Document:

exv10w52

 

Exhibit 10.52

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT

     This First Amendment to Credit and Security Agreement (“First Amendment”) is entered into as
of September 26, 2006 by among by Synergetics, Inc., a Missouri corporation (“Synergetics”), and
Synergetics USA, Inc., a Delaware corporation (“Synergetics USA”) (individually, a “Borrower” and
together, the “Borrowers”), Regions Bank (“Regions) in its capacities as Agent and a Lender, and
Wachovia Bank, National Association (“Wachovia”), in its capacity as a Lender.

RECITALS

     A. Borrowers and Regions entered into a certain Credit and Security Agreement dated as of
March 13, 2006 (the “Existing Credit Agreement”).

     B. Borrowers and Lenders desire that Wachovia become a co-Lender under the Revolving Credit
Facility and that Regions become the Agent for itself as a Lender and for Wachovia as a Lender.

     C. The Existing Credit Agreement and this First Amendment constitute the “Credit Agreement”
from and after the effectiveness of this First Amendment.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Borrowers, Lenders and
Agent agree as follows:

     1. Defined Terms. Each term used herein without definition or a modification to
definition shall have the same meaning as set forth in the Existing Credit Agreement.

     2. Credit Agreement Amendments. The Existing Credit Agreement is hereby amended as
follows, effective upon fulfillment of conditions set forth in Section 3 of this First Amendment:

          (A) Section 1.2, entitled “Primary Definitions,” is hereby amended by adding or
modifying the following definitions:

	 	(1)	 	“Anti-Terrorism Laws” means
any law, rule or regulation relating to terrorism or money
laundering, including Executive Order No. 13224, the USA
Patriot Act, the laws, rules and regulations comprising or
implementing the Bank Secrecy Act and of the laws, rules and
regulations administered by the United States Treasury
Department’s Office of Foreign Asset Control

 

 

	 	 	 	(as any of the foregoing may from to time be amended, renewed,
extended or replaced).

	 	(2)	 	“Agent” has the meaning
specified in Section 10.1 hereof.
	 
	 	(3)	 	“Agent Advances” has the
meaning specified in Section 10.10(f)(i) hereof.
	 
	 	(4)	 	“Borrowing Base” means, at
any time and subject to change from time to time in Lenders’
sole discretion, the lesser of

	 	(a)	 	the Revolving Loan Commitment, or
	 
	 	(b)	 	the sum of

	 	(i)	 	up to 85% of Eligible Accounts, plus
	 
	 	(ii)	 	up to 50% of Eligible Inventory.

	 	(5)	 	“Lender” means Regions or
Wachovia and “Lenders” means Regions and Wachovia.
	 
	 	(6)	 	“LIBOR Interest Payment
Date” means (a) as to any LIBOR Portion having an Interest
Period of three months or less, the last day of such Interest
Period, (b) as to any LIBOR Portion having an Interest Period
longer than three months, each day which is at the end of
each three month-period within such Interest Period after the
first day of such Interest Period and the last day of such
Interest Period and (c) for each of (a) and (b) above, the
day on which any such LIBOR Portion becomes due and payable
in full or is paid or prepaid in full.
	 
	 	(7)	 	“Notes” and “Revolving
Notes” mean, individually and together, the Revolving Notes
attached to this First Amendment as Exhibit A and Exhibit B,
respectively, which replace (without novation) the Note
referred to in the Existing Credit Agreement.
	 
	 	(8)	 	“Pro-rata Share” means the
following percentages of the Revolving Loan Commitment
(including the applicable Obligation of Reimbursement and
Agent Advances):

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	Lender	 	Pro-rata Share
	Regions
	 	 	63.64	%
	Wachovia
	 	 	36.36	%

	 	(9)	 	“Revolving Loan Commitment”
means, collectively, $5,500,000, unless said amount is
reduced pursuant to Section 2.11(b) hereof, in which event it
means the aggregate amount to which said amount is reduced.
The “Revolving Loan Commitment” of each Lender is as follows:

	 	 	 	 	 
	 	 	Lender’s Revolving Loan
	Lender	 	Commitment
	Regions
	 	$	3,500,000	 
	Wachovia
	 	$	2,000,000	 

	 	(10)	 	“Swing Line Availability”
means the lesser of (a) the Swing Line Commitment Amount and
(b) availability under the Revolving Loan Commitment of The
Swing Line Lender.
	 
	 	(11)	 	“Swing Line Commitment
Amount” means $3,500,000, which commitment constitutes a
subfacility of the Revolving Loan Commitment of the Swing
Line Lender.
	 
	 	(12)	 	“Swing Line Lender” means
Regions Bank.
	 
	 	(13)	 	“Swing Line Loan” has the
meaning specified in Section 2.1A(a) hereof.

          (B) ARTICLE II, entitled “Amount and Terms of the Revolving Credit Facility,” is
hereby amended and restated to read as follows in its entirety:

ARTICLE II

Amount and Terms of the Revolving Credit Facility

     Section 2.1 Advances. Each Lender commits and agrees, on the terms and subject to the
conditions herein set forth, to make Advances to the Borrowers from time to time during the period
from the date hereof to and including the Termination Date, or the earlier date of termination in
whole of the Revolving Credit Facility pursuant to Section 2.10 or Section 8.2
hereof, in an aggregate amount at any time outstanding not to exceed the lesser of such Lender’s
Revolving Loan Commitment of such Lender’s pro-

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rata share of Borrowing Base, less the L/C Amount, which Advances shall be secured by the
Collateral as provided in Article III hereof. The Borrowers agree to comply with the
following procedures in requesting Advances under this Section 2.1:

     (a) The Lenders shall not make any Advance under this Section 2.1 if, after
giving effect to such requested Advance, the sum of the outstanding and unpaid Advances
under this Section 2.1 or otherwise would exceed the Borrowing Base, less the L/C
Amount. So long as any Default exists, the Lender shall have no obligation to make any
Advance.

     (b) Each request for an Advance under the Prime Rate Revolving Portion shall be made
to the Agent prior to 11:00 a.m. (St. Louis, Missouri time) of the day of the requested
Advance by the requesting Borrower (or in accordance with an electronic mechanism
established by Agent for such advances). Each request for an Advance under the LIBOR
Revolving Portion shall be made by notice given as provided in Section 2.8(e)
hereof. Each request for an Advance or request for an automated Advance mechanism may be
made in writing or by telephone, specifying the date of the requested Advance and the
amount thereof, and shall be made by (i) any officer of a Borrower; or (ii) any person
designated as such Borrower’s agent by any officer of such Borrower in a writing delivered
to the Lender; or (iii) any person reasonably believed by the Lender to be an officer of
such Borrower or such a designated agent.

     (c) Upon fulfillment of the applicable conditions set forth in Article IV
hereof, each Lender shall fund its Pro-Rata Share of the requested Advanced made by Agent
crediting the same to the requesting Borrower’s demand deposit account maintained with
Agent, unless the Lenders and the requesting Borrower shall agree in writing to another
manner of disbursement. Upon request of the Agent, and in any event if any Advance is to
be made to any account other than the above-referenced account, the requesting Borrower
shall promptly provide such confirmation that the Agent may require. The Borrowers shall
be obligated to repay all Advances under this Section 2.1 notwithstanding the
failure of the Agent to receive such confirmation and notwithstanding the fact that the
person requesting the same was not in fact authorized to do so. Any request for an Advance
under this Section 2.1, whether written or telephonic, shall be deemed to be a
representation by the Borrowers that (i) the condition set forth in Section 2.1(a)
hereof has been met, and (ii) the conditions set forth in Section 4.2 hereof have
been satisfied as of the time of the request.

     (d) Upon effectiveness of the First Amendment, Wachovia shall pay Regions an amount
equal to Wachovia’s Pro-Rata Share of aggregate Advances outstanding under the Revolving
Credit Facility immediately prior to effectiveness of the First Amendment; provided that,
if at the time of effectiveness of the First Amendment, the Interest Period for any then
outstanding LIBOR Portion has not expired, Wachovia shall make such payment to Regions in
the amount equal to Wachovia’s Pro-Rata Share of such LIBOR Portion upon

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expiration of such Interest Period and, prior to such payment, such LIBOR Portion
shall be considered a loan solely by and for the account of Regions.

     (e) Upon any reduction in the Revolving Loan Commitment pursuant to Section
2.10, each Lender’s Revolving Loan Commitment will automatically reduce by such Lenders
Pro-Rata Share of such reduction in the aggregate revolving Loan Commitment.

     (f) The failure of any Lender to make any Advance required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided, however, that the
Revolving Loan Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Advances as required. Unless Agent shall have been
notified by a Lender prior to the time an Advance is to be made hereunder that such Lender
does not intend to make its share of such Advance available to Agent, Agent may assume that
such Lender will make its share of such Advances available to Agent, and Agent may in
reliance upon such assumption make available to requesting Borrower a corresponding amount.
If such corresponding amount is not in fact made available to Agent by such Lender and
Agent has made such amount available to a requesting Borrower, Agent shall be entitled to
receive such amount from such Lender forthwith upon its demand, together with interest
thereon in respect of each day during the period from and including the date such amount
was made available to Borrower through the date Agent recovers such amount from such Lender
at a rate per annum equal to the rate applicable to the Prime Rate Revolving Portion.

     Section 2.1A Swing Line Loan

     (a) Each advance made by the Swingline Lender pursuant to its credit line sweep arrangement
with Borrowers will automatically be a Swingline Loan unless Borrowers request that such advance be
made not as a Swingline Loan but as a Prime Rate Revolving Portion or a LIBOR Revolving Portion.
Subject to the foregoing, the Agent shall notify the Swing Line Lender upon the Agent’s receipt of
any request for an Advance under the Swing Line Loan. Subject to the terms and conditions hereof,
the Swing Line Lender may, in its sole discretion, make available from time to time until the
Termination Date advances (each, a “Swing Line Loan”) in accordance with any such notice.
The provisions of this Section 2.1A shall not relieve Lenders of their obligations to make Advances
under the Revolving Credit Facility under Section 2.1; provided that if the Swing Line Lender makes
a Swing Line Loan pursuant to any such notice, such Swing Line Loan shall be in lieu of any Advance
under the Revolving Credit Facility that otherwise may be made by the Lenders pursuant to such
notice. The aggregate amount of Swing Line Loans outstanding shall not exceed at any time Swing
Line Availability. Until the Termination Date, the Borrowers may from time to time borrow, repay
and reborrow under this Section 2.1A. Each Swing Line Loan shall be made pursuant to a request
delivered by the Borrowers to the Agent in accordance with Subsection 2.1(b). Any such notice must
be given no later than 11:00 A.M., (St. Louis, Missouri time), on the Banking Date of the proposed
Swing Line Loan. Unless the Swing Line Lender has

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received at least one Banking Day’s prior written notice from the Lenders instructing it not
to make a Swing Line Loan, the Swing Line Lender shall, notwithstanding the failure of any
condition precedent set forth in Article IV, be entitled to fund that Swing Line Loan, and to have
such Lender make advances under the Revolving Credit Facility in accordance with Subsection 2.1A(c)
or purchase participating interests in accordance with Subsection 2.1A(d). Notwithstanding any
other provision of this Agreement or the other Loan Documents, each Swing Line Loan shall
constitute a Prime Rate Revolving Portion.

     (b) The entire unpaid balance of each Swing Line Loan and all other noncontingent Obligations
shall be immediately due and payable in full in immediately available funds on the Termination Date
if not sooner paid in full.

     (c) The Swing Line Lender, at any time and from time to time, but no less frequently than once
weekly, shall on behalf of the Borrowers (and the Borrowers hereby irrevocably authorize the Swing
Line Lender to so act on their behalf) request each Lender with a Revolving Loan Commitment
(including the Swing Line Lender) to make an Advance under the Revolving Credit Facility to the
Borrowers (which the Borrowers may designate as a LIBOR Revolving Portion or a Prime Rate Revolving
Portion) in an amount equal to that Lender’s Pro Rata Share of the principal amount of all Swing
Line Loans (the “Refunded Swing Line Loan”) outstanding on the date such notice is given. Unless
any of the events described in Subsection 8.1(f) has occurred (in which event the procedures of
Subsection 2.1A(d) shall apply) and regardless of whether the conditions precedent set forth in
this Agreement to the making of an Advance under the Revolving Credit Facility are then satisfied,
each Lender shall disburse directly to the Agent, its Pro Rata Share on behalf of the Swing Line
Lender, prior to 2:00 P.M. (St. Louis, Missouri time), in immediately available funds on the date
that notice is given (provided that such notice is given by 12:00 noon St. Louis, Missouri
time, on such date. The proceeds of such Advances shall be immediately paid to the Swing Line
Lender and applied to repay the Refunded Swing Line Loan.

     (d) If, prior to refunding a Swing Line Loan with an Advance under the Revolving Loan
Commitment pursuant to Subsection 2.1A(c), one of the events described in Subsection 8.1(f) has
occurred, then, subject to the provisions of Subsection 2.1A(e) below, each Lender shall, on the
date such Advance was to have been made for the benefit of the Borrowers, purchase from the Swing
Line Lender an undivided participation interest in the Swing Line Loan in an amount equal to its
Pro Rata Share of such swing Line Loan. Upon request, each Lender shall promptly transfer to the
Swing Line Lender, in immediately available funds, the amount of its participation interest.

     (e) Each Lender’s obligation to make Advances under the Revolving Credit Facility in
accordance with Subsection 2.1A(c) and to purchase participation interests in accordance with
Subsection 2.1A(d) shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such
Lender may have against the Swing Line Lender, Borrowers or any other Person for any reason
whatsoever; (ii) the occurrence or continuance of any Default or Event of Default; (iii) any
inability of Borrower to satisfy the conditions

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precedent to borrowing set forth in this Agreement at any time or (iv) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing. If and to the
extent any Lender shall not have made such amount available to the Agent or the Swing Line Lender,
as applicable, by 2:00 P.M., St. Louis, Missouri time, the amount required pursuant to Subsection
2.1A(c) or 2.1A(d), as the case may be, on the Banking Day on which such Lender receives notice
from the Agent of such payment or disbursement (it being understood that any such notice received
after noon, St. Louis, Missouri time, on any Banking Day shall be deemed to have been received on
the next following Banking Day), such Lender agrees to pay interest on such amount to the Agent for
the Swing Line Lender’s account forthwith on demand, for each day from the date such amount was to
have been delivered to the Agent to the Date such amount is paid, at a rate per annum equal to the
Prime Rate from time to time in effect.

     Section 2.2 Notes; Obligations Joint and Several. The Borrowers’ obligation to repay,
with interest, the Advances in the amount of each Lender’s Pro-rata Share shall be evidenced by a
Revolving Note. The principal of the Revolving Notes shall be payable as provided herein and on
the earlier of the Termination Date or acceleration by the Agent for benefit of the Lenders
pursuant to Section 8.2 hereof, and shall bear interest as provided in Section 2.8
hereof.

     Section 2.3 Issuance of Letters of Credit.

     (a) Lenders agree, on the terms and subject to the conditions herein set forth, to cause Agent
to issue one or more letters of credit for the account of the Borrowers (each, a “Letter of
Credit”) from time to time during the period from the date hereof until the earlier of the
Termination Date or the date the Revolving Credit Facility has been terminated pursuant to
Section 2.11 or Section 8.2 hereof, in an aggregate amount at any time outstanding
not to exceed the Borrowing Base less the sum of (i) all outstanding and unpaid Advances hereunder,
(ii) the unpaid amount of the Obligation of Reimbursement, if any, but in no event shall the unpaid
amount of all Obligations of Reimbursement exceed $2,000,000. Each Letter of Credit, if any, shall
be issued pursuant to a separate L/C Application entered into by the Borrowers for the benefit of
Agent, completed in a manner satisfactory to the Agent. The terms and conditions set forth in each
such L/C Application shall supplement the terms and conditions hereof, but in the event of
inconsistency between the terms of any such L/C Application and the terms hereof, the terms hereof
shall control.

     (b) No Letter of Credit shall be issued under this Section 2.3 if, after the issuance
of such requested Letter of Credit, the sum of the face amounts of all issued and outstanding
Letters of Credit would exceed the Borrowing Base less the sum of (i) all outstanding and unpaid
Advances hereunder, and (ii) the unpaid amount of the Obligation of Reimbursement.

     (c) No Letter of Credit shall be issued with an expiry date later than the Termination Date in
effect as of the date of issuance.

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     (d) Any request for Agent, on behalf of Lenders, to issue a Letter of Credit under this
Section 2.3 shall be deemed to be a representation by the Borrowers that (i) the condition
set forth in Section 2.3(b) hereof has been met, and (ii) the conditions set forth in
Section 4.1 or Section 4.2 hereof (as the case may be) have been satisfied as of
the time of the request.

     (e) No Letter of Credit shall be issued so long as any Default or Event of Default exists.

     Section 2.4 Payment of Amounts Drawn Under Letters of Credit; Obligation of
Reimbursement. The Borrowers acknowledge that the Lenders will be liable to Agent for
reimbursement based on their respective Pro-Rata Shares of any and all draws under Letters of
Credit and for all other amounts required to be paid under the applicable L/C Application.
Accordingly, the Borrower agrees to pay the Agent for the ratable benefit of the Lenders any and
all amounts required to be paid under the applicable L/C Application, when and as required to be
paid thereby, and the amounts designated below, when and as designated:

     (a) The Borrowers hereby agree to pay Agent for the ratable benefit of the Lenders on
the day a draft is honored under any Letter of Credit a sum equal to all amounts drawn
under such Letter of Credit plus any and all reasonable charges and expense that the Agent
or the Lenders may pay or incur relative to such draw and the applicable L/C Application,
plus interest on all such amounts, charges and expenses through an Advance as set forth
below (the Borrower’s obligation to pay all such amounts is herein referred to as the
“Obligation of Reimbursement”).

     (b) Whenever a draft is submitted under a Letter of Credit, the Lenders shall make
their Pro Rata Share of an Advance in the amount of the Obligation of Reimbursement and
shall apply the proceeds of such Advance thereto. Such Advance shall be repayable in
accordance with and be treated in all other respects as an Advance hereunder.

     (c) If a draft is submitted under a Letter of Credit when the Borrowers are unable for
any reason to obtain an Advance to pay the Obligation of Reimbursement, the Borrowers shall
pay to Agent for the ratable benefit of the Lenders on demand in immediately available
funds, the amount of the Obligation of Reimbursement together with interest accrued from
the date of the draft until payment in full at the Default Rate. Notwithstanding the
Borrowers’ inability to obtain an Advance for any reason, the Agent for the ratable benefit
of the Lenders is irrevocably authorized in its sole discretion to make an Advance in the
amount sufficient to discharge the Obligation of Reimbursement, and all accrued but unpaid
interest thereon.

     (d) The Borrower’s obligation to pay any Advance made under this Section 2.4
shall be evidenced by the Revolving Note and shall bear interest as provided in Section
2.8 as a Prime Rate Revolving Portion.

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     (e) The customary fees charged by Regions in connection with issuance and
administering each Letter of Credit shall be solely for the account of Regions.

     Section 2.5 Special Account. If the Revolving Credit Facility is terminated for any
reason whatsoever while any Letter of Credit is outstanding, the Borrowers shall thereupon pay the
Lender in immediately available funds for deposit in the Special Account an amount equal to the
maximum aggregate amount available to be drawn under all Letters of Credit then outstanding,
assuming compliance with all conditions for drawing thereunder. The Special Account shall be
maintained by Agent for the ratable benefit of Lenders. Any interest earned on amounts deposited
in the Special Account shall be credited to the Special Account. Amounts on deposit in the Special
Account may be applied by Agent at any time or from time to time to the Borrowers’ Obligation of
Reimbursement or any other Obligations, in the Agent’s sole discretion, and shall not be subject to
withdrawal by the Borrowers so long as the Agent maintains a security interest therein. Agent
agrees to transfer any balance in the Special Account to the Borrowers at such time as all
obligations of the Issuer under all Letters of Credit are terminated.

     Section 2.6 Obligations Absolute. The obligations of the Borrowers arising under this
Agreement with respect to the Obligation of Reimbursement shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this Agreement, under all
circumstances whatsoever, including (without limitation) the following circumstances:

     (a) any lack of validity or enforceability of any Letter of Credit or any other
agreement or instrument relating to any Letter of Credit (collectively the “Related
Documents”);

     (b) any amendment or waiver of or any consent to departure from the terms of all or
any of the Related Documents;

     (c) the existence of any claim, setoff, defense or other right which a Borrower may
have at any time, against any beneficiary or any transferee of any Letter of Credit (or any
persons or entities for whom any such beneficiary or any such transferee may be acting), or
other person or entity, whether in connection with this Agreement, the transactions
contemplated herein or in the Related Documents or any unrelated transactions;

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

     (e) payment by or on behalf of the Issuer or the Lender under any Letter of Credit
against presentation of a draft or certificate which does not strictly comply with the
terms of such Letter of Credit; or

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     (f) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing; provided that none of such circumstances will affect any rights of Borrowers
against the Issuer of any Letter of Credit.

     Section 2.7 Capital Adequacy.

     (a) If Agent shall have determined that the adoption after the date hereof of any law, rule or
regulation regarding capital adequacy, or any change therein after the date hereof or in the
interpretation or application thereof, or compliance by Lenders with any request or directive
regarding capital adequacy (whether or not having the force of law) from any central bank or
governmental authority enacted after the date of this Agreement, does or shall have the effect of
reducing the rate of return on any of the Lenders’ capital as a consequence of their obligations
hereunder to a level below that which Lenders could have achieved but for such adoption, change or
compliance (taking into consideration Lenders’ policies with respect to capital adequacy) by a
material amount, then from time to time, after submission by Agent to Borrowers of a written demand
therefor together with the certificate described below, Borrowers shall pay to Agent, for the
ratable benefit of the affected Lender(s), such additional amount or amounts as will compensate
such Lender(s) for such reduction, such demand to be made with reasonable promptness following such
determination. A certificate of such Lender(s) claiming entitlement to payment as set forth above
shall be conclusive in the absence of manifest error. Such certificate shall set forth the nature
of the occurrence giving rise to such reduction, the amount of such charge to be paid to Lender,
and the method by which such amount was determined. In determining such amount, such Lender may
use any reasonable averaging and attribution method, applied on a non-discriminatory basis.

     (b) If a Lender invokes the provisions of subsection (a) hereof, it shall promptly notify
Borrowers. Borrowers, by notice given to such Lender within 30 days of such action, may, within 60
days of the date of such notice to Agent and Lenders, prepay in full all Obligations without
prepayment penalty, anything in Section 2.11 to the contrary notwithstanding.

     Section 2.8 Interest.

     (a) Subject to all of the terms and conditions of this Section 2.8, portions of the
principal Indebtedness evidenced by the Note (all of the Indebtedness evidenced by the Note bearing
interest at the same rate for the same period of time being hereinafter referred to as a “Portion”)
may, at the option of the Borrowers, bear interest with reference to the Prime Rate (“Prime Rate
Portions”) or with reference to the LIBOR (“LIBOR Portions”), and Portions may be converted from
time to time from one basis to the other. All of the Indebtedness evidenced by the Revolving Note
which is not part of a LIBOR Portion shall constitute a single Prime Rate Portion (a “Prime Rate
Revolving Portion”) and all of the Indebtedness evidenced by the Revolving Note which bears
interest with reference to a particular LIBOR for a particular Interest Period shall constitute a
single LIBOR Portion (a “LIBOR Revolving Portion”). There shall not be more than four (4) LIBOR
Portions applicable to the Note outstanding at any one time. Anything contained herein to the
contrary notwithstanding, the obligation of the Lender

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to create, continue or effect by conversion any LIBOR Portion shall be conditioned upon the
fact that at the time no Default or Event of Default shall have occurred and be continuing. The
Borrowers hereby promise to pay interest on the applicable Portions at the rates and times
specified in this Section 2.8.

     (b) The Prime Rate Portions shall bear interest at the rate per annum determined by adding the
Applicable Prime Rate Margin then in effect in accordance with the definition of Applicable
Percentage to the Prime Rate as in effect from time to time. Interest on the Prime Rate Portions
shall be compiled on the basis of actual days elapsed in a 360-day year. Interest on the Prime Rate
Portions shall be payable monthly in arrears on the thirteenth day of each month in each year and
at maturity or prepayment of the Note, and interest after maturity (whether by lapse of time,
acceleration or otherwise) shall be due and payable upon demand. Any change in the interest rate on
the Prime Rate Portions resulting from a change in the Prime Rate shall be effective on the date of
the relevant change in the Prime Rate.

     (c) Each LIBOR Portion shall bear interest for each Interest Period selected therefor at a
rate per annum determined by adding the Applicable LIBOR Margin then in effect in accordance with
the definition of Applicable Percentage to the LIBOR for such Interest Period. If an Event of
Default occurs and is then continuing, effective at the end of each then existing Interest Period,
each then existing LIBOR Portion shall automatically be converted into and added to an appropriate
Prime Rate Portion and shall thereafter bear interest at the interest rate applicable to such Prime
Rate Portion unless and until converted in accordance with the terms hereof. Interest on the LIBOR
Portions shall be computed on the basis of actual days elapsed in a 360-day year. Interest on each
LIBOR Portion shall be due and payable in arrears on each LIBOR Interest Payment Date. The
Borrowers shall notify the Agent on or before 11:00 a.m. (St. Louis, Missouri time) on the third
Banking Day preceding the end of an Interest Period applicable to a LIBOR Portion whether such
LIBOR Portion is to continue as a LIBOR Portion, in which event the Borrowers shall notify the
Agent of the new Interest Period selected therefor, and in the event the Borrowers shall fail to so
notify the Agent, such LIBOR Portion shall automatically be converted into and added to the
applicable Prime Rate Portion as of and on the last day of such Interest Period.

     (d) Each LIBOR Portion shall be in an amount equal to $250,000 or such greater amount which is
an integral multiple of $50,000.

     (e) The Borrowers shall notify the Agent by 11:00 a.m. (St. Louis, Missouri time) at least
three Banking Days prior to the date upon which the Borrowers request that any LIBOR Portion be
created or that any part of a Prime Rate Portion be converted into a LIBOR Portion (each such
notice to specify in each instance the amount thereof and the Interest Period selected therefor).
If any request is made to convert a LIBOR Portion into another type of Portion available hereunder,
such conversion shall only be made so as to become effective as of the last day of the Interest
Period applicable thereto. All requests for the creation, continuance and conversion of Portions
under this Agreement shall be irrevocable. Such requests may be in writing or by telephone and
shall be made by (i) any officer of the requesting Borrower; or (ii) any person designated as such

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Borrower’s agent by any officer of the Borrower in a writing delivered to the Lender; or (iii)
any person reasonably believed by the Agent to be an officer of such Borrower or such a designated
agent.

     (f) Notwithstanding anything to the contrary contained herein, (i) from and after the date of
the occurrence of any Default or Event of Default, in the Agent’s discretion, the principal amount
of the Advances, outstanding from time to time shall bear interest at the Default Rate; and (ii)
during any period that the sum of the outstanding principal balance of all Advances exceeds the sum
of the Borrowing Base, the L/C Amount and reserves imposed pursuant to Section 2.1 hereof, if any,
the principal of the Advances shall automatically bear interest at the Default Rate; and provided,
further, that in any event no rate change shall be put into effect which would result in a rate
greater than the highest rate permitted by law.

     (g) Notwithstanding any other provision of this Agreement or the Notes, if at any time the
Agent shall determine that any change in applicable laws, treaties or regulations or in the
interpretation thereof by any court or governmental authority charged with the administration
thereof makes it unlawful, as a result of compliance by the Lender in good faith with such laws,
treaties, regulations or interpretations thereof, for the Lender to create or continue to maintain
any LIBOR Portion, it shall promptly so notify the Borrowers and the obligation of the Lender to
create, continue or maintain any such LIBOR Portion under this Agreement shall terminate until it
is no longer unlawful for the Lenders to create, continue or maintain such LIBOR Portion. The
Borrowers, on demand, shall, if the continued maintenance of any such LIBOR Portion is unlawful,
thereupon prepay the outstanding principal amount of the affected LIBOR Portion, together with all
interest accrued thereon and all other amounts payable to Agent, for the ratable benefit of the
Lenders, with respect thereto under this Agreement; provided, however, that the Borrowers may elect
to convert the principal amount of the affected Portion into another type of Portion available
hereunder, subject to the terms and conditions of this Agreement.

     (h) Notwithstanding any other provision of this Agreement or the Notes, if prior to the
commencement of any Interest Period, the Agent shall determine that deposits in the amount of any
LIBOR Portion scheduled to be outstanding during such Interest Period are not generally available
in the relevant market or, by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining LIBOR, then the Agent shall promptly give notice
thereof to the Borrowers and the obligations of the Agent or Lenders to create, continue or effect
by conversion any such LIBOR Portion in such amount and for such Interest Period shall terminate
until deposits in such amount and for the Interest Period selected by the Borrowers shall again be
generally available in the relevant market and adequate and reasonable means exist for ascertaining
LIBOR.

     (i) With respect to any LIBOR Portion, if the Agent shall determine that any change in any
applicable law, treaty, regulation or guideline (including, without limitation, Regulation D of the
Board of Governors of the Federal Reserve System) or any new law, treaty, regulation or guideline,
or any interpretation of any of the foregoing

12

 

by any governmental authority charged with the administration thereof or any central bank or
other fiscal, monetary or other authority having jurisdiction over the Lenders or a lending branch
of a Lender or the LIBOR Portions contemplated by this Agreement (whether or not having the force
of law), shall:

	 	(i)	 	impose, increase, or deem applicable any reserve, special deposit or
similar requirement against assets held by, or deposits in or for the account
of, or loans by, or any other acquisition of funds or disbursements by, a
Lender which is not in any instance already accounted for in computing the
interest rate applicable to such LIBOR Portion;
	 
	 	(ii)	 	subject a Lender, any LIBOR Portion or any of the Note to the extent
it evidences such a LIBOR Portion to any tax (including, without limitation,
any United States interest equalization tax or similar tax however named
applicable to the acquisition or holding of debt obligations and any interest
or penalties with respect thereto), duty, charge, stamp tax, fee, deduction or
withholding in respect of this Agreement, any LIBOR Portion or any of the Note
to the extent it evidences such a LIBOR Portion, except such taxes as may be
measured by the overall net income or gross receipts of such Lender or its
lending branches and imposed by the jurisdiction, or any political
subdivision, or taxing authority thereof, in which such Lender’s principal
executive office or its lending branch is located;
	 
	 	(iii)	 	change the basis of taxation of payments of principal and interest
due from the Borrowers to a Lender hereunder or under any of the Notes to the
extent it evidences any LIBOR Portion (other than by a change in taxation of
the overall net income or gross receipts of a Lender); or
	 
	 	(iv)	 	impose on a Lender any penalty with respect to the foregoing or any
other condition regarding this Agreement, any LIBOR Portion, or its
disbursement, or any of the Notes to the extent it evidences any LIBOR
Portion;
	 
	 	 	 	and such Lender shall determine that the result of any of the foregoing is
to increase the cost (whether by incurring a cost or adding to a cost) to
such Lender of creating or maintaining any LIBOR Portion hereunder or to
reduce the amount of principal or interest received or receivable by such
Lender, such Lender shall promptly advise the Agent and Borrowers of the
foregoing and then the Borrowers shall pay to the Agent, for the benefit
of such Lender, within fifteen (15) days after demand therefor by the
Agent, such additional amounts as such Lender shall reasonably

13

 

	 	 	 	determine are sufficient to compensate and indemnify it for such increased
cost or reduced amount.

     (j) In the event a Lender shall incur any loss, cost or expense (including, without
limitation, any loss (including loss of profit), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired or contracted to be acquired by
such Lender to fund or maintain any LIBOR Portion or the relending or reinvesting of such deposits
or other funds or amounts paid or prepaid to such Lender) as a result of:

	 	(i)	 	any payment of a LIBOR Portion on a date other than the last day of
the then applicable Interest Period for any reason, whether before or after an
Event of Default or Default, and whether or not such payment is required by
any provisions of this Agreement; or
	 
	 	(ii)	 	any failure by the Borrowers to create, borrow, continue or effect
by conversion a LIBOR Portion on the date specified in a notice given pursuant
to this Agreement;
	 
	 	 	 	then within fifteen (15) days after demand therefor by the Agent, the
Borrowers shall pay to the Agent, for the benefit of the affected Lender,
such amount as will reimburse such Lender, for such loss, cost or expense.

     (k) The Lenders may, at their option, elect to make, fund or maintain Portions of the Loans
hereunder at such of its branches or offices as the Lenders may from time to time elect.

     (l) Notwithstanding any provision of this Agreement to the contrary, the Lenders shall be
entitled to fund and maintain their funding of all or any part of the Notes in any manner they see
fit, it being understood, however, that for the purposes of this Agreement all determinations
hereunder (including, without limitation, determinations under Sections 2.8(h), (i) and (j)
hereof) shall be made as if the Lenders had actually funded and maintained each LIBOR Portion
during each Interest Period applicable thereto through the purchase of deposits in the relevant
market in the amount of such LIBOR Portion, having a maturity corresponding to such Interest
Period, and, in the case of any LIBOR Portion, bearing an interest rate equal to the LIBOR, as the
case may be, for such Interest Period.

     (m) If a Lender sells a participation (as opposed to a sale of a direct interest) in the
Loans, no such sale will result in a change in the rate of interest being assessed against the
Obligations.

     Section 2.9 Maximum Interest Rate. In no event shall any interest rate provided for
hereunder exceed the maximum rate, if any, permissible for corporate borrowers under applicable law
for loans of the type provided for hereunder (the “Maximum Rate”). If, in any month, any interest
rate, absent such limitation, would have exceeded the Maximum Rate, then the interest
rate for that month shall be the Maximum

14

 

Rate, and, if in future months, that interest rate
would otherwise be less than the Maximum Rate, then that interest rate shall remain at the Maximum
Rate until such time as the amount of interest paid hereunder equals the amount of interest which
would have been paid if the same had not been limited by the Maximum Rate. In the event that, upon
payment in full of the Obligations under this Agreement, the total amount of interest paid or
accrued under the terms of this Agreement is less than the total amount of interest which would,
but for this Section 2.9, have been paid or accrued if the interest rates otherwise set
forth in this Agreement had at all times been in effect, then the Borrowers shall, to the extent
permitted by applicable law, pay the Agent, for the ratable benefit of the Lenders, an amount equal
to the difference between (a) the lesser of (i) the amount of interest which would have been
charged if the Maximum Rate had, at all times, been in effect or (ii) the amount of interest which
would have accrued had the interest rates otherwise set forth in this Agreement, at all times, been
in effect and (b) the amount of interest actually paid or accrued under this Agreement. In the
event that a court determines that the Lenders have received interest and other charges hereunder
in excess of the Maximum Rate, such excess shall be deemed received on account of, and shall
automatically be applied to reduce, the Obligations other than interest, in the inverse order of
maturity, and if there are no Obligations outstanding, the Lender shall refund to the Borrowers
such excess.

     Section 2.10 Voluntary Prepayment; Termination of Agreement by Borrowers; Permanent
Reduction of Commitment.

     (a) Except as otherwise provided herein, the Borrowers may, in their discretion, prepay the
Obligations in whole at any time or from time to time in part.

     (b) The Borrowers may at any time and from time to time, upon at least 30 days’ prior written
notice to the Agent, permanently reduce in part or terminate the Revolving Loan Commitment;
provided, however, that no reduction shall reduce the Revolving Loan Commitment to an amount less
than the then-aggregate amount of the Advances; plus the L/C Amount.

     Section 2.11 Mandatory Prepayment. Without notice or demand and without limiting
Borrowers’ obligation to pay interest at the Default Rate as required under Section
2.8(f)(i) or (ii), if the sum of the outstanding principal balance of the Advances plus the L/C
Amount plus reserves imposed pursuant to Section 2.1 hereof, if any, shall at any time
exceed the Borrowing Base (an “Overadvance”), the Borrowers shall (i) first, immediately prepay the
Advances to the extent necessary to eliminate such excess; and (ii) if prepayment in full of the
Advances is insufficient to eliminate such excess, pay to the Agent, for the ratable benefit of the
Lenders, in immediately available funds for deposit in the Special Account an amount equal to the
remaining excess. Any payment received by the Agent under this Section 2.11 or under
Section 2.10 may be applied to the Obligation of Reimbursement, or the Advances, including
interest thereon and any fees, commissions, costs and
expenses required to be paid hereunder and under the Security Documents, in such order and in
such amounts as the Agent, in its discretion, may from time to time determine.

15

 

     Section 2.12 Payment. All payments of principal of and interest on the Advances, the
Obligation of Reimbursement, the commissions and fees hereunder and amounts required to be paid to
the Agent for deposit in the Special Account shall be made to the Agent in United States dollars
constituting immediately available funds. The Borrowers hereby authorize the Agent, in its
discretion at any time or from time to time and without request by the Borrowers, to make an
Advance to the extent necessary to pay any such amounts and any fees, costs or expenses hereunder
or under the Security Documents.

     Section 2.13 Payment on Non-Banking Days. Subject to clause (i) of the definition of
Interest Period, whenever any payment to be made hereunder shall be stated to be due on a day which
is not a Banking Day, such payment may be made on the next succeeding Banking Day, and such
extension of time shall in such case be included in the computation of interest on the Advances or
the fees hereunder, as the case may be.

     Section 2.14 Use of Proceeds. The proceeds of Advances and each Letter of Credit
caused to be issued shall be used by the Borrowers for repayment of Borrowers’ prior revolving line
of credit and for Capital Expenditures, stock acquisitions, permitted acquisitions and other
general corporate needs.

     Section 2.15 Liability Records. The Agent may maintain from time to time, at its
discretion, liability records as to any and all Advances made or repaid, interest accrued or paid
under this Agreement, outstanding Letters of Credit and fees thereon and the Borrowers’ Obligation
of Reimbursement. All entries made on any such record shall be presumed correct until the
Borrowers establish the contrary. On demand by the Agent, the Borrowers will admit and certify in
writing the exact principal balance that the Borrowers then assert to be outstanding to the Lender
for Advances under this Agreement and the amount of any Letters of Credit outstanding. Any billing
statement or accounting rendered by the Agent shall be presumed correct, until Borrowers establish
the contrary.

     Section 2.16 Fees.

     (a) The Borrowers agree to pay the Agent, for the ratable benefit of the Lenders, a fee at the
rate of the Unused Line Fee applicable at such time in accordance with the definition of Applicable
Percentage on the average daily unused amount of the Revolving Loan Commitment from the date hereof
to and including the date on which such facility is terminated, due and payable quarterly in
arrears on the first day of each quarter, commencing April 1, 2006, provided that any such fee
remaining unpaid upon termination of the total credit facility or acceleration of the Notes by the
Lenders pursuant to Section 8.2 hereof shall be due and payable on the date of such
termination or
acceleration. Such fee shall be calculated on the basis of actual days elapsed in a 360-day
year.

     (b) The Borrowers agree to pay the Agent, for the ratable benefit of the Lenders, a commission
with respect to each Letter of Credit, if any, accruing on a daily basis and computed at the rate
of two percent (2%) per annum of the available amount of such Letter of Credit (as it may be
changed from time to time) from and including the

16

 

date of issuance of such Letter of Credit until
such date as such Letter of Credit is terminated, payable monthly in arrears, and prorated for any
part of a full calendar month in which such Letter of Credit remains outstanding. The foregoing
commission shall be in addition to any and all customary fees, commissions and charges of any
Issuer of a Letter of Credit with respect to or in connection with such Letter of Credit.

     2.17 Joint and Several Liability of Borrowers; Rights of Contribution among Borrowers.

     (a) Each Borrower states and acknowledges that: (1) pursuant to this Agreement, the Borrowers
desire to utilize their borrowing potential on a consolidated basis to the same extent possible as
if they were merged into a single corporate entity; (2) each Borrower has determined that it will
benefit specifically and materially from the advances of credit contemplated by this Agreement; (3)
it is both a condition precedent to the obligations of the Lenders hereunder and a desire of each
Borrower that each Borrower execute and deliver to the Lenders this Agreement; and (4) each
Borrower has requested and bargained for the structure and terms of and security for the advances
contemplated by this Agreement.

     (b) Each Borrower hereby irrevocably and unconditionally: (i) agrees that it is jointly and
severally liable to the Lender for the full and prompt payment and performance of the Obligations
and agreements of each Borrower under this Agreement and each other document related hereto that
may specify that a particular Borrower is responsible for a given payment or performance; (ii)
agrees to fully and promptly perform all of its obligations hereunder with respect to each advance
of credit hereunder as if such advance had been made directly to it; and (iii) agrees as a primary
obligation to indemnify Agent and Lenders, on demand, for and against any loss incurred by Agent or
Lenders as a result of any Borrower being or becoming void, voidable, unenforceable or ineffective
for any reason whatsoever, whether or not known to the subject Borrower or any Person, the amount
of such loss being the amount which the Lender would otherwise have been entitled to recover from
the Borrower.

     (c) It is the intent of each Borrower that the indebtedness, obligations and liabilities
hereunder of no one of them be subject to challenge on any basis related to any federal or state
law dealing with fraudulent conveyances or any other law related to transfers for less than fair or
reasonably equivalent value. Accordingly, as of the date hereof, the liability of each Borrower
under this Section 2.17 together with all of its other liabilities to all Persons as of the
date hereof and as of any other date on which a transfer is deemed to occur by virtue of this
Agreement, calculated in amount sufficient to pay its
probable net liabilities on its existing indebtedness as the same become absolute and matured.
(“Dated Liabilities”) is and is to be, less than the amount of the aggregate of a fair
valuation of its property as of such corresponding date (“Dated Assets”). To this end,
each Borrower under this Section 2.17 (i) grants to and recognizes in each other Borrower
ratably, rights of subrogation and contribution in the amount, if any, by which the Dated Assets of
such Borrower, but for the aggregate rights of subrogation and contribution in its favor recognized
herein, would exceed the Dated Liabilities of such Borrower or, as the case may be, and (ii)
acknowledges receipt of and recognizes its

17

 

rights to subrogation and contribution ratably from the
other Borrower in the amount, if any, by which the Dated Liabilities of such Borrower, but for the
aggregate of subrogation and contribution in its favor recognized herein, would exceed the Dated
Assets of such Borrower under this Section 2.17. In recognizing the value of the Dated
Assets and the Dated Liabilities, it is understood that each Borrower will recognize, to at least
the same extent of their aggregate recognition of liabilities hereunder, their rights to
subrogation and contribution hereunder. It is a material objective of this Section 2.17
that each Borrower recognizes rights to subrogation and contribution rather than be deemed to be
insolvent (or in contemplation thereof by reason of an arbitrary interpretation of its joint and
several obligations hereunder).

     2.18 Waiver of Suretyship and Other Defenses. To the extent a Borrower is deemed to
be a surety, secondary obligor, endorser or accommodation party with respect to Obligations
incurred under this Agreement, each Borrower waives, to the full extent permitted by applicable
law, all suretyship defenses and all defenses and rights of an endorser or accommodation party
provided in Section 400.3-605 of the UCC and all other defenses allowed by law provided to Persons
holding such status.

     (C) Section 3.1, entitled “Grant of Security Interest,” is hereby
amended by changing the reference in the second line thereof from “the Lender” to “the
Agent, for the ratable benefit of the Lenders” and by making the same change wherever the
term “Lender” appears in ARTICLE III, unless the context clearly otherwise
requires.

     (D) The references in ARTICLE IV to the “Obligation of the Lender” to make an
Advance is hereby amended to read “the Obligation of the Lenders.”

     (E) The first line of ARTICLE V, entitled “Representations and
Warranties” is hereby amended to read as follows:

     “The Borrowers jointly and severally represent and warrant to the Agent and to
the Lenders as follows:”

Further, all references in ARTICLE V to the requirements of the Borrowers to
deliver financial statements or other information or notices to the Lender are hereby
amended to require such deliveries and notices be sent or given to the Agent. Agent shall
promptly deliver copies of all such information to Lenders.

     (F) The introductory clause of ARTICLE VI, entitled “Affirmative and
Financial Covenants of the Borrowers,” is hereby amended to read as follows in its
entirety:

     “So long as the Notes shall remain unpaid or the Revolving Credit Facility or
any Letter of Credit shall be outstanding, the Borrowers will comply with the
following requirements, unless the Agent shall otherwise in consent in writing.”

18

 

     Further, all references in ARTICLE VI to delivery of reports, information and
notices shall be deemed to require delivery thereof to Agent and references the rights of
Lender to make inspections and examinations under ARTICLE VI shall mean the rights
of Agent and Lenders to do so. Further, all policies of insurance required under
Section 6.6 shall name the Lenders as lender loss payees and additional insureds,
as the case may be.

     (G) The initial clause of ARTICLE VII entitled “Negative Covenants,”
is hereby amended to read as follows in its entirety:

     “So long as the Notes shall remain unpaid or the Revolving Credit Facility
shall be outstanding or any Letter of Credit shall be outstanding, the Borrowers
agree that, without the prior written consent of Agent:”

     (H) All references in Article VIII entitled “Events of Default, Rights and
Remedies,” to the “Lender” are hereby amended to read the “Agent.”

     (I) Section 9.2, entitled “Amendments, Etc.,” is hereby amended to read as
follows in its entirety:

          “Section 9.2 Amendments, Etc. No amendment, modification, termination or
waiver of any provision of any Loan Document or consent to any departure by the Borrowers
therefrom or any release of a security interest in any assets of Borrower shall be
effective unless the same shall be in writing and signed by Agent, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for
which given; provided, however, the following amendments shall not be effective unless
signed by Agent and all Lenders: (a) any increase in any Lender’s Revolving Loan
Commitment or Pro-rata Share; (b) any extension of the Termination Date; (c) any
postponement of the payment of principal, interest, fees or other amounts due under or
pursuant to this Agreement; (d) any change in the method of computing the interest rate,
including the Applicable Percentage, under the Revolving Credit Facility; (e) any change in
fees (other than fees referred to in Section 2.4(e) hereof regarding Letters of
Credit) required to be paid under this Agreement; (f) any change in this Section
9.2; (g) any release of Collateral with fair market value of $250,000 or more; or (h)
any change in the Borrowing Base. No notice to or demand on the Borrowers in any case
shall entitle the Borrowers to any other or further notice or demand in similar or other
circumstances.”

     (J) A new ARTICLE X entitled “Agent,” is hereby added to read as follows in
its entirety:

ARTICLE X

AGENT

     Section 10.1 Appointment. Each Lender hereby irrevocably designates and appoints
Regions, as the contractual representative of each Lender under this Agreement

19

 

and the other Loan
Documents (in such capacity, the “Agent”). Each Lender irrevocably authorizes Regions, as
Agent for each Lender, to take any and all actions on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise any and all powers and perform any and all
duties as are expressly delegated to Agent by the terms of this Agreement and the other Loan
Documents together with any and all other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, Agent will not have any
duties or responsibilities except those expressly set forth in this Agreement or any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities may be read into this Agreement or any other Loan Document or otherwise
exist against Agent. Each Lender authorizes and directs Agent, on behalf of the Lenders, to enter
into and amend each of the Loan Documents in accordance with Section 9.2 hereof.

     Section 10.2 Delegation of Duties. Agent may execute any of its duties under this
Agreement and the other Loan Documents by or through agents, contractors, or attorneys-in-fact and
will be entitled to advice of counsel concerning all matters pertaining to those duties. Agent will
not be responsible for the negligence or misconduct of any agents, contractors, or
attorneys-in-fact selected by it in good faith.

     Section 10.3 Exculpatory Provisions. Neither Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates may be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent of any direct damages suffered from its
or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to
any of the Lenders or Agent (a) for any recitals, statements, representations or warranties made by
Borrowers or any officer or employee or agent of Borrowers contained in this Agreement or any other
Loan Document or in any certificate, report, statement or other document or electronic transmission
referred to, or provided for in, or received by Agent under or in connection with, this Agreement
or any other Loan Document, (b) for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document, (c) the value of the Collateral, the
perfection or priority of any interest of Agent or the Lenders in the Collateral purported to be
created or perfected by the Loan Documents, or with respect to rights and interests pertaining to
the Loan Documents, (d) for any failure of Borrower to perform its obligations under this Agreement
or any other Loan Document, (e) for any
loss or depreciation of, lack of insurance on, or failure to realize on, any Collateral or for
the failure or delay in collecting or receiving payment of any sums from Borrower, or for any
mistake, omission, or error of judgment in passing upon or accepting any Collateral, or in the
making of any examination, or for granting extensions or indulgences to Borrowers permitted to be
made hereunder, (f) for any apportionment or distributions of payments made by it hereunder, absent
gross negligence or willful misconduct or, (g) with respect to the income or withholding tax status
with respect to any interest on, or fees in respect of, the Loans. Agent will not 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 properties, books or records of Borrower.

20

 

     Section 10.4 Reliance by Agent. Agent will be entitled to rely, and will be fully
protected in relying, on any agreement, instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, facsimile, telex, teletype, or email message, statement, order 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 on advice and statements of legal counsel
(including counsel to Borrowers), independent accountants and other experts selected by Agent.
Agent may deem and treat each Lender as the owner of its Revolving Loans for all purposes unless an
assignment thereof has been made in accordance with the terms of this Agreement. As to any matters
not expressly provided for by this Agreement and the other Loan Documents (including without
limitation enforcement and collection of the Notes), Agent may, but shall not be required to,
exercise any discretion or take any action, but Agent shall, subject to the terms of this
Agreement, be required to act or to refrain from acting (and shall be fully protected in so acting
or refraining from acting) upon the unanimous instructions of the Lenders, whenever such
instruction shall be requested by Agent or required hereunder, and such instructions shall be
binding upon all Lenders and all future holders of the Obligations under the Revolving Credit
Facility; provided, that Agent will be fully justified as between itself and the Lenders in failing
or refusing to take any action under this Agreement or any other Loan Document unless Agent has
first received such advice or concurrence of the Lenders as Agent deems appropriate or Agent has
been first indemnified to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action.

     Section 10.5 Notice of Default. Agent will be deemed not to have knowledge or notice
of the occurrence of any Default or Event of Default unless Agent has received notice from a Lender
or Borrowers referring to this Agreement, describing the Default or Event of Default and stating
that the notice is a “notice of default.” If Agent receives such a notice, Agent will give notice
thereof to the Lenders. Subject to the terms of this Agreement, Agent will take such action
reasonably promptly with respect to such Default or Event of Default as is reasonably directed by
the Lenders; however, unless and until Agent has received such directions, 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 believes advisable in the best interests of the Lenders. Notwithstanding
anything to the contrary in this Article X, at no time will Agent be required under any circumstance to take
any action that, in its sole and absolute judgment, (i) is contrary to the terms of the Loan
Documents or applicable law, or (ii) would expose Agent to liability.

     Section 10.6 Non-Reliance on Agent and Other Lenders. Each Lender expressly
acknowledges that neither Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates has made any representations or warranties to any Lender and that
no act by Agent in the future taken, including any review of the affairs of Borrowers, will be
deemed to constitute any representation or warranty by Agent to any Lender. Each Lender represents
to Agent that the Lender has, independently and without reliance on Agent or any other Lender, and
based on such documents and information as the Lender has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of

21

 

Borrowers and made its own decision to make its extensions of
credit under this Agreement and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance on Agent or any other Lender, and based on such documents
and information as each Lender deems 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 investigation as it deems necessary to inform itself as to
the business, prospects, operations, property, financial and other condition and creditworthiness
of Borrowers.

     Section 10.7 Indemnification. The Lenders will indemnify Agent in its capacity as
such (to the extent not reimbursed by Borrowers and without limiting the obligation of Borrowers to
do so), ratably according to their Pro-rata Share in effect on the date on which indemnification is
sought under this Section 10.7 (or, if indemnification is sought after the date on which the
Revolving Loan Commitment has terminated and the Loans shall have been paid in full, ratably in
accordance with their Pro-rata Share, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including at any time following the payment of the Obligations)
be imposed on, incurred by or asserted against Agent in any way relating to or arising out of this
Agreement, any of the other Loan Documents or any documents contemplated by or referred to in this
Agreement or in any of the other Loan Documents or the transactions contemplated by this Agreement
or by any of the other Loan Documents or any action taken or omitted by Agent under or in
connection with any of the foregoing; provided that a Lender will not be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements to the extent resulting from Agent’s gross negligence or
willful misconduct so long as the Lender had no part in such action or omission by Agent and did
not receive any benefit from such action or omission by Agent. The agreements in this Section
10.7 will survive the payment of the Obligations.

     Section 10.8 Agent in Its Individual Capacity. Agent and its affiliates may make
loans to, accept deposits from and generally engage in any kind of business with Borrowers and
their Affiliates as though Agent were not an agent under this Agreement and under the other
Loan Documents. With respect to its Loans made or renewed by it, Agent will have the same rights
and powers under this Agreement and the other Loan Documents as any Lender and may exercise the
same as though it were not Agent, and the terms “Lender” and “Lenders” will include Agent in its
individual capacity.

     Section 10.9 Resignation of Agent. Agent may resign as Agent on 30 days advance
notice to the Lenders. If Agent resigns as Agent under this Agreement and the other Loan
Documents, then the Lenders will, within 30 days after notice of Agent’s resignation, appoint from
among the Lenders a successor agent for the Lenders, which, unless an Event of Default has occurred
and is continuing, successor agent must be approved by Borrowers (which approval shall not be
unreasonably withheld, delayed or conditioned), whereupon (i) such successor agent will succeed to
the rights, powers and duties of Agent, (ii) the term “Agent” will mean such successor agent
effective on such appointment and approval, and (iii) the former Agent’s rights, powers and duties
as

22

 

Agent will be terminated, without any other or further act or deed on the part of such former
Agent or any of the parties to this Agreement or any holders of the Obligations under the Revolving
Credit Facility; however, if a successor agent has not so been appointed within that 30 day period,
the retiring Agent will have the right to appoint a successor agent, which shall be a commercial
bank organized under the laws of the United States of America or of any state thereof and having a
combined capital and surplus of at least $500,000,000 who will serve as “Agent” until the time, if
ever, as the Required Lenders appoint a successor Agent as provided in this Section 10.9.
After any retiring Agent’s resignation as Agent, (a) the provisions of this Article X will
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under
this Agreement and the other Loan Documents and (b) the retiring Agent will be relieved of all
further duties and obligations as Agent.

     Section 10.10 Collateral Matters.

     (a) Perfection/Enforcement Actions. Agent will hold the Collateral under the Security
Documents as agent for the ratable benefit of Lenders, subject to the terms of this Agreement and
the Security Documents. Agent is hereby authorized on behalf of all of the Lenders, without the
necessity of any notice to or further consent from any Lender, from time to time, to take any
action with respect to any Collateral which may be necessary or desirable to perfect and maintain
perfected the security interest in the Collateral granted pursuant to the Loan Documents. Payment
and performance of the Obligations under this Agreement and the other Loan Documents may be
enforced only by the action of Agent, and no Lender will have any right individually to seek to
enforce or to enforce payment or performance of the Obligations or any of those agreements, it
being understood and agreed that such rights and remedies may be exercised only by Agent, for the
benefit of Agent and the Lenders, upon the terms of those agreements and this Agreement.

     (b) Release of Collateral. The Lenders hereby authorize Agent, at its option and in
its discretion, to release any security interest granted to or held by Agent on any Collateral (i)
on termination of payment and satisfaction of all of the Obligations under the Revolving Credit
Facility (and all Letters of Credit have been cancelled and returned to Agent) at any time arising
under or in respect of this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby, (ii) constituting property in which Borrowers did not own an interest at the
time the security interest was granted to Agent, (iii) to the extent required to effect any sale or
other disposition of any Collateral in connection with any exercise of remedies of Agent and
Lenders pursuant to the Loan Documents, (iv) owned by or leased to Borrowers which is subject to a
purchase money security interest or which is the subject of a capital lease, (v) constituting
property leased to Borrowers under a lease which has expired or been terminated in a transaction
permitted under this Agreement or is about to expire and which has not been, and is not intended by
Borrowers to be, renewed or extended, or (vi) other than on all or a substantial part of the
Collateral, if (a) approved, authorized or ratified in writing by the Lenders and (b) after giving
effect thereto a deficiency does not exist (but this clause (iii) shall not be deemed to require
such approval to the extent such release is expressly authorized under this Agreement). On request
by Agent at any time, the Lenders will

23

 

confirm in writing Agent’s authority to release particular
types or items of Collateral pursuant to this Section 10.10. In the event of any sale or
transfer of Collateral, or any foreclosure with respect to any of the Collateral, Agent is
authorized to deduct all of the expenses incurred by Agent from the proceeds of any such sale,
transfer or foreclosure.

     (c) Automatic Release of Collateral. The Lenders hereby agree that the security
interest of Agent in any property sold or disposed of with the consent of the Lenders will, if no
Event of Default then exists, be automatically released.

     (d) Execution of Release Documents. To the extent, pursuant to the provisions of
Subsections 10.10(b) and 10.10(c), Agent’s execution of a release is required to release the
security interest granted to Agent and the Lenders on any sale and transfer of Collateral which is
expressly permitted pursuant to the terms of this Agreement, or consented to in writing by the
Lenders, and on at least five (5) Banking Days prior written request by Borrowers, Agent will (and
is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to
evidence the release of the security interests granted to Agent for the benefit of the Lenders in
the Loan Documents on the Collateral that was sold or transferred; provided that (i) Agent will not
be required to execute any such document on terms which, in Agent’s opinion, would expose Agent to
liability or create any obligation or entail any consequence other than the release of such
security interests without recourse or warranty and (ii) such release will not in any manner
discharge, affect or impair the Obligations or any security interests on (or obligations of
Borrowers in respect of) all interests retained by Borrowers, including the proceeds of the sale,
all of which will continue to constitute part of the Collateral.

     (e) Agency for Perfection by Possession. Each Lender hereby appoints each other
Lender as agent for the purpose of perfecting Agent’s security interests in property which, in
accordance with the UCC or other applicable law, can be perfected only by
possession. Should any Lender (other than Agent) obtain possession of any Collateral or
security for the Obligations, that Lender will notify Agent and, promptly on Agent’s request, that
Lender will deliver the Collateral to Agent or in accordance with Agent’s instructions.

     (f) Agent Expenditures.

     (i) Subject to the limitations set forth in this Section 10.10(f), Agent is
hereby authorized by Borrowers and the Lenders, from time to time in Agent’s discretion,
(a) during the existence 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 4.2 have not been
satisfied, to make Advances under the Revolving Credit Facility to Borrowers on behalf of
the Lenders which Agent, in its judgment, deems necessary or desirable (1) to preserve or
protect the Collateral, or any portion thereof, (2) to collect any of the Obligations, (3)
to sell, liquidate, dispose of, or otherwise realize on, any of the Collateral, (4) to
preserve, interpret, enforce, or defend any rights or remedies of Agent, the Lenders, or
any of them, conferred by the Loan Documents, (5) to enhance the likelihood of, or maximize

24

 

the amount of, repayment of the Loans and other Obligations, or (6) to pay any other amount
chargeable to Borrowers pursuant to the terms of this Agreement, including costs, fees and
expenses as described in Section 9.6 (any of the advances described in this
Section 10.10(f) being hereinafter referred to as “Agent Advances”); provided that
any Lender other than Agent may at any time revoke Agent’s authorization contained in this
Section 10.10(f) to make the Agent Advances, any such revocation to be in writing
and to become effective prospectively upon Agent’s receipt thereof. Agent shall promptly
notify each Lender in writing of each such Agent Advance. Each Agent Advance will be
evidenced solely by entries upon Agent’s books and records.

     (ii) Each Agent Advance shall be secured by the Collateral and shall constitute a Loan
and an Obligation. No part of any Agent Advance may, on the repayment thereof, be redrawn
or reborrowed by Borrowers.

     (iii) By the making of an Agent Advance and without any further action on the part of
Agent or the Lenders, Agent hereby grants to each Lender, and each Lender hereby acquires
from Agent, a participation in such Agent Advance equal to such Lender’s Pro-rata share.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to Agent, for the account of Agent, such Lender’s Pro-rata
Share of each Agent Advance, or of any payment on an Agent Advance required to be refunded
to Borrowers for any reason. Each Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this paragraph in respect of Agent Advances is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of an Event of Default, the failure of any condition in
Article IV to be satisfied, or any reduction or termination of the Revolving Loan
Commitment, and that each such payment shall be made without any offset, abatement,
withholding or reduction
whatsoever. Following receipt by Agent of any payment by Borrowers in respect of any
Agent Advance, Agent shall apply such payments to such Agent Advance and, to the extent
that the Lenders have made payments pursuant to this Section 10.10(f) to Agent,
then to Agent and such Lenders, as their interest may appear. The purchase of
participations in any Agent Advance pursuant to this paragraph Section 10.10(f)
shall not relieve Borrowers of any default in the payment thereof.

     Section 10.11 No Third Party Beneficiary. The provisions of this Article X
are solely for the benefit of Agent and the Lenders, and Borrowers will not have any rights as a
third party beneficiary of any of the provisions of this Article X. In performing its
functions and duties as Agent under this Agreement and the other Loan Documents, Agent acts solely
as the contractual representative of the Lenders and does not assume and will not be deemed to have
assumed any obligation toward, or relationship of agency or trust with or for, Borrowers or any
Affiliate.

     Section 10.12 No Reliance on Agent’s Customer Identification Program Each Lender
acknowledges and agrees that neither such Lender, nor any of its Affiliates,

25

 

participants or
assignees, may rely on the Agent to carry out such Lender’s, Affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or imposed under or
pursuant to the USA Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
Anti-Terrorism Law, including any programs involving any of the following items relating to or in
connection with Borrowers, their Affiliates or their agents, this Agreement or the Loan Documents
or the transactions hereunder or contemplated hereby: (1) any identity verification procedures, (2)
any recordkeeping, (3) comparisons with government lists, (4) customer notices or (5) other
procedures required under the CIP Regulations or such other laws.

     Section 10.13 USA Patriot Act. Each Lender or assignee or participant of a Lender
that is not incorporated under the Laws of the United States of America or a state thereof (and is
not excepted from the certification requirement contained in Section 313 of the USA Patriot Act and
the applicable regulations because it is both (i) an affiliate of a depository institution or
foreign Lender that maintains a physical presence in the United States or foreign county, and (ii)
subject to supervision by a banking authority regulating such affiliated depository institution or
foreign Lender) shall deliver to the Agent the certification, or, if applicable, recertification,
certifying that such Lender is not a “shell” and certifying to other matters as required by Section
313 of the USA Patriot Act and the applicable regulations at such times as are required under the
USA Patriot Act.

     Section 10.14. Collections and Distributions to Lenders by Agent. Except as otherwise
provided in this Agreement, all payments of interest, fees, principal and other amounts received by
Agent for the account of Lenders shall be distributed by
Agent to Lenders in accordance with their pro rata shares of the outstanding Loan Obligations
at the time of such distribution on the same Banking Day when received, unless received after 12:00
noon Central Time in which case they shall be so distributed by 12:00 noon Central Time on the next
Business Day. All amounts received by any Lender on account of the Obligations under the Revolving
Credit Facility, shall be paid over promptly to Agent for distribution to Lenders as provided above
in this Section. Such distributions shall be made according to instructions that each Lender may
give to Agent from time to time.

     Section 10.15 Distribution of Proceeds from Liquidation of Inventory and Accounts.
Anything to the contrary in this Agreement notwithstanding, the following provisions shall, as
between Regions and Wachovia, as Lenders, apply to the disposition of the proceeds of Collateral
upon exercise of rights and remedies of Agent under this Agreement:

     (a) The proceeds from liquidation of Inventory and Accounts shall be distributed to
Lenders according to their respective Pro-rata Shares until the Obligations to each Lender
under the Revolving Loan Commitment, including the Obligations of Reimbursement and the
Agent Advances, are satisfied in full;

     (b) All proceeds, if any, remaining after application of proceeds of liquidation of
Inventory and Accounts and all proceeds from liquidation of

26

 

Equipment will be distributed
solely to Regions until all Obligations (including all Obligations other than under this
Agreement) of Borrowers to Regions are satisfied in full;

     (c) To the extent there is a surplus after application of proceeds from liquidation of
Collateral and distributions pursuant to Subsection (b) hereof, such surplus and all
proceeds from liquidation of all other Collateral (i.e., all Collateral other than
Inventory, Accounts and Equipment) will be distributed to the Lenders according to their
respective “Post-Liquidation Pro-Rata Shares” (defined as the fraction whose numerator is
the amount of all then-outstanding Obligations of Borrowers to Regions or Wachovia, as the
case may be, and whose denominator is the aggregate amount of all then-outstanding
Obligations of Borrowers to Regions and Wachovia) until all remaining Obligations to
Regions and Wachovia are satisfied in full; and

     (d) any surplus then remaining will be distributed as required by law.

(K) Agent and all Lenders shall have the benefit of all rights of “Lender” under
Article IX, entitled “Miscellaneous,” including without limitation,
reimbursement of costs and expenses under Section 9.6 and rights to indemnity Section 9.7.
All notices to Agent or Regions as a Lender shall be sent to the address set forth in
Section 9.3 for Regions. The address for notices to Wachovia under Section 9.3 is:

Wachovia Bank, National Association

PA 5418

2240 Butler Pike

Plymouth Meeting, Pennsylvania 19462

Telecopies: (610) 397-2556

Attention: Linda M. Douglas, Senior Vice President

[END OF CREDIT AGREEMENT AMENDMENTS]

     3. Representations and Warranties. The Borrowers jointly and severally hereby
represent and warrant to the Lenders and to the Agent as follows:

     (a) This First Amendment and the Revolving Notes have been duly and validly executed
by authorized officers of the Borrowers and constitute the legal, valid and binding
obligation of the Borrowers, enforceable against the Borrowers in accordance with their
terms. The Existing Credit Agreement, as amended by this First Amendment, remains in full
force and effect and remains the valid and binding obligation of the Borrowers, enforceable
against the Borrowers in accordance with its terms. The Borrowers hereby ratify and
confirm the Existing Credit Agreement, as amended by this First Amendment.

27

 

     (b) No Default or Event of Default has occurred or now exists under the Existing
Credit Agreement and no Default or Event of Default will occur as a result of the
effectiveness of this First Amendment.

     (c) The representations and warranties of the Borrower contained in the Existing
Credit Agreement, as modified by the Disclosure Schedule Amendment attached hereto as
Exhibit C (the “Disclosure Schedule
Amendment”), are true and correct in all material respects on and as of the date of this
Amendment.

     4. Conditions to Effectiveness of First Amendment. The effectiveness of this First
Amendment and the agreements set forth herein are subject to fulfillment, as determined in the sole
judgment of Agent, of the following conditions:

     (a) Borrowers shall have executed and delivered to Agent this First Amendment, the
Revolving Notes and the Disclosure Schedule Amendment and Agent shall have determined
that the Disclosure Schedule Amendment is acceptable to Agent in its good faith
determination;

     (b) Borrowers shall have executed and delivered to Agent the Notes;

     (c) Borrowers shall have delivered to Agent a Certificate of the Secretary or an
Assistant Secretary of each Borrower certifying appropriate corporate actions authorizing
the execution and delivery of this First Amendment and the Revolving Notes and covering
such other matters as Agent may reasonably request;

     (d) Borrowers shall cause certificates or other evidence of insurance to be
delivered to Agent to confirm that insurance required under the Existing Credit Agreement
includes Wachovia as an additional insured or lender loss payee, as the context requires;

     (e) Agent shall have determined that no Default or Event of Default exists; and

     (f) Borrowers shall have delivered such other documents and shall have taken such
other actions as Agent in its reasonable discretion may require.

     5. Release. In consideration of the agreement of Lenders and Agent to modify the
terms of the Credit Agreement as set forth in this First Amendment, Borrowers hereby release,
discharge and acquit forever Lenders and Agent and any of their respective officers, directors,
servants, agents, employees and attorneys, past and present, from any and all claims, demands and
causes of action, of whatever nature, whether in contract or tort, accrued or to accrue, contingent
or vested, known or unknown, arising out of or relating to the loans evidenced by the Existing
Credit Agreement, as hereby amended, or Agent’s or Lenders’ administration of the same or any other
actions taken pursuant to the Existing Credit Agreement or under any other documents or instruments
evidencing loans made by Lenders to Borrowers or the

28

 

administration of same; provided, however,
that the foregoing release and the following indemnity relate only to actions or inactions of Agent
or Lenders through the date hereof.

     6. Payment of Costs/Expenses. Without limiting the generality of provisions in the
Existing Credit Agreement (as amended by this First Amendment) relating to payment of Agent’s or
Lenders’ costs and expenses, the Borrower will pay all reasonable out-of-pocket expenses, costs and charges of Agent’s attorneys incurred in
connection with the preparation and implementation of this First Amendment.

     7. Other Documents/Provisions to Remain in Force. Except as expressly amended hereby,
the Existing Credit Agreement and all documents and instruments executed in connection therewith or
contemplated thereby and all indebtedness incurred pursuant thereto shall remain in full force and
effect and are in all respects hereby ratified and affirmed.

     8. Successors and Assigns. Subject to any restriction on assignment set forth in the
Existing Credit Agreement, this First Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.

     9. Counterparts. This First Amendment may be executed in any number of counterparts,
each of which shall constitute one and the same Amendment.

     10. Incorporation by Reference. The Existing Credit Agreement and all exhibits
thereto, and the exhibits to this First Amendment are incorporated herein by this reference, except
to the extent replaced by Exhibits attached to this First Amendment.

     11. No Oral Loan Agreements. Pursuant to Mo. Rev. Stat. § 432.045 and § 432.047, the
parties agree to the quoted language below (all references to “you” are references to Borrower and
all references to “us” are references to Agent and Lenders):

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR
FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT
IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US
(AGENT AND LENDERS) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING WHICH IS THE COMPLETE
AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE
IN WRITING TO MODIFY IT.

[Remaining portion of page is intentionally blank. Signature page follows]

29

 

     IN WITNESS WHEREOF, Lenders, Agent and Borrowers have caused this First Amendment to be
executed effective as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pamela G. Boone	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Pamela G. Boone	 	 
	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	and	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS, USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pamela G. Boone	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Pamela G. Boone	 	 
	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	REGIONS BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Anne D. Silvestri	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Anne D. Silvestri	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	REGIONS BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Anne D. Silvestri	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Anne D. Silvestri	 	 
	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Linda M. Douglas	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Linda M. Douglas	 	 
	 	 	Title: Senior Vice President	 	 

30

 

TABLES OF EXHIBITS TO FIRST AMENDMENT

Exhibit A            Revolving Note Payable to Regions

Exhibit B            Revolving Note Payable to Wachovia

Exhibit C            Disclosure Schedule Amendment

31

 

	 	 	 
	 

	 	Exhibit A to First
	 

	 	Amendment to
	 

	 	Credit and Security
	 

	 	Agreement

REVOLVING NOTE

(Regions Bank)

$3,500,000

St. Louis, Missouri

September 26, 2006

     FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation, and
SYNERGETICS USA, INC., a Delaware corporation (individually, a “Borrower” and together, the
“Borrowers”), hereby jointly and severally promise to pay on the Termination Date to the order of
Regions Bank (the “Lender”), at its main office in St. Louis, Missouri, or at any other place
designated at any time by the holder hereof, in lawful money of the United States of America and in
immediately available funds, the principal sum of Three Million Five Hundred Thousand and
00/100 ($3,500,000) or, if less, the aggregate unpaid principal amount of all Advances
and Swing Line Loans made by the Lender to the Borrowers under the Credit Agreement (defined
below), together with interest on the principal amount hereunder remaining unpaid from time to
time, computed on the basis of the actual number of days elapsed and a 360-day year, from the date
hereof until this Note is fully paid at the rate from time to time in effect under the Credit and
Security Agreement dated as of March 13, 2006, as amended by First Amendment of even date herewith
(together, the “Credit Agreement”) by and among the Lender, Wachovia Bank, National Association,
and the Borrowers. The principal hereof and interest accruing thereon shall be due and payable as
provided in the Credit Agreement. This Note may be prepaid only in accordance with the Credit
Agreement.

     This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Revolving Note referred to in the Credit
Agreement. This Note evidences not only all Advances of Lender under the Revolving Credit Facility
but also all Swing Line Loans made by Lender pursuant to Section 2.1A of the Credit Agreement.

     This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.

     The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

32

 

     This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.

     This Note is a replacement for, but not a novation or refinancing of, the Revolving Note dated
as of March 13, 2006 by Borrowers payable to the order of Regions Bank. This Note does not
evidence or effect a release, or relinquishment of the priority, of the security interests in any
Collateral (as defined in the Credit Agreement).

     ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone	 	 
	 

	 	 	 	TITLE: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	and	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone	 	 
	 

	 	 	 	TITLE: Chief Financial Officer	 	 

33

 

	 	 	 
	 

	 	Exhibit B to First
	 

	 	Amendment to
	 

	 	Credit and Security
	 

	 	Agreement

REVOLVING NOTE

(Wachovia Bank, National Association)

			
	 	 	 
	$2,000,000
	 	St. Louis, Missouri
	 
	 	September 26, 2006

     FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation, and
SYNERGETICS USA, INC., a Delaware corporation (individually, a “Borrower” and together, the
“Borrowers”), hereby jointly and severally promise to pay on the Termination Date to the order of
Wachovia Bank, National Association (the “Lender”), at the main office of Regions Bank in St.
Louis, Missouri, or at any other place designated at any time by the holder hereof, in lawful money
of the United States of America and in immediately available funds, the principal sum of Two
Million and 00/100 ($2,000,000) or, if less, the aggregate unpaid principal amount of
all Advances made by the Lender to the Borrowers under the Credit Agreement (defined below),
together with interest on the principal amount hereunder remaining unpaid from time to time,
computed on the basis of the actual number of days elapsed and a 360-day year, from the date hereof
until this Note is fully paid at the rate from time to time in effect under the Credit and Security
Agreement dated as of March 13, 2006, as amended by First Amendment of even date herewith
(together, the “Credit Agreement”) by and among the Lender, Regions Bank and the Borrowers. The
principal hereof and interest accruing thereon shall be due and payable as provided in the Credit
Agreement. This Note may be prepaid only in accordance with the Credit Agreement.

     This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Revolving Note referred to in the Credit
Agreement.

     This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.

     The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

     This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.

34

 

     This Note is a replacement for, but not a novation or refinancing of the Revolving Note dated
as of March 13, 2006 by Borrowers payable to the order of Regions Bank. This Note does not
evidence or effect a release, or relinquishment of the priority, of the security interests in any
Collateral (as defined in the Credit Agreement).

     ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone	 	 
	 

	 	 	 	TITLE: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	and	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone	 	 
	 

	 	 	 	TITLE: Chief Financial Officer	 	 

35

 

	 	 	 
	 

	 	Exhibit C to First
	 

	 	Amendment to
	 

	 	Credit and Security
	 

	 	Agreement

DISCLOSURE SCHEDULE AMENDMENT

36exv10w53

 

Exhibit 10.53

REVOLVING NOTE

(Regions Bank)

			
	 	 	 
	$3,500,000
	 	St. Louis, Missouri

September 26, 2006

     FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation, and
SYNERGETICS USA, INC., a Delaware corporation (individually, a “Borrower” and together, the
“Borrowers”), hereby jointly and severally promise to pay on the Termination Date to the order of
Regions Bank (the “Lender”), at its main office in St. Louis, Missouri, or at any other place
designated at any time by the holder hereof, in lawful money of the United States of America and in
immediately available funds, the principal sum of Three Million Five Hundred Thousand and
00/100 ($3,500,000) or, if less, the aggregate unpaid principal amount of all Advances
and Swing Line Loans made by the Lender to the Borrowers under the Credit Agreement (defined
below), together with interest on the principal amount hereunder remaining unpaid from time to
time, computed on the basis of the actual number of days elapsed and a 360-day year, from the date
hereof until this Note is fully paid at the rate from time to time in effect under the Credit and
Security Agreement dated as of March 13, 2006, as amended by First Amendment of even date herewith
(together, the “Credit Agreement”) by and among the Lender, Wachovia Bank, National Association,
and the Borrowers. The principal hereof and interest accruing thereon shall be due and payable as
provided in the Credit Agreement. This Note may be prepaid only in accordance with the Credit
Agreement.

     This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Revolving Note referred to in the Credit
Agreement. This Note evidences not only all Advances of Lender under the Revolving Credit Facility
but also all Swing Line Loans made by Lender pursuant to Section 2.1A of the Credit Agreement.

     This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.

     The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

     This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.

     This Note is a replacement for, but not a novation or refinancing of, the Revolving Note dated
as of March 13, 2006 by Borrowers payable to the order of Regions Bank. This Note does not

 

 

evidence or effect a release, or relinquishment of the priority, of the security interests in
any Collateral (as defined in the Credit Agreement).

     ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	SYNERGETICS, INC.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ Pamela G. Boone
	 

	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone
	 

	 	 	 	TITLE: Chief Financial Officer
	 
	 	 	 	 
	 	 	and
	 
	 	 	 	 
	 	 	SYNERGETICS USA, INC.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ Pamela G. Boone
	 

	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone
	 

	 	 	 	TITLE: Chief Financial Officer

2

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