersede any provisions in Section 15.12(b) or 14.1 to
the contrary.

     Agent will use reasonable efforts to work with the Borrower in attempting to syndicate any
proposed Maximum Revolver Amount Increase; provided, however, that the Agent shall
not be under any obligation to provide any portion of any Maximum Revolver Amount Increase; nor
shall the Agent have any commitment to identify any lenders which are willing to provide all or any
portion of any Incremental Facility. If a Maximum Revolver Amount Increase occurs, the Agent and
Lenders will, in good faith, consider the Borrower’s request to increase the Inventory Sublimit.

3. CONDITIONS; TERM OF AGREEMENT.

     3.1 Conditions Precedent to the Initial Extension of Credit. The obligation of each
Lender to make its initial extension of credit provided for hereunder, is subject to the
fulfillment, to the satisfaction of Agent and each Lender of each of the conditions precedent set
forth on Schedule 3.1 (the making of such initial extension of credit by a Lender being
conclusively deemed to be its satisfaction or waiver of the conditions precedent).

     3.2 Conditions Precedent to all Extensions of Credit. The obligation of the Lender
Group (or any member thereof) to make any Advances hereunder (or to extend any other credit
hereunder) at any time shall be subject to the following conditions precedent:

          (a) the representations and warranties of Borrower or its Subsidiaries contained in this
Agreement or in the other Loan Documents shall be true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) on

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and as of the date of such
extension of credit, as though made on and as of such date (except to the extent that such
representations and warranties relate solely to an earlier date);

          (b) no Default or Event of Default shall have occurred and be continuing on the date of such
extension of credit, nor shall either result from the making thereof; and

          (c) no injunction, writ, restraining order, or other order of any nature restricting or
prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain
in force by any Governmental Authority against Borrower, Agent, or any Lender.

     3.3 Term. This Agreement shall continue in full force and effect for a term ending on
February 7, 2013 (the “Maturity Date”). The foregoing notwithstanding, the Lender Group,
upon the election of the Required Lenders, shall have the right to terminate its obligations under
this Agreement immediately and without notice upon the occurrence and during the continuation of an
Event of Default.

     3.4 Effect of Termination. On the date of termination of this Agreement, all
Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding
Letters of Credit and including all Bank Product Obligations) immediately shall become due and
payable without notice or demand (including the requirement that Borrower provide (a) Letter of
Credit Collateralization, and (b) Bank Product Collateralization). No termination of this
Agreement, however, shall relieve or discharge Borrower or its Subsidiaries of their duties,
Obligations, or covenants hereunder or under any other Loan Document, and the Agent’s Liens in the
Collateral shall remain in effect until all Obligations have been paid in full and the Lender
Group’s obligations to provide additional credit hereunder have been terminated. When this
Agreement has been terminated and all of the Obligations have been paid in full and the Lender
Group’s obligations to provide additional credit under the Loan Documents have been terminated
irrevocably, Agent will, at Borrower’s sole expense, execute and deliver any termination
statements, Lien releases, re-assignments of trademarks, discharges of security interests, and
other similar discharge or release documents (and, if applicable, in recordable form) as are
reasonably necessary to release, as of record, the Agent’s Liens and all notices of security
interests and Liens previously filed by Agent with respect to the Obligations.

     3.5 Early Termination by Borrower. Borrower has the option, at any time upon 10
Business Days prior written notice to Agent, to terminate this Agreement and terminate the
Commitments hereunder by paying to Agent, in cash, the Obligations (including (a) providing Letter
of Credit Collateralization with respect to the then existing Letter of Credit Usage, and (b)
providing Bank Product Collateralization with respect to the then existing Bank Products), in full.
If Borrower has sent a notice of termination pursuant to the provisions of this Section, then the
Commitments shall terminate and Borrower shall be obligated to repay the Obligations (including (a)
providing Letter of Credit Collateralization with respect to the then existing Letter of Credit
Usage, and (b) providing Bank Product Collateralization with respect to the then existing Bank
Products), in full, on the date set forth as the date of termination of this Agreement in such
notice.

4. REPRESENTATIONS AND WARRANTIES.

          In order to induce the Lender Group to enter into this Agreement, Borrower makes the following
representations and warranties to the Lender Group, which shall be true, correct, and complete, in
all material respects, as of the date hereof, and shall be true, correct, and complete, in all
material respects, as of the Closing Date and at and as of the date of the making of each Advance
(or other extension of credit) requested by Borrower (and not deemed made by Agent or any Lender)
made thereafter, as though made on and as of the date of such Advance (or other extension of
credit) (except to the extent that such representations and warranties relate solely to an earlier
date) and such representations and warranties shall survive the execution and delivery of this
Agreement:

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     4.1 No Encumbrances. Borrower and its Subsidiaries have good and marketable title to,
or a valid leasehold interest in, their personal property assets and good and marketable title to,
or a valid leasehold interest in, their Real Property, in each case, free and clear of Liens except
for Permitted Liens.

     4.2 Eligible Accounts. As to each Account that is identified by Borrower as an
Eligible Account in a borrowing base report (whether weekly or monthly) submitted to Agent, as of
the date of such report, such Account is (a) a bona fide existing payment obligation of the
applicable Account Debtor created by the sale and delivery of Inventory or the rendition of
services to such Account Debtor in the ordinary course of Borrower’s business, (b) owed to Borrower
without any known defenses, disputes, offsets, counterclaims, or rights of return or
cancellation (other than adjustments and discounts given in the ordinary course of Borrower’s
business and other defenses, disputes, offsets and counterclaims, in each case, to the extent the
amount of the same is excluded from the value of Accounts represented as Eligible Accounts), and
(c) not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the
definition of Eligible Accounts.

     4.3 Eligible Inventory. As to each item of Inventory that is identified by Borrower
as Eligible Inventory in a borrowing base report (other than any weekly inventory report submitted
pursuant to clause (b) of Schedule 5.2) submitted to Agent, as of the date of such
report, such Inventory is (a) of good and merchantable quality, free from known defects, and (b)
not excluded as ineligible by virtue of one or more of the excluding criteria set forth in the
definition of Eligible Inventory.

     4.4 Equipment. Each material item of Equipment of Borrower and its Subsidiaries is
used or held for use in their business and is in good working order, ordinary wear and tear and
damage by casualty excepted. No Equipment of Borrower that is included in the Borrowing Base is a
fixture to real estate or an accession to other personal property unless such personal property is
subject to a first priority Lien in favor of Agent (subject only to Permitted Liens of the type
described in clauses (b), (c) and (g) of the definition thereof).

     4.5 [Reserved.]

     4.6 Inventory Records. Borrower keeps correct and accurate records in all material
respects itemizing and describing the type, quality, and quantity of its and its Subsidiaries’
Inventory and the book value thereof, subject to normal adjustments and corrections in the ordinary
course of business.

     4.7 Jurisdiction of Organization; Location of Chief Executive Office; Organizational
Identification Number; Commercial Tort Claims.

          (a) The name of (within the meaning of Section 9-503 of the Code) and jurisdiction of
organization of Borrower and each of its Subsidiaries is set forth on Schedule 4.7(a) (as
such Schedule may be updated from time to time to reflect changes permitted to be made under
Section 6.5).

          (b) The chief executive office of Borrower and each of its Subsidiaries is located at the
address indicated on Schedule 4.7(b) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.9).

          (c) Borrower’s and each of its Subsidiaries’ tax identification numbers and organizational
identification numbers, if any, are identified on Schedule 4.7(c) (as such Schedule may be
updated from time to time to reflect changes permitted to be made under Section 6.5).

          (d)As of the Closing Date, Borrower and its Subsidiaries do not hold any commercial tort claims, except as set forth on Schedule 4.7(d).

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     4.8 Due Organization and Qualification; Subsidiaries.

          (a) Borrower is duly organized and existing and in good standing under the laws of the
jurisdiction of its organization and qualified to do business in any state where the failure to be
so qualified reasonably could be expected to result in a Material Adverse Change.

          (b) Set forth on Schedule 4.8(b) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.16) is a complete and accurate
description of the authorized capital Stock of Borrower, by class, and, as of the Closing Date, a
description of the number of shares of each such class that are issued and outstanding. Other than
as described on Schedule 4.8(b), there are no subscriptions, options, warrants, or calls
relating to any shares of Borrower’s capital Stock, including any right of conversion or exchange
under any outstanding security or other instrument. Borrower is not subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital
Stock or any security convertible into or exchangeable for any of its capital Stock.

          (c) Set forth on Schedule 4.8(c) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 5.16) is a complete and accurate list of
Borrower’s direct and indirect Subsidiaries, showing: (i) the jurisdiction of their organization,
(ii) the number of shares of each class of common and preferred Stock authorized for each of such
Subsidiaries, and (iii) the number and the percentage of the outstanding shares of each such class
owned directly or indirectly by Borrower. All of the outstanding capital Stock of each such
Subsidiary has been validly issued and is fully paid and non-assessable, if applicable.

          (d) Except as set forth on Schedule 4.8(c), there are no subscriptions, options,
warrants, or calls relating to any shares of Borrower’s Subsidiaries’ capital Stock, including any
right of conversion or exchange under any outstanding security or other instrument. Neither
Borrower nor any of its Subsidiaries is subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of Borrower’s Subsidiaries’ capital Stock or
any security convertible into or exchangeable for any such capital Stock.

     4.9 Due Authorization; No Conflict.

          (a) The execution, delivery, and performance by Borrower of this Agreement and the Loan
Documents to which it is a party have been duly authorized by all necessary action on the part of
Borrower.

          (b) The execution, delivery, and performance by Borrower of this Agreement and the other Loan
Documents to which it is a party do not and will not (i) violate any provision of federal, state,
or local law or regulation applicable to Borrower, the Governing Documents of Borrower, or any
order, judgment, or decree of any court or other Governmental Authority binding on Borrower, (ii)
conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a
default under, the Term Loan Agreement or any IRB Document, (iii) result in or require the creation
or imposition of any Lien of any nature whatsoever upon any properties or assets of Borrower, other
than Permitted Liens, or (iv) require any approval of Borrower’s shareholders or any approval or
consent of any Person under the Term Loan Agreement or any IRB Document, other than consents or
approvals that have been obtained and that are still in force and effect.

          (c) Other than the filing of financing statements and other filings or actions necessary to
perfect Liens granted to Agent in the Collateral, the execution, delivery, and performance by
Borrower of this Agreement and the other Loan Documents to which Borrower is a party do not and
will not require any
registration with, consent, or approval of, or notice to, or other action with or by, any
Governmental Authority, other than consents or approvals that have been obtained and that are still
in force and effect.

20

 

          (d) This Agreement and the other Loan Documents to which Borrower is a party, and all other
documents contemplated hereby and thereby, when executed and delivered by Borrower will be the
legally valid and binding obligations of Borrower, enforceable against Borrower in accordance with
their respective terms, except as enforcement may be limited by equitable principles or by
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors’ rights generally.

          (e) The Agent’s Liens are validly created, perfected (other than any Deposit Accounts and
Securities Accounts not subject to a Control Agreement as permitted by Section 6.12, and
subject only to the filing of financing statements), and first priority Liens, subject only to
Permitted Liens.

          (f) The execution, delivery, and performance by each Guarantor of the Loan Documents to which
it is a party have been duly authorized by all necessary action on the part of such Guarantor.

          (g) The execution, delivery, and performance by each Guarantor of the Loan Documents to which
it is a party do not and will not (i) violate any provision of federal, state, or local law or
regulation applicable to such Guarantor, the Governing Documents of such Guarantor, or any order,
judgment, or decree of any court or other Governmental Authority binding on such Guarantor, (ii)
conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a
default under the Term Loan Agreement or any IRB Document, (iii) result in or require the creation
or imposition of any Lien of any nature whatsoever upon any properties or assets of such Guarantor,
other than Permitted Liens, or (iv) require any approval of such Guarantor’s interestholders or any
approval or consent of any Person under the Term Loan Agreement or any IRB Document, other than
consents or approvals that have been obtained and that are still in force and effect.

          (h) Other than the filing of financing statements and other filings or actions necessary to
perfect Liens granted to Agent in the Collateral, the execution, delivery, and performance by each
Guarantor of the Loan Documents to which such Guarantor is a party do not and will not require any
registration with, consent, or approval of, or notice to, or other action with or by, any
Governmental Authority, other than consents or approvals that have been obtained and that are still
in force and effect.

          (i) The Loan Documents to which each Guarantor is a party, and all other documents
contemplated hereby and thereby, when executed and delivered by such Guarantor will be the legally
valid and binding obligations of such Guarantor, enforceable against such Guarantor in accordance
with their respective terms, except as enforcement may be limited by equitable principles or by
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting
creditors’ rights generally.

     4.10 Litigation. Other than those matters disclosed on Schedule 4.10, there
are no actions, suits, or proceedings pending or, to the best knowledge of Borrower, threatened
against Borrower or any of its Subsidiaries that reasonably could be expected to result in a
Material Adverse Change.

     4.11 Financial Statements and Condition. All financial statements relating to
Borrower and its Subsidiaries that have been delivered by Borrower to the Lender Group have been
prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the
lack of footnotes and being subject to year-end audit adjustments) and present fairly in all
material respects, Borrower’s and its Subsidiaries’ financial condition as of the date thereof and
results of operations for the period then ended. There has not been a Material Adverse Change with
respect to Borrower and its Subsidiaries since June 28, 2007.

     4.12 Fraudulent Transfer.

          (a) Each of Borrower and each of its Subsidiaries is Solvent.

          (b) No transfer of property is being made by Borrower or its Subsidiaries and no obligation is
being incurred by Borrower or its Subsidiaries in connection with the transactions contemplated

21

 

by
this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either
present or future creditors of Borrower or its Subsidiaries.

     4.13 Employee Benefits. None of Borrower, any of its Subsidiaries, or any of their
ERISA Affiliates maintains or contributes to any Benefit Plan, except as set forth on Schedule
4.13.

     4.14 Environmental Condition. Except as set forth on Schedule 4.14, (a) to
Borrower’s knowledge, none of Borrower’s or its Subsidiaries’ properties or assets has ever been
used by Borrower, its Subsidiaries, or by previous owners or operators in the disposal of, or to
produce, store, handle, treat, release, or transport, any Hazardous Materials, where such use,
production, storage, handling, treatment, release or transport was in violation, in any material
respect, of any applicable Environmental Law, (b) to Borrower’s knowledge, none of Borrower’s or
its Subsidiaries’ properties or assets has ever been designated or identified in any manner
pursuant to any Environmental Law as a location where Hazardous Materials have been disposed of or
released, (c) neither Borrower nor any of its Subsidiaries has received notice that a Lien arising
under any Environmental Law has attached to any revenues or to any Real Property owned or operated
by Borrower or its Subsidiaries, and (d) neither Borrower nor its Subsidiaries has received a
summons, citation, notice, or directive from the United States Environmental Protection Agency or
any other federal or state governmental agency concerning any action or omission by Borrower or its
Subsidiaries resulting in the releasing or disposing of Hazardous Materials into the environment.

     4.15 Intellectual Property. Borrower and its Subsidiaries own, or hold licenses in,
all trademarks, trade names, copyrights, patents, patent rights, and licenses that are necessary to
the conduct of its business as currently conducted, and attached hereto as Schedule 4.15
(as updated from time to time) is a true, correct, and complete listing of all material patents,
patent applications, trademarks, trademark applications, copyrights, and copyright registrations as
to which Borrower or one of its Subsidiaries is the owner or is an exclusive licensee;
provided, however, that Borrower may amend Schedule 4.15 to add additional
property so long as such amendment occurs by written notice to Agent not less than 10 days before
the date on which Borrower or any Subsidiary of Borrower acquires any such property after the
Closing Date.

     4.16 Leases. Except to the extent not reasonably likely to result in a Material
Adverse Change, (a) Borrower and its Subsidiaries enjoy peaceful and undisturbed possession under
all leases material to their business and to which they are parties or under which they are
operating, (b) all of such material leases are valid and subsisting and (c) no material default by
Borrower or its Subsidiaries exists under any of them.

     4.17 Deposit Accounts and Securities Accounts. Set forth on Schedule 4.17 is a listing of all of Borrower’s and its Subsidiaries’
Deposit Accounts and Securities Accounts, including, with respect to each bank or securities
intermediary (a) the name and address of such Person, and (b) the account numbers of the Deposit
Accounts or Securities Accounts maintained with such Person. Except to the extent not required
under Section 6.12, so long as Borrower delivers a Control Agreement executed by the
Borrower and the applicable bank or securities intermediary contemporaneously therewith, Borrower
shall be permitted to update Schedule 4.17 from time to time to add Deposit Accounts and
Securities Accounts thereto.

     4.18 Complete Disclosure. All factual information (taken as a whole) furnished by or
on behalf of Borrower or its Subsidiaries in writing to Agent or any Lender (including all
information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in
connection with this Agreement, the other Loan Documents, or any transaction contemplated herein or
therein is, and all other such factual information (taken as a whole) hereafter furnished by or on
behalf of Borrower or its Subsidiaries in writing to Agent or any Lender will be, true and
accurate, in all material respects, on the date as of which such information is dated or certified
and not incomplete by omitting to state any fact necessary to make such information (taken as a
whole) not misleading in any material respect at such time in light of the circumstances under
which such information was provided, except as permitted by Sections 4.3 and 5.14.
On the Closing Date, the Closing Date Projections represent, and as of the date on which any other
Projections are delivered to Agent, such additional Projections represent Borrower’s good faith
estimate of its and its Subsidiaries future

22

 

performance for the periods covered thereby based upon
assumptions believed by Borrower to be reasonable at the time of the delivery thereof to Agent (it
being understood that such projections and forecasts are subject to uncertainties and
contingencies, many of which are beyond the control of Borrower and its Subsidiaries and no
assurances can be given that such projections or forecasts will be realized).

     4.19 Indebtedness. Set forth on Schedule 4.19 is a true and complete list of
all Indebtedness of Borrower and its Subsidiaries outstanding immediately prior to the Closing Date
that is to remain outstanding after the Closing Date, and such Schedule accurately sets forth the
aggregate principal amount of such Indebtedness and the principal terms thereof, in each case as of
the Closing Date.

     4.20 Growers’ Liens. Borrower and its Subsidiaries are in compliance with all
notifications and instructions received from creditors of Protected Vendors delivered pursuant to
Growers’ Lien Laws. Borrower has registered with the Secretary of State (or other designated
individual or office) in each FSA State in which a Protected Vendor from whom Borrower purchases
agricultural products is located and is entitled to receive centrally compiled lists of secured
creditors published by each such State.

5. AFFIRMATIVE COVENANTS.

          Borrower covenants and agrees that, until termination of all of the Commitments and payment in
full of the Obligations, Borrower shall and shall cause each of its Subsidiaries to do all of the
following:

     5.1 Accounting System. Maintain a system of accounting that enables Borrower to
produce financial statements in accordance with GAAP and maintain records pertaining to the
Collateral that contain information as from time to time reasonably may be requested by Agent.
Borrower also shall keep a reporting system that shows all additions, sales, claims, returns, and
allowances with respect to its and its Subsidiaries’ sales. Borrower shall
also maintain its billing systems/practices as approved by Agent prior to the Closing Date and
shall only make material modifications thereto with notice to, and consent of, Agent.

     5.2 Collateral Reporting. Provide Agent (and if so requested by Agent, with copies
for each Lender) with each of the reports set forth on Schedule 5.2 at the times specified
therein. In addition, Borrower agrees to cooperate fully with Agent to facilitate and implement a
system of electronic collateral reporting in order to provide electronic reporting of each of the
items set forth above.

     5.3 Financial Statements, Reports, Certificates. Deliver to Agent, with copies to
each Lender, each of the financial statements, reports, or other items set forth on Schedule
5.3 at the times specified therein. In addition, Borrower agrees that no Subsidiary of
Borrower will have a fiscal year different from that of Borrower.

     5.4 Guarantor Reports. Cause each Guarantor to deliver its annual financial
statements at the time when Borrower provides its audited financial statements to Agent, but only
to the extent such Guarantor’s financial statements are not consolidated with Borrower’s financial
statements.

     5.5 Inspection. Permit Agent, each Lender, and each of their duly authorized
representatives or agents to visit any of its properties and inspect any of its assets or books and
records, to examine and make copies of its books and records, and to discuss its affairs, finances,
and accounts with, and to be advised as to the same by, its officers and employees at such
reasonable times and intervals as Agent or any such Lender may designate and, so long as no Default
or Event of Default exists, with reasonable prior notice to Borrower.

     5.6 Maintenance of Properties. Maintain and preserve all of its properties which are
necessary or useful in the proper conduct of its business in good working order and condition,
ordinary wear, tear, and casualty excepted (and except where the failure to do so could not be
expected to result in a Material Adverse Change), and comply at all times with the provisions of
all material leases to which it is a party as lessee, so as to prevent any loss or forfeiture
thereof or thereunder.

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     5.7 Taxes. Cause all state and federal income tax and all other material assessments
and taxes, whether real, personal, or otherwise, due or payable by, or imposed, levied, or assessed
against Borrower, its Subsidiaries, or any of their respective assets to be paid in full, before
delinquency or before the expiration of any extension period, except to the extent that the
validity of such assessment or tax shall be the subject of a Permitted Protest. Borrower will and
will cause its Subsidiaries to make timely payment or deposit of all tax payments and withholding
taxes required of it and them by applicable laws, including those laws concerning F.I.C.A.,
F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request,
furnish Agent with proof satisfactory to Agent indicating that Borrower and its Subsidiaries have
made such payments or deposits.

     5.8 Insurance.

          (a) At Borrower’s expense, maintain insurance respecting its and its Subsidiaries’ assets
wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and
risks as ordinarily are insured against by other Persons engaged in the same or similar businesses.
Borrower also shall maintain business interruption, public liability, and product liability
insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All
such policies of insurance shall be in such amounts and with such insurance companies as are
reasonably satisfactory to Agent. Borrower shall deliver copies of all such policies to Agent with
an endorsement naming Agent, as applicable, as (i) an additional insured with respect to liability
policies, (ii) as the sole loss payee (under a satisfactory lender’s loss payable endorsement) with
respect to all business interruption policies and (iii) as a loss payee, as the interests of the
Agent and the Lenders may appear, with respect to each other policy covering the Collateral. Each
policy of insurance or endorsement shall contain a clause requiring the insurer to give not less
than 30 days prior written notice to Agent in the event of cancellation of the policy for any
reason whatsoever.

          (b) Borrower shall give Agent prompt notice of any loss of any Collateral exceeding $2,500,000
covered by such insurance. So long as no Event of Default has occurred and is continuing, Borrower
shall have the exclusive right to adjust any losses payable under any such insurance policies which
are less than $2,500,000. Following the occurrence and during the continuation of an Event of
Default, or in the case of any losses of any Collateral payable under such insurance exceeding
$2,500,000, Agent shall have the exclusive right to adjust any losses payable under any such
insurance policies, without any liability to Borrower whatsoever in respect of such adjustments.

     5.9 Location of Inventory and Equipment. Keep Borrower’s and its Subsidiaries’
Inventory and Equipment (other than vehicles and Equipment out for repair) only at the locations
identified on Schedule E-1 and their chief executive offices only at the locations
identified on Schedule 4.7(b); provided, however, that Borrower may amend
Schedule E-1 or Schedule 4.7(b) so long as such amendment occurs by written notice
to Agent not less than 10 Business Days prior to the date on which such Inventory or Equipment is
moved to such new location or such chief executive office is relocated, so long as such new
location is within the continental United States.

     5.10 Compliance with Laws. Comply with the requirements of all applicable laws,
rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations,
and orders the non-compliance with which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Change.

     5.11 [Reserved.]

     5.12 Existence. At all times (a) preserve and keep in full force and effect
Borrower’s and its Subsidiaries, valid existence and good standing in its jurisdiction of
organization and (b) preserve and keep in full force and effect Borrower’s and its Subsidiaries,
valid existence and good standing in each other jurisdiction where the failure to be so qualified
would reasonably be expected to result in a Material Adverse

24

 

Change and, except as could not
reasonably be expected to result in a Material Adverse Change, any rights, franchises, permits,
licenses, accreditations, authorizations, or other approvals material to their businesses.

     5.13 Environmental. (a) Keep any property either owned or operated by Borrower or its
Subsidiaries free of any Environmental Liens or post bonds or other financial assurances sufficient
to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in all
material respects, with Environmental Laws and provide to Agent documentation of such compliance
which Agent reasonably requests, (c) promptly notify Agent of any release of a Hazardous Material
in any reportable quantity from or onto property owned or operated by Borrower or its Subsidiaries
and promptly implement, in compliance with applicable Environmental Laws, Remedial Actions required
to abate said release, and (d) promptly, but in any event within 5 days of its receipt thereof,
provide Agent with written notice of any of the following: (i) notice that an Environmental Lien
has been filed against any of the real or personal property of Borrower or its Subsidiaries, (ii)
commencement of any Environmental Action or notice that an Environmental Action will be filed
against Borrower or its Subsidiaries, and (iii) notice of a violation, citation, or other
administrative order which reasonably could be expected to result in a Material Adverse Change.

     5.14 Disclosure Updates. Promptly and in no event later than 5 Business Days after
obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished
to the Lender Group contained, at the time it was furnished, any untrue statement of a material
fact or omitted to state any material fact necessary to make the statements contained therein not
misleading in light of the circumstances in which made; provided, however, Borrower shall not have
any such obligation with regard to any weekly inventory report submitted pursuant to clause (b) of
Schedule 5.2. The foregoing to the contrary notwithstanding, any notification pursuant to
the foregoing provision will not cure or remedy the effect of the prior untrue statement of a
material fact or omission of any material fact nor shall any such notification have the effect of
amending or modifying this Agreement or any of the Schedules hereto.

     5.15 Control Agreements. Take all reasonable steps in order for Agent to obtain
control in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with respect
to (subject to the proviso contained in Section 6.12) all of its Securities Accounts,
Deposit Accounts (other than payroll, withholding tax and other fiduciary accounts and the Term
Lender Collateral Account) electronic chattel paper, investment property, and letter-of-credit
rights.

     5.16 Formation of Subsidiaries. At the time that Borrower or any Guarantor forms any
direct or indirect Domestic Subsidiary or acquires any direct or indirect Domestic Subsidiary after
the Closing Date, Borrower or such Guarantor shall (a) cause such new Domestic Subsidiary to
provide to Agent a joinder to the Security Agreement and execute and delivery a Guaranty, together
with such other security documents, as well as appropriate financing statements, all in form and
substance satisfactory to Agent (including being sufficient to grant Agent a first priority Lien
(subject to Permitted Liens) in and to the assets of such newly formed or acquired Domestic
Subsidiary to the extent such assets are (i) of the type that would normally be included in the
Collateral or (ii) constitute no more than 65% of the Stock of any Subsidiary that is not a
Domestic Subsidiary), and (b) provide to Agent all other documentation, including one or more
opinions of counsel satisfactory to Agent, which in its opinion is appropriate with respect to the
execution and delivery of the applicable documentation referred to above. Any document, agreement,
or instrument executed or issued pursuant to this Section 5.16 shall be a Loan Document.

     5.17 Further Assurances. At any time upon the request of Agent, Borrower shall
execute or deliver to Agent, and shall cause its Subsidiaries to execute or deliver to Agent, any
and all financing statements, security
agreements, pledges, assignments, opinions of counsel, and all other documents (collectively,
the “Additional Documents”) that Agent may request in form and substance reasonably
satisfactory to Agent, to create, perfect, and continue perfected or to better perfect the Agent’s
Liens in all of the properties and assets of Borrower and its Subsidiaries constituting Collateral
(whether now owned or hereafter arising or acquired, tangible or intangible) to the extent such
properties and assets are of the type that would normally be included in the Collateral and in
order to fully consummate all of the transactions

25

 

contemplated hereby and under the other Loan
Documents. To the maximum extent permitted by applicable law, Borrower authorizes Agent to execute
any such Additional Documents in Borrower’s or its Subsidiary’s name, as applicable, and authorizes
Agent to file such executed Additional Documents in any appropriate filing office.

     5.18 Existing Letter of Credit. Use its best efforts to cause the Existing Letter of
Credit to be canceled and replaced with a new Letter of Credit issued by Wells Fargo, in each case
in accordance with the provisions of the IRB Documents no later than 90 days after the Closing
Date.

     5.19 Growers’ Liens. So long as Borrower purchases agricultural products from
Protected Vendors, Borrower shall (i) register with the Secretary of State (or other designated
individual or office) in each FSA State in which Protected Vendors are located so as to receive the
centrally complied list of secured creditors published by each such state pursuant to the FSA, (ii)
monitor the receipt of notices of Liens and/or trusts on its assets under any Growers’ Lien Law
and, (iii) where the provisions of the FSA are applicable, issue joint checks to growers or
suppliers and their respective secured parties or otherwise obtain a release of such secured
party’s Lien in accordance with the FSA.

     5.20 Post-Closing Conditions. The Borrower agrees that it shall deliver or cause to
be delivered to the Agent the items described on Schedule 5.20, in form and substance
reasonably satisfactory to the Agent and/or take the actions described on Schedule 5.20 in
a manner reasonably acceptable to the Agent, on or prior to the dates set forth in Schedule
5.20 (unless such time periods are extended or waived by Agent in its sole discretion). The
conditions precedent set forth in Section 3.1 that require that the items and actions
described in Schedule 5.20 be satisfied on or prior to the date hereof are hereby waived to
allow Borrower to satisfy such conditions precedent on or prior to the dates set forth in
Schedule 5.20 (unless such time periods are extended or waived by Agent in its sole
discretion).

     5.21 Term Lender Collateral Account. Borrower shall cause all proceeds of the
Excluded Collateral to be deposited in the Term Lender Collateral Account as and when required
pursuant to the terms of the Term Loan Documents.

6. NEGATIVE COVENANTS.

          Borrower covenants and agrees that, until termination of all of the Commitments and payment in
full of the Obligations, Borrower will not and will not permit any of its Subsidiaries to do any of
the following:

     6.1 Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise
become or remain, directly or indirectly, liable with respect to any Indebtedness, except:

          (a) Indebtedness evidenced by this Agreement and the other Loan Documents, together with
Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit,

          (b) Indebtedness set forth on Schedule 4.19 and any Refinancing Indebtedness in
respect of such Indebtedness,

          (c) Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such
Indebtedness in an aggregate amount not to exceed at any time, when aggregated with all
Indebtedness permitted pursuant to clause (f) of this Section 6.1, $5,000,000,

          (d) endorsement of instruments or other payment items for deposit,

          (e) Indebtedness composing Permitted Investments, and

26

 

          (f) unsecured Indebtedness of Borrower and its Subsidiaries in an aggregate amount not to
exceed at any time, when aggregated with all Indebtedness permitted pursuant to clause (c)
of this Section 6.1, $5,000,000.

     6.2 Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any
Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired,
or any income or profits therefrom, except for Permitted Liens.

     6.3 Restrictions on Fundamental Changes.

          (a) Enter into any merger, consolidation, reorganization, or recapitalization,

          (b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), or

          (c) Suspend or go out of a substantial portion of its or their business.

     6.4 Disposal of Assets. Other than Permitted Dispositions, convey, sell, lease,
license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey, sell,
lease, license, assign, transfer, or otherwise dispose of) any of Borrower’s or its Subsidiaries
assets that constitute Collateral.

     6.5 Change Name. Change Borrower’s or any of its Subsidiaries’ name, organizational
identification number, state of organization or organizational identity; provided,
however, that Borrower or any of its Subsidiaries may change their names upon at least 30
days prior written notice to Agent of such change and so long as, at the time of such written
notification, Borrower or its Subsidiary provides any financing statements necessary to perfect and
continue perfection of the Agent’s Liens.

     6.6 Nature of Business. Make any change in the nature of its or their business as
described in Schedule 6.6 or acquire any properties or assets that are not reasonably
related to the conduct of such business activities.

     6.7 Prepayments and Amendments. Except in connection with Refinancing Indebtedness
permitted by Section 6.1,

          (a) optionally prepay, redeem, defease, purchase, or otherwise acquire Indebtedness under the
Term Loan Documents unless at the time of and immediately after giving effect to such optional
prepayment, (i) no Default or Event of Default shall have occurred and be continuing and (ii)
Excess Availability shall exceed $20,000,000,

          (b) make any payment on account of Indebtedness that has been contractually subordinated in
right of payment if such payment is not permitted at such time under the subordination terms and
conditions, or

          (c) directly or indirectly, amend, modify, alter, increase, or change any of the terms or
conditions of any Term Loan Document except to the extent that such amendment, modification,
alteration, increase, or change could not, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Change.

     6.8 Change of Control. Cause, permit, or suffer, directly or indirectly, any Change
of Control.

     6.9 Consignments. Consign any of its or their Inventory or sell any of its or their
Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale.

27

 

     6.10 Distributions. Make any distribution or declare or pay any dividends (in cash or
other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of
Borrower’s Stock, of any class, whether now or hereafter outstanding.

     6.11 Accounting Methods. Modify or change its fiscal year or its method of accounting
(other than as may be required to conform to GAAP).

     6.12 Investments. Except for Permitted Investments, directly or indirectly, make or
acquire any Investment or incur any liabilities (including contingent obligations) for or in
connection with any Investment; provided, however, that Borrower and its
Subsidiaries shall not have Permitted Investments (other than in the Cash Management Accounts) in
Deposit Accounts or Securities Accounts (other than payroll, withholding tax and other fiduciary
accounts and the Term Lender Collateral Account) in an aggregate amount in excess of $100,000 at
any one time unless Borrower or its Subsidiary, as applicable, and the applicable securities
intermediary or bank have entered into Control Agreements governing such Permitted Investments in
order to perfect (and further establish) the Agent’s Liens in such Permitted Investments. Subject
to the foregoing proviso, Borrower shall not and shall not permit its Subsidiaries to establish or
maintain any Deposit Account or Securities Account (other than payroll, withholding tax and other
fiduciary accounts and the Term Lender Collateral Account) unless Agent shall have received a
Control Agreement in respect of such Deposit Account or Securities Account.

     6.13 Transactions with Affiliates. Directly or indirectly enter into or permit to
exist any transaction with any Affiliate of Borrower or any of its Subsidiaries except for:

          (a) transactions (other than payment of management, consulting, monitoring, or advisory fees)
between Borrower or its Subsidiaries, on the one hand, and any Affiliate of Borrower or its
Subsidiaries, on the other hand, (i) so long as such transactions (A) are disclosed to and approved
by the independent audit committee of the Borrower and (B) are fully disclosed to Agent if they
involve one or more payments by Borrower or its Subsidiaries in excess of $5,000,000 for any single
transaction or series of transactions (it being agreed that if such transactions are disclosed by
Borrower pursuant to a public filing pursuant to the Exchange Act or the Securities Act of 1933, as
in effect from time to time, the same shall be deemed disclosed to the Agent) and (ii) other than
payments under the lease agreement with respect to the facility located in Selma, Texas; and

          (b) the payment of reasonable fees, compensation, or employee benefit arrangements to, and any
indemnity provided for the benefit of, outside directors of Borrower in the ordinary course of
business and consistent with industry practice.

     6.14 Use of Proceeds. Use the proceeds of the Advances for any purpose other than (a)
on the Closing Date, (i) to repay the obligations owing to Existing Agent and the Existing Lenders
as required by item (d)(vii) of Schedule 3.1, and (ii) to pay transactional fees, costs,
and expenses incurred in connection with this Agreement, the other Loan Documents, and the
transactions contemplated hereby and thereby, and (b) thereafter, consistent with the terms and
conditions hereof, for its lawful and permitted purposes.

     6.15 Equipment. Permit any Equipment included in the Borrowing Base to become a
fixture to real property or an accession to any other personal property unless such personal
property is subject to a first priority Lien in favor of Agent (subject only to Permitted Liens of
the type described in clauses (b), (c) and (g) of the definition thereof).

     6.16 Financial Covenants.

          (a) Fixed Charge Coverage Ratio. Have, on any date on which Average Excess
Availability is less than $15,000,000, a Fixed Charge Coverage Ratio, measured on a trailing
12-month-end

28

 

basis on the last day of each fiscal month of the Borrower, less than the required
amount set forth in the following table for the applicable period set forth opposite thereto:

	 	 	 
	Applicable Ratio	 	Applicable Period
	1.0:1.0

	 	For the trailing 12 months ending on the last day of the
then most-recently ended fiscal month of the Borrower and
the last day of each fiscal month thereafter until such
time as Average Excess Availability is equal to or
greater than $15,000,000 for three consecutive fiscal
months

At any time after the Closing Date, the Borrower may, at the Borrower’s sole cost and expense,
cause the Borrower’s Equipment to be appraised by an appraiser acceptable to the Agent in its sole
discretion to determine the then-applicable net orderly liquidation value of the Borrower’s
Eligible Equipment. If the results of such appraisal disclose that the net orderly liquidation
value of Borrower’s Eligible Equipment exceeds $25,000,000, Agent and Required Lenders agree to
consider in good faith any request by the Borrower
to decrease the foregoing Average Excess Availability requirement to $10,000,000, which decrease
would in any event be subject to credit committee approval of Agent and the Required Lenders and
such other conditions as Agent and Required Lenders may require.

          (b) Capital Expenditures. Make Capital Expenditures in any fiscal year in excess of
the amount set forth in the following table for the applicable period:

	 	 	 	 	 
	Fiscal Year ending June 26, 2008

	 	Fiscal Year ending June 25, 2009
	 	Each Fiscal Year ending thereafter
	$13,000,000

	 	$13,000,000
	 	$15,000,000

7. EVENTS OF DEFAULT.

          Any one or more of the following events shall constitute an event of default (each, an
“Event of Default”) under this Agreement:

     7.1 If Borrower fails to pay when due and payable, or when declared due and payable, (a) all
or any portion of the Obligations consisting of interest or fees due the Lender Group,
reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof
constituting principal) constituting Obligations (including any portion thereof that accrues after
the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole
or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period
of 3 Business Days, or (b) all or any portion of the principal of the Obligations;

     7.2 If Borrower or any of its Subsidiaries:

          (a) fails to perform or observe any covenant or other agreement contained in any of
Sections 2.7, 5.2, 5.3, 5.4, 5.5, 5.8,
5.12, 5.14, 5.16, 5.17, 5.20, 5.21 and 6.1
through 6.16 of this Agreement or Section 6 of the Security Agreement;

          (b) fails to perform or observe any covenant or other agreement contained in any of
Sections 5.7, 5.9, and 5.15 of this Agreement and such failure continues
for a period of 10 days after the earlier of (i) the date on which such failure shall first become
known to any Responsible Officer of Borrower or (ii) written notice thereof is given to Borrower by
Agent; or

29

 

          (c) fails to perform or observe any covenant or other agreement contained in this Agreement,
or in any of the other Loan Documents, in each case, other than any such covenant or agreement that
is the subject of another provision of this Section 7 (in which event such other provision
of this Section 7 shall govern), and such failure continues for a period of 30 days after
the earlier of (i) the date on which such failure shall first become known to any Responsible
Officer of Borrower or (ii) written notice thereof is given to Borrower by Agent;

     7.3 If any material portion of Borrower’s or any of its Subsidiaries’ assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of
any third Person and the same is not discharged before the earlier of 30 days after the date it
first arises or 5 days prior to the date on which such property or asset is subject to forfeiture
by Borrower or the applicable Subsidiary;

     7.4 If an Insolvency Proceeding is commenced by Borrower or any of its Subsidiaries;

     7.5 If an Insolvency Proceeding is commenced against Borrower or any of its Subsidiaries and
any of the following events occur: (a) Borrower or such Subsidiary consents to the institution of
such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not
timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within
60 calendar days
of the date of the filing thereof, (d) an interim trustee is appointed to take possession of
all or any substantial portion of the properties or assets of, or to operate all or any substantial
portion of the business of, Borrower or any of its Subsidiaries, or (e) an order for relief shall
have been issued or entered therein;

     7.6 If Borrower or any of its Subsidiaries is enjoined, restrained, or in any way prevented by
court order from continuing to conduct all or any material part of its business affairs;

     7.7 If one or more judgments, orders, or awards involving an aggregate amount of $1,500,000,
or more (except to the extent fully covered by insurance pursuant to which the insurer has accepted
liability therefor in writing) shall be entered or filed against Borrower or any of its
Subsidiaries or with respect to any of their respective assets, and the same is not released,
discharged, bonded against, or stayed pending appeal before the earlier of 30 days after the date
it first arises or 5 days prior to the date on which such asset is subject to being forfeited by
Borrower or the applicable Subsidiary;

     7.8 If there is a default in one or more agreements to which Borrower or any of its
Subsidiaries is a party with one or more third Persons relative to Borrower’s or any of its
Subsidiaries’ Indebtedness involving an aggregate amount of $1,500,000 or more, and such default
(i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right by such
third Person(s), irrespective of whether exercised, to accelerate the maturity of Borrower’s or the
applicable Subsidiary’s obligations thereunder, or if there shall have occurred an “Event of
Default” under the Term Loan Documents and such “Event of Default” shall not have been cured or
waived in accordance with the terms of the Term Loan Documents;

     7.9 If any warranty, representation, statement, or Record made herein or in any other Loan
Document or delivered to Agent or any Lender in connection with this Agreement or any other Loan
Document proves to be untrue in any material respect (except that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof) as of the date of issuance or making or deemed making thereof;
provided, however, that no representation or warranty under Section 3.2(a)
shall be deemed made when Agent funds any Overadvance or Protective Advance that has not been
requested by Borrower;

     7.10 If the obligation of any Guarantor under any Guaranty is limited or terminated by
operation of law or by such Guarantor, or any such Guarantor becomes the subject of an Insolvency
Proceeding;

     7.11 If the Security Agreement or any other Loan Document that purports to create a Lien,
shall, for any reason, fail or cease to create a valid and perfected and, except to the extent
permitted by the terms

30

 

hereof or thereof, first priority Lien on or security interest in the
Collateral covered hereby or thereby, except as a result of a disposition of the applicable
Collateral in a transaction permitted under this Agreement; or

     7.12 Any provision of any Loan Document shall at any time for any reason be declared to be
null and void, or the validity or enforceability thereof shall be contested by Borrower or its
Subsidiaries, or a proceeding shall be commenced by Borrower or its Subsidiaries, or by any
Governmental Authority having jurisdiction over Borrower or its Subsidiaries, seeking to establish
the invalidity or unenforceability thereof, or Borrower or its Subsidiaries shall deny that
Borrower or its Subsidiaries has any liability or obligation purported to be created under any Loan
Document.

8. THE LENDER GROUP’S RIGHTS AND REMEDIES.

     8.1 Rights and Remedies. Upon the occurrence, and during the continuation, of an
Event of Default, upon prior written notice to Borrower, the Required Lenders may authorize and
instruct Agent to do any one or more of the following on behalf of the Lender Group (and Agent,
acting upon the instructions of the Required Lenders, shall do the same on behalf of the Lender
Group):

          (a) Declare all or any portion of the Obligations, whether evidenced by this Agreement, by any
of the other Loan Documents, or otherwise, immediately due and payable;

          (b) Cease advancing money or extending credit to or for the benefit of Borrower under this
Agreement, under any of the Loan Documents, or under any other agreement between Borrower and the
Lender Group;

          (c) Terminate this Agreement and any of the other Loan Documents as to any future liability or
obligation of the Lender Group, but without affecting any of the Agent’s Liens in the Collateral
and without affecting the Obligations; and

          (d) The Lender Group shall have all other rights and remedies available at law or in equity or
pursuant to any other Loan Document.

The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default
described in Section 7.4 or Section 7.5, in addition to the remedies set forth
above, without any notice to Borrower or any other Person or any act by the Lender Group, the
Commitments shall automatically terminate and the Obligations then outstanding, together with all
accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and
the other Loan Documents, shall automatically and immediately become due and payable, without
presentment, demand, protest, or notice of any kind, all of which are expressly waived by Borrower.

     8.2 Remedies Cumulative. The rights and remedies of the Lender Group under this
Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender
Group shall have all other rights and remedies not inconsistent herewith as provided under the
Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed
an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing
waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it.

9. TAXES AND EXPENSES.

          If Borrower or its Subsidiaries fail to pay any monies (whether taxes, assessments, insurance
premiums, or, in the case of leased properties or assets, rents or other amounts payable under such
leases) due to third Persons, or fails to make any deposits or furnish any required proof of
payment or deposit, all as required under the terms of this Agreement, then, Agent, in its sole
discretion and without prior notice to Borrower, may do any or all of the following: (a) make
payment of the same or any part thereof whenever an

31

 

Event of Default has occurred and is continuing
or (b) in the case of the failure to comply with Section 5.8 hereof, obtain and maintain
insurance policies of the type described in Section 5.8 and take any action with respect to
such policies as Agent deems prudent. No such payments shall constitute an agreement by the Lender
Group to make similar payments in the future or a waiver by the Lender Group of any Event of
Default under this Agreement. Agent need not inquire as to, or contest the validity of, any such
expense, tax, or Lien and the receipt of the usual official notice for the payment thereof shall be
conclusive evidence that the same was validly due and owing.

10. WAIVERS; INDEMNIFICATION.

     10.1 Demand; Protest; Etc. Borrower waives demand, protest, notice of protest, notice
of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of
documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on
which Borrower may in any way be liable.

     10.2 The Lender Group’s Liability for Collateral. Borrower hereby agrees that: (a) so
long as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in
any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any
loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any
diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee,
forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the
Collateral shall be borne by Borrower.

     10.3 Indemnification. Borrower shall pay, indemnify, defend, and hold the
Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an “Indemnified
Person”) harmless (to the fullest extent permitted by law) from and against any and all claims,
demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and
damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all
other costs and expenses actually incurred in connection therewith or in connection with the
enforcement of this indemnification (as and when they are incurred and irrespective of whether suit
is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in
connection with or as a result of or related to the execution, delivery, enforcement, performance,
or administration (including any restructuring or workout with respect hereto) of this Agreement,
any of the other Loan Documents, or the transactions contemplated hereby or thereby or the
monitoring of Borrower’s and its Subsidiaries’ compliance with the terms of the Loan Documents, (b)
with respect to any investigation, litigation, or proceeding related to this Agreement, any other
Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether
any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any
manner related thereto, and (c) in connection with or arising out of any presence or release of
Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by
Borrower or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities and
Costs or Remedial Actions related in any way to any such assets or properties of Borrower or any of
its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The
foregoing to the contrary notwithstanding, Borrower shall have no obligation to any Indemnified
Person under this Section 10.3 with respect to any Indemnified Liability that a court of
competent jurisdiction finally determines to have resulted from the gross negligence or willful
misconduct of such Indemnified Person. This provision shall survive the termination of this
Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any
other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required
to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such
payment is entitled to be indemnified and reimbursed by Borrower with respect thereto. WITHOUT
LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO
INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT
OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

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11. NOTICES.

          Unless otherwise provided in this Agreement, all notices or demands by Borrower or Agent to
the other relating to this Agreement or any other Loan Document shall be in writing and (except for
financial statements and other informational documents which may be sent by first-class mail,
postage prepaid) shall be personally delivered or sent by registered or certified mail (postage
prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as
Borrower or Agent, as applicable, may designate to each other in accordance herewith), or
telefacsimile to Borrower or Agent, as the case may be, at its address set forth below:

	 	 	 	 	 
	 

	 	If to Borrower:
	 	JOHN B. SANFILIPPO & SON, INC
	 

	 	 	 	1703 Randall Road
	 

	 	 	 	Elgin, IL 60123
	 

	 	 	 	Attn: Michael Valentine, Chief
Financial Officer and Group President
	 

	 	 	 	Fax No. (866) 610-1294
	 
	 	 	 	 
	 

	 	If to Agent:
	 	WELLS FARGO FOOTHILL, LLC
	 

	 	 	 	1100 Abernathy Road, Suite 1600
	 

	 	 	 	Atlanta, GA 30328
	 

	 	 	 	Attn: Portfolio Manager
	 

	 	 	 	Fax No. (770) 804-0785
	 
	 	 	 	 
	 

	 	With a copy to:
	 	LATHAM & WATKINS LLP
	 

	 	 	 	Sears Tower, Suite 5800
	 

	 	 	 	233 S. Wacker Drive
	 

	 	 	 	Chicago, IL 60606
	 

	 	 	 	Attn: Phillip Perzek, Esq.
	 

	 	 	 	Fax No.: (312) 993-9767

          Agent and Borrower may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other party. All notices or demands sent in
accordance with this Section 11, other than notices by Agent in connection with enforcement
rights against the Collateral under the provisions of the Code, shall be deemed received on the
earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail.
Borrower acknowledges and agrees that notices sent by the Lender Group in connection with the
exercise of enforcement rights against Collateral under the provisions of the Code shall be deemed
sent when deposited in the mail or personally delivered, or, where permitted by law, transmitted by
telefacsimile or any other method set forth above.

12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

          (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO
THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND
THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO
SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS.

          (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF COOK, STATE OF

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ILLINOIS; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT
TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b).

          (c) BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND EACH MEMBER OF THE LENDER
GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

13. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

     13.1 Assignments and Participations.

          (a) Any Lender may assign and delegate to one or more assignees (each an “Assignee”)
that are Eligible Transferees all or any portion of the Obligations, the Commitments and the other
rights and obligations of such Lender hereunder and under the other Loan Documents, in a minimum
amount (unless waived by the Agent) of $5,000,000 (except such minimum amount shall not apply to
(x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any Lender or
(y) a group of new Lenders, each of whom is an Affiliate of each other or a fund or account managed
by any such new Lender or an Affiliate of such new Lender to the extent that the aggregate amount
to be assigned to all such new Lenders is at least $5,000,000); provided, however,
that Borrower and Agent may continue to deal solely and directly with such Lender in connection
with the interest so assigned to an Assignee until (i) written notice of such assignment, together
with payment instructions, addresses, and related information with respect to the Assignee, have
been given to Borrower and Agent by such Lender and the Assignee, (ii) such Lender and its Assignee
have delivered to Borrower and Agent an Assignment and Acceptance and Agent has notified the
assigning Lender of its receipt thereof in accordance with Section 13.1(b), and (iii)
unless waived by the Agent, the assigning Lender or Assignee has paid to Agent for Agent’s separate
account a processing fee in the amount of $3,500. Anything contained herein to the contrary
notwithstanding, the payment of any fees shall not be required and the Assignee need not be an
Eligible Transferee if such assignment is in connection with any merger, consolidation, sale,
transfer, or other disposition of all or any substantial portion of the business or loan portfolio
of the assigning Lender.

          (b) From and after the date that Agent notifies the assigning Lender (with a copy to Borrower)
that it has received an executed Assignment and Acceptance and, if applicable, payment of the
required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii)
the assigning Lender shall, to the extent that rights and obligations hereunder and under the other
Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its
rights (except with respect to Section 10.3 hereof) and be released from any future
obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or
the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the
other Loan Documents, such Lender shall cease to be a party hereto and thereto), and such
assignment shall

34

 

effect a novation among Borrower, the assigning Lender, and the Assignee;
provided, however, that nothing contained herein shall release any assigning Lender
from obligations that survive the termination of this Agreement, including such assigning Lender’s
obligations under Section 15 and Section 17.9(a) of this Agreement.

          (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder
and the Assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any
other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to the financial condition of Borrower or
the performance or observance by Borrower of any of its obligations under this Agreement or any
other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that it has received a
copy of this Agreement, together with such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance, (iv) such Assignee will, independently and without reliance upon Agent, such assigning
Lender 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 this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to
exercise such powers under this Agreement as are delegated to Agent, by the terms hereof, together
with such powers as are reasonably incidental thereto, and (vi) such Assignee agrees that it will
perform all of the obligations which by the terms of this Agreement are required to be performed by
it as a Lender.

          (d) Immediately upon Agent’s receipt of the required processing fee, if applicable, and
delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement
shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the
addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The
Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro
tanto.

          (e) Any Lender may at any time sell to one or more commercial banks, financial institutions,
or other Persons (a “Participant”) participating interests in all or any portion of its
Obligations, its Commitment, and the other rights and interests of that Lender (the
“Originating Lender”) hereunder and under the other Loan Documents; provided,
however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this
Agreement and the other Loan Documents and the Participant receiving the participating interest in
the Obligations, the Commitments, and the other rights and interests of the Originating Lender
hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the
Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the Originating
Lender shall maintain a written register of each Participant to whom it has sold all or any portion
of its Obligations, such register to reflect the date of sale and face amount or percentage
interest sold, and shall not permit any Participant to transfer its interest in the Obligations
except through the register maintained by the Originating Lender, (iii) the Originating Lender
shall remain solely responsible for the performance of such obligations, (iv) Borrower, Agent, and
the Lenders shall continue to deal solely and directly with the Originating Lender in connection
with the Originating Lender’s rights and obligations under this Agreement and the other Loan
Documents, (v) no Lender shall transfer or grant any participating interest under which the
Participant has the right to approve any amendment to, or any consent or waiver with respect to,
this Agreement or any other Loan Document, except to the extent such amendment to, or consent or
waiver with respect to this Agreement or of any other Loan Document would (A) extend the final
maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce
the interest rate applicable to the Obligations hereunder in which such Participant is
participating, (C) release all or substantially all of the Collateral or guaranties (except to the
extent expressly provided herein or in any of the Loan Documents) supporting the Obligations
hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the
amount of, the interest or fees payable to such Participant through such Lender, or (E) change the
amount or due dates of scheduled

35

 

principal repayments or prepayments or premiums, and (vi) all
amounts payable by Borrower hereunder shall be determined as if such Lender had not sold such
participation, except that, if amounts outstanding under this Agreement are due and unpaid, or
shall have been declared or shall have become due and payable upon the occurrence of an Event of
Default, each Participant shall be deemed to have the right of set off in respect of its
participating interest in amounts owing under this Agreement to the same extent as if the amount of
its participating interest were owing directly to it as a Lender under this Agreement. The rights
of any Participant only shall be derivative through the Originating Lender with whom such
Participant participates and no
Participant shall have any rights under this Agreement or the other Loan Documents or any
direct rights as to the other Lenders, Agent, Borrower, the Collections of Borrower or its
Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall
have the right to participate directly in the making of decisions by the Lenders among themselves.

          (f) In connection with any such assignment or participation or proposed assignment or
participation, a Lender may, subject to the provisions of Section 17.9, disclose all
documents and information which it now or hereafter may have relating to Borrower and its
Subsidiaries and their respective businesses.

          (g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a
security interest in, or pledge, all or any portion of its rights under and interest in this
Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal
Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce
such pledge or security interest in any manner permitted under applicable law.

     13.2 Successors. This Agreement shall bind and inure to the benefit of the respective
successors and assigns of each of the parties; provided, however, that Borrower may
not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written
consent and any prohibited assignment shall be absolutely void ab initio. No consent to assignment
by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and
the other Loan Documents and its rights and duties hereunder and thereunder pursuant to
Section 13.1 hereof and, except as expressly required pursuant to Section 13.1
hereof, no consent or approval by Borrower is required in connection with any such assignment.

14. AMENDMENTS; WAIVERS.

     14.1 Amendments and Waivers. No amendment or waiver of any provision of this
Agreement or any other Loan Document (other than Bank Product Agreements or the Fee Letter), and no
consent with respect to any departure by Borrower therefrom, shall be effective unless the same
shall be in writing and signed by the Required Lenders (or by Agent at the written request of the
Required Lenders) and Borrower and then any such waiver or consent shall be effective, but only in
the specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and signed by
all of the Lenders directly affected thereby and Borrower, do any of the following:

          (a) increase or extend any Commitment of any Lender,

          (b) postpone or delay any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees, or other amounts due hereunder or under any other Loan
Document,

          (c) reduce the principal of, or the rate of interest on, any loan or other extension of credit
hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document,

          (d) change the Pro Rata Share that is required to take any action hereunder,

          (e) amend or modify this Section or any provision of this Agreement providing for consent or
other action by all Lenders,

36

 

          (f) other than as permitted by Section 15.11, release Agent’s Lien in and to any of
the Collateral.

          (g) change the definition of “Required Lenders”, “Supermajority Lenders” or “Pro Rata Share”,

          (h) contractually subordinate any of the Agent’s Liens,

          (i) other than in connection with a merger, liquidation, dissolution or sale of such Person
expressly permitted by the terms hereof or the other Loan Documents, release Borrower or any
Guarantor from any obligation for the payment of money,

          (j) amend any of the provisions of Section 2.4(b)(i) or (ii),

          (k) change the definition of “Borrowing Base” or the definitions of “Eligible Accounts”,
“Eligible Equipment”, “Eligible Inventory”, “Governmental Accounts”, “Inventory Sublimit”, “Maximum
Revolver Amount”, “Packaging Inventory”, “Seed Exchange Accounts”, “Seed Inventory” or change
Section 2.1(b), or

          (l) amend any of the provisions of Section 15.

and, provided, further, that no amendment, waiver or consent shall, unless in
writing and signed by Agent, Issuing Lender, or Swing Lender, as applicable, affect the rights or
duties of Agent, Issuing Lender, or Swing Lender, as applicable, under this Agreement or any other
Loan Document. The foregoing notwithstanding, any amendment, modification, waiver, consent,
termination, or release of, or with respect to, any provision of this Agreement or any other Loan
Document that relates only to the relationship of the Lender Group among themselves, and that does
not affect the rights or obligations of Borrower, shall not require consent by or the agreement of
Borrower.

     14.2 Replacement of Holdout Lender.

          (a) If any action to be taken by the Lender Group or Agent hereunder requires the unanimous
consent, authorization, or agreement of all Lenders, and a Lender (“Holdout Lender”) fails
to give its consent, authorization, or agreement, then Agent, upon at least 5 Business Days prior
irrevocable notice to the Holdout Lender, may permanently replace the Holdout Lender with one or
more substitute Lenders (each, a “Replacement Lender”), and the Holdout Lender shall have
no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall
specify an effective date for such replacement, which date shall not be later than 15 Business Days
after the date such notice is given.

          (b) Prior to the effective date of such replacement, the Holdout Lender and each Replacement
Lender shall execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender
being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata
Share of the Risk Participation Liability) without any premium or penalty of any kind whatsoever.
If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and
Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to
have executed and delivered such Assignment and Acceptance. The replacement of any Holdout Lender
shall be made in accordance with the terms of Section 13.1. Until such time as the
Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other
rights and obligations of the Holdout Lender hereunder and under the other Loan Documents, the
Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances and
to purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of
the Risk Participation Liability of such Letter of Credit.

37

 

     14.3 No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option under this
Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will
operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in
writing, and then only to the extent specifically stated. No waiver by Agent or any Lender on any
occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict
performance by Borrower of any provision of this Agreement. Agent’s and each Lender’s rights under
this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right
or remedy that Agent or any Lender may have.

15. AGENT; THE LENDER GROUP.

     15.1 Appointment and Authorization of Agent. Each Lender hereby designates and
appoints WFF as its representative under this Agreement and the other Loan Documents and each
Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents
on its behalf and to take such other action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such duties as are expressly
delegated to Agent by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Agent agrees to act as such on the express conditions
contained in this Section 15. The provisions of this Section 15 are solely for the
benefit of Agent and the Lenders, and Borrower and its Subsidiaries shall have no rights as a third
party beneficiary of any of the provisions contained herein. Any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall
not have any duties or responsibilities, except those expressly set forth herein, nor shall Agent
have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement
or any other Loan Document or otherwise exist against Agent; it being expressly understood and
agreed that the use of the word “Agent” is for convenience only, that WFF is merely the
representative of the Lenders, and only has the contractual duties set forth herein. Except as
expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion
with respect to exercising or refraining from exercising any discretionary rights or taking or
refraining from taking any actions that Agent expressly is entitled to take or assert under or
pursuant to this Agreement and the other Loan Documents. Without limiting the generality of the
foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent,
Lenders agree that Agent shall have the right to exercise the following powers as long as this
Agreement remains in effect: (a) maintain, in accordance with its customary business practices,
ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of
Borrower and its Subsidiaries, and related matters, (b) execute or file any and all financing or
similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of
claim, notices and other written agreements with respect to the Loan Documents, (c) make Advances,
for itself or on behalf of Lenders as provided in the Loan Documents, (d) exclusively receive,
apply, and distribute the Collections of Borrower and its Subsidiaries as provided in the Loan
Documents, (e) open and maintain such bank accounts and cash management arrangements as Agent deems
necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with
respect to the Collateral and the Collections of Borrower and its Subsidiaries, (f) perform,
exercise, and enforce any and all other rights and remedies of the Lender Group with respect to
Borrower or its Subsidiaries, the Obligations, the Collateral, the Collections of Borrower and its
Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and (g) incur
and pay such Lender Group Expenses as Agent may deem necessary or appropriate for the performance
and fulfillment of its functions and powers pursuant to the Loan Documents.

     15.2 Delegation of Duties. Agent may execute any of its duties under this Agreement
or any other Loan Document by or through agents, employees or attorneys in fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall not be
responsible for the negligence or misconduct of any agent
or attorney in fact that it selects as long as such selection was made without gross
negligence or willful misconduct.

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     15.3 Liability of Agent. None of the Agent-Related Persons shall (a) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for
any recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or
Affiliates, or any officer or director thereof, contained in this Agreement or in any other Loan
Document, or in any certificate, report, statement or other document referred to or provided for
in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or
the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Loan Document, or for any failure of Borrower or its Subsidiaries or any other party to any
Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be
under any obligation to any Lender to ascertain or to inquire as to the observance or performance
of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document,
or to inspect the books and records or properties of Borrower or its Subsidiaries.

     15.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected
in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter,
telegram, telefacsimile or other electronic method of transmission, telex or telephone message,
statement or other document or conversation believed by it to be genuine and correct and to have
been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal
counsel (including counsel to Borrower or counsel to any Lender), independent accountants and other
experts selected by Agent. Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless Agent shall first receive such advice
or concurrence of the Lenders as it deems appropriate and until such instructions are received,
Agent shall act, or refrain from acting, as it deems advisable. If Agent so requests, it shall
first be indemnified to its reasonable satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take any such action.
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement or any other Loan Document in accordance with a request or consent of the requisite
Lenders and such request and any action taken or failure to act pursuant thereto shall be binding
upon all of the Lenders.

     15.5 Notice of Default or Event of Default. Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, except with respect to
defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for
the account of the Lenders and, except with respect to Events of Default of which Agent has actual
knowledge, unless Agent shall have received written notice from a Lender or Borrower referring to
this Agreement, describing such Default or Event of Default, and stating that such notice is a
“notice of default.” Agent promptly will notify the Lenders of its receipt of any such notice or of
any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge
of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of such
Event of Default. Each Lender shall be solely responsible for giving any notices to its
Participants, if any. Subject to Section 15.4, Agent shall take such action with respect
to such Default or Event of Default as may be requested by the Required Lenders in accordance with
Section 8; provided, however, that unless and until Agent has received any
such request, Agent may (but shall not be obligated to) take such action, or refrain from taking
such action, with respect to such Default or Event of Default as it shall deem advisable.

     15.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation
or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs
of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or
warranty by any Agent-Related Person to any Lender. Each Lender represents to Agent that it has,
independently and without reliance upon any Agent-Related Person and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower or any other Person party to a Loan Document, and all applicable bank regulatory laws
relating to the transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to Borrower.

39

 

Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower or any other Person party to a Loan Document. Except for notices, reports, and other
documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have
any duty or responsibility to provide any Lender with any credit or other information concerning
the business, prospects, operations, property, financial and other condition or creditworthiness of
Borrower or any other Person party to a Loan Document that may come into the possession of any of
the Agent-Related Persons.

     15.7 Costs and Expenses; Indemnification. Agent may incur and pay Lender Group
Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and
fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including
court costs, attorneys fees and expenses, fees and expenses of financial accountants, advisors,
consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees
and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral,
whether or not Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant to
this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient
amounts from the Collections of Borrower and its Subsidiaries received by Agent to reimburse Agent
for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In
the event Agent is not reimbursed for such costs and expenses by Borrower or its Subsidiaries, each
Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender’s Pro Rata Share
thereof. Whether or not the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of
Borrower and without limiting the obligation of Borrower to do so), according to their Pro Rata
Shares, from and against any and all Indemnified Liabilities; provided, however,
that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such
Indemnified Liabilities resulting solely from such Person’s gross negligence or willful misconduct
nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an
Advance or other extension of credit hereunder. Without limitation of the foregoing, each Lender
shall reimburse Agent upon demand for such Lender’s Pro Rata Share of any costs or out of pocket
expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred
by Agent in connection with the preparation, execution, delivery, administration, modification,
amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, any other Loan
Document, or any document contemplated by or referred to herein, to the extent that Agent is not
reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section shall
survive the payment of all Obligations hereunder and the resignation or replacement of Agent.

     15.8 Agent in Individual Capacity. WFF and its Affiliates may make loans to, issue
letters of credit for the account of, accept deposits from, acquire equity interests in, and
generally engage in any kind of banking, trust, financial advisory, underwriting, or other business
with Borrower and its Subsidiaries and Affiliates and any other
Person party to any Loan Documents as though WFF were not Agent hereunder, and, in each case,
without notice to or consent of the other members of the Lender Group. The other members of the
Lender Group acknowledge that, pursuant to such activities, WFF or its Affiliates may receive
information regarding Borrower or its Affiliates or any other Person party to any Loan Documents
that is subject to confidentiality obligations in favor of Borrower or such other Person and that
prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in
such circumstances (and in the absence of a waiver of such confidentiality obligations, which
waiver Agent will use its reasonable best efforts to obtain), Agent shall not be under any
obligation to provide such information to them. The terms “Lender” and “Lenders” include WFF in
its individual capacity.

     15.9 Successor Agent. Agent may resign as Agent upon 45 days notice to the Lenders
(unless such notice is waived by the Required Lenders) and Borrower. If Agent resigns under this
Agreement, the Required Lenders shall appoint a successor Agent for the Lenders with the consent of
Borrower, so long as no

40

 

Event of Default shall have occurred and be continuing, which consent shall
not be unreasonably withheld. If no successor Agent is appointed prior to the effective date of
the resignation of Agent, Agent shall appoint, after consulting with the Lenders and Borrower, a
successor Agent from among the Lenders. If Agent has materially breached or failed to perform any
material provision of this Agreement or of applicable law, the Required Lenders may agree in
writing to remove and replace Agent with a successor Agent from among the Lenders with the consent
of Borrower so long as no Event of Default shall have occurred and be continuing, which consent
shall not be unreasonably withheld. In any such event, upon the acceptance of its appointment as
successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties
of the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring Agent’s
appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s
resignation hereunder as Agent, the provisions of this Section 15 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

     15.10 Lender in Individual Capacity. Any Lender and its respective Affiliates may
make loans to, issue letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting,
or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to
any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent
of the other members of the Lender Group. The other members of the Lender Group acknowledge that,
pursuant to such activities, such Lender and its respective Affiliates may receive information
regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is
subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit
the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such
circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver
such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any
obligation to provide such information to them.

     15.11 Collateral Matters.

          (a) The Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion,
to release any Lien on any Collateral (i) upon the termination of the Commitments and payment and
satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or
disposed of if a release is required or desirable in connection therewith and if Borrower certifies
to Agent that the sale or disposition is permitted under Section 6.4 of this Agreement or
the other Loan Documents (and Agent may rely conclusively on any such certificate, without further
inquiry), (iii) constituting property in which Borrower or its Subsidiaries owned no interest at
the time the Agent’s Lien was granted nor at any time thereafter, or (iv)
constituting property leased to Borrower or its Subsidiaries under a lease that has expired or
is terminated in a transaction permitted under this Agreement. Except as provided above, Agent
will not execute and deliver a release of any Lien on any Collateral without the prior written
authorization of (y) if the release is of all or substantially all of the Collateral, all of the
Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Borrower at any time,
the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types
or items of Collateral pursuant to this Section 15.11; provided, however,
that (1) Agent shall not be required to execute any document necessary to evidence such release on
terms that, in Agent’s opinion, would expose Agent to liability or create any obligation or entail
any consequence other than the release of such Lien without recourse, representation, or warranty,
and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any
Liens (other than those expressly being released) upon (or obligations of Borrower in respect of)
all interests retained by Borrower, including, the proceeds of any sale, all of which shall
continue to constitute part of the Collateral.

          (b) Agent shall have no obligation whatsoever to any of the Lenders to assure that the
Collateral exists or is owned by Borrower or its Subsidiaries or is cared for, protected, or
insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or
lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or
to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity,
or to continue exercising, any of the rights, authorities and

41

 

powers granted or available to Agent
pursuant to any of the Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission, or event related thereto, subject to the terms and conditions
contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given
Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Agent shall
have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as
otherwise provided herein.

     15.12 Restrictions on Actions by Lenders; Sharing of Payments.

          (a) Each of the Lenders agrees that it shall not, without the express written consent of Agent
and only if an Event of Default shall have occurred and be continuing, and that it shall, to the
extent it is lawfully entitled to do so, upon the written request of Agent and only if an Event of
Default shall have occurred and be continuing, set off against the Obligations, any amounts owing
by such Lender to Borrower or its Subsidiaries or any Deposit Accounts of Borrower or its
Subsidiaries now or hereafter maintained with such Lender. Each of the Lenders further agrees that
it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken
any action, including, the commencement of any legal or equitable proceedings to enforce any Loan
Document against Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any
security interest in, any of the Collateral.

          (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for
any such proceeds or payments received by such Lender from Agent pursuant to the terms of this
Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such
distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and
with such endorsements as may be required to negotiate the same to Agent, or in immediately
available funds, as applicable, for the account of all of the Lenders and for application to the
Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase,
without recourse or warranty, an undivided interest and participation in the Obligations owed to
the other Lenders so that such excess payment received shall be applied ratably as among the
Lenders in accordance with their Pro Rata Shares; provided, however, that to the
extent that such excess payment received by the purchasing party is thereafter recovered from it,
those purchases of participations shall be rescinded in whole or in part, as applicable, and the
applicable portion of the purchase price paid therefor shall be returned to such purchasing party,
but without interest except to the extent that such purchasing party is required to pay interest in
connection with the recovery of the excess payment.

     15.13 Agency for Perfection. Agent hereby appoints each other Lender as its agent
(and each Lender hereby accepts such appointment) for the purpose of perfecting the Agent’s Liens
in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be
perfected only by possession or control. Should any Lender obtain possession or control of any
such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request
therefor shall deliver possession or control of such Collateral to Agent or in accordance with
Agent’s instructions.

     15.14 Payments by Agent to the Lenders. All payments to be made by Agent to the
Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire
transfer instructions as each party may designate for itself by written notice to Agent.
Concurrently with each such payment, Agent shall identify whether such payment (or any portion
thereof) represents principal, premium, fees, or interest of the Obligations.

     15.15 Concerning the Collateral and Related Loan Documents. Each member of the Lender
Group authorizes and directs Agent to enter into this Agreement and the other Loan Documents. Each
member of the Lender Group agrees that any action taken by Agent in accordance with the terms of
this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of
its powers set forth therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders.

42

 

     15.16 Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other
Reports and Information. By becoming a party to this Agreement, each Lender:

          (a) is deemed to have requested that Agent furnish such Lender, promptly after it becomes
available, a copy of each field audit or examination report respecting Borrower or its Subsidiaries
(each a “Report” and collectively, “Reports”) prepared by or at the request of
Agent, and Agent shall so furnish each Lender with such Reports,

          (b) expressly agrees and acknowledges that Agent does not (i) make any representation or
warranty as to the accuracy of any Report, and (ii) shall not be liable for any information
contained in any Report,

          (c) expressly agrees and acknowledges that the Reports are not comprehensive audits or
examinations, that Agent or other party performing any audit or examination will inspect only
specific information regarding Borrower and its Subsidiaries and will rely significantly upon
Borrower’s and its Subsidiaries’ books and records, as well as on representations of Borrower’s
personnel,

          (d) agrees to keep all Reports and other material, non-public information regarding Borrower
and its Subsidiaries and their operations, assets, and existing and contemplated business plans in
a confidential manner in accordance with Section 17.9, and

          (e) without limiting the generality of any other indemnification provision contained in this
Agreement, agrees: (i) to hold Agent and any other Lender preparing a Report harmless from any
action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender
may reach or draw from any Report in connection with any loans or other credit accommodations that
the indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s
participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and (ii)
to pay and protect, and indemnify, defend and hold
Agent, and any such other Lender preparing a Report harmless from and against, the claims,
actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys fees and
costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect
result of any third parties who might obtain all or part of any Report through the indemnifying
Lender.

In addition to the foregoing: (x) any Lender may from time to time request of Agent in writing that
Agent provide to such Lender a copy of any report or document provided by Borrower or its
Subsidiaries to Agent that has not been contemporaneously provided by Borrower or such Subsidiary
to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same to
such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents,
to request additional reports or information from Borrower or its Subsidiaries, any Lender may,
from time to time, reasonably request Agent to exercise such right as specified in such Lender’s
notice to Agent, whereupon Agent promptly shall request of Borrower the additional reports or
information reasonably specified by such Lender, and, upon receipt thereof from Borrower or such
Subsidiary, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent
renders to Borrower a statement regarding the Loan Account, Agent ‘shall send a copy of such
statement to each Lender.

     15.17 Several Obligations; No Liability. Notwithstanding that certain of the Loan
Documents now or hereafter may have been or will be executed only by or in favor of Agent in its
capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of
Agent (if any) to make any credit available hereunder shall constitute the several (and not joint)
obligations of the respective Lenders on a ratable basis, according to their respective
Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time
outstanding, the amount of their respective Commitments. Nothing contained herein shall confer
upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the
business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely
responsible for notifying its Participants of any matters relating to the Loan Documents to the
extent any such

43

 

notice may be required, and no Lender shall have any obligation, duty, or liability
to any Participant of any other Lender. Except as provided in Section 15.7, no member of
the Lender Group shall have any liability for the acts of any other member of the Lender Group. No
Lender shall be responsible to Borrower or any other Person for any failure by any other Lender to
fulfill its obligations to make credit available hereunder, nor to advance for it or on its behalf
in connection with its Commitment, nor to take any other action on its behalf hereunder or in
connection with the financing contemplated herein.

16. WITHHOLDING TAXES.

          (a) All payments made by Borrower hereunder or under any note or other Loan Document will be
made without setoff, counterclaim, or other defense. In addition, all such payments will be made
free and clear of, and without deduction or withholding for, any present or future Taxes, and in
the event any deduction or withholding of Taxes is required, Borrower shall comply with the
penultimate sentence of this Section 16(a). “Taxes” shall mean, any taxes, levies,
imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by
any jurisdiction or by any political subdivision or taxing authority thereof or therein with
respect to such payments (but excluding any tax imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein measured by or based on the net income or net
profits of any Lender) and all interest, penalties or similar liabilities with respect thereto. If
any Taxes are so levied or imposed, Borrower agrees to pay the full amount of such Taxes and such
additional amounts as may be necessary so that every payment of all amounts due under this
Agreement, any note, or Loan Document, including any amount paid pursuant to this Section
16(a) after withholding or deduction for or on account of any Taxes, will not be less than the
amount provided for herein; provided, however, that Borrower shall not be required
to increase any such amounts if the increase in such amount payable results from Agent’s or such
Lender’s own willful misconduct or gross negligence (as finally determined by a court of competent
jurisdiction); provided, further, that Borrower shall have no obligation to pay any
such Taxes or any additional
amount pursuant to this Section 16(a) with respect to any part or all of the
Obligations held by an Assignee or Participant hereunder, except to the extent that such obligation
is no greater than the obligation that Borrower would have had to make such payments pursuant to
this Section 16(a) if such Obligations had not been transferred by the original Lender.
Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due
pursuant to applicable law certified copies of tax receipts evidencing such payment by Borrower.

          (b) If a Lender claims an exemption from United States withholding tax, Lender agrees with and
in favor of Agent and Borrower, to deliver to Agent:

               (i) if such Lender claims an exemption from United States withholding tax pursuant to its
portfolio interest exception, (A) a statement of the Lender, signed under penalty of perjury, that
it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of
Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign
corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a
properly completed and executed IRS Form W-8BEN, before receiving its first payment under this
Agreement and at any other time reasonably requested by Agent or Borrower;

               (ii) if such Lender claims an exemption from, or a reduction of, withholding tax under a
United States tax treaty, properly completed and executed IRS Form W-8BEN before receiving its
first payment under this Agreement and at any other time reasonably requested by Agent or Borrower;

               (iii) if such Lender claims that interest paid under this Agreement is exempt from United
States withholding tax because it is effectively connected with a United States trade or business
of such Lender, two properly completed and executed copies of IRS Form W-8ECI before receiving its
first payment under this Agreement and at any other time reasonably requested by Agent or Borrower;
or

44

 

               (iv) such other form or forms, including IRS Form W-9, as may be required under the IRC or
other laws of the United States as a condition to exemption from, or reduction of, United States
withholding or backup withholding tax before receiving its first payment under this Agreement and
at any other time reasonably requested by Agent or Borrower.

Lender agrees promptly to notify Agent and Borrower of any change in circumstances which would
modify or render invalid any claimed exemption or reduction.

          (c) If a Lender claims an exemption from withholding tax in a jurisdiction other than the
United States, Lender agrees with and in favor of Agent and Borrower, to deliver to Agent any such
form or forms, as may be required under the laws of such jurisdiction as a condition to exemption
from, or reduction of, foreign withholding or backup withholding tax before receiving its first
payment under this Agreement and at any other time reasonably requested by Agent or Borrower.

Lender agrees promptly to notify Agent and Borrower of any change in circumstances which would
modify or render invalid any claimed exemption or reduction.

          (d) If any Lender claims exemption from, or reduction of, withholding tax and such Lender
sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of
Borrower to such Lender, such Lender agrees to notify Agent and Borrower of the percentage amount
in which it is no longer the beneficial owner of Obligations of Borrower to such Lender. To the
extent of such percentage amount, Agent and Borrower will treat such Lender’s documentation
provided pursuant to Sections 16(b) or 16(c) as no longer valid. With respect to
such percentage amount, Lender may provide new documentation, pursuant to Sections 16(b) or
16(c), if applicable.

          (e) If any Lender is entitled to a reduction in the applicable withholding tax, Agent may
withhold from any interest payment to such Lender an amount equivalent to the applicable
withholding tax after taking into account such reduction. If the forms or other documentation
required by subsection (b) or (c) of this Section 16 are not delivered to Agent, then Agent
may withhold from any interest payment to such Lender not providing such forms or other
documentation an amount equivalent to the applicable withholding tax.

          (f) If the IRS or any other Governmental Authority of the United States or other jurisdiction
asserts a claim that Agent did not properly withhold tax from amounts paid to or for the account of
any Lender due to a failure on the part of the Lender (because the appropriate form was not
delivered, was not properly executed, or because such Lender failed to notify Agent of a change in
circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or
for any other reason) such Lender shall indemnify and hold Agent harmless for all amounts paid,
directly or indirectly, by Agent, as tax or otherwise, including penalties and interest, and
including any taxes imposed by any jurisdiction on the amounts payable to Agent under this
Section 16, together with all costs and expenses (including attorneys fees and expenses).
The obligation of the Lenders under this subsection shall survive the payment of all Obligations
and the resignation or replacement of Agent.

17. GENERAL PROVISIONS.

     17.1 Effectiveness. This Agreement shall be binding and deemed effective when
executed by Borrower, Agent, and each Lender whose signature is provided for on the signature pages
hereof.

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

45

 

     17.3 Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein
shall be construed against the Lender Group or Borrower, whether under any rule of construction or
otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed
and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the
purposes and intentions of all parties hereto.

     17.4 Severability of Provisions. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.

     17.5 Bank Product Providers. Each Bank Product Provider shall be deemed a party
hereto for purposes of any reference in a Loan Document to the parties for whom Agent is acting; it
being understood and agreed that the rights and benefits of such Bank Product Provider under the
Loan Documents consist exclusively of such Bank Product Provider’s right to share in payments and
collections out of the Collateral as more fully set forth herein. In connection with any such
distribution of payments and collections, Agent shall be entitled to assume no amounts are due to
any Bank Product Provider unless such Bank Product Provider has notified Agent in writing of the
amount of any such liability owed to it prior to such distribution.

     17.6 Lender-Creditor Relationship. The relationship between the Lenders and Agent, on the one hand, and Borrower, on the other
hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed
to have) any fiduciary relationship or duty to Borrower arising out of or in connection with, and
there is no agency or joint venture relationship between the members of the Lender Group, on the
one hand, and Borrower, on the other hand, by virtue of any Loan Document or any transaction
contemplated therein.

     17.7 Counterparts; Electronic Execution. This Agreement may be executed in any number
of counterparts and by different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement
by telefacsimile or other electronic method of transmission shall be equally as effective as
delivery of an original executed counterpart of this Agreement. Any party delivering an executed
counterpart of this Agreement by telefacsimile or other electronic method of transmission also
shall deliver an original executed counterpart of this Agreement but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability, and binding effect of
this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.

     17.8 Revival and Reinstatement of Obligations. If the incurrence or payment of the
Obligations by Borrower or Guarantor or the transfer to the Lender Group of any property should for
any reason subsequently be declared to be void or voidable under any state or federal law relating
to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or transfers of
property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or
restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable
advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the
Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses,
and attorneys fees of the Lender Group related thereto, the liability of Borrower or Guarantor
automatically shall be revived, reinstated, and restored and shall exist as though such Voidable
Transfer had never been made.

     17.9 Confidentiality.

          (a) Agent and Lenders each individually (and not jointly or jointly and severally) agree that
material, non-public information regarding Borrower and its Subsidiaries, their operations, assets,
and existing and contemplated business plans shall be treated by Agent and the Lenders in a
confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not
parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors,
and consultants to any member of the Lender Group (it being understood that such Persons to whom
such disclosure is made will be informed of the confidential nature of such information and
instructed to keep such information confidential), (ii) to Subsidiaries and Affiliates of any
member of the Lender

46

 

Group (including the Bank Product Providers), provided that any such
Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the
terms of this Section 17.9, (iii) as may be required by statute, decision, or judicial or
administrative order, rule, or regulation, (iv) as may be agreed to in advance by Borrower or as
requested or required by any Governmental Authority pursuant to any subpoena or other legal
process, (v) as to any such information that is or becomes generally available to the public (other
than as a result of prohibited disclosure by Agent or the Lenders), (vi) in connection with any
assignment, participation or pledge of any Lender’s interest under this Agreement, provided that
any such assignee, participant, or pledgee shall have agreed in writing to receive such information
hereunder subject to the terms of this Section, and (vii) in connection with any litigation or
other adversary proceeding involving parties hereto which such litigation or adversary proceeding
involves
claims related to the rights or duties of such parties under this Agreement or the other Loan
Documents. The provisions of this Section 17.9(a) shall survive for 2 years after the
payment in full of the Obligations.

          (b) Anything in this Agreement to the contrary notwithstanding, Agent may provide information
concerning the terms and conditions of this Agreement and the other Loan Documents to loan
syndication and pricing reporting services.

     17.10 Lender Group Expenses. Borrower agrees to pay any and all Lender Group Expenses
promptly after demand therefor by Agent and agrees that its obligations contained in this
Section 17.10 shall survive payment or satisfaction in full of all other Obligations.

     17.11 USA PATRIOT Act. Each Lender that is subject to the requirements of the USA
Patriot Act (Title 111 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.

     17.12 Integration. This Agreement, together with the other Loan Documents, reflects
the entire understanding of the parties with respect to the transactions contemplated hereby and
shall not be contradicted or qualified by any other agreement, oral or written, before the date
hereof.

[Signature pages follow.]

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

	 	 	 	 	 	 	 
	 	 	JOHN B. SANFILIPPO & SON, INC.	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael J. Valentine	 	 
	 

	 	Title:
	 	Chief
Financial Officer and Group President
	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC,	 	 
	 	 	a Delaware limited liability company, as Agent and as
a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Samantha Alexander	 	 
	 

	 	Title:
	 	Vice
President
	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE CORPORATION	 	 
	 	 	(CENTRAL), an Illinois corporation, as Documentation
Agent and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Anthony Dicharia	 	 
	 

	 	Title:
	 	Director
	 	 
	 
	 	 	 	 	 	 
	 	 	BURDALE FINANCIAL LIMITED,	 	 
	 	 	a United Kingdom corporation, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Grende	 	 
	 

	 	Title:
	 	Managing
Director
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Phillip R. Webb	 	 
	 

	 	Title:
	 	Vice
President
	 	 
	 
	 	 	 	 	 	 
	 	 	SOVEREIGN BANK,	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert Heinz	 	 
	 

	 	Title:
	 	Director
	 	 

 

Schedule 1.1

          As used in the Agreement, the following terms shall have the following definitions:

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

          “Account Debtor” means any Person who is obligated on an Account, chattel paper, or a
general intangible.

          “ACH Transactions” means any cash management or related services (including the
Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve
Fedline system) provided by a Bank Product Provider for the account of Borrower or its
Subsidiaries.

          “Act” has the meaning specified therefor in Section 17.11.

          “Additional Documents” has the meaning specified therefor in Section 5.17.

          “Additional Lender” has the meaning specified therefor in Section 2.15.

          “Advances” has the meaning specified therefor in Section 2.1(a).

          “Affiliate” means, as applied to any Person, any other Person who controls, is
controlled by, or is under common control with, such Person. For purposes of this definition,
“control” means the possession, directly or indirectly through one or more intermediaries, of the
power to direct the management and policies of a Person, whether through the ownership of Stock, by
contract, or otherwise; provided, however, that, for purposes of the definition of
Eligible Accounts and Section 6.13 of the Agreement: (a) any Person which owns directly or
indirectly 10% or more of the Stock having ordinary voting power for the election of directors or
other members of the governing body of a Person or 10% or more of the partnership or other
ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an
Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to
be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner
shall be deemed an Affiliate of such Person.

          “Agent” has the meaning specified therefor in the preamble to the Agreement.

          “Agent-Related Persons” means Agent, together with its Affiliates, officers,
directors, employees, attorneys, and agents.

          “Agent’s Account” means the Deposit Account of Agent identified on Schedule
A-1.

          “Agent’s Liens” means the Liens granted by Borrower or its Subsidiaries to Agent under
the Loan Documents.

          “Agreement” means the Credit Agreement to which this Schedule 1.1 is attached.

          “Application Event” means the occurrence of (a) a failure by Borrower to repay all of
the Obligations on the Maturity Date, or (b) an Event of Default and the election by the Required
Lenders to declare all or any portion of the Obligations to be due and payable, to terminate the
Revolver Commitment, or to exercise remedies against the Collateral.

          “Assignee” has the meaning specified therefor in Section 13.1(a).

 

 

          “Assignment and Acceptance” means an Assignment and Acceptance Agreement substantially
in the form of Exhibit A-1.

          “Authorized Person” means any one of the individuals identified on Schedule
A-2 (as such schedule may be amended from time to time upon written notice to Agent).

          “Availability” means, as of any date of determination, the amount that Borrower is
entitled to borrow as Advances under Section 2.1 of the Agreement (after giving effect to
all then outstanding Obligations (other than Bank Product Obligations) and all sublimits and
reserves then applicable hereunder).

          “Average Excess Availability” means, as of any relevant date of determination in any
calendar month, Excess Availability determined on a 30-day average basis for the immediately
preceding calendar month for which a Borrowing Base Certificate has been delivered by Borrower
(using weekly adjustments for Accounts and monthly adjustments for Inventory) in accordance with
the Agent’s normal availability tracking procedures; provided that the amount of such
Excess Availability shall not be limited by the Maximum Revolver Amount.

          “Average Margin Availability” means, as of any relevant date of determination in any
calendar month, Excess Availability determined on a 30-day average basis for the immediately
preceding calendar month for which a Borrowing Base Certificate has been delivered by Borrower
(using weekly adjustments for Accounts and monthly adjustments for Inventory) in accordance with
the Agent’s normal availability tracking procedures; provided that the amount of such
Excess Availability shall not be limited by the Maximum Revolver Amount or the Inventory Sublimit.

          “Bank Product” means any financial accommodation extended to Borrower or its
Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a)
credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH
Transactions, (f) cash management, including controlled disbursement, accounts or services, or (g)
transactions under Hedge Agreements.

          “Bank Product Agreements” means those agreements entered into from time to time by
Borrower or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any
of the Bank Products.

          “Bank Product Collateralization” means providing cash collateral (pursuant to
documentation reasonably satisfactory to Agent) to be held by Agent for the benefit of the Bank
Product Providers in an amount determined by Agent as sufficient to satisfy the reasonably
estimated credit exposure with respect to the then existing Bank Products.

          “Bank Product Obligations” means all obligations, liabilities, contingent
reimbursement obligations, fees, and expenses owing by Borrower or its Subsidiaries to any Bank
Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of
whether for the payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and including all amounts that Agent or any member
of the Lender Group is obligated to pay or reimburse to a Bank Product Provider as a result of
Agent or such member of the Lender Group purchasing participations from, or executing indemnities
or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided
by such Bank Product Provider to Borrower or its Subsidiaries.

          “Bank Product Provider” means any Lender or any of its Affiliates.

          “Bank Product Reserve” means, as of any date of determination, the lesser of (a)
$3,000,000 and (b) the amount of reserves that Agent has established (based upon the Bank Product
Providers’ reasonable determination of the credit exposure of Borrower and its Subsidiaries in
respect of Bank Products as notified to the Agent) in respect of Bank Products then provided or
outstanding.

 

 

          “Bankruptcy Code” means title 11 of the United States Code, as in effect from time to
time.

          “Base LIBOR Rate” means the rate per annum, determined by Agent in accordance with its
customary procedures, and utilizing such electronic or other quotation sources as it considers
appropriate, to be the rate at which Dollar deposits (for delivery on the first day of the
requested Interest Period) are offered to major banks in the London interbank market 2 Business
Days prior to the commencement of the requested Interest Period, for a term and in an amount
comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an
initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a Base Rate
Loan to a LIBOR Rate Loan) by Borrower in accordance with the Agreement, which determination shall
be conclusive in the absence of manifest error.

          “Base Rate” means, the rate of interest announced, from time to time, within Wells
Fargo at its principal office in San Francisco as its “prime rate”, with the understanding that the
“prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and
serves as the basis upon which effective rates of interest are calculated for those loans making
reference thereto and is evidenced by the recording thereof after its announcement in such internal
publications as Wells Fargo may designate.

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

          “Base Rate Margin” means, (a) through and including March 31, 2008, the percentage per
annum set forth below as Level III and, (b) thereafter, as of any date of determination, the
following percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 
	Level	 	Average Margin Availability	 	Base Rate Margin
	I
	 	<  $20,000,000	 	0.00%
	II
	 	3 $20,000,000  but < $30,000,000	 	(0.25%)
	III
	 	3 $30,000,000	 	(0.50%)

          After March 31, 2008, the Base Rate Margin shall be adjusted in accordance with the foregoing
on the first day of each calendar month.

          “Benefit Plan” means a “defined benefit plan” (as defined in Section 3(35) of ERISA)
for which Borrower or any Subsidiary or ERISA Affiliate of Borrower has been an “employer” (as
defined in Section 3(5) of ERISA) within the past six years.

          “Board of Directors” means the board of directors (or comparable managers) of Borrower
or any committee thereof duly authorized to act on behalf of the board of directors (or comparable
managers).

          “Borrower” has the meaning specified therefor in the preamble to the Agreement.

          “Borrowing” means a borrowing hereunder consisting of Advances made on the same day by
the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by
Agent in the case of a Protective Advance.

          “Borrowing Base” means, as of any date of determination, the result of:

          (a) 85% of the amount of Eligible Accounts (other than Seed Exchange Accounts and
Governmental Accounts) in respect of which the Account Debtor is located in the United
States or Canada, plus

 

 

          (b) the lesser of

                    (i) 85% of the amount of Eligible Accounts (other than Seed Exchange Accounts
and Governmental Accounts) in respect of which the Account Debtor is not located in
the United States or Canada, and

                    (ii) $2,000,000, plus

          (c) the lesser of

                    (i) 85% of the amount of Eligible Accounts that are Governmental Accounts, and

                    (ii) $1,000,000, plus

          (d) the lesser of

                    (i) 50% of the amount of Eligible Accounts that are Seed Exchange Accounts, and

                    (ii) $4,000,000, plus

          (e) the lowest of

                    (i) 70% of the value of Eligible Inventory (excluding Seed Inventory,
Packaging Inventory and Inventory in transit from one location of Borrower
to another), less the Grower Payable Reserve,

                    (ii) 85% times the most recently determined Net Liquidation Percentage
times the book value of Borrower’s Inventory (excluding Seed Inventory,
Packaging Inventory and Inventory in transit from one location of Borrower
to another), less the Grower Payable Reserve and

                    (iii) $92,500,000 (the “Inventory Sublimit”), plus

          (f) the lowest of

                    (i) 35% of the value of Eligible Inventory that is Packaging Inventory,

                    (ii) 85% times the most recently determined gross liquidation value of Eligible
Inventory constituting Packaging Inventory, and

                    (iii) $3,500,000, plus

          (g) the lesser of

                    (i) 50% of the value of Eligible Inventory constituting Seed Inventory,
and

                    (ii) $2,000,000, plus

          (h) the lesser of

 

 

                    (i) 70% of the value of Eligible Inventory in transit from one location of the
Borrower to another, and

                    (ii) $1,000,000, plus

    (i) the lesser of

                    (i) 75% times the most recently determined Net Liquidation Percentage times the book
value of Borrower’s Eligible Equipment, and

                    (ii) $7,500,000,

                    minus

          (j) the sum of (i) the Dilution Reserve, if any, (ii) the Bank Product Reserve, and
(iii) the aggregate amount of other reserves, if any, established by Agent under Section
2.1(b).

          Notwithstanding the foregoing, the availability described in clause (i)(ii) above
shall be automatically and permanently reduced by equal installments of $375,000 on the first day
of each fiscal quarter (commencing on June 1, 2008 and continuing thereafter) and shall be
automatically and permanently reduced to zero (0) upon the earliest to occur of (A) the date on
which the foregoing availability shall be reduced in full; (B) the date upon which demand for
repayment of the Advances is made by Agent or Required Lenders as a result of the occurrence and
continuation of an Event of Default; and (C) the date upon which this Agreement terminates pursuant
to its provisions.

          “Borrowing Base Certificate” means a certificate in the form of Exhibit B-1.

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

          “Capital Expenditures” means, with respect to any Person for any period, the aggregate
of all expenditures by such Person and its Subsidiaries during such period that are capital
expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or
financed, excluding (a) expenditures paid with insurance or condemnation proceeds, (b) expenditures
which reinvest the proceeds of asset sales, and (c) expenditures for leasehold improvements to the
extent reimbursed by the applicable landlord.

          “Capitalized Lease Obligation” means that portion of the obligations under a Capital
Lease that is required to be capitalized in accordance with GAAP.

          “Capital Lease” means a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

          “Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the
full faith and credit of the United States, in each case maturing within 1 year from the date of
acquisition thereof, (b) marketable direct obligations issued by any state of the United States or
any political subdivision of any such state or any public instrumentality thereof maturing within 1
year from the date of acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s
Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days
from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1
from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing
within 1 year from

 

 

the date of acquisition thereof issued by any bank organized under the laws of the United
States or any state thereof having at the date of acquisition thereof combined capital and surplus
of not less than $250,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the
criteria described in clause (d) above, or (ii) any other bank organized under the laws of the
United States or any state thereof so long as the amount maintained with any such other bank is
less than or equal to $100,000 and is insured by the Federal Deposit Insurance Corporation, and (f)
Investments in money market funds or money market mutual funds substantially all of whose assets
are invested in the types of assets described in clauses (a) through (e) above.

          “Cash Management Account” has the meaning specified therefor in Section
2.7(a).

          “Cash Management Agreements” means those certain cash management agreements, in form
and substance satisfactory to Agent, each of which is among Borrower or one of its Subsidiaries,
Agent, and one of the Cash Management Banks, as amended, restated or otherwise modified from time
to time.

          “Cash Management Bank” has the meaning specified therefor in Section 2.7(a).

          “Change of Control” means that (a) Permitted Holders fail to own and control, directly
or indirectly, 51% or more of the Stock of Borrower having the right to vote for the election of
members of the Board of Directors, (b) any “person” or “group” (within the meaning of Sections
13(d) and 14(d) of the Exchange Act), other than Permitted Holders, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 20%, or more, of the
Stock of Borrower having the right to vote for the election of members of the Board of Directors,
or (c) a majority of the members of the Board of Directors do not constitute Continuing Directors.

          “Closing Date” means the date of the making of the initial Advance (or other extension
of credit) hereunder.

          “Code” means the Illinois Uniform Commercial Code, as in effect from time to time.

          “Collateral” means all assets and interests in assets and proceeds thereof now owned
or hereafter acquired by Borrower or its Subsidiaries in or upon which a Lien is granted under any
of the Loan Documents.

          “Collateral Access Agreement” means a landlord waiver, bailee letter, or
acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in
possession of, having a Lien upon, or having rights or interests in Borrower’s or its Subsidiaries’
books and records, Equipment or Inventory, in each case, in form and substance reasonably
satisfactory to Agent, as the same may be amended, restated or otherwise modified from time to
time.

          “Collateral Use Agreement” means that certain Collateral Use and Access Agreement
dated on or about the Closing Date among the Borrower, the Term Lender and Agent, as the same may
be amended, restated or otherwise modified from time to time.

          “Collections” means all cash, checks, notes, instruments, and other items of payment
(including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds, but
excluding cash proceeds of assets that are not Collateral).

          “Commitment” means, with respect to each Lender, its Revolver Commitment, and, with
respect to all Lenders, their Revolver Commitments, in each case as such Dollar amounts are set
forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the
Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts
may be reduced or increased from time to time pursuant to assignments made in accordance with the
provisions of Section 13.1.

 

 

          “Compliance Certificate” means a certificate substantially in the form of Exhibit
C-1 delivered by the chief financial officer of Borrower to Agent.

          “Continuing Director” means (a) any member of the Board of Directors who was a
director (or comparable manager) of Borrower on the Closing Date, and (b) any individual who
becomes a member of the Board of Directors after the Closing Date if such individual was appointed
or nominated for election to the Board of Directors by a majority of the Continuing Directors, but
excluding any such individual originally proposed for election in opposition to the Board of
Directors in office at the Closing Date in an actual or threatened election contest relating to the
election of the directors (or comparable managers) of Borrower and whose initial assumption of
office resulted from such contest or the settlement thereof.

          “Control Agreement” means a control agreement, in form and substance satisfactory to
Agent, executed and delivered by Borrower or one of its Subsidiaries, Agent, and the applicable
securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit
Account), as the same may be amended, restated or otherwise modified from time to time.

          “Copyright Security Agreement” has the meaning specified therefor in the Security
Agreement.

          “Daily Balance” means, as of any date of determination and with respect to any
Obligation, the amount of such Obligation owed at the end of such day.

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

          “Defaulting Lender” means any Lender that fails to make any Advance (or other
extension of credit) that it is required to make hereunder on the date that it is required to do so
hereunder.

          “Defaulting Lender Rate” means (a) for the first 3 days from and after the date the
relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to
Advances that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto).

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

          “Designated Account” means the Deposit Account of Borrower identified on Schedule
D-1.

          “Designated Account Bank” has the meaning specified therefor in Schedule D-1.

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

          “Dilution Reserve” means, as of any date of determination, an amount sufficient to
reduce the advance rate against Eligible Accounts by 1 percentage point for each percentage point
by which Dilution is in excess of 5%.

          “Dollars” or “$” means United States dollars.

          “Domestic Subsidiary” means any Subsidiary organized under the laws of the United
States of America, any State thereof or the District of Columbia.

 

 

          “EBITDA” means, with respect to any fiscal period, (a) Borrower’s consolidated net
earnings (or loss), minus (b)(i) extraordinary gains, and (ii) interest income for such period,
plus (c)(i) interest expense, (ii) income taxes, (iii) depreciation and amortization, (iv) other
non-cash expenses, charges and losses (including, without limitation, stock option expenses,
retirement plan expense, impairment charges and charges and losses arising from accounting
pronouncements), (v) extraordinary or nonrecurring non-cash losses for such period, and (vi) fees,
expenses and prepayment premiums incurred in connection with the consummation of the financing
provided under this Agreement and the Term Loan Agreement, in each case, determined on a
consolidated basis in accordance with GAAP.

          “Eligible Accounts” means those Accounts created by Borrower in the ordinary course of
its business, that arise out of Borrower’s sale of goods or rendition of services, that comply with
each of the representations and warranties respecting Eligible Accounts made in the Loan Documents,
and that are not excluded as ineligible by virtue of one or more of the excluding criteria set
forth below; provided, however, that such criteria may be revised from time to time
by Agent in Agent’s Permitted Discretion to address the results of any audit performed by Agent
from time to time after the Closing Date. In determining the amount to be included, Eligible
Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall
not include the following:

          (a) Accounts (other than Seed Exchange Accounts) that the Account Debtor has failed to pay
within 90 days of original invoice date, and Seed Exchange Accounts that the Account Debtor has
failed to pay within 270 days of original invoice date,

          (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts
owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,

          (c) Accounts with respect to which the Account Debtor is an Affiliate of Borrower or an
employee or agent of Borrower or any Affiliate of Borrower,

          (d) Accounts arising in a transaction wherein goods are placed on consignment or are sold
pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other
terms by reason of which the payment by the Account Debtor may be conditional,

          (e) Accounts that are not payable in Dollars or Canadian dollars (it being understood and
agreed that the portion of Seed Exchange Accounts payable in Dollars and not in kind shall not be
excluded under this clause (e)),

          (f) Accounts with respect to which the Account Debtor is the government of any foreign country
or foreign sovereign state, or of any state, province, municipality, or other political subdivision
thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless
(x) the Account is supported by an irrevocable letter of credit satisfactory to Agent (as to form,
substance, and issuer or domestic confirming bank) that has been delivered to Agent and is directly
drawable by Agent, or (y) the Account is covered by credit insurance in form, substance, and
amount, and by an insurer, satisfactory to Agent,

          (g) [Reserved.],

          (h) Accounts with respect to which the Account Debtor is a creditor of Borrower, has or has
asserted a right of setoff, or has disputed its obligation to pay all or any portion of the
Account, to the extent of such claim, right of setoff, or dispute,

          (i) Accounts with respect to an Account Debtor whose total obligations owing to Borrower
exceed 10% or with respect to (i) Wal-Mart Stores, Inc., 25%, or (ii) Costco Wholesale Corporation,
15% (such percentage, as applied to a particular Account Debtor, being subject to reduction by
Agent in its

 

 

Permitted Discretion if the creditworthiness of such Account Debtor deteriorates), of all
Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess of such
percentage; provided, however, that, in each case, the amount of Eligible Accounts
that are excluded because they exceed the foregoing percentage shall be determined by Agent based
on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the
foregoing concentration limit,

          (j) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding,
is not Solvent, has gone out of business, or as to which Borrower has received notice of an
imminent Insolvency Proceeding or a material impairment of the financial condition of such Account
Debtor,

          (k) Accounts with respect to which the Account Debtor is located in a state or jurisdiction
(e.g., New Jersey, Minnesota, and West Virginia) that requires, as a condition to access to the
courts of such jurisdiction, that a creditor qualify to transact business, file a business
activities report or other report or form, or take one or more other actions, unless Borrower has
so qualified, filed such reports or forms, or taken such actions (and, in each case, paid any
required fees or other charges), except to the extent that Borrower may qualify subsequently as a
foreign entity authorized to transact business in such state or jurisdiction and gain access to
such courts, without incurring any cost or penalty viewed by Agent to be significant in amount, and
such later qualification cures any access to such courts to enforce payment of such Account,

          (l) Accounts, the collection of which, Agent, in its Permitted Discretion, believes to be
doubtful by reason of the Account Debtor’s financial condition,

          (m) Accounts that are not subject to a valid and perfected first priority Agent’s Lien,

          (n) Accounts with respect to which (i) the goods giving rise to such Account have not been
shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not
been performed and billed to the Account Debtor, or

          (o) Accounts that represent the right to receive progress payments or other advance billings
that are due prior to the completion of performance by Borrower of the subject contract for goods
or services.

          “Eligible Equipment” means Equipment of the Borrower (x) in respect of which the Agent
has received an appraisal of the Net Liquidation Percentage, which appraisal is from an appraiser
acceptable to Agent and is in form and substance acceptable to Agent, in each case in the exercise
of its Permitted Discretion, (y) that complies with each of the representations and warranties
respecting Equipment made in the Loan Documents and (z) that is not excluded as ineligible by
virtue of one or more of the excluding criteria set forth below; provided, however,
that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to
address the results of any audit or appraisal performed by Agent from time to time after the
Closing Date. An item of Equipment shall not be included in Eligible Equipment if:

          (a) Borrower does not have good, valid, and marketable title thereto,

          (b) it is not located at one of the locations in the continental United States set forth on
Schedule E-1, as such schedule may be amended from time to time upon written notice to
Agent,

          (c) it is located on real property leased by Borrower, unless, within 90 days after the
Closing Date, it is subject to a Collateral Access Agreement executed by the lessor, or

          (d) it is not subject to a valid and perfected first priority Agent’s Lien, subject only to
Permitted Liens of the type described in clauses (b), (c) and (g) of the definition thereof.

 

 

          “Eligible Inventory” means Inventory consisting of first quality raw materials and
finished goods held for sale in the ordinary course of Borrower’s business that complies with each
of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and
that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth
below; provided, however, that such criteria may be revised from time to time by
Agent in Agent’s Permitted Discretion to address the results of any audit or appraisal performed by
Agent from time to time after the Closing Date. In determining the amount to be so included,
Inventory shall be valued at the lower of cost or market on a basis consistent with Borrower’s
historical accounting practices. An item of Inventory shall not be included in Eligible Inventory
if:

          (a) Borrower does not have good, valid, and marketable title thereto,

          (b) it is not located at one of the locations in the continental United States set forth on
Schedule E-1 (or in-transit from one such location to another such location), as such
schedule may be amended from time to time upon written notice to Agent,

          (c) it is located on real property leased by Borrower or in a contract warehouse, in each
case, unless, within 90 days after the Closing Date, it is subject to a Collateral Access Agreement
executed by the lessor or warehouseman, as the case may be, and unless it is segregated or
otherwise separately identifiable from goods of others, if any, stored on the premises,

          (d) it is not subject to a valid and perfected first priority Agent’s Lien, subject only to
Permitted Liens of the type described in clauses (b), (c) and (g) of the definition thereof,

          (e) it consists of goods returned or rejected by Borrower’s customers,

          (f) it is Seed Inventory during any period other than February 1 through June 30 of any year,
or

          (g) it consists of goods that are obsolete or slow moving, restrictive or custom items,
work-in-process, or goods that constitute spare parts, shipping materials, supplies used or
consumed in Borrower’s business (in each case, other than Packaging Inventory), bill and hold
goods, defective goods, “seconds,” or Inventory acquired on consignment.

          “Eligible Transferee” means (a) a commercial bank organized under the laws of the
United States, or any state thereof, and having total assets in excess of $250,000,000, (b) a
commercial bank organized under the laws of any other country which is a member of the Organization
for Economic Cooperation and Development or a political subdivision of any such country and which
has total assets in excess of $250,000,000, provided that such bank is acting through a branch or
agency located in the United States, (c) a finance company, insurance company, financial
institution, or fund that is engaged in making, purchasing, or otherwise investing in commercial
loans in the ordinary course of its business and having (together with its Affiliates) total assets
in excess of $250,000,000, (d) any Affiliate (other than individuals) of a Lender, (e) so long as
no Event of Default has occurred and is continuing, any other Person approved by Agent and Borrower
(which approval of Borrower shall not be unreasonably withheld, delayed, or conditioned), and (f)
during the continuation of an Event of Default, any other Person approved by Agent.

          “Environmental Actions” means any complaint, summons, citation, notice, directive,
order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter,
or other communication from any Governmental Authority, or any third party involving violations of
Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or
businesses of Borrower, its Subsidiaries, or any of their predecessors in interest, (b) from
adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous
Materials generated by Borrower, its Subsidiaries, or any of their predecessors in interest.

 

 

          “Environmental Law” means any applicable federal, state, provincial, foreign or local
statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and
enforceable written policy, or rule of common law now or hereafter in effect and in each case as
amended, or any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, in each case, to the extent binding on Borrower
or its Subsidiaries, relating to the environment, the effect of the environment on employee health,
or Hazardous Materials, in each case as amended from time to time.

          “Environmental Liabilities” means all liabilities, monetary obligations, losses,
damages, punitive damages, consequential damages, treble damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of
investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a
result of any claim or demand, or Remedial Action required, by any Governmental Authority or any
third party, and which relate to any Environmental Action.

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

          “Equipment” means equipment (as that term is defined in the Code).

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute thereto.

          “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as
employed by the same employer as the employees of Borrower or its Subsidiaries under IRC Section
414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the
same employer as the employees of Borrower or its Subsidiaries under IRC Section 414(c), (c) solely
for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA
that is a member of an affiliated service group of which Borrower or any of its Subsidiaries is a
member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412
of the IRC, any Person subject to ERISA that is a party to an arrangement with Borrower or any of
its Subsidiaries and whose employees are aggregated with the employees of Borrower or its
Subsidiaries under IRC Section 414(o).

          “Event of Default” has the meaning specified therefor in Section 7.

          “Excess Availability” means, as of any date of determination, the amount equal to
Availability minus all book overdrafts of Borrower and its Subsidiaries in excess of historical
practices with respect thereto, in each case as determined by Agent in its Permitted Discretion.

          “Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to
time.

          “Excluded Collateral” has the meaning specified therefor in the Security Agreement.

          “Existing Agent” has the meaning specified therefor in Schedule 3.1.

          “Existing Lenders” has the meaning specified therefor in Schedule 3.1.

          “Existing Letter of Credit” means Letter of Credit No. S502083 amended as of May 1,
2006 issued by LaSalle Bank National Association in favor of SunTrust Bank, as Trustee.

          “Fee Letter” means that certain fee letter between Borrower and Agent, in form and
substance satisfactory to Agent, as the same may be amended, restated or otherwise modified from
time to time.

 

 

          “Fixed Charges” means, with respect to any fiscal period and with respect to Borrower
determined on a consolidated basis in accordance with GAAP, the sum, without duplication, of (a)
Interest Expense paid in cash during such period and (b) regularly scheduled principal payments of
Indebtedness during such period.

          “Fixed Charge Coverage Ratio” means, with respect to Borrower for any period, the
ratio of (i) EBITDA for such period minus Capital Expenditures not financed with the proceeds of
Indebtedness and made (to the extent not already incurred in a prior period) or incurred during
such period minus all federal, state, and local income taxes paid in cash during such period, to
(ii) Fixed Charges for such period.

          “FSA” means the Food Security Act of 1985, as amended, or any successor statute
thereto.

          “FSA State” means Alabama, Colorado, Idaho, Louisiana, Minnesota, Mississippi,
Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah,
Vermont, West Virginia, Wyoming and any other state of the United States of America that is
certified after the date hereof to have a “central filing system” as defined in the FSA.

          “Funded Indebtedness” means, as of any date of determination, all Indebtedness for
borrowed money or letters of credit of Borrower, determined on a consolidated basis in accordance
with GAAP, that by its terms matures more than one year after the date of calculation, and any such
Indebtedness maturing within one year from such date that is renewable or extendable at the option
of Borrower or its Subsidiaries, as applicable, to a date more than one year from such date,
including, in any event, but without duplication, with respect to Borrower and its Subsidiaries,
the Revolver Usage, the Term Loan, and the amount of their Capital Lease Obligations.

          “Funding Date” means the date on which a Borrowing occurs.

          “Funding Losses” has the meaning specified therefor in Section 2.13(b)(ii).

          “GAAP” means generally accepted accounting principles as in effect from time to time
in the United States, consistently applied.

          “Governing Documents” means, with respect to any Person, the certificate or articles
of incorporation, by-laws, or other organizational documents of such Person.

          “Governmental Accounts” means any Account with respect to which the Account Debtor is
either (i) the United States or any department, agency, or instrumentality of the United States
(exclusive, however, of Accounts with respect to which Borrower has complied, to the reasonable
satisfaction of Agent, with the Assignment of Claims Act, 31 USC §3727), or (ii) any state of the
United States.

          “Governmental Authority” means any federal, state, local, or other governmental or
administrative body, instrumentality, board, department, or agency or any court, tribunal,
administrative hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body.

          “Grower Payable Reserve” means, as of any date of determination, the amount of
reserves that Agent has established in respect of accounts payable of Borrower and its Subsidiaries
then outstanding to growers or suppliers of agricultural products based upon the then most recently
delivered information regarding accounts payable required to be delivered pursuant to Section
5.3.

          “Growers’ Lien Laws” means, collectively, state and federal laws of the United States
of America applicable to Borrower’s purchase of agricultural products on credit from any selling
party that create a Lien or imposes a trust upon the agricultural products sold and/or the proceeds
of such agricultural products for the benefit of such selling party or a creditor thereof to secure
payment for such agricultural products.

 

 

          “Guarantors” means each Subsidiary of Borrower other than, so long as no Event of
Default has occurred and is continuing, JBSS Properties, LLC, and “Guarantor” means any one
of them.

          “Guaranty” means a general continuing guaranty in the form of Exhibit G-1 hereto.

          “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise
classified pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous
materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define,
list, or classify substances by reason of deleterious properties such as ignitability, corrosivity,
reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or
petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids,
produced waters, and other wastes associated with the exploration, development, or production of
crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any
radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil
or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per
million.

          “Hedge Agreement” means any and all agreements or documents now existing or hereafter
entered into by Borrower or any of its Subsidiaries that provide for an interest rate, credit,
commodity or equity swap, cap, floor, collar, forward foreign exchange transaction, currency swap,
cross currency rate swap, currency option, or any combination of, or option with respect to, these
or similar transactions, for the purpose of hedging Borrower’s or any of its Subsidiaries’ exposure
to fluctuations in interest or exchange rates, loan, credit exchange, security, or currency
valuations or commodity prices.

          “Holdout Lender” has the meaning specified therefor in Section 14.2(a).

          “Incremental Amendment” has the meaning specified therefor in Section 2.15.

          “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations
evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other
obligations in respect of letters of credit, bankers acceptances, or other financial products, (c)
all obligations as a lessee under Capital Leases, (d) all obligations or liabilities of others
secured by a Lien on any asset of a Person or its Subsidiaries, irrespective of whether such
obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of
assets (other than trade payables incurred in the ordinary course of business and repayable in
accordance with customary trade practices), (f) all obligations owing under Hedge Agreements, and
(g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly
guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other
Person that constitutes Indebtedness under any of clauses (a) through (f) above.

          “Indemnified Liabilities” has the meaning specified therefor in Section 10.3.

          “Indemnified Person” has the meaning specified therefor in Section 10.3.

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

          “Intercompany Subordination Agreement” means a subordination agreement executed and
delivered by Borrower, each of its Subsidiaries, and Agent, the form and substance of which is
satisfactory to Agent.

          “Interest Expense” means, for any period, the aggregate of the interest expense of
Borrower for such period, determined on a consolidated basis in accordance with GAAP.

 

 

          “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on
the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the
conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1 or 2 weeks or 1, 2, 3 or 6 months
thereafter; provided, however, that (a) if any Interest Period would end on a day
that is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e)
below) to the next succeeding Business Day, (b) interest shall accrue at the applicable rate based
upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the
day on which any Interest Period expires, (c) any Interest Period that would end on a day that is
not a Business Day shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on the next preceding
Business Day, (d) with respect to an Interest Period of 1, 2, 3 or 6 months that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period), the Interest Period shall end on the
last Business Day of the calendar month that is 1, 2, 3 or 6 months after the date on which the
Interest Period began, as applicable, and (e) Borrower may not elect an Interest Period which will
end after the Maturity Date.

          “Inventory” means inventory (as that term is defined in the Code).

          “Inventory Sublimit” has the meaning specified in the definition of “Borrowing Base”
contained in this Schedule 1.1.

          “Investment” means, with respect to any Person, any investment by such Person in any
other Person (including Affiliates) in the form of loans, guarantees, advances, capital
contributions (excluding (a) commission, travel, and similar advances to officers and employees of
such Person made in the ordinary course of business, and (b) bona fide Accounts arising in the
ordinary course of business consistent with past practice), or acquisitions of Indebtedness, Stock,
or all or substantially all of the assets of such other Person (or of any division or business line
of such other Person), and any other items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP.

          “IRB Documents” means the Trust Indenture dated as of June 1, 1987 between the Decatur
County-Bainbridge Industrial Development Authority, as Issuer, and Trust Company Bank, as Trustee,
and the other documents and instruments executed and delivered pursuant to, or in connection with,
such Trust Indenture, as the same may be amended, restated or otherwise modified from time to time.

          “IRC” means the Internal Revenue Code of 1986, as in effect from time to time.

          “Issuing Lender” means WFF or any other Lender that, at the request of Borrower and
with the consent of Agent, agrees, in such Lender’s sole discretion, to become an Issuing Lender
for the purpose of issuing L/Cs or L/C Undertakings pursuant to Section 2.12.

          “L/C” has the meaning specified therefor in Section 2.12(a).

          “L/C Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of
Credit.

          “L/C Margin” means, (a) through and including March 31, 2008, the percentage per annum
set forth below as Level III and, (b) thereafter, as of any date of determination, the following
percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 	 	 	 	 
	Level	 	Average Margin Availability	 	L/C Margin
	I
	 	 	< $20,000,000	 	 	 	2.00	%
	II
	 	3  $20,000,000 but < $30,000,000 	 	 	1.75	%
	III
	 	 	 3 $30,000,000	 	 	 	1.50	%

 

 

          After March 31, 2008, the L/C Margin shall be adjusted in accordance with the foregoing on the
first day of each calendar month.

          “L/C Undertaking” has the meaning specified therefor in Section 2.12(a).

          “Lender” and “Lenders” have the respective meanings set forth in the preamble
to the Agreement, and shall include any other Person made a party to the Agreement in accordance
with the provisions of Section 2.15 or 13.1.

          “Lender Group” means, individually and collectively, each of the Lenders (including
the Issuing Lender) and Agent.

          “Lender Group Expenses” means all (a) out-of-pocket costs or expenses (including
taxes, and insurance premiums) required to be paid by Borrower or its Subsidiaries under any of the
Loan Documents that are paid, advanced, or incurred by the Lender Group to the extent permitted by
the terms of the Loan Documents, (b) out-of-pocket fees or charges paid or incurred by Agent in
connection with the Lender Group’s transactions with Borrower or its Subsidiaries under the Loan
Documents, including, fees or charges for photocopying, notarization, couriers and messengers,
telecommunication, public record searches (including tax lien, litigation, and UCC searches and
including searches with the patent and trademark office or the copyright office, but not including
any internal overhead cost allocations by Agent), filing, recording, publication, appraisal
(including periodic collateral appraisals or business valuations to the extent of the fees and
charges (and up to the amount of any limitation) contained in the Agreement or the Fee Letter,
including, but not limited to appraisals of the Borrower’s Equipment; provided,
however, so long as no Event of Default has occurred and is continuing, Lender Group
Expenses shall only include such fees and charges in respect of one appraisal of Borrower’s
Equipment per calendar year), real estate surveys, real estate title policies and endorsements, and
environmental audits, (c) costs and expenses incurred by Agent in the disbursement of funds to
Borrower or other members of the Lender Group (by wire transfer or otherwise), (d) charges paid or
incurred by Agent resulting from the dishonor of checks, (e) reasonable out-of-pocket costs and
expenses paid or incurred by the Lender Group to correct any Event of Default or enforce any
provision of the Loan Documents, or, at any time after the occurrence of an Event of Default, in
gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for
sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale
is consummated, (f) audit fees and expenses (including travel, meals, and lodging) of Agent related
to any inspections or audits to the extent of the fees and charges (and up to the amount of any
limitation) contained in the Agreement or the Fee Letter, (g) reasonable costs and expenses of
third party claims or any other suit paid or incurred by the Lender Group in enforcing or defending
the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the
Lender Group’s relationship with Borrower or any its Subsidiaries, (h) Agent’s and each Lender’s
reasonable out-of-pocket costs and expenses (including attorneys fees) incurred in advising,
structuring, drafting, reviewing, administering (including travel, meals, and lodging),
syndicating, or amending the Loan Documents, and (i) Agent’s and each Lender’s reasonable
out-of-pocket costs and expenses (including attorneys, accountants, consultants, and other advisors
fees and expenses) incurred in terminating, enforcing (including attorneys, accountants,
consultants, and other advisors fees and expenses incurred in connection with a “workout,” a
“restructuring,” or an Insolvency Proceeding concerning Borrower or its Subsidiaries or in
exercising rights or remedies under the Loan Documents), or defending the Loan Documents,
irrespective of whether suit is brought, or in taking any Remedial Action concerning the
Collateral.

          “Lender-Related Person” means, with respect to any Lender, such Lender, together with
such Lender’s Affiliates, officers, directors, employees, attorneys, and agents.

 

 

          “Letter of Credit” means an L/C or an L/C Undertaking, as the context requires.

          “Letter of Credit Collateralization” means either (a) providing cash collateral
(pursuant to documentation reasonably satisfactory to Agent, including provisions that specify that
the Letter of Credit fee set forth in the Agreement will continue to accrue while the Letters of
Credit are outstanding) to be held by Agent for the benefit of those Lenders with a Revolver
Commitment in an amount equal to 105% of the then existing Letter of Credit Usage, (ii) causing the
Underlying Letters of Credit to be returned to the Issuing Lender, or (iii) providing Agent with a
standby letter of credit, in form and substance reasonably satisfactory to Agent, from a commercial
bank acceptable to the Agent (in its sole discretion) in an amount equal to 105% of the then
existing Letter of Credit Usage (it being understood that the Letter of Credit fee set forth in the
Agreement will continue to accrue while the Letters of Credit are outstanding and that any such fee
that accrues must be an amount that can be drawn under any such standby letter of credit).

          “Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn
amount of all outstanding Letters of Credit.

          “LIBOR Deadline” has the meaning specified therefor in Section 2.13(b)(i).

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

          “LIBOR Option” has the meaning specified therefor in Section 2.13(a).

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

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

          “LIBOR Rate Margin” means, (a) through and including March 31, 2008, the percentage
per annum set forth below as Level III and, (b) thereafter, as of any date of determination, the
following percentages per annum, based upon Average Margin Availability:

	 	 	 	 	 	 	 	 	 
	Level	 	Average Margin Availability	 	LIBOR Rate Margin
	I
	 	 	< $20,000,000	 	 	 	2.50	%
	II
	 	3 $20,000,000 but < $30,000,000	 	 	2.25	%
	III
	 	 	3 $30,000,000	 	 	 	2.00	%

          After March 31, 2008, the LIBOR Rate Margin shall be adjusted in accordance with the foregoing
on the first day of each calendar month.

          “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,
deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other
security arrangement and any other preference, priority, or preferential arrangement of any kind or
nature whatsoever, including any conditional sale contract or other title retention agreement, the
interest of a lessor under a Capital Lease and any synthetic or other financing lease having
substantially the same economic effect as any of the foregoing.

          “Loan Account” has the meaning specified therefor in Section 2.10.

 

 

          “Loan Documents” means the Agreement, the Bank Product Agreements, any Borrowing Base
Certificate, the Cash Management Agreements, the Control Agreements, the Copyright Security
Agreement, the Fee Letter, any Guaranty, any Intercompany Subordination Agreement, the Letters of
Credit, the Patent Security Agreement, the Security Agreement, the Trademark Security Agreement,
the Side Letter, any note or notes executed by Borrower in connection with the Agreement and
payable to a member of the Lender Group, and any other agreement entered into, now or in the
future, by Borrower or any of its Subsidiaries and the Lender Group in connection with the
Agreement, as the same may be amended, restated or otherwise modified from time to time.

          “Material Adverse Change” means (a) a material adverse change in the business,
operations, results of operations, assets, liabilities or financial condition of Borrower and its
Subsidiaries, taken as a whole, (b) a material impairment of Borrower’s and its Subsidiaries
ability to perform their obligations under the Loan Documents to which they are parties or of the
Lender Group’s ability to enforce the Obligations or realize upon the Collateral, or (c) a material
impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as
a result of an action or failure to act on the part of Borrower or its Subsidiaries.

          “Maturity Date” has the meaning specified therefor in Section 3.3.

          “Maximum Revolver Amount” means $117,500,000, as such amount may be increased in
accordance with Section 2.15.

          “Maximum Revolver Amount Increase” has the meaning specified therefor in Section
2.15.

          “Moody’s” has the meaning specified therefor in the definition of Cash Equivalents.

          “Net Cash Proceeds” means, with respect to any sale or disposition by Borrower or any
of its Subsidiaries of property or assets, the amount of cash proceeds received (directly or
indirectly) from time to time (whether as initial consideration or through the payment of deferred
consideration) by or on behalf of Borrower or its Subsidiaries, in connection therewith after
deducting therefrom only (i) the amount of any Indebtedness secured by any Permitted Lien on any
asset (other than (A) Indebtedness owing to Agent or any Lender under the Agreement or the other
Loan Documents and (B) Indebtedness assumed by the purchaser of such asset) which is required to
be, and is, repaid in connection with such sale or disposition, (ii) reasonable fees, commissions,
and expenses related thereto and required to be paid by Borrower or such Subsidiary in connection
with such sale or disposition and (iii) taxes paid or payable to any taxing authorities by Borrower
or such Subsidiary in connection with such sale or disposition, in each case to the extent, but
only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually
paid or payable to a Person that is not an Affiliate of Borrower or any of its Subsidiaries, and
are properly attributable to such transaction; and

          “Net Liquidation Percentage” means the percentage of the book value of Borrower’s
Inventory or Equipment, as the case may be, that is estimated to be recoverable in an orderly
liquidation of such Inventory or Equipment, as the case may be, net of all associated costs and
expenses of such liquidation, such percentage to be as determined from time to time by an appraisal
company selected by Agent.

          “Obligations” means (a) all loans, Advances, debts, principal, interest (including any
interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether
allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), contingent
reimbursement obligations with respect to outstanding Letters of Credit, prepayment premiums,
liabilities (including all amounts charged to Borrower’s Loan Account pursuant to the Agreement),
obligations (including indemnification obligations), fees (including the fees provided for in the
Fee Letter), charges, costs, Lender Group Expenses (including any fees or expenses that accrue
after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in
whole or in part as a claim in any such Insolvency Proceeding), guaranties, covenants, and duties
of any kind and description, in each case owing by Borrower to the Lender Group pursuant to or
evidenced by the Loan Documents and irrespective of whether for the payment of money, whether
direct or

 

 

indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and
including all interest not paid when due and all other expenses or other amounts that Borrower is
required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the
Loan Documents, and (b) all Bank Product Obligations. Any reference in the Agreement or in the
Loan Documents to the Obligations shall include all or any portion thereof and any extensions,
modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency
Proceeding.

          “Originating Lender” has the meaning specified therefor in Section 13.1(e).

          “Overadvance” has the meaning specified therefor in Section 2.5.

          “Packaging Inventory” means Eligible Inventory constituting corrugated boxes, jars,
labels, cartons, film and shipping supplies used in the packaging of nuts and other food products
sold by the Borrower.

          “Patent Security Agreement” has the meaning specified therefor in the Security
Agreement.

          “Participant” has the meaning specified therefor in Section 13.1(e).

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

          “Permitted Dispositions” means (a) sales or other dispositions of Equipment that is
substantially worn, damaged or obsolete in the ordinary course of business, (b) sales of Inventory
to buyers in the ordinary course of business, (c) the use or transfer of money or Cash Equivalents
in a manner that is not prohibited by the terms of the Agreement or the other Loan Documents, (d)
the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual
property rights in the ordinary course of business and (e) sales or other dispositions of
Collateral of Borrower not to exceed $2,500,000 in the aggregate in any calendar year.

          “Permitted Holders” means the Persons identified on Schedule P-1.

          “Permitted Investments” means (a) Investments in cash and Cash Equivalents, (b)
Investments in negotiable instruments for collection, (c) advances made in connection with
purchases of goods or services in the ordinary course of business, and (d) Investments received in
settlement of amounts due to Borrower or any of its Subsidiaries effected in the ordinary course of
business or owing to Borrower or any of its Subsidiaries as a result of Insolvency Proceedings
involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of Borrower
or its Subsidiaries.

          “Permitted Liens” means (a) Liens held by Agent to secure the Obligations, (b) Liens
for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet
delinquent, or (ii) do not have priority over the Agent’s Liens and the underlying taxes,
assessments, or charges or levies are the subject of Permitted Protests, (c) judgment Liens that do
not constitute an Event of Default under Section 7.7 of the Agreement, (d) Liens set forth
on Schedule P-2; provided that any such Lien only secures the Indebtedness that it
secures on the Closing Date and any Refinancing Indebtedness in respect thereof, (e) the interests
of lessors under operating leases, (f) purchase money Liens or the interests of lessors under
Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money
Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the
proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire the
asset purchased or acquired or any Refinancing Indebtedness in respect thereof, (g) Liens arising
by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen,
laborers, or suppliers (“Subject Third Parties”), incurred in the ordinary course of
business and not in connection with the borrowing of money, and which Liens either (i) are for sums
not yet delinquent, or (ii) are the subject of Permitted Protests, (h) Liens arising by contract
incurred in the

 

 

ordinary course of business and not in connection with the borrowing of money in favor of
Subject Third Parties, (i) Liens on amounts deposited in connection with obtaining worker’s
compensation or other unemployment insurance, (j) Liens on amounts deposited in connection with the
making or entering into of bids, tenders, or leases in the ordinary course of business and not in
connection with the borrowing of money, (k) Liens on amounts deposited as security for surety or
appeal bonds in connection with obtaining such bonds in the ordinary course of business, (l) with
respect to any Real Property, easements, rights of way, and zoning restrictions that do not
materially interfere with or impair the use or operation thereof, (m) Liens of lessees of Real
Property owned by Borrower, (n) Liens on Deposit Accounts granted or arising in the ordinary course
of business in favor of depositary banks maintaining such Deposit Accounts solely to the extent
they secure customary account fees and charges payable in respect of such Deposit Accounts and
overdrafts and (o) Liens on the Term Lender Collateral Account.

          “Permitted Protest” means the right of Borrower or any of its Subsidiaries to protest
any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes), or
rental payment; provided that (a) a reserve with respect to such obligation is established
on Borrower’s or its Subsidiaries’ books and records in such amount as is required under GAAP, (b)
any such protest is instituted promptly and prosecuted diligently by Borrower or its Subsidiary, as
applicable, in good faith, (c) Agent is satisfied that, while any such protest is pending, there
will be no impairment of the enforceability, validity, or priority of any of the Agent’s Liens and,
(d) in respect of tax liens, Agent shall, in its Permitted Discretion, be entitled to institute a
reserve in accordance with Section 2.1(b) in an amount equal to the amount of such tax
lien.

          “Permitted Purchase Money Indebtedness” means, as of any date of determination,
Purchase Money Indebtedness incurred after the Closing Date in an aggregate principal amount
outstanding at any one time not in excess of the amount permitted pursuant to Section
6.1(c).

          “Person” means natural persons, corporations, limited liability companies, limited
partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land
trusts, business trusts, or other organizations, irrespective of whether they are legal entities,
and governments and agencies and political subdivisions thereof.

          “Projections” means Borrower’s forecasted (a) balance sheets, (b) profit and loss
statements, and (c) cash flow statements, all prepared on a basis consistent with Borrower’s
historical financial statements, together with appropriate supporting details and a statement of
underlying assumptions.

          “Pro Rata Share” means, as of any date of determination:

          (a) with respect to a Lender’s obligation to make Advances and right to receive payments of
principal, interest, fees, costs, and expenses with respect thereto, (i) prior to the Revolver
Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such
Lender’s Revolver Commitment, by (z) the aggregate Revolver Commitments of all Lenders, and (ii)
from and after the time that the Revolver Commitments have been terminated or reduced to zero, the
percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances by
(z) the outstanding principal amount of all Advances,

          (b) with respect to a Lender’s obligation to participate in Letters of Credit, to reimburse
the Issuing Lender, and right to receive payments of fees with respect thereto, (i) prior to the
Revolver Commitments being terminated or reduced to zero, the percentage obtained by dividing (y)
such Lender’s Revolver Commitment, by (z) the aggregate Revolver Commitments of all Lenders, and
(ii) from and after the time that the Revolver Commitments have been terminated or reduced to zero,
the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances
by (z) the outstanding principal amount of all Advances,

          (c) [Reserved], and

 

 

          (d) with respect to all other matters as to a particular Lender (including the indemnification
obligations arising under Section 15.7), the percentage obtained by dividing (i) such
Lender’s Revolver Commitment, by (ii) the aggregate amount of Revolver Commitments of all Lenders;
provided, however, that in the event the Revolver Commitments have been terminated
or reduced to zero, Pro Rata Share under this clause shall be the percentage obtained by dividing
(A) the outstanding principal amount of such Lender’s Advances plus such Lender’s ratable portion
of the Risk Participation Liability with respect to outstanding Letters of Credit, by (B) the
outstanding principal amount of all Advances plus the aggregate amount of the Risk Participation
Liability with respect to outstanding Letters of Credit.

          “Protected Vendor” means any Person that is afforded the benefit of any Lien or trust
upon agricultural products sold to Borrower and/or its Subsidiaries and/or any proceeds of such
agricultural products under any Growers’ Lien Law.

          “Protective Advances” has the meaning specified therefor in Section 2.3(d)(i).

          “Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but
including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the
acquisition of any fixed assets for the purpose of financing all or any part of the acquisition
cost thereof.

          “Qualified Cash” means, as of any date of determination, the amount of unrestricted
cash and Cash Equivalents of Borrower and its Subsidiaries that is in Deposit Accounts or in
Securities Accounts, or any combination thereof, and which such Deposit Account or Securities
Account is the subject of a Control Agreement and is maintained by a branch office of the bank or
securities intermediary located within the United States.

          “Real Property” means any estates or interests in real property now owned or hereafter
acquired by Borrower or its Subsidiaries and the improvements thereto.

          “Record” means information that is inscribed on a tangible medium or that is stored in
an electronic or other medium and is retrievable in perceivable form.

          “Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness
so long as: (a) such refinancings, renewals, or extensions do not result in an increase in the
principal amount of the Indebtedness so refinanced, renewed, or extended, (b) such refinancings,
renewals, or extensions do not result in an increase in the interest rate with respect to the
Indebtedness so refinanced, renewed, or extended, (c) such refinancings, renewals, or extensions do
not result in a shortening of the average weighted maturity of the Indebtedness so refinanced,
renewed, or extended, nor are they on terms or conditions that, taken as a whole, are materially
more burdensome or restrictive to Borrower, (d) if the Indebtedness that is refinanced, renewed, or
extended was subordinated in right of payment to the Obligations, then the terms and conditions of
the refinancing, renewal, or extension must include subordination terms and conditions that are at
least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or
extended Indebtedness, and (e) the Indebtedness that is refinanced, renewed, or extended is not
recourse to any Person that is liable on account of the Obligations other than those Persons which
were obligated with respect to the Indebtedness that was refinanced, renewed, or extended.

          “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or
outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials
so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor
or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform
any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or
(e) comply with Environmental Laws that pertain to the release of Hazardous Materials.

 

 

          “Replacement Lender” has the meaning specified therefor in Section 14.2(a).

          “Report” has the meaning specified therefor in Section 15.16.

          “Required Availability” means that the sum of (a) Excess Availability, less, the
aggregate amount, if any, of all trade payables of Borrower and its Subsidiaries aged in excess of
historical levels with respect thereto, plus (b) Qualified Cash exceeds $20,000,000.

          “Required Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares
(calculated under clause (d) of the definition of Pro Rata Shares) exceed 50%;
provided, however, at any time there are fewer than four (4) Lenders, Required
Lenders shall constitute no fewer than two (2) Lenders, it being understood that, for purposes of
this proviso, a Lender and all of its Affiliates that are Lenders shall constitute but one (1)
Lender.

          “Reserve Percentage” means, on any day, for any Lender, the maximum percentage
prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental
Authority) for determining the reserve requirements (including any basic, supplemental, marginal,
or emergency reserves) that are in effect on such date with respect to eurocurrency funding
(currently referred to as “eurocurrency liabilities”) of that Lender, but so long as such
Lender is not required or directed under applicable regulations to maintain such reserves, the
Reserve Percentage shall be zero.

          “Responsible Officer” means each of the chief executive officer, president, chief
financial officer, vice president of finance, principal accounting officer, treasurer, assistant
treasurer, general counsel and assistant general counsel and each other similar officer of
Borrower.

          “Revolver Commitment” means, with respect to each Lender, its Revolver Commitment,
and, with respect to all Lenders, their Revolver Commitments, in each case as such Dollar amounts
are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in
the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such
amounts may be reduced or increased from time to time pursuant to assignments made in accordance
with the provisions of Section 13.1.

          “Revolver Commitment Increase Lender” has the meaning specified therefor in
Section 2.15.

          “Revolver Usage” means, as of any date of determination, the sum of (a) the amount of
outstanding Advances, plus (b) the amount of the Letter of Credit Usage.

          “Risk Participation Liability” means, as to each Letter of Credit, all reimbursement
obligations of Borrower to the Issuing Lender with respect to an L/C Undertaking, consisting of (a)
the amount available to be drawn or which may become available to be drawn, (b) all amounts that
have been paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed by
Borrower, whether by the making of an Advance or otherwise, and (c) all accrued and unpaid
interest, fees, and expenses payable with respect thereto.

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

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

          “Security Agreement” means a security agreement, in form and substance satisfactory to
Agent, executed and delivered by Borrower and Guarantors to Agent, as the same may be amended,
restated or otherwise modified from time to time.

 

 

          “Seed Exchange Accounts” means Eligible Accounts owing from growers in respect of
peanut seeds supplied pursuant to Borrower’s seed exchange program.

          “Seed Inventory” means Eligible Inventory consisting of peanut seeds held for sale or
exchange in connection with the Borrower’s seed exchange program with growers.

          “Settlement” has the meaning specified therefor in Section 2.3(e)(i).

          “Settlement Date” has the meaning specified therefor in Section 2.3(e)(i).

          “Side Letter” means that certain Side Letter executed by Agent and Lenders in favor of
Borrower dated the Closing Date.

          “Solvent” means, with respect to any Person on a particular date, that, at fair
valuations, the sum of such Person’s assets is greater than all of such Person’s debts.

          “S&P” has the meaning specified therefor in the definition of Cash Equivalents.

          “Stock” means all shares, options, warrants, interests, participations, or other
equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting,
including common stock, preferred stock, or any other “equity security” (as such term is defined in
Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act).

          “Subsidiary” of a Person means a corporation, partnership, limited liability company,
or other entity in which that Person directly or indirectly owns or controls the shares of Stock
having ordinary voting power to elect a majority of the board of directors (or appoint other
comparable managers) of such corporation, partnership, limited liability company, or other entity.

          “Supermajority Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares
(calculated under clause (d) of the definition of Pro Rata Shares) exceed 66 2/3%.

          “Swing Lender” means WFF or any other Lender that, at the request of Borrower and with
the consent of Agent agrees, in such Lender’s sole discretion, to become the Swing Lender under
Section 2.3(b).

          “Swing Loan” has the meaning specified therefor in Section 2.3(b).

          “Taxes” has the meaning specified therefor in Section 16(a).

          “Term Lender” means Transamerica Life Insurance Company, an Iowa corporation, and its
successors and assigns under the Term Loan Documents.

          “Term Lender Collateral Account” means, collectively, the Deposit Account and/or
Securities Account of the Borrower that have been pledged to the Term Lender and into which
proceeds of the Excluded Collateral shall be deposited by the Borrower as and when required
pursuant to the terms of the Term Loan Documents.

          “Term Loan” means the term loan made to Borrower pursuant to the Term Loan Agreement
in an aggregate outstanding principal amount not to exceed $45,000,000.

          “Term Loan Agreement” means that certain Loan Agreement among Borrower, the Term
Lender and JBSS Properties, LLC, a Delaware limited liability company, dated as of February 7,
2008, as the same may be amended, restated or otherwise modified from time to time.

 

 

          “Term Loan Documents” means the Term Loan Agreement and the other documents and
instruments executed pursuant thereto or in accordance therewith, in each case as the same may be
amended, restated or otherwise modified from time to time.

          “Trademark Security Agreement” has the meaning specified therefor in the Security
Agreement.

          “Underlying Issuer” means a third Person which is the beneficiary of an L/C
Undertaking and which has issued a letter of credit at the request of the Issuing Lender for the
benefit of Borrower.

          “Underlying Letter of Credit” means a letter of credit that has been issued by an
Underlying Issuer.

          “United States” means the United States of America.

          “Voidable Transfer” has the meaning specified therefor in Section 17.8.

          “Wells Fargo” means Wells Fargo Bank, National Association, a national banking
association.

          “WFF” means Wells Fargo Foothill, LLC, a Delaware limited liability company.

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