Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO

COMMON STOCK PURCHASE AGREEMENT

     This FIRST AMENDMENT TO COMMON STOCK PURCHASE AGREEMENT (the “Amendment”), dated as of June
29, 2007, is made by and among Spatializer Audio Laboratories, Inc., a Delaware corporation (the
“Company”), and each of Jay Gottlieb, Gregg Schneider and Helaine Kaplan (collectively, the
“Investors”), with reference to the following facts:

     A. The Company and the Investors are parties to that certain Common Stock Purchase Agreement,
dated as of April 25, 2007 (the “Purchase Agreement”), providing for the sale of common stock of
the Company for an initial payment of $162,366.15 and a second payment $259,786 in the event of the
closing of the transactions contemplated by the Asset Purchase Agreement by June 30, 2007.

     B. The parties hereto wish to amend the Purchase Agreement, as it relates to the date of the
closing of the transactions contemplated by the Asset Purchase Agreement, on the terms and
conditions set forth below.

     C. Pursuant to the Section 9.7 of the Purchase Agreement, the Purchase Agreement may be
amended in writing by the Company and by the Investors holding at least a majority of the then
outstanding Shares.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Amendment to Purchase Agreement. For valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto hereby amend the last sentence of Section 1.2 of the
Purchase Agreement to read in its entirety as follows:

“In the event that the closing of the Asset Purchase Agreement does not
occur prior to July 6, 2007, the Escrow Funds shall be released to each
of the Investors in an amount equal to the amount paid into the Escrow
Fund by such Investor.”

     2. Miscellaneous. Except as set forth in Section 1 above, the Purchase Agreement is
not being amended hereby and shall remain in full force and effect in accordance with its terms.
This Amendment and all actions arising out of or in connection with this Amendment shall be
governed by and construed in accordance with the laws of the State of California, without regard to
the conflicts of law provisions of the State of California or of any other state. This Amendment
may be executed in any number of counterparts, each of which shall be an original, but all of which
together shall be deemed to constitute one instrument. All capitalized terms used but not defined
herein shall have the meaning therefor set forth in the Purchase Agreement.

 

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered
by their proper and duly authorized officers as of the date and year first written above.

	 	 	 	 	 
	 	COMPANY:

SPATIALIZER AUDIO LABORATORIES, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Henry Mandell	 
	 	 	Henry Mandell,

Chairman 	 
	 

 

 

INVESTORS’

COUNTERPART SIGNATURE PAGE TO

FIRST AMENDMENT TO

PURCHASE AGREEMENT

	 	 	 	 	 
	 	INVESTORS:

 	 
	 	By:  	/s/ Jay A. Gottlieb
 	 
	 	 	Jay A. Gottlieb 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Greggory Schneider
 	 
	 	 	Greggory Schneider 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ Helaine Kaplan
 	 
	 	 	Helaine Kaplanexv4w1

 

Exhibit 4.1

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of June 29, 2007

among

THERMADYNE INDUSTRIES, INC.,

THERMAL DYNAMICS CORPORATION,

TWECO PRODUCTS, INC.,

VICTOR EQUIPMENT COMPANY,

C & G SYSTEMS, INC.,

STOODY COMPANY,

PROTIP CORPORATION and

THERMADYNE INTERNATIONAL CORP.,

as Borrowers,

THE OTHER CREDIT PARTIES SIGNATORY HERETO,

as Credit Parties,

THE LENDERS SIGNATORY HERETO

FROM TIME TO TIME,

as Lenders,

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Agent and Lender

and

GECC CAPITAL MARKETS GROUP, INC.,

as Lead Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. AMOUNT AND TERMS OF CREDIT
	 	 	3	 
	 
	 	 	 	 
	1.1 Credit Facilities
	 	 	3	 
	1.2 Letters of Credit
	 	 	6	 
	1.3 Prepayments
	 	 	6	 
	1.4 Use of Proceeds
	 	 	8	 
	1.5 Interest and Applicable Margins
	 	 	8	 
	1.6 Cash Management Systems
	 	 	11	 
	1.7 Fees
	 	 	11	 
	1.8 Receipt of Payments
	 	 	12	 
	1.9 Application and Allocation of Payments
	 	 	12	 
	1.10 Loan Account and Accounting
	 	 	12	 
	1.11 Indemnity
	 	 	13	 
	1.12 Access
	 	 	15	 
	1.13 Taxes
	 	 	15	 
	1.14 Capital Adequacy; Increased Costs; Illegality
	 	 	17	 
	1.15 Single Loan
	 	 	19	 
	1.16 Eligible Accounts
	 	 	19	 
	1.17 Eligible Inventory
	 	 	22	 
	1.18 Conversion to Dollars
	 	 	23	 
	1.19 Judgment Currency; Contractual Currency
	 	 	23	 
	 
	 	 	 	 
	2. CONDITIONS PRECEDENT
	 	 	24	 
	 
	 	 	 	 
	2.1 Conditions to the Loans
	 	 	24	 
	2.2 Further Conditions to Each Loan
	 	 	25	 
	 
	 	 	 	 
	3. REPRESENTATIONS AND WARRANTIES
	 	 	26	 
	 
	 	 	 	 
	3.1 Corporate Existence; Compliance with Law; FEIN
	 	 	26	 
	3.2 Executive Offices, Collateral Locations
	 	 	27	 
	3.3 Corporate Power, Authorization, Enforceable Obligations
	 	 	27	 
	3.4 Financial Statements and Projections
	 	 	27	 
	3.5 Material Adverse Effect
	 	 	28	 
	3.6 Ownership of Property; Liens
	 	 	28	 
	3.7 Labor Matters
	 	 	28	 
	3.8 Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness
	 	 	29	 
	3.9 Government Regulation
	 	 	29	 
	3.10 Margin Regulations
	 	 	29	 
	3.11 Taxes
	 	 	30	 
	3.12 ERISA
	 	 	30	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	3.13 No Litigation
	 	 	31	 
	3.14 Brokers
	 	 	31	 
	3.15 Intellectual Property
	 	 	31	 
	3.16 Full Disclosure
	 	 	32	 
	3.17 Environmental Matters
	 	 	32	 
	3.18 Insurance
	 	 	33	 
	3.19 Deposit and Disbursement Accounts
	 	 	33	 
	3.20 Government Contracts
	 	 	33	 
	3.21 Customer and Trade Relations
	 	 	33	 
	3.22 Bonding; Licenses
	 	 	33	 
	3.23 Solvency
	 	 	33	 
	3.24 Status of Holdings
	 	 	33	 
	 
	 	 	 	 
	4. FINANCIAL STATEMENTS AND INFORMATION
	 	 	33	 
	 
	 	 	 	 
	4.1 Reports and Notices
	 	 	33	 
	4.2 Communication with Accountants
	 	 	34	 
	 
	 	 	 	 
	5. AFFIRMATIVE COVENANTS
	 	 	34	 
	 
	 	 	 	 
	5.1 Maintenance of Existence and Conduct of Business
	 	 	34	 
	5.2 Payment of Charges
	 	 	34	 
	5.3 Books and Records
	 	 	35	 
	5.4 Insurance; Damage to or Destruction of Collateral
	 	 	35	 
	5.5 Compliance with Laws
	 	 	36	 
	5.6 Supplemental Disclosure
	 	 	36	 
	5.7 Intellectual Property
	 	 	37	 
	5.8 Environmental Matters
	 	 	37	 
	5.9 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real
Estate Purchases
	 	 	38	 
	5.10 Collateral Reports
	 	 	38	 
	5.11 Further Assurances
	 	 	39	 
	5.12 Refinancing of Second Lien Loan Obligations
	 	 	39	 
	 
	 	 	 	 
	6. NEGATIVE COVENANTS
	 	 	39	 
	 
	 	 	 	 
	6.1 Mergers, Subsidiaries, Etc.
	 	 	39	 
	6.2 Investments; Loans and Advances
	 	 	40	 
	6.3 Indebtedness
	 	 	41	 
	6.4 Employee Loans and Affiliate Transactions
	 	 	43	 
	6.5 Capital Structure and Business
	 	 	44	 
	6.6 Guaranteed Indebtedness
	 	 	44	 
	6.7 Liens
	 	 	44	 
	6.8 Sale of Stock and Assets
	 	 	45	 
	6.9 ERISA
	 	 	45	 
	6.10 Financial Covenants
	 	 	45	 
	6.11 Hazardous Materials
	 	 	45	 

ii 

 

	 	 	 	 	 
	 	 	Page	 
	6.12 Sale-Leasebacks
	 	 	45	 
	6.13 Cancellation of Indebtedness
	 	 	45	 
	6.14 Restricted Payments
	 	 	46	 
	6.15 Change of Corporate Name, State of Incorporation or Location; Change of
Fiscal Year
	 	 	46	 
	6.16 No Impairment of Intercompany Transfers
	 	 	46	 
	6.17 Real Estate Purchases
	 	 	47	 
	6.18 Changes Relating to High Yield Notes
	 	 	47	 
	6.19 Holdings
	 	 	47	 
	 
	 	 	 	 
	7. TERM
	 	 	47	 
	 
	 	 	 	 
	7.1 Termination
	 	 	47	 
	7.2 Survival of Obligations Upon Termination of Financing Arrangements
	 	 	47	 
	 
	 	 	 	 
	8. EVENTS OF DEFAULT; RIGHTS AND REMEDIES
	 	 	48	 
	 
	 	 	 	 
	8.1 Events of Default
	 	 	48	 
	8.2 Remedies
	 	 	50	 
	8.3 Waivers by Credit Parties
	 	 	50	 
	 
	 	 	 	 
	9. ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT
	 	 	51	 
	 
	 	 	 	 
	9.1 Assignment and Participations
	 	 	51	 
	9.2 Appointment of Agent
	 	 	53	 
	9.3 Agent’s Reliance, Etc.
	 	 	54	 
	9.4 GE Capital and Affiliates
	 	 	55	 
	9.5 Lender Credit Decision
	 	 	55	 
	9.6 Indemnification
	 	 	55	 
	9.7 Successor Agent
	 	 	56	 
	9.8 Setoff and Sharing of Payments
	 	 	56	 
	9.9 Advances; Payments; Non-Funding Lenders; Information; Actions in Concert
	 	 	57	 
	 
	 	 	 	 
	10. SUCCESSORS AND ASSIGNS
	 	 	59	 
	 
	 	 	 	 
	10.1 Successors and Assigns
	 	 	59	 
	 
	 	 	 	 
	11. MISCELLANEOUS
	 	 	60	 
	 
	 	 	 	 
	11.1 Complete Agreement; Modification of Agreement
	 	 	60	 
	11.2 Amendments and Waivers
	 	 	60	 
	11.3 Fees and Expenses
	 	 	62	 
	11.4 No Waiver
	 	 	63	 
	11.5 Remedies
	 	 	63	 
	11.6 Severability
	 	 	63	 
	11.7 Conflict of Terms
	 	 	64	 
	11.8 Confidentiality
	 	 	64	 

iii 

 

	 	 	 	 	 
	 	 	Page	 
	11.9 GOVERNING LAW
	 	 	64	 
	11.10 Notices
	 	 	65	 
	11.11 Section Titles
	 	 	66	 
	11.12 Counterparts
	 	 	66	 
	11.13 WAIVER OF JURY TRIAL
	 	 	66	 
	11.14 Press Releases and Related Matters
	 	 	66	 
	11.15 Reinstatement
	 	 	66	 
	11.16 Advice of Counsel
	 	 	67	 
	11.17 No Strict Construction
	 	 	67	 
	11.18 Limitation on Security Interest with respect to Foreign Subsidiaries
	 	 	67	 
	 
	 	 	 	 
	12. CROSS-GUARANTY
	 	 	67	 
	 
	 	 	 	 
	12.1 Cross-Guaranty
	 	 	67	 
	12.2 Waivers by Credit Parties
	 	 	68	 
	12.3 Benefit of Guaranty
	 	 	68	 
	12.4 Waiver of Subrogation, Etc.
	 	 	68	 
	12.5 Election of Remedies
	 	 	68	 
	12.6 Limitation
	 	 	69	 
	12.7 Contribution with Respect to Guaranty Obligations
	 	 	69	 
	12.8 Liability Cumulative
	 	 	70	 
	12.9 Guarantee Unconditional
	 	 	70	 
	12.10 Foreign Currency Obligations
	 	 	72	 
	12.11 Section 956 of the IRC
	 	 	72	 
	 
	 	 	 	 
	13. RESTATEMENT OF PRIOR CREDIT AGREEMENT
	 	 	72	 

iv 

 

INDEX OF APPENDICES

	 	 	 	 	 
	Annex A (Recitals)

	 	—
	 	Definitions
	Annex B (Section 1.2)

	 	—
	 	Letters of Credit
	Annex C (Section 1.8)

	 	—
	 	Cash Management System
	Annex D (Section 2.1(a))

	 	—
	 	Closing Checklist
	Annex E (Section 4.1(a))

	 	—
	 	Financial Statements and Projections – Reporting
	Annex F (Section 4.1(b)

	 	—
	 	Collateral Reports
	Annex G (Section 6.10)

	 	—
	 	Financial Covenants
	Annex H (Section 9.9(a))

	 	—
	 	Lenders’ Wire Transfer Information
	Annex I (Section 11.10)

	 	—
	 	Notice Addresses
	Annex J (from Annex A -

     Commitments definition)

	 	—
	 	Commitments as of Closing Date
	Annex K (Article XIII)

	 	—
	 	Principal Balance of Loans on the Closing Date
	 
	 	 	 	 
	Exhibit 1.1(a)(i)

	 	—
	 	Form of Notice of Revolving Credit Advance
	Exhibit 1.1(a)(ii)

	 	—
	 	Form of Revolving Note
	Exhibit 1.1(d)(ii)

	 	 	 	Form of Swing Line Note
	Exhibit 1.5(e)

	 	—
	 	Form of Notice of Conversion/Continuation
	Exhibit 4.1(b)

	 	—
	 	Form of Borrowing Base Certificate
	Exhibit 9.1(a)

	 	—
	 	Form of Assignment Agreement
	Exhibit B-1

	 	—
	 	Application for Standby Letter of Credit
	Exhibit B-2

	 	 	 	Master Agreement for Standby Letters
of Credit
	 
	Exhibit C

	 	—
	 	Compliance Certificate
	 
	 	 	 	 
	Disclosure Schedule 1.1

	 	—
	 	Agent’s Representatives
	Disclosure Schedule 1.4

	 	—
	 	Sources and Uses; Funds Flow Memorandum
	Disclosure Schedule 3.1

	 	—
	 	Type of Entity; State of Organization; FEIN
	Disclosure Schedule 3.2

	 	—
	 	Executive Offices, Collateral Locations
	Disclosure Schedule 3.4(c)

	 	—
	 	Projections
	Disclosure Schedule 3.6

	 	—
	 	Real Estate and Leases
	Disclosure Schedule 3.7

	 	—
	 	Labor Matters
	Disclosure Schedule 3.8

	 	—
	 	Ventures, Subsidiaries and Affiliates; Outstanding Stock
	 
	Disclosure Schedule 3.8A

	 	—
	 	Corporate Structure Chart
	Disclosure Schedule 3.11

	 	—
	 	Tax Matters
	Disclosure Schedule 3.12

	 	—
	 	ERISA Plans
	Disclosure Schedule 3.13

	 	—
	 	Litigation
	Disclosure Schedule 3.14

	 	—
	 	Brokers
	Disclosure Schedule 3.15

	 	—
	 	Intellectual Property
	Disclosure Schedule 3.17

	 	—
	 	Hazardous Materials
	Disclosure Schedule 3.18

	 	—
	 	Insurance
	Disclosure Schedule 3.19

	 	—
	 	Deposit and Disbursement Accounts

v 

 

	 	 	 	 	 
	Disclosure Schedule 3.20

	 	—
	 	Government Contracts
	Disclosure Schedule 3.22

	 	—
	 	Bonds; Licenses
	Disclosure Schedule 5.1

	 	—
	 	Trade Names
	Disclosure Schedule 6.3

	 	—
	 	Indebtedness
	Disclosure Schedule 6.4(a)

	 	—
	 	Transactions with Affiliates
	Disclosure Schedule 6.12

	 	 	 	Sale-Leaseback Transactions
	Disclosure Schedule 6.7

	 	—
	 	Existing Liens

vi 

 

          This THIRD AMENDED AND RESTATED CREDIT AGREEMENT (as amended, supplemented, restated or
otherwise modified from time to time, this “Agreement”), dated as of June 29, 2007 among
THERMADYNE INDUSTRIES, INC., a Delaware corporation (“Industries”), THERMAL DYNAMICS
CORPORATION, a Delaware corporation (“Dynamics”), TWECO PRODUCTS, INC., a Delaware
corporation (“Tweco”), VICTOR EQUIPMENT COMPANY, a Delaware corporation (“Victor”),
C & G SYSTEMS, INC., an Illinois corporation (“C & G”), STOODY COMPANY, a Delaware
corporation (“Stoody”), PROTIP CORPORATION, a Missouri corporation (‘ProTip”),
THERMADYNE INTERNATIONAL CORP., a Delaware corporation (“International”) (International,
ProTip, Stoody, C & G, Victor, Tweco, Dynamics and Industries are sometimes collectively referred
to herein as the “Borrowers” and individually as a “Borrower”); the other Credit
Parties signatory hereto; GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its
individual capacity, “GE Capital”), for itself, as Lender, and as Agent for Lenders, and
the other Lenders signatory hereto from time to time.

RECITALS

          WHEREAS, on November 22, 2004, Agent and Lenders entered into a Second Amended and Restated
Credit Agreement (the “Prior Credit Agreement”) with the Borrowers providing for Revolving
Loans of up to $80,000,000, a Term Loan in the aggregate original principal amount of $9,250,000
and Borrowers have certain Loans and Letters of Credit outstanding thereunder (collectively with
the Prior Revolving Loan and Prior Term Loan, the “Prior Loans”);

          WHEREAS, Borrowers, Agent and Lenders desire to enter into this Third Amended and Restated
Credit Agreement to increase the Revolving Loan Commitment to $100,000,000 and extend the maturity
date;

          WHEREAS, Borrowers desire that the terms governing the Prior Loans be amended and restated in
accordance herewith; and

          WHEREAS, capitalized terms used in this Agreement shall have the meanings ascribed to them in
Annex A and, for purposes of this Agreement and the other Loan Documents, the rules of
construction set forth in Annex A shall govern. All Annexes, Disclosure Schedules,
Exhibits and other attachments (collectively, “Appendices”) hereto, or expressly identified
to this Agreement, are incorporated herein by reference, and taken together with this Agreement,
shall constitute but a single agreement. These Recitals shall be construed as part of this
Agreement.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, and for other good and valuable consideration, the parties hereto agree as follows:

2

 

1. AMOUNT AND TERMS OF CREDIT

     1.1 Credit Facilities.

          (a) Revolving Credit Facility.

               (i) Subject to the terms and conditions hereof, each Revolving Lender agrees to make available
to Borrowers from time to time until the Commitment Termination Date its Pro Rata Share of advances
(each, a “Revolving Credit Advance”). The Pro Rata Share of the Revolving Loan of any
Revolving Lender shall not at any time exceed its separate Revolving Loan Commitment. The
obligations of each Revolving Lender hereunder shall be several and not joint. Until the
Commitment Termination Date, Borrowers may borrow, repay and reborrow under this Section
1.1(a); provided that the amount of any Revolving Credit Advance to be made at any time
shall not exceed Borrowing Availability at such time. Revolving Credit Advances shall be deemed to
be advanced and Letter of Credit Obligations shall be deemed to be incurred, first, against the ABL
Borrowing Base and, second, against the Cash Flow Borrowing Base. Borrowing Availability may be
reduced by Reserves imposed by Agent in its reasonable credit judgment. Each Revolving Credit
Advance shall be made on notice by Borrower Representative on behalf of Borrowers to one of the
representatives of Agent identified in Schedule 1.1 at the address specified therein. Any
such notice must be given no later than (1) 12:00 noon (New York time) on the Business Day of the
proposed Revolving Credit Advance, in the case of an Index Rate Loan, or (2) 12:00 noon (New York
time) on the date which is three (3) Business Days prior to the proposed Revolving Credit Advance,
in the case of a LIBOR Loan. Each such notice (a “Notice of Revolving Credit Advance”)
must be given in writing (by telecopy or overnight courier) substantially in the form of
Exhibit 1.1(a)(i), and shall include the information required in such Exhibit and such
other information as may be reasonably required by Agent. If Borrowers desire to have the
Revolving Credit Advances bear interest by reference to a LIBOR Rate, Borrower Representative must
comply with Section 1.5(e).

               (ii) Except as provided in Section 1.10, Borrowers shall execute and deliver to each
Revolving Lender a note to evidence the Revolving Loan Commitment of that Revolving Lender. Each
note shall be in the principal amount of the Revolving Loan Commitment of the applicable Revolving
Lender, dated the Closing Date and substantially in the form of Exhibit 1.1(a)(ii) (each a
“Revolving Note” and, collectively, the “Revolving Notes”). Each Revolving Note
shall represent the obligation of Borrowers to pay the amount of the applicable Revolving Lender’s
Revolving Loan Commitment or, if less, such Revolving Lender’s Pro Rata Share of the aggregate
unpaid principal amount of all Revolving Credit Advances to Borrowers together with interest
thereon as prescribed in Section 1.5. The entire unpaid balance of the aggregate Revolving
Loan and all other non-contingent Obligations shall be immediately due and payable in full in
immediately available funds on the Commitment Termination Date.

               (iii) Anything in this Agreement to the contrary notwithstanding, at the request of Borrower
Representative, in its discretion Agent may (but shall have absolutely no obligation to), make
Revolving Credit Advances to Borrowers on behalf of Revolving Lenders in
amounts that cause the outstanding balance of the aggregate Revolving Loan to exceed the
Borrowing Base (less the Swing Line Loan) (any such excess Revolving Credit Advances are

3

 

herein
referred to collectively as “Overadvances”); provided that (A) no such event or
occurrence shall cause or constitute a waiver of Agent’s, Swing Line Lender’s or Revolving Lenders’
right to refuse to make any further Overadvances, Swing Line Advances or Revolving Credit Advances,
or incur any Letter of Credit Obligations, as the case may be, at any time that an Overadvance
exists, and (B) no Overadvance shall result in an Event of Default based on Borrowers’ failure to
comply with Section 1.3(b) for so long as Agent permits such Overadvance to be outstanding,
but solely with respect to the amount of such Overadvance. In addition, Overadvances may be made
even if the conditions to lending set forth in Section 2 have not been met. All
Overadvances shall constitute Index Rate Loans, shall bear interest at the Default Rate and shall
be payable on the earlier of demand or the Commitment Termination Date. Except as otherwise
provided in Section 1.9(b), the authority of Agent to make Overadvances is limited to an
aggregate amount not to exceed $1,000,000 at any time, shall not cause the aggregate Revolving Loan
to exceed the Maximum Amount, and may be revoked prospectively by a written notice to Agent signed
by Revolving Lenders holding more than 50% of the Revolving Loan Commitments.

          (b) Intentionally omitted.

          (c) Intentionally omitted.

          (d) Swing Line Facility.

               (i) Agent shall notify the Swing Line Lender upon Agent’s receipt of any Notice of Revolving
Credit Advance. Subject to the terms and conditions hereof, the Swing Line Lender may, in its
discretion, make available from time to time until the Commitment Termination Date advances (each,
a “Swing Line Advance”) in accordance with any such notice. The provisions of this
Section 1.1(d) shall not relieve Revolving Lenders of their obligations to make Revolving
Credit Advances under Section 1.1(a); provided that if the Swing Line Lender makes
a Swing Line Advance pursuant to any such notice, such Swing Line Advance shall be in lieu of any
Revolving Credit Advance that otherwise may be made by Revolving Credit Lenders pursuant to such
notice. The aggregate amount of Swing Line Advances outstanding shall not exceed at any time the
lesser of (A) the Swing Line Commitment and (B) the lesser of the Maximum Amount and (except for
Overadvances) the Borrowing Base, in each case, less the outstanding balance of the Revolving Loan
at such time (“Swing Line Availability”). Until the Commitment Termination Date, Borrowers
may from time to time borrow, repay and reborrow under this Section 1.1(d). Each Swing
Line Advance shall be made pursuant to a Notice of Revolving Credit Advance delivered to Agent by
Borrower Representative on behalf of the Borrowers in accordance with Section 1.1(a). Any
such notice must be given no later than 12:00 noon (New York time) on the Business Day of the
proposed Swing Line Advance. Unless the Swing Line Lender has received at least one Business Day’s
prior written notice from Requisite Lenders instructing it not to make a Swing Line Advance, the
Swing Line Lender shall, notwithstanding the failure of any condition precedent set forth in
Sections 2.2, be entitled to fund that Swing Line Advance, and to have each Revolving
Lender make Revolving Credit Advances in accordance with Section 1.1(d)(iii) or purchase
participating interests in accordance with Section 1.1(d)(iv). Notwithstanding any other
provision of this Agreement or the other
Loan Documents, the Swing Line Loan shall constitute an Index Rate Loan. Borrowers shall

4

 

repay the aggregate outstanding principal amount of the Swing Line Loan upon demand therefor by
Agent.

               (ii) Borrowers shall execute and deliver to the Swing Line Lender a promissory note to
evidence the Swing Line Commitment. Such note shall be in the principal amount of the Swing Line
Commitment of the Swing Line Lender, dated the Closing Date and substantially in the form of
Exhibit 1.1(d)(ii) (the “Swing Line Note”). Each Swing Line Note shall represent
the obligation of Borrowers to pay the amount of the Swing Line Commitment or, if less, the
aggregate unpaid principal amount of all Swing Line Advances together with interest thereon as
prescribed in Section 1.5. The entire unpaid balance of the Swing Line Loan and all other
noncontingent Obligations shall be immediately due and payable in full in immediately available
funds on the Commitment Termination Date if not sooner paid in full.

               (iii) The Swing Line Lender, at any time and from time to time no less frequently than once
weekly shall on behalf of Borrowers (and each Borrower hereby irrevocably authorizes the Swing Line
Lender to so act on its behalf) request each Revolving Lender (including the Swing Line Lender) to
make a Revolving Credit Advance to Borrowers (which shall be an Index Rate Loan) in an amount equal
to that Revolving Lender’s Pro Rata Share of the principal amount of the applicable Borrower’s
Swing Line Loan (the “Refunded Swing Line Loan”) outstanding on the date such notice is
given. Unless any of the events described in Sections 8.1(h) or 8.1(i) has
occurred (in which event the procedures of Section 1.1(d)(iv) shall apply) and regardless
of whether the conditions precedent set forth in this Agreement to the making of a Revolving Credit
Advance are then satisfied, each Revolving Lender shall disburse directly to Agent, its Pro Rata
Share of a Revolving Credit Advance on behalf of the Swing Line Lender prior to 3:00 p.m. (New York
time) in immediately available funds on the Business Day next succeeding the date that notice is
given. The proceeds of those Revolving Credit Advances shall be immediately paid to the Swing Line
Lender and applied to repay the Refunded Swing Line Loan.

               (iv) If, prior to repaying a Swing Line Loan with a Revolving Credit Advance pursuant to
Section 1.1(d)(iii), one of the events described in Sections 8.1(h) or
8.1(i) has occurred, then, subject to the provisions of Section 1.1(d)(v) below,
each Revolving Lender shall, on the date such Revolving Credit 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 Revolving Lender shall promptly transfer to the Swing Line Lender, in
immediately available funds, the amount of its participation interest.

               (v) Each Revolving Lender’s obligation to make Revolving Credit Advances in accordance with
Section 1.1(d)(iii) and to purchase participation interests in accordance with Section
1.1(d)(iv) shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right that such Revolving
Lender may have against the Swing Line Lender, any Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of any Event of Default; (C) any inability of
Borrowers to satisfy the conditions precedent to borrowing set forth in this Agreement at any time;
or (D) any other circumstance, happening or event whatsoever, whether
or not similar to any of the foregoing. If any Revolving Lender does not make available to

5

 

Agent or the Swing Line Lender, as applicable, the amount required pursuant to Sections 1.1(d
(iii) or 1.1(d)(iv), as the case may be, the Swing Line Lender shall be entitled to
recover such amount on demand from such Revolving Lender, together with interest thereon for each
day from the date of non-payment until such amount is paid in full at the Federal Funds Rate for
the first two Business Days and at the Index Rate thereafter.

          (e) Reliance on Notices; Appointment of Borrower Representative. Agent shall be
entitled to rely upon, and shall be fully protected in relying upon, any Notice of Revolving Credit
Advance, Notice of Conversion/Continuation or similar notice believed by Agent to be genuine.
Agent may assume that each Person executing and delivering any notice in accordance herewith was
duly authorized, unless the responsible individual acting thereon for Agent has actual knowledge to
the contrary. Each Borrower hereby designates Holdings as its representative and agent on its
behalf for the purposes of issuing Notices of Revolving Credit Advances and Notices of
Conversion/Continuation, giving instructions with respect to the disbursement of the proceeds of
the Revolving Credit Advances, selecting interest rate options, requesting Letters of Credit,
giving and receiving all other notices and consents hereunder or under any of the other Loan
Documents and taking all other actions (including in respect of compliance with covenants) on
behalf of any Borrower or Borrowers under the Loan Documents. Borrower Representative hereby
accepts such appointment. Agent and each Lender may regard any notice or other communication
pursuant to any Loan Document from Borrower Representative as a notice or communication from all
Borrowers, and may give any notice or communication required or permitted to be given to any
Borrower or Borrowers hereunder to Borrower Representative on behalf of such Borrower or Borrowers.
Each Borrower agrees that each notice, election, representation and warranty, covenant, agreement
and undertaking made on its behalf by Borrower Representative shall be deemed for all purposes to
have been made by such Borrower and shall be binding upon and enforceable against such Borrower to
the same extent as if the same had been made directly by such Borrower.

     1.2 Letters of Credit. Subject to and in accordance with the terms and conditions
contained herein and in Annex B, Borrower Representative, on behalf of the applicable
Borrower, shall have the right to request, and Revolving Lenders agree to incur, or purchase
participations in, Letter of Credit Obligations in respect of each Borrower.

     1.3 Prepayments.

          (a) Reductions in Revolving Loan Commitments. Borrowers may at any time on at least
five (5) days’ prior written notice by Borrower Representative to Agent permanently reduce (but not
terminate in whole) the Revolving Loan Commitment; provided that (A) any such reductions
shall be in a minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of such
amount, (B) the Revolving Loan Commitment shall not be reduced
to an amount less than $25,000,000, and (C) after giving effect to such reductions, Borrowers
shall comply with Section 1.3(b)(i). In addition, Borrowers may at any time on at least
ten (10) days’ prior written notice by Borrower Representative to Agent terminate the Revolving
Loan Commitment; provided that upon such termination, all Loans and other Obligations shall
be immediately due and payable in full and all Letter of Credit Obligations shall be cash
collateralized or otherwise satisfied in accordance with Annex B hereto. Any reduction or
termination of the Revolving Loan Commitment must be accompanied by payment of the Fee

6

 

required by
Section 1.7(c), if any, plus the payment of any LIBOR funding breakage costs in accordance
with Section 1.11(b). Upon any such reduction or termination of the Revolving Loan
Commitment, each Borrower’s right to request Revolving Credit Advances, or request that Letter of
Credit Obligations be incurred on its behalf, or request Swing Line Advances, shall simultaneously
be permanently reduced or terminated, as the case may be; provided that a permanent
reduction of the Revolving Loan Commitment shall require a corresponding pro rata reduction in the
L/C Sublimit.

          (b) Mandatory Prepayments.

               (i) If at any time the aggregate outstanding balances of the Revolving Loan and the Swing Line
Loan exceed the lesser of (A) the Maximum Amount and (B) the Borrowing Base, Borrowers shall
immediately repay the aggregate outstanding Revolving Credit Advances to the extent required to
eliminate such excess. If any such excess remains after repayment in full of the aggregate
outstanding Revolving Credit Advances, Borrowers shall provide cash collateral for the Letter of
Credit Obligations in the manner set forth in Annex B to the extent required to eliminate
such excess. Notwithstanding the foregoing, any Overadvance made pursuant to Section
1.1(a)(iii) shall be repaid in accordance with Section 1.1(a)(iii).

               (ii) Immediately upon receipt by any Credit Party of any cash proceeds of any asset
disposition, Borrowers shall prepay the Loans in an amount equal to all such proceeds, net of (A)
commissions and other reasonable and customary transaction costs, fees and expenses properly
attributable to such transaction and payable by Borrowers in connection therewith (in each case,
paid to non-Affiliates), (B) transfer taxes, (C) amounts payable to holders of senior Liens on such
asset (to the extent such Liens constitute Permitted Encumbrances hereunder), if any, and (D) an
appropriate reserve for taxes in accordance with GAAP in connection therewith. Any such prepayment
shall be applied in accordance with Section 1.3(c). Notwithstanding the foregoing, if the
Credit Parties notify Agent of their intent to reinvest such proceeds in replacement fixed assets,
Credit Parties shall apply such proceeds to the Revolving Loan pending the reinvestment thereof and
shall only be obligated to make prepayments in accordance with Section 1.3(c) to the extent
that such proceeds are not so reinvested. The following shall not be subject to mandatory
prepayment under this clause (ii): (1) proceeds of sales of Inventory in the ordinary
course of business and (2) the proceeds of any asset disposition or series of asset dispositions
otherwise permitted under Section 6.8 not in excess of $500,000.

               (iii) If Holdings or any Borrower issues Stock or any debt security in a public offering or in
a private placement underwritten, placed or initially purchased by an investment bank (other than
the High Yield Notes), no later than the Business Day following the date of receipt of the proceeds
thereof, all Borrowers (in the case of an issuance by Holdings) or
the issuing Borrower shall prepay the Loans in an amount equal to all such proceeds, net of
underwriting discounts and commissions and other reasonable costs and expenses (including legal
fees) paid to non-Affiliates in connection therewith; provided, that no such prepayment or
commitment reduction shall be required with respect to an amount equal to such proceeds that are
received (A) pursuant to any employee or stock option plan or (B) in connection with any
refinancing of Indebtedness. Any such prepayment shall be applied in accordance with Section
1.3(c).

7

 

          (c) With respect to the prepayments described in Sections 1.3(b)(ii) and (iii) and
prepayments from insurance or condemnation proceeds in accordance with Section 5.4(b), (i)
such prepayments shall be applied first, to reimbursable Fees and expenses of Agent;
second, to interest then due and payable on the Swing Line Loan; third, to the
principal balance of the Swing Line Loan until the same has been repaid in full; fourth, to
interest then due and payable on Revolving Credit Advances; fifth, to the principal balance
of Revolving Credit Advances until the same has been paid in full (without a permanent reduction in
the Revolving Loan Commitment); sixth, to any Letter of Credit Obligations to provide cash
collateral therefor in the manner set forth in Annex B, until all such Letter of Credit
Obligations have been fully cash collateralized in the manner set forth in Annex B and
seventh, to all other Obligations, including expenses of Lenders reimbursable under
Section 11.3.

          (d) No Implied Consent. Nothing in this Section 1.3 shall be construed to
constitute Agent’s or any Lender’s consent to any transaction that is not permitted by other
provisions of this Agreement or the other Loan Documents.

     1.4 Use of Proceeds. Borrowers shall utilize the proceeds of the Loans solely to
provide (a) working capital financing for Borrowers and (b) funds for other general corporate
purposes of Borrowers. Disclosure Schedule (1.4) contains a description of Borrowers’
sources and uses of funds as of the Closing Date, including Revolving Credit Advances and Letter of
Credit Obligations to be made or incurred on that date, and a funds flow memorandum detailing how
funds from each source are to be transferred to particular uses.

     1.5 Interest and Applicable Margins.

          (a) Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in accordance
with the various Loans being made by each Lender, in arrears on each applicable Interest Payment
Date, at the following rates: (i) with respect to the Revolving Credit Advances, constituting the
ABL Portion, the Index Rate plus the Applicable ABL Portion Index Margin per annum or, at the
election of Borrower Representative, the applicable LIBOR Rate plus the Applicable ABL
Portion LIBOR Margin per annum, based on the aggregate Revolving Credit Advances outstanding from
time to time; (ii) with respect to Revolving Credit Advances constituting the Cash Flow Portion,
the Index Rate plus the Applicable Cash Flow Portion Index Margin per annum or, at the election of
Borrower Representative, the applicable LIBOR Rate
plus the Applicable Cash Flow Portion LIBOR Margin per annum; and (iii) with respect to the
Swing Line Loan, the Index Rate plus the Applicable ABL Portion Index Margin or Cash Flow Portion
Index Margin per annum (as applicable).

          As of the Closing Date, the Applicable Margins are as follows:

	 	 	 	 	 
	Applicable ABL Portion Index Margin
	 	 	0.00	%
	Applicable ABL Portion LIBOR Margin
	 	 	1.75	%
	Applicable Cash Flow Portion Index Margin
	 	 	0.75	%
	Applicable Cash Flow Portion LIBOR Margin
	 	 	2.50	%

8

 

	 	 	 	 	 
	Applicable L/C Margin
	 	 	1.75	%
	Applicable Unused Line Fee Margin
	 	 	0.375	%

          The Applicable Margins may be adjusted by reference to the following grids:

	 	 	 
	 	 	Level of
	If Fixed Charge Coverage Ratio is:	 	Applicable Margins:
	< 1.20

	 	Level I
	< 1.35, but > 1.20

	 	Level II
	< 1.50 but > 1.35

	 	Level III
	> 1.50

	 	Level IV

Applicable Margins

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	Level II	 	Level III	 	Level IV
	Applicable ABL Portion
Index Margin
	 	 	0.50	%	 	 	0.25	%	 	 	0.00	%	 	 	0.00	%
	Applicable ABL Portion
LIBOR Margin
	 	 	2.25	%	 	 	2.00	%	 	 	1.75	%	 	 	1.50	%
	Applicable Cash Flow
Portion Index Margin
	 	 	0.75	%	 	 	0.75	%	 	 	0.75	%	 	 	0.75	%
	Applicable Cash Flow
Portion LIBOR Margin
	 	 	2.50	%	 	 	2.50	%	 	 	2.50	%	 	 	2.50	%
	Applicable L/C Margin
	 	 	2.25	%	 	 	2.00	%	 	 	1.75	%	 	 	1.50	%
	Applicable Unused Line
Fee Margin
	 	 	0.375	%	 	 	0.375	%	 	 	0.375	%	 	 	0.375	%

          (b) Adjustments in the Applicable Margins commencing with the Fiscal Quarter ending June
30, 2007 shall be implemented quarterly on a prospective basis, for each calendar month commencing
at least five (5) days after the date of delivery to Lenders of the quarterly unaudited or annual
audited (as applicable) Financial Statements evidencing the need for an adjustment. Concurrently
with the delivery of those Financial Statements, Borrower Representative shall deliver to Agent and
Lenders a certificate, signed by its chief financial
officer, setting forth in reasonable detail the basis for the continuance of, or any change
in, the Applicable Margins. Failure to timely deliver such Financial Statements shall, in addition
to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins
to the highest level set forth in the foregoing grid, until the first day of the first calendar
month following the delivery of those Financial Statements demonstrating that such an increase is
not required. If an Event of Default has occurred and is continuing at the time any reduction in
the Applicable Margins is to be implemented, that reduction shall be deferred until the first day
of the first calendar month following the date on which such Event of Default is waived or cured.

          (c) If any payment on any Loan becomes due and payable on a day other than a Business Day, the
maturity thereof will be extended to the next succeeding Business Day (except as set forth in the
definition of LIBOR Period) and, with respect to payments of

9

 

principal, interest and fees thereon
shall be payable at the then applicable rate during such extension.

          (d) All computations of Fees calculated on a per annum basis and interest shall be made by
Agent on the basis of a 360-day year, in each case for the actual number of days occurring in the
period for which such interest and Fees are payable. The Index Rate is a floating rate determined
for each day. Each determination by Agent of an interest rate and Fees hereunder shall be
presumptive evidence of the correctness of such rates and Fees.

          (e) So long as an Event of Default has occurred and is continuing under Section 8.1(a),
(h) or (i) or so long as any other Event of Default has occurred and is continuing and
at the election of Agent (or upon the written request of Requisite Lenders) confirmed by written
notice from Agent to Borrower Representative, the interest rates applicable to the Loans and the
Letter of Credit Fees shall be increased by two percentage points (2%) per annum above the rates of
interest or the Letter of Credit Fees otherwise applicable hereunder unless Agent or Requisite
Lenders elect to impose a smaller increase (as finally determined, the “Default Rate”), and
all such Obligations shall bear interest at the Default Rate applicable to such Obligations.
Interest and Letter of Credit Fees at the Default Rate shall accrue from the initial date of such
Event of Default until that Event of Default is cured or waived and shall be payable upon demand.
In addition, during the cure periods provided for in Section 8.1(b) with respect to Enhanced
Financial Covenants, the Cash Flow Portion shall bear interest at the LIBOR Rate plus 3.50% per
annum or the Index Rate plus 1.75% per annum.

          (f) Subject to the conditions precedent set forth in Section 2.2, Borrower
Representative shall have the option to (i) request that any Revolving Credit Advance be made as a
LIBOR Loan, (ii) convert at any time all or any part of the outstanding Loans (other than the Swing
Line Loan) from Index Rate Loans to LIBOR Loans, (iii) convert any LIBOR Loan to an Index Rate
Loan, subject to payment of LIBOR breakage costs in accordance with Section 1.11(b) if such
conversion is made prior to the expiration of the LIBOR Period applicable thereto, or (iv) continue
all or any portion of any Loan (other than the Swing Line Loan) as a LIBOR Loan upon the
expiration of the applicable LIBOR Period and the succeeding LIBOR Period of that continued Loan
shall commence on the first day after the last day of the LIBOR Period of the Loan to be continued.
Any Loan or group of Loans having the same proposed LIBOR Period to be made or continued as, or
converted into, a LIBOR Loan must be in a minimum amount of $2,000,000 and integral multiples of
$1,000,000 in excess of such amount.
Any such election must be made by 12:00 noon (New York time) on the third Business Day prior
to (1) the date of any proposed Advance which is to bear interest at the LIBOR Rate, (2) the end of
each LIBOR Period with respect to any LIBOR Loans to be continued as such, or (3) the date on which
Borrower Representative wishes to convert any Index Rate Loan to a LIBOR Loan for a LIBOR Period
designated by Borrower Representative in such election. If no election is received with respect to
a LIBOR Loan by 12:00 noon (New York time) on the third Business Day prior to the end of the LIBOR
Period with respect thereto (or if a Default or an Event of Default has occurred and is continuing
or if the additional conditions precedent set forth in Section 2.2 shall not have been
satisfied), that LIBOR Loan shall be converted to an Index Rate Loan at the end of its LIBOR
Period. Borrower Representative must make such election by notice to Agent in writing, by telecopy
or overnight courier. In the case of any conversion or continuation, such election must be made
pursuant to a written notice (a “Notice of

10

 

Conversion/Continuation”) in the form of
Exhibit 1.5(e). No Loan shall be made as or converted into a LIBOR Loan until seven (7)
days after the Closing Date.

          (g) Notwithstanding anything to the contrary set forth in this Section 1.5, if a court
of competent jurisdiction determines in a final order that the rate of interest payable hereunder
exceeds the highest rate of interest permissible under law (the “Maximum Lawful Rate”),
then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable
hereunder shall be equal to the Maximum Lawful Rate; provided, however, that if at any time
thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, Borrowers
shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total
interest received by Agent, on behalf of Lenders, is equal to the total interest that would have
been received had the interest rate payable hereunder been (but for the operation of this
paragraph) the interest rate payable since the Closing Date as otherwise provided in this
Agreement. In no event shall the total interest received by any Lender pursuant to the terms
hereof exceed the amount that such Lender could lawfully have received had the interest due
hereunder been calculated for the full term hereof at the Maximum Lawful Rate.

     1.6 Cash Management Systems. On or prior to the Closing Date, Borrowers will
establish and will maintain until the Termination Date, the cash management systems described in
Annex C (the “Cash Management Systems”).

     1.7 Fees.

          (a) Borrowers shall pay to GE Capital, individually, the Fees specified in the GE Capital Fee
Letter.

          (b) As additional compensation for the Revolving Lenders, Borrowers shall pay to Agent, for
the ratable benefit of such Revolving Lenders, in arrears, on the first Business Day of each month
prior to the Commitment Termination Date and on the Commitment Termination Date, a Fee for
Borrowers’ non-use of available funds in an amount equal to the
Applicable Unused Line Fee Margin per annum (calculated on the basis of a 360 day year for
actual days elapsed) multiplied by the difference between (x) the Maximum Amount (as it may be
reduced from time to time) and (y) the average for the period of the daily closing balances of the
aggregate Revolving Loan and the Swing Line Loan outstanding during the period for which such Fee
is due.

          (c) If Borrowers prepay the Revolving Loan and reduce or terminate the Revolving Loan
Commitment on or prior to November 30, 2008, whether voluntarily or involuntarily and whether
before or after acceleration of the Obligations, or if the Revolving Loan Commitment is otherwise
terminated, Borrowers shall pay to Agent, for the benefit of Lenders, as liquidated damages and
compensation for the costs of being prepared to make funds available hereunder in an amount equal
to one percent (1%) multiplied by the amount of the reduction of the Revolving Loan Commitment;
provided that no such fee shall be payable after November 30, 2007, upon a termination of the
Revolving Loan Commitment and payment in full of the Obligations in conjunction with a Change of
Control.

11

 

          (d) Borrowers shall pay to Agent, for the ratable benefit of Revolving Lenders, the Letter of
Credit Fee as provided in Annex B.

     1.8 Receipt of Payments. Borrowers shall make each payment under this Agreement not
later than 2:00 p.m. (New York time) on the day when due in immediately available funds in Dollars
to the Collection Account. For purposes of computing Fees and determining Borrowing Availability
as of any date, all payments shall be deemed received on the Business Day on which immediately
available funds therefor are received in the Collection Account prior to 2:00 p.m. (New York time).
Payments received after 2:00 p.m. (New York time) on any Business Day or on a day that is not a
Business Day shall be deemed to have been received on the following Business Day. Solely for
purposes of calculating interest, all payments shall be deemed received on the first Business Day
following the Business Day on which immediately available funds therefor are received in the
Collection Account prior to 2 p.m. (New York time).

     1.9 Application and Allocation of Payments.

          (a) So long as no Event of Default has occurred and is continuing, (i) payments consisting of
proceeds of Accounts received in the ordinary course of business shall be applied, first,
to the Swing Line Loan and, second, the Revolving Loan; (ii) payments matching specific
scheduled payments then due shall be applied to those scheduled payments; and (iii) mandatory
prepayments shall be applied as set forth in Section 1.3(c). All payments and prepayments
applied to a particular Loan shall be applied ratably to the portion thereof held by each Lender as
determined by its Pro Rata Share. As to any other unscheduled payment, and as to all payments made
following the Commitment Termination Date, each Borrower hereby irrevocably waives the right to
direct the application of any and all payments received from or on behalf of such Borrower, and
each Borrower hereby irrevocably agrees that Agent shall have the
continuing exclusive right to apply any and all such payments against the Obligations of
Borrowers as Agent may deem advisable notwithstanding any previous entry by Agent in the Loan
Account or any other books and records. In the absence of a specific determination by Agent with
respect thereto, payments shall be applied to amounts then due and payable in the order set forth
in Section 1.3(c).

          (b) Agent is authorized to, and at its sole election may, charge to the Revolving Loan balance
on behalf of each Borrower and cause to be paid all Fees, expenses, Charges, costs (including
insurance premiums in accordance with Section 5.4(a)) and interest, owing by Borrowers
under this Agreement or any of the other Loan Documents if and to the extent Borrowers fail to pay
promptly any such amounts as and when due. At Agent’s option and to the extent permitted by law,
any charges so made shall constitute part of the Revolving Loan hereunder.

     1.10 Loan Account and Accounting. Agent, acting as agent for the Lenders and, solely
for purposes of Treasury Regulation Section 5f.103-1(c), each Borrower, shall maintain a loan
account (the “Loan Account”) on its books to record: all Advances, all Overadvances, all
Letter of Credit Obligations, all participations in the Letter of Credit Obligations, the amount of
the reimbursement obligations of the Borrower for each drawing made under a Letter of Credit, all
payments made by Borrowers, and all other debits and credits as provided in this Agreement with
respect to the Loans or any other Obligations, and each Borrower and Agent shall treat each

12

 

Person
whose name is entered in the Loan Account as a Lender or as an L/C Issuer, as the case may be, for
all purposes hereunder. All entries in the Loan Account shall be made in accordance with Agent’s
customary accounting practices as in effect from time to time. The balance in the Loan Account, as
recorded on Agent’s most recent printout or other written statement, shall, absent manifest error,
be presumptive evidence of the amounts due and owing to Agent and Lenders by each Borrower;
provided that any failure to so record or any error in so recording shall not limit or
otherwise affect any Borrower’s duty to pay the Obligations. Agent shall render to Borrower
Representative a monthly accounting of transactions with respect to the Revolving Loan and Swing
Line Loan setting forth the balance of the Loan Account for the immediately preceding month.
Unless Borrower Representative notifies Agent in writing of any objection to any such accounting
(specifically describing the basis for such objection), within thirty (30) days after the date
thereof, each and every such accounting shall be presumptive evidence of all matters reflected
therein. Only those items expressly objected to in such notice shall be deemed to be disputed by
Borrowers. Notwithstanding any provision herein contained to the contrary, any Lender may elect
(which election may be revoked) to dispense with the issuance of Notes to that Lender and may rely
on the Loan Account as evidence of the amount of Obligations from time to time owing to it.

     1.11 Indemnity.

          (a) Each Credit Party that is a signatory hereto shall jointly and severally indemnify and
hold harmless each of Agent, Lenders and their respective Affiliates, and each such Person’s
respective officers, directors, employees, attorneys, agents and representatives (each, an
“Indemnified Person”), from and against any and all suits, actions, proceedings, claims,
damages, losses, liabilities and expenses (including reasonable attorneys’ fees and disbursements
and other costs of investigation or defense, including those incurred upon any appeal) that may be
instituted or asserted against or incurred by any such Indemnified Person as the result of credit
having been extended, suspended or terminated under this Agreement and the other Loan Documents and
the administration of such credit, and in connection with or arising out of the transactions
contemplated hereunder and thereunder and any actions or failures to act in connection therewith,
including any and all Environmental Liabilities and legal costs and expenses arising out of or
incurred in connection with disputes between or among any parties to any of the Loan Documents
(collectively, “Indemnified Liabilities”); provided that (i) no such Credit Party
shall be liable for any indemnification to an Indemnified Person to the extent that any such suit,
action, proceeding, claim, damage, loss, liability or expense results from that Indemnified
Person’s gross negligence or willful misconduct and (ii) Indemnified Liabilities shall not include
any taxes, levies, imposts, deductions, charges or withholdings imposed by any Governmental
Authority, or any liabilities with respect thereto, that may be instituted or asserted or incurred
as the result of credit having been extended, suspended or terminated, the indemnification for
which shall be governed solely and exclusively by Section 1.13. NO INDEMNIFIED PERSON
SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR
THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH
SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A
RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER ANY

13

 

LOAN DOCUMENT OR AS A
RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

          (b) To induce Lenders to provide the LIBOR Rate option on the terms provided herein, if (i)
any LIBOR Loans are repaid in whole or in part prior to the last day of any applicable LIBOR Period
(whether that repayment is made pursuant to any provision of this Agreement or any other Loan
Document or occurs as a result of acceleration, by operation of law or otherwise); (ii) any
Borrower shall default in payment when due of the principal amount of or interest on any LIBOR
Loan; (iii) any Borrower shall refuse to accept any borrowing of, or shall request a termination
of, any borrowing of, conversion into or continuation of, LIBOR Loans after Borrower Representative
has given notice requesting the same in accordance herewith; or (iv) any Borrower shall fail to
make any prepayment of a LIBOR Loan after Borrower Representative has given a notice thereof in
accordance herewith, then Borrowers shall jointly and severally indemnify and hold harmless each
Lender from and against all losses, costs and expenses resulting from or arising from any of the
foregoing other than any loss, costs or expenses with respect to taxes, levies, imposts,
deductions, charges or withholdings imposed by any Governmental Authority, or any liabilities with
respect thereto, the indemnification for which shall be governed solely and exclusively by
Section 1.13; provided, that notwithstanding clause (i) of this Section
1.11(b), if at any time the mandatory prepayment of any Loan would result, after giving effect
to the procedures set forth in this Agreement, in Borrowers incurring costs as a result of LIBOR
Loans (“Affected LIBOR Loans”) being prepaid other than on the last
day of a LIBOR Period applicable thereto, which costs are required to be paid hereunder, then
Borrowers may, in their sole discretion, deposit amounts that otherwise would have been paid in
respect of the Affected LIBOR Loans with Agent (which amount must be equal in amount to the amount
of the Affected LIBOR Loans not immediately prepaid) to be held as a security for the obligations
of Borrowers to make such mandatory prepayment pursuant to a cash collateral agreement to be
entered into in form and substance reasonably satisfactory to the Agent, with such cash collateral
to be directly applied upon the first occurrence or occurrences thereafter of the last day of a
LIBOR Period applicable to the relevant Loan that is a LIBOR Loan (or such earlier date or dates as
shall be requested by Borrowers) to repay an aggregate principal amount of such Loan equal to the
Affected LIBOR Loans not initially repaid pursuant to this sentence. Such indemnification shall
include any loss (excluding loss of margin but including lost opportunity costs) or expense arising
from the reemployment of funds obtained by it or from fees payable to terminate deposits from which
such funds were obtained other than any loss or expense with respect to taxes, levies, imposts,
deductions, charges or withholdings imposed by any Governmental Authority, or any liabilities with
respect thereto, the indemnification for which shall be governed solely and exclusively by
Section 1.13. For the purpose of calculating amounts payable to a Lender under this
subsection, each Lender shall be deemed to have actually funded its relevant LIBOR Loan through the
purchase of a deposit bearing interest at the LIBOR Rate in an amount equal to the amount of that
LIBOR Loan and having a maturity comparable to the relevant LIBOR Period; provided that
each Lender may fund each of its LIBOR Loans in any manner it sees fit, and the foregoing
assumption shall be utilized only for the calculation of amounts payable under this subsection.
This covenant shall survive the termination of this Agreement and the payment of the Notes and all
other amounts payable hereunder. As promptly as practicable under the circumstances, each Lender
shall provide Borrower Representative with its written calculation of all amounts payable pursuant
to this Section 1.11(b), and such calculation shall be binding on the parties hereto unless
Borrower Representative shall object in

14

 

writing within ten (10) Business Days of receipt thereof,
specifying the basis for such objection in detail.

     1.12 Access. Each Credit Party that is a party hereto shall, during normal business
hours, from time to time upon five (5) days’ prior notice as frequently as Agent reasonably
determines to be appropriate: (a) provide Agent and any of its officers, employees and agents
access to its properties, facilities, advisors, officers and employees of each Credit Party and to
the Collateral, (b) permit Agent, and any of its officers, employees and agents, to inspect, audit
and make extracts from any Credit Party’s books and records, and (c) permit Agent, and its
officers, employees and agents, to inspect, review, evaluate and make test verifications and counts
of the Accounts, Inventory and other Collateral of any Credit Party. If an Event of Default has
occurred and is continuing, each such Credit Party shall provide such access to Agent and to each
Lender at all times and without advance notice. Furthermore, so long as any Event of Default has
occurred and is continuing, Borrowers shall provide Agent and each Lender with access to their
suppliers and customers. Each Credit Party shall make available to Agent and its counsel
reasonably promptly originals or copies of all books and records that Agent may reasonably request.
Each Credit Party shall deliver any document or instrument necessary for
Agent, as it may from time to time reasonably request, to obtain records from any service
bureau or other Person that maintains records for such Credit Party, and shall maintain duplicate
records or supporting documentation on media, including computer tapes and discs owned by such
Credit Party. Representatives of other Lenders may accompany Agent’s representatives on regularly
scheduled audits at no charge to Borrowers.

     1.13 Taxes.

          (a) Except as provided in this Section 1.13, any and all payments by each Borrower
hereunder (including any payments made pursuant to Section 12) or under the Notes shall be
made, in accordance with this Section 1.13, free and clear of and without deduction for any
and all present or future Taxes. If any Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder (including any sum payable pursuant to Section
12) or under the Notes, (i) the sum payable shall be increased as much as shall be necessary so
that after making all required deductions (including deductions applicable to additional sums
payable under this Section 1.13) Agent, Lenders or L/C Issuers, as applicable, receive an
amount equal to the sum they would have received had no such deductions been made, (ii) such
Borrower shall make such deductions, and (iii) such Borrower shall pay the full amount deducted to
the relevant taxing or other authority in accordance with applicable law. Within thirty (30) days
after the date of any payment of Taxes, Borrower Representative shall furnish to Agent the original
or a certified copy of a receipt evidencing payment thereof. In addition, each Borrower agrees to
pay any Other Taxes.

          (b) Each Credit Party that is a signatory hereto shall jointly and severally indemnify and,
within ten (10) days of written demand therefor, pay Agent, each Lender and each L/C Issuer for the
full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 1.13) paid by Agent or such Lender or
such L/C Issuer, as appropriate, and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, provided such written demand sets forth in reasonable
detail the basis and calculation of such amount.

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               (i) Each Lender, each L/C Issuer and each Agent that is not a United States person as defined
in Section 7701(a)(30) of the IRC (each, a “Foreign Lender”) as to which payments to be
made under this Agreement or under the Notes are fully exempt from United States withholding tax
under an applicable statute or tax treaty shall provide prior to or on the Closing Date to Borrower
Representative and Agent a properly completed and executed IRS Form W-8ECI or Form W-8BEN or other
applicable form, certificate or document prescribed by the IRS or the United States certifying as
to such Foreign Lender’s entitlement to such exemption (a “Certificate of Exemption”). Any
Person that is not a United States person as defined in Section 7701(a)(30) of the IRC that seeks
to become a Lender, an L/C Issuer or an Agent, as applicable, under this Agreement shall provide a
Certificate of Exemption to Borrower Representative and Agent prior to becoming a Lender, an L/C
Issuer or an Agent, as applicable, hereunder. No Person that is not a United States person as
defined in Section 7701(a)(30) of the IRC may become a Lender, an L/C Issuer or an Agent, as
applicable, hereunder if such Person
fails to deliver a Certificate of Exemption in advance of becoming a Lender, an L/C Issuer or
an Agent, as applicable.

               (ii) Each Lender, each L/C Issuer and each Agent that is a United States person as defined in
Section 7701(a)(30) of the IRC (each a “U.S. Lender”) shall provide prior to or on the
Closing Date (or on or prior to the date it becomes a party to this Agreement) to Borrower
Representative and Agent a properly completed and executed IRS Form W-9 (certifying that such U.S.
Lender is entitled to an exemption from United States backup withholding tax) or any successor
form. Solely for purposes of this Section 1.13, a U.S. Lender shall not include a Lender,
an L/C Issuer or an Agent that may be treated as an exempt recipient based on the indicators
described in Treasury Regulation Section 1.6049-4(c)(1)(ii).

               (iii) Each Lender, each L/C Issuer and Agent, from time to time after submitting the forms,
certificates or documents referred to in this Section 1.13, shall submit to the Borrower
Representative and the Agent such additional duly completed and signed copies of one or the other
such forms, certificates or documents (or such successor forms, certificates or other documents as
shall be adopted from time to time by the IRS or relevant taxing authorities) (A) on or before the
date that any such form, certificate, or document expires or becomes obsolete, (B) after the
occurrence of any event requiring a change in the most recent form, certificate or document
previously delivered by it to the Borrower Representative and Agent, (C) from time to time
thereafter if reasonably requested by the Borrower Representative or Agent and (D) as may be
appropriate under then current United States law or regulations to avoid United States withholding
taxes on payments in respect of any amounts to be received by such Lender, such L/C Issuer or such
Agent pursuant to this Agreement and/or the Notes.

               (iv) If Agent, any Lender or any L/C Issuer determines that it is unable to submit to the
Borrower Representative or the Agent any form, certificate or document that such Agent, such
Lender, or such L/C Issuer, as the case may be, is requested to submit pursuant to this Section
1.13, or that it is required to withdraw or cancel any such form, certificate or document, or
that any such form, certificate or document previously submitted has otherwise become ineffective
or inaccurate, such Agent, such Lender or such L/C Issuer, as the case may be, shall promptly
notify the Borrower Representative and Agent of such fact.

16

 

               (v) No Credit Party shall be required pursuant to this Section 1.13 to pay any
additional amount to, or to indemnify, any Lender, any L/C Issuer or Agent, as the case may be, to
the extent that (A) such Lender, such L/C Issuer or Agent becomes subject to Taxes subsequent to
the Closing Date (or, if applicable, subsequent to the date such Person becomes a party to this
Agreement) as a result of any change in the circumstances of such Lender, such L/C Issuer or Agent,
as the case may be (other than a change in applicable law), including without limitation a change
in the residence, place of incorporation, principal place of business or a change in the branch or
lending office of such Lender, such L/C Issuer or Agent, as the case may be, or as a result of the
sale by such Lender of participating interests in such Lender’s creditor position(s) hereunder; or
(B) such Taxes would not have been incurred but for the failure of such Lender, such L/C Issuer or
Agent, as the case may be, to provide to the Borrower Representative or Agent any form, certificate
or document that it was required so to do pursuant to Section 1.13 other than any form,
certificate or document required as a result of a change in law.

          (c) Each Lender and each L/C Issuer agrees that, upon the occurrence of any event giving rise
to the operation of Section 1.13(a) or Section 1.13(b) with respect to such Lender
or L/C Issuer, as the case may be, it will, if requested by a Credit Party, use reasonable
commercial efforts (subject to such Lender’s or L/C Issuer’s overall internal policies of general
application) to designate another lending office for any Loans or Letter of Credit Obligations
affected by such event with the object of avoiding the consequences of such event; provided
that such designation is made on terms that, in the reasonable judgment of such Lender or such L/C
Issuer, as the case may be, cause such Lender and its lending office(s) or such L/C Issuer and its
lending office(s), as the case may be, to suffer no economic, legal or regulatory disadvantage, and
provided, further, that nothing in this Section shall affect or postpone any of the
obligations of any Credit Party or the rights of any Lender or any L/C Issuer pursuant to
Section 1.13(a) or Section 1.13(b).

          (d) Notwithstanding any provision contained herein to the contrary, any indemnity with respect
to taxes, levies, imposts, deductions, charges or withholdings imposed by any Governmental
Authority, or any liabilities with respect thereto, shall be governed solely and exclusively by
this Section 1.13.

     1.14 Capital Adequacy; Increased Costs; Illegality.

          (a) If any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or
order regarding capital adequacy, reserve requirements or similar requirements or compliance by any
Lender with any request or directive regarding capital adequacy, reserve requirements or similar
requirements (whether or not having the force of law), in each case, adopted after the Closing
Date, from any central bank or other Governmental Authority increases or would have the effect of
increasing the amount of capital, reserves or other funds required to be maintained by such Lender
and thereby reducing the rate of return on such Lender’s capital as a consequence of its
obligations hereunder, then Borrowers shall from time to time upon demand by such Lender (with a
copy of such demand to Agent) pay to Agent, for the account of such Lender, additional amounts
sufficient to compensate such Lender for such reduction; provided, however, that Borrowers
shall not have any obligation under this Section 1.14(a) to pay any additional amount with
respect to taxes, levies, imposts, deductions, charges or withholdings imposed by any Governmental
Authority, or any liabilities with respect thereto, indemnification

17

 

for which shall be governed
solely and exclusively by Section 1.13. A certificate as to the amount of that reduction
and showing the basis of the computation thereof submitted by such Lender to Borrower
Representative and to Agent shall be presumptive evidence of the matters set forth therein.

          (b) If, due to either (i) the introduction of or any change in any law or regulation (or any
change in the interpretation thereof) or (ii) the compliance with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of law), in each case
adopted after the Closing Date, there shall be any increase in the cost to any Lender of agreeing
to make or making, funding or maintaining any Loan, then Borrowers shall from time to time, upon
demand by such Lender (with a copy of such demand to Agent), pay to Agent for the account of such
Lender additional amounts sufficient to compensate such
Lender for such increased cost; provided, however, that Borrowers shall not have any
obligation under this Section 1.14(b) to pay any additional amount with respect to taxes,
levies, imposts, deductions, charges or withholdings imposed by any Governmental Authority, or any
liabilities with respect thereto, indemnification for which shall be governed solely and
exclusively by Section 1.13. A certificate as to the amount of such increased cost,
submitted to Borrower Representative and to Agent by such Lender, shall be presumptive evidence of
the matters set forth therein. Each Lender agrees that, as promptly as practicable after it
becomes aware of any circumstances referred to above which would result in any such increased cost,
the affected Lender shall, to the extent not inconsistent with such Lender’s internal policies of
general application, use reasonable commercial efforts to minimize costs and expenses incurred by
it and payable to it by Borrowers pursuant to this Section 1.14(b).

          (c) Notwithstanding anything to the contrary contained herein, if the introduction of or any
change in any law or regulation (or any change in the interpretation thereof) shall make it
unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful, for
any Lender to agree to make or to make or to continue to fund or maintain any LIBOR Loan, then,
unless that Lender is able to make or to continue to fund or to maintain such LIBOR Loan at another
branch or office of that Lender without, in that Lender’s reasonable opinion, materially adversely
affecting it or its Loans or the income obtained therefrom, on notice thereof and demand therefor
by such Lender to Borrower Representative through Agent, (i) the obligation of such Lender to agree
to make or to make or to continue to fund or maintain LIBOR Loans shall terminate and (ii) each
Borrower shall forthwith prepay in full all outstanding LIBOR Loans owing by such Borrower to such
Lender, together with interest accrued thereon, unless Borrower Representative on behalf of such
Borrower, within five (5) Business Days after the delivery of such notice and demand, converts all
LIBOR Loans into Index Rate Loans.

          (d) Within thirty (30) days after receipt by Borrower Representative of written notice and
demand from any Lender (an “Affected Lender”) for payment of additional amounts or
increased costs as provided in Sections 1.13, 1.14(a) or 1.14(b), Borrower
Representative may, at its option, notify Agent and such Affected Lender of its intention to
replace the Affected Lender. So long as no Event of Default has occurred and is continuing,
Borrower Representative, with the consent of Agent, may obtain, at Borrowers’ expense, a
replacement Lender (“Replacement Lender”) for the Affected Lender, which Replacement Lender
must be reasonably satisfactory to Agent. If Borrowers obtain a Replacement Lender within ninety
(90)

18

 

days following notice of their intention to do so, the Affected Lender must sell and assign
its Loans and Commitments to such Replacement Lender for an amount equal to the principal balance
of all Loans held by the Affected Lender and all accrued interest and Fees with respect thereto
through the date of such sale and such assignment shall not require the payment of an assignment
fee to Agent; provided that Borrowers shall have reimbursed such Affected Lender for the
additional amounts or increased costs that it is entitled to receive under this Agreement through
the date of such sale and assignment. Notwithstanding the foregoing, Borrowers shall not have the
right to obtain a Replacement Lender if the Affected Lender rescinds its demand for increased costs
or additional amounts within 15 days following its receipt of Borrowers’ notice of intention to
replace such Affected Lender. Furthermore, if Borrowers give a notice of intention to replace and
do not so replace such Affected Lender within ninety (90) days thereafter, Borrowers’ rights under
this Section 1.14(d) shall terminate with respect to such
Affected Lender and Borrowers shall promptly pay all increased costs or additional amounts
demanded by such Affected Lender pursuant to Sections 1.13, 1.14(a) and
1.14(b), as applicable.

     1.15 Single Loan. Subject to Article XIII, all Loans to Borrowers and all of
the other Obligations of Borrowers arising under this Agreement and the other Loan Documents shall
constitute one general obligation of Borrowers secured, until the Termination Date, by all of the
Collateral.

     1.16 Eligible Accounts. All of the Accounts owned by any Collateral Party and
reflected in the most recent Borrowing Base Certificate delivered by Borrowers to Agent shall be
“Eligible Accounts” for purposes of this Agreement, except any Account to which any of the
exclusionary criteria set forth below applies. Agent shall have the right to establish, modify or
eliminate Reserves against Eligible Accounts from time to time in its reasonable credit judgment.
In addition, Agent reserves the right, at any time and from time to time after the Closing Date, to
adjust any of the criteria set forth below and to establish new criteria, and to adjust advance
rates with respect to Eligible Accounts, in its reasonable credit judgment, reflecting changes in
the collectability or realization values of such Accounts arising or discovered by Agent after the
Closing Date subject to the approval of Supermajority Revolving Lenders in the case of adjustments
or new criteria or changes in advance rates which have the effect of making more credit available.
Eligible Accounts shall not include any Account of any Collateral Party:

          (a) that does not arise from the actual and bona fide sale and delivery of goods by such
Collateral Party or the performance of services by such Collateral Party in the ordinary course of
its business transactions and in accordance with the terms and conditions contained in any
documents related thereto;

          (b) (i) upon which such Collateral Party’s right to receive payment is not absolute or is
contingent upon the fulfillment of any condition whatsoever or; (ii) as to which such Collateral
Party is not able to bring suit or otherwise enforce its remedies against the Account Debtor
through judicial process or (iii) if the Account represents a progress billing consisting of an
invoice for goods sold or used or services rendered pursuant to a contract under which the Account
Debtor’s obligation to pay that invoice is subject to such Collateral Party’s satisfactory
completion of any further performance under such contract or is subject to the equitable lien of a
surety bond issuer;

19

 

          (c) to the extent that any defense, counterclaim, setoff, recoupment or dispute is asserted or
may arise from time to time in respect of such Account;

          (d) that is not a true and correct statement of bona fide indebtedness incurred in the amount
of the Account for merchandise sold to or services rendered and accepted by the applicable Account
Debtor;

          (e) with respect to which an invoice, reasonably acceptable to Agent in form and substance,
has not been sent to the applicable Account Debtor;

          (f) that (i) is not owned by such Collateral Party or (ii) is subject to any Lien of any other
Person, other than Liens in favor of Agent, on behalf of itself and Lenders;

          (g) that arises from a sale to any director, officer, other employee or Affiliate of any
Credit Party, or to any entity that has any common officer or director with any Credit Party;

          (h) that is the obligation of an Account Debtor that is a foreign government, the United
States government or a political subdivision thereof, or any state, county or municipality or
department, agency or instrumentality thereof unless Agent, in its sole discretion, has agreed to
the contrary in writing and such Collateral Party, if necessary or desirable, has complied with
respect to such obligation with the Federal Assignment of Claims Act of 1940, the Financial
Administration Act (Canada), or any similar law or applicable state, county or municipal law
restricting assignment thereof or any equivalent law, rule or regulation in any other jurisdiction;

          (i) that is the obligation of an Account Debtor located outside of the United States, Puerto
Rico or Canada unless payment thereof is assured by a letter of credit assigned and delivered to
Agent, reasonably satisfactory to Agent as to form, amount and issuer; provided that
Accounts owing to Thermadyne International Corp. by Account Debtors located in the United Kingdom
and from European Account Debtors up to an aggregate maximum amount of $1,500,000 shall not be
subject to this Section 1.16(i);

          (j) to the extent such Collateral Party or any Subsidiary thereof is liable for goods sold or
services rendered by the applicable Account Debtor to such Collateral Party or any Subsidiary
thereof but only to the extent of the potential offset;

          (k) that arises with respect to goods that are delivered on a bill-and-hold, cash-on-delivery,
repurchase or return basis or placed on consignment, sale and return, approval, repurchase or
return, guaranteed or installment sale or other terms by reason of which the payment by the Account
Debtor is or may be conditional or contingent;

          (l) that is in default; provided, that, without limiting the generality of the
foregoing, an Account shall be deemed in default upon the occurrence of any of the following:

               (i) the Account is not paid within the earlier of: sixty (60) days following its due date or
ninety (90) days following its original invoice date;

20

 

               (ii) the Account Debtor obligated upon such Account suspends business, makes a general
assignment for the benefit of creditors or is unable or admits its inability to pay its debts as
they fall due or fails to pay its debts generally as they come due or by reason of actual or
anticipated financial difficulties, commences negotiations with one or more of its creditors with a
view to rescheduling or restructuring any of its indebtedness;

               (iii) the Account Debtor becomes an insolvent under administration or insolvent (each as
defined in the Corporations Act 2001 (Cwlth)), or has a controller appointed, or is in
receivership, in receivership and management, liquidation, in provisional liquidation, under
administration, wound up, subject to any arrangement, deed of company arrangement,
assignment or composition, protected from creditors under any statute, dissolved (other than
to carry out a reconstruction while solvent) or is otherwise unable to pay debts when they fall due
or has something similar happens;

               (iv) a petition is filed by or against any Account Debtor obligated upon such Account under
any bankruptcy law or any other federal, state or foreign (including any provincial) receivership,
insolvency relief or other law or laws for the relief of debtors (including without limitation, any
bankruptcy, dissolution, liquidation, administration, receivership, winding-up, reorganization or
similar proceedings in any jurisdiction); or

               (v) there are proceedings or actions which are threatened or pending against such Account
Debtor which might result in any material adverse change in such Account Debtor’s financial
condition (including, without limitation, receivership, any bankruptcy, dissolution, liquidation,
administration, winding-up, reorganization or similar proceedings in any jurisdiction).

          (m) that is the obligation of an Account Debtor if fifty percent (50%) or more of the Dollar
amount of all Accounts owing by that Account Debtor are ineligible under the other criteria set
forth in this Section 1.16;

          (n) as to which Agent’s Lien thereon, on behalf of itself and Lenders, is not a first priority
perfected Lien;

          (o) as to which any of the representations or warranties in the Loan Documents are untrue;

          (p) to the extent such Account is evidenced by a judgment, Instrument or Chattel Paper;

          (q) to the extent such Account exceeds any credit limit established by Agent, in its
reasonable credit judgment, following prior notice of such limit by Agent to Borrower
Representative;

          (r) to the extent that such Account, together with all other Accounts owing by such Account
Debtor and its Affiliates as of any date of determination exceed ten percent (10%) of all Eligible
Accounts; provided, however, that with respect to Accounts owing from Airgas, Inc.,
Praxair, Inc. and The BOC Group, or their respective successors and assigns, such percentage shall
be deemed to be fifteen percent (15%);

21

 

          (s) that is payable in any currency other than British Pounds Sterling, U.S. Dollars or Euros;

          (t) that represents interest payments or service charges.

     1.17 Eligible Inventory. All of the Inventory owned by any Collateral Party and reflected in the most recent Borrowing
Base Certificate delivered by Borrowers to Agent shall be “Eligible Inventory” for purposes
of this Agreement, except any Inventory to which any of the exclusionary criteria set forth below
applies. Agent shall have the right to establish, modify or eliminate Reserves against Eligible
Inventory from time to time in its reasonable credit judgment. In addition, Agent reserves the
right, at any time and from time to time after the Closing Date, to adjust any of the criteria set
forth below and to establish new criteria and to adjust advance rates with respect to Eligible
Inventory, in its reasonable credit judgment reflecting changes in the salability or realization
values of Inventory arising or discovered by Agent after the Closing Date, subject to the approval
of Supermajority Revolving Lenders in the case of adjustments or new criteria or changes in advance
rates which have the effect of making more credit available. Eligible Inventory shall not include
any Inventory of any Collateral Party (unless otherwise indicated below) that:

          (a) is not owned by such Collateral Party free and clear of all Liens and rights of any other
Person (including the rights of a purchaser that has made progress payments and the rights of a
surety that has issued a bond to assure such Collateral Party’s performance with respect to that
Inventory), except the Liens in favor of Agent, on behalf of itself and Lenders, and Permitted
Encumbrances in favor of landlords and bailees to the extent permitted in Section 5.9
hereof (subject to Reserves established by Agent in accordance with Section 5.9 hereof);

          (b) (i) is not located on premises owned, leased or rented by such Collateral Party and set
forth in Disclosure Schedule (3.2), or (ii) is stored at a leased location, unless Agent
has given its prior consent thereto and unless either (x) a reasonably satisfactory landlord waiver
has been delivered to Agent, or (y) Reserves reasonably satisfactory to Agent have been established
with respect thereto or (iii) is stored with a bailee or warehouseman unless a reasonably
satisfactory, acknowledged bailee letter has been received by Agent and Reserves reasonably
satisfactory to Agent have been established with respect thereto, or (iv) is located at an owned
location subject to a mortgage in favor of a lender other than Agent unless a reasonably
satisfactory mortgagee waiver has been delivered to Agent, or (v) is located at any site if the
aggregate book value of Inventory at any such location is less than $100,000;

          (c) is placed, purchased or sold on consignment (other than Eligible Consigned Inventory up to
an aggregate maximum amount of $2,000,000) or is in transit, except for Inventory in transit
between locations of Collateral Parties as to which Agent’s Liens have been perfected at origin and
destination, and except for Eligible In-Transit Inventory up to an aggregate maximum amount of
$5,000,000;

          (d) is covered by a negotiable document of title, unless such document has been delivered to
Agent with all necessary endorsements, free and clear of all Liens except those in favor of Agent
and Lenders;

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          (e) is obsolete, slow moving (in excess of two year’s supply), unsalable, unrentable,
shopworn, seconds, damaged, defective, unfit for sale, is being repaired, is not of good or
merchantable quality or does not meet all standards imposed by any Governmental Authority having
regulatory authority over such goods, their use, lease or sale;

          (f) consists of display items or packing or shipping materials, parts, manufacturing
supplies, work-in-process Inventory, replacement parts, prototypes or consists of unfinished goods;

          (g) consists of goods which have been returned by the buyer;

          (h) is not of a type held for sale in the ordinary course of such Collateral Party’s business;

          (i) is not subject to a first priority lien in favor of Agent on behalf of itself and Lenders,
subject to Permitted Encumbrances as set forth in clause (e) of the definition thereof
(subject to reserves satisfactory to Agent);

          (j) breaches any of the representations or warranties pertaining to Inventory set forth in the
Loan Documents;

          (k) consists of Hazardous Materials or goods that can be transported or sold only with
licenses that are not readily available;

          (l) is not covered by casualty insurance reasonably acceptable to Agent;

          (m) is subject to any patent or trademark license requiring the payment of royalties or fees
or requiring the consent of the licensor for a sale thereof by Agent;

          (n) includes any accumulated depreciation of such Inventory; or

          (o) has been leased pursuant to the terms of any capital lease, lease with a bargain option,
finance lease program or purchase lease or similar program.

     1.18 Conversion to Dollars. All valuations or computations of monetary amounts set
forth in this Agreement shall include the Dollar Equivalent of amounts of currencies other than
Dollars. In connection with all Dollar amounts set forth in this Agreement and the Loan Documents,
amounts in currencies other than Dollars shall be converted to Dollars in accordance with
prevailing exchange rates, as determined by Agent in its reasonable discretion, on the applicable
date. Unless otherwise specifically set forth in this Agreement, all monetary amounts shall be in
Dollars.

     1.19 Judgment Currency; Contractual Currency.

          (a) If, for the purpose of obtaining or enforcing judgment against any Credit Party in any
court in any jurisdiction, it becomes necessary to convert into any other currency (such other
currency being hereinafter in this Section 1.19 referred to as the “Judgment
Currency”) an amount due under any Loan Document in any currency (the “Obligation

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Currency”) other than the Judgment Currency, the conversion shall be made at the rate of
exchange prevailing on the Business Day immediately preceding (i) the date of actual payment
of the amount due, in the case of any proceeding in the courts of any jurisdiction that will give
effect to such conversion being made on such date, or (ii) the date on which the judgment is given,
in the case of any proceeding in the courts of any other jurisdiction (the applicable date as of
which such conversion is made pursuant to this Section 1.19 being hereinafter referred to
as the “Judgment Conversion Date”);

          (b) If, in the case of any proceeding in the court of any jurisdiction referred to in
Section 1.19(a), there is a change in the rate of exchange prevailing between the Judgment
Conversion Date and the date of actual receipt for value of the amount due, the applicable Credit
Party shall pay such additional amount (if any, but in any event not a lesser amount) as may be
necessary to ensure that the amount actually received in the Judgment Currency, when converted at
the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation
Currency which could have been purchased with the amount of the Judgment Currency stipulated in the
judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any
amount due from a Credit Party under this Section 1.19(b) shall be due as a separate debt
and shall not be affected by judgment being obtained for any other amounts due under or in respect
of any of the Loan Documents;

          (c) The term “rate of exchange” in this Section 1.19 means the rate of exchange at
which Agent would, on the relevant date at or about noon (New York City time), be able to sell the
Obligation Currency against the Judgment Currency to prime banks; and

          (d) Any amount received or recovered by Agent in respect of any sum expressed to be due to
them (whether for itself or as trustee for any other person) from any Credit Party under this
Agreement or under any of the other Loan Documents in a currency other than the currency (the
“contractual currency”) in which such sum is so expressed to be due (whether as a result of, or
from the enforcement of, any judgment or order of a court or tribunal of any jurisdiction, the
winding-up of a Credit Party or otherwise) shall only constitute a discharge of such Credit Party
to the extent of the amount of the contractual currency that Agent is able, in accordance with its
usual practice, to purchase with the amount of the currency so received or recovered on the date of
receipt or recovery (or, if later, the first date on which such purchase is practicable). If the
amount of the contractual currency so purchased is less than the amount of the contractual currency
so expressed to be due, such Credit Party shall indemnify Agent against any loss sustained by it as
a result, including the cost of making any such purchase other than losses resulting from the gross
negligence or willful misconduct of the Person seeking such indemnification.

2. CONDITIONS PRECEDENT

     2.1 Conditions to the Loans. This Agreement shall be effective on the date on which
all of the following conditions have been satisfied or provided for in a manner reasonably
satisfactory to Agent, or waived in writing by Agent:

          (a) Credit Agreement; Loan Documents. This Agreement or counterparts hereof shall
have been duly executed by, and delivered to, Borrowers, each other Credit Party,

24

 

Agent and
Lenders; and Agent shall have received such documents, instruments, agreements and legal opinions
as Agent shall reasonably request in connection with the transactions contemplated by this
Agreement and the other Loan Documents, including all those listed in the Closing Checklist
attached hereto as Annex D, each in form and substance reasonably satisfactory to Agent.

          (b) Payment of Fees. Borrowers shall have paid a closing fee of $200,000 to Agent on
behalf of the Lenders.

          (c) Opening Availability. Holdings and its Subsidiaries shall have Borrowing
Availability as of the close of business on the Closing Date (as calculated on a pro forma basis
with all trade payables being paid currently, expenses and liabilities being paid in the ordinary
course of business and without acceleration of sales or deterioration of working capital), after
giving effect to the consummation of the Related Transactions, of at least $20,000,000.

          (d) [Intentionally Omitted].

          (e) [Intentionally Omitted].

          (f) Environmental. Agent shall have received a confirmation, satisfactory in both form
and substance to Agent, from the Borrowers stating that no material change has occurred with
respect to any environmental liability of the Credit Parties since December 31, 2006.

          (g) Approvals. Agent shall have received (i) satisfactory evidence that the Credit
Parties have obtained all required consents and approvals of all Persons, including, without
limitation, all requisite Governmental Authorities, to the execution, delivery and performance of
this Agreement and the other Loan Documents and the consummation of the Related Transactions or
(ii) an officer’s certificate in form and substance reasonably satisfactory to Agent affirming that
no such consents or approvals are required.

          (h) Amendments to the Second Lien Credit Agreement. The Second Lien Credit Agreement
has been amended to permit the increase in Commitments hereunder and make the financial covenants
therein consistent with this Agreement and permit the release of Liens, guaranties and stock of the
Foreign Collateral Parties in accordance with Section 12.11 hereof.

     2.2 Further Conditions to Each Loan. Except as otherwise expressly provided herein,
no Lender shall be obligated to fund any Advance, convert or continue any Loan as a LIBOR Loan or
incur any Letter of Credit Obligation if, as of the date thereof:

          (a) any representation or warranty by any Credit Party contained herein or in any other Loan
Document is untrue or incorrect in any material respect as of such date as
determined by Agent or Requisite Lenders, except to the extent that such representation or
warranty expressly relates to an earlier date and except for changes therein expressly permitted or
expressly contemplated by this Agreement and Agent or Requisite Lenders have determined not to make
such Advance, convert or continue any Loan as LIBOR Loan or incur such Letter of Credit Obligation
or release funds from the Australian Blocked Account and/or the UK

25

 

Collection Accounts as a result
of the fact that such warranty or representation is untrue or incorrect in any material respect;

          (b) any Event of Default has occurred and is continuing or would result after giving effect to
any Advance (or the incurrence of any Letter of Credit Obligation), and Agent or Requisite Lenders
shall have determined not to make any Advance, convert or continue any Loan as a LIBOR Loan or
incur any Letter of Credit Obligation or release funds from the Australian Blocked Account and/or
the UK Collection Accounts as a result of that Event of Default;

          (c) after giving effect to any Advance (or the incurrence of any Letter of Credit
Obligations), the outstanding principal amount of the aggregate Revolving Loan would exceed the
lesser of the Borrowing Base and the Maximum Amount, in each case, less the then outstanding
principal amount of the Swing Line Loan.

The request by any Borrower for an Advance, the issuance of any Letter of Credit Obligations or the
conversion or continuation of any Loan into, or as, a LIBOR Loan constitute, as of the date
thereof, (i) a representation and warranty by Borrowers that the
conditions in this Section
2.2 have been satisfied and (ii) a reaffirmation by Borrowers of the cross-guaranty provisions
set forth in Section 12 and of the granting and continuance of Agent’s Liens, on behalf of
itself and Lenders, pursuant to the Collateral Documents.

3. REPRESENTATIONS AND WARRANTIES

          To induce Lenders to make the Loans and to incur the Letter of Credit Obligations, the Credit
Parties executing this Agreement, jointly and severally, make the following representations and
warranties to Agent and each Lender with respect to all Credit Parties, each and all of which shall
survive the execution and delivery of this Agreement.

     3.1 Corporate Existence; Compliance with Law; FEIN. Each Credit Party (a) is a
corporation, limited liability company or limited partnership duly organized, validly existing and
in good standing under the laws of its respective jurisdiction of incorporation or organization and
each Credit Party’s name as it appears in official filings in its state of incorporation or
organization, organization type, organization number, if any, issued by its state incorporation or
organization, and federal employer identification number are set forth in Disclosure Schedule
(3.1); (b) is duly qualified to conduct business and is in good standing in each other
jurisdiction where its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified could not reasonably be expected to have
a Material Adverse Effect; (c) has the requisite power and authority and the legal right to own,
pledge, mortgage or otherwise encumber and operate its
properties, to lease the property it operates under lease and to conduct its business as now
conducted or proposed to be conducted; (d) subject to specific representations regarding
Environmental Laws, has all licenses, permits, consents or approvals from or by, and has made all
material filings with, and has given all notices to, all Governmental Authorities having
jurisdiction, to the extent required for such ownership, operation and conduct, except where the
failure to do so could not reasonably be expected to have a Material Adverse Effect; (e) is in
compliance with its charter and bylaws or partnership or operating agreement, as applicable; and
(f) subject to specific representations set

26

 

forth herein regarding ERISA, Environmental Laws, tax
and other laws, is in compliance with all applicable provisions of law, except where the failure to
comply, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     3.2 Executive Offices, Collateral Locations. As of the Closing Date, the current
location of each Credit Party’s chief executive office, warehouses and premises at which any
Collateral with a fair market value in excess of $5,000 is located, and the United States and
Canadian ports of entry and the names and address for all customs brokers for Eligible In-Transit
Inventory are set forth in Disclosure Schedule (3.2), none of such locations has changed
within the one (1) month preceding the Closing Date and each Credit Party has only one jurisdiction
of incorporation or organization.

     3.3 Corporate Power, Authorization, Enforceable Obligations. The execution, delivery
and performance by each Credit Party of the Loan Documents to which it is a party and the creation
of all Liens provided for therein: (a) are within such Person’s power; (b) have been duly
authorized by all necessary corporate, limited liability company or limited partnership action, as
applicable; (c) do not contravene any provision of such Person’s charter, bylaws or partnership or
operating agreement, as applicable; (d) do not violate any law or regulation in its respective
jurisdiction, or any order or decree of any court or Governmental Authority in its respective
jurisdiction; (e) do not conflict with or result in the breach or termination of, constitute a
default under or accelerate or permit the acceleration of any performance required by, any
indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Person is a
party or by which such Person or any of its property is bound; (f) do not result in the creation or
imposition of any Lien upon any of the property of such Person, other than those in favor of Agent,
on behalf of itself and Lenders, pursuant to the Loan Documents; and (g) do not require the consent
or approval of any Governmental Authority or any other Person. Each of the Loan Documents shall be
duly executed and delivered by each Credit Party that is a party thereto and each such Loan
Document shall constitute a legal, valid and binding obligation of such Credit Party enforceable
against it in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     3.4 Financial Statements and Projections.

          (a) Financial Statements. The Financial Statements contemplated in paragraphs (a) and
(c) of Annex E for the Fiscal Month ended May 31, 2007 and the Fiscal Year ended December
31. 2006, respectively, have been delivered to Agent and have been prepared in accordance with GAAP
consistently applied throughout the periods covered (except as disclosed therein and except, with
respect to unaudited Financial Statements, for the absence of footnotes and normal year-end audit
adjustments) and present fairly in all material respects the financial position of the Persons
covered thereby as at the dates thereof and the results of their operations and cash flows for the
periods then ended.

          (b) [Intentionally Omitted].

27

 

          (c) Projections. The Projections prepared by Holdings reflecting projections for the
three year period beginning on January 1, 2007 on a month-by-month basis through December 31, 2007
(on a consolidated basis), and on a year-by-year basis thereafter (on a consolidated basis) are
attached hereto as Disclosure Schedule (3.4(c)).

     3.5 Material Adverse Effect. Between December 31, 2006 and the Closing Date: (a) no
Credit Party has incurred any obligations, contingent or noncontingent liabilities, liabilities for
Charges, long-term leases or unusual forward or long-term commitments that are not reflected in the
Projections and that, alone or in the aggregate, could reasonably be expected to have a Material
Adverse Effect, (b) no material contract, lease or other agreement or instrument has been entered
into by any Credit Party or has become binding upon any Credit Party’s assets and to Borrowers’
knowledge no law or regulation applicable to any Credit Party has been adopted that has had or
could reasonably be expected to have a Material Adverse Effect, and (c) no Credit Party is in
default and to the best of Borrowers’ knowledge no third party is in default under any material
contract, lease or other agreement or instrument, that alone or in the aggregate could reasonably
be expected to have a Material Adverse Effect. Since December 31, 2006 no event has occurred, that
alone or together with other events, could reasonably be expected to have a Material Adverse
Effect.

     3.6 Ownership of Property; Liens. As of the Closing Date, the real estate (“Real
Estate”) listed in Disclosure Schedule (3.6) constitutes all of the real property
owned, leased, subleased, or used by any Credit Party. Each Credit Party owns good and marketable
fee simple title to all of its owned Real Estate, and valid and marketable leasehold interests in
all of its leased Real Estate, all as described on Disclosure Schedule (3.6), and, if
requested by Agent, copies of all such leases or a summary of terms thereof reasonably satisfactory
to Agent have been delivered to Agent.
Disclosure Schedule (3.6) further describes any Real Estate with respect to which any
Credit Party is a lessor, sublessor or assignor as of the Closing Date. Each Credit Party also has
good and marketable title to, or valid leasehold interests in, all of its personal property and
assets. As of the Closing Date, none of the properties and assets of any Credit Party are subject
to any Liens other than Permitted Encumbrances and Liens in existence on the date hereof and
summarized on Disclosure Schedule (6.7), and there are no facts, circumstances or
conditions known to any Credit Party that may result in any Liens (including Liens arising under
Environmental Laws) other than Permitted Encumbrances. Each Credit Party has received all deeds,
assignments, waivers, consents, nondisturbance and attornment or similar agreements, bills of sale
and other documents, and has duly effected all recordings, filings and other actions necessary to
establish, protect and perfect such Credit Party’s right, title and interest in and to all such
Real Estate and other properties and assets. Disclosure Schedule (3.6) also describes any
purchase options, rights of first refusal or other similar contractual rights pertaining to any
Real Estate. As of the Closing Date, no portion of any Credit Party’s Real Estate has suffered any
material damage by fire or other casualty loss that has not heretofore been repaired and restored
in all material respects to its original condition or otherwise remedied. As of the Closing Date,
all material permits required to have been issued or appropriate to enable the Real Estate to be
lawfully occupied and used for all of the purposes for which it is currently occupied and used have
been lawfully issued and are in full force and effect.

     3.7 Labor Matters. Except as set forth on Disclosure Schedule (3.7), as of
the Closing Date (a) no strikes or other material labor disputes against any Credit Party are
pending or, to any

28

 

Credit Party’s knowledge, threatened; (b) hours worked by and payment made to
employees of each Credit Party materially comply with the Fair Labor Standards Act and each other
federal, state, local or foreign law applicable to such matters; (c) all payments due from any
Credit Party for employee health and welfare insurance have been paid or accrued as a liability on
the books of such Credit Party; (d) no Credit Party is a party to or bound by any collective
bargaining agreement, management agreement, consulting agreement, employment agreement, bonus,
restricted stock, stock option, or stock appreciation plan or agreement or any similar plan,
agreement or arrangement (and, if requested by Agent, true and complete copies of any agreements
described on Disclosure Schedule (3.7) have been delivered to Agent); (e) there is no
organizing activity involving any Credit Party pending or, to any Credit Party’s knowledge,
threatened by any labor union or group of employees; (f) there are no representation proceedings
pending or, to any Credit Party’s knowledge, threatened with the National Labor Relations Board (or
any comparable body outside the United States of America), and no labor organization or group of
employees of any Credit Party has made a pending demand for recognition; and (g) there are no
material complaints or charges against any Credit Party pending or, to the knowledge of any Credit
Party, threatened to be filed with any Governmental Authority in its respective jurisdiction or
arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or
termination of employment by any Credit Party of any individual.

     3.8 Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness.
Except as set forth in Disclosure Schedule (3.8), as of the Closing Date, no Credit
Party has any Subsidiaries, is engaged in any joint venture or partnership with any other Person,
or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Credit
Party (other than Holdings) is owned by each of the Stockholders and in the amounts set forth in
Disclosure Schedule (3.8). Except as set forth in Disclosure Schedule (3.8), there
are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant
to which any Credit Party may be required to issue, sell, repurchase or redeem any of its Stock or
other equity securities or any Stock or other equity securities of its Subsidiaries. Set forth on
Disclosure Schedule 3.8A is a corporate structure chart which shows in diagram form the
ownership of each of the Credit Parties and their Subsidiaries. All outstanding Indebtedness and
Guaranteed Indebtedness of each Credit Party as of the Closing Date (except for the Obligations) is
described in Section 6.3 (including Disclosure Schedule (6.3)).

     3.9 Government Regulation. No Credit Party is an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as
such terms are defined in the Investment Company Act of 1940. The making of the Loans by Lenders
to Borrowers, the incurrence of the Letter of Credit Obligations on behalf of Borrowers, the
application of the proceeds thereof and repayment thereof and the consummation of the Related
Transactions will not violate any provision of any such statute or any rule, regulation or order
issued by the Securities and Exchange Commission.

     3.10 Margin Regulations. No Credit Party is engaged, nor will it engage, principally
or as one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” any “margin stock” as such terms are defined in Regulation U of the
Federal Reserve Board as now and from time to time hereafter in effect (such securities being
referred to herein as “Margin Stock”). No Credit Party owns any Margin Stock, and none of
the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly
or

29

 

indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of
reducing or retiring any Indebtedness that was originally incurred to purchase or carry any Margin
Stock or for any other purpose that might cause any of the Loans or other extensions of credit
under this Agreement to be considered a “purpose credit” within the meaning of Regulations T, U or
X of the Federal Reserve Board. No Credit Party will take or permit to be taken any action that
might cause any Loan Document to violate any regulation of the Federal Reserve Board.

     3.11 Taxes.
All federal and other material tax returns, reports and statements, including information
returns, required by any Governmental Authority to be filed by any Credit Party have been filed
with the appropriate Governmental Authority, and all Charges have been paid prior to the date on
which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof
(excluding Charges or other amounts being contested in accordance with Section 5.2(b)
unless the failure to so file or pay would not reasonably be expected to result in fines, penalties
or interest in excess of $100,000 in the aggregate). Proper and accurate amounts have been
withheld by each Credit Party from its respective employees for all periods in compliance in all
material respects with all applicable federal, state, local and foreign laws and such withholdings
have been timely paid to the respective Governmental Authorities. Disclosure Schedule
(3.11) sets forth as of the Closing Date those taxable years for which any Credit Party’s tax
returns are currently being audited by the IRS or any other applicable Governmental Authority, and
any assessments or threatened assessments in connection with such audit, or otherwise currently
outstanding. Except as described in Disclosure Schedule (3.11), as of the Closing Date, no
Credit Party has executed or filed with the IRS or any other Governmental Authority any agreement
or other document extending, or having the effect of extending, the period for assessment or
collection of any Charges for any open periods. Except as set forth on Disclosure Schedule
(3.11), none of the Credit Parties and their respective predecessors are liable for any
Charges: (a) under any agreement (including any tax sharing agreements) or (b) to each Credit
Party’s knowledge, as a transferee. As of the Closing Date, no Credit Party has agreed or been
requested to make any adjustment under IRC Section 481(a), by reason of a change in accounting
method or otherwise, which would reasonably be expected to have a Material Adverse Effect.

     3.12 ERISA.

          (a) Disclosure Schedule (3.12) lists, as of the Closing Date, (i) all ERISA Affiliates
and (ii) all Plans, including Title IV Plans, Multiemployer Plans, and all Retiree Welfare Plans.
Copies of all such listed Plans, if requested by Agent, together with a copy of the latest form
IRS/DOL 5500-series, as applicable, for each such Plan, have been delivered to Agent. Except with
respect to Multiemployer Plans, each Qualified Plan has been determined by the IRS to qualify under
Section 401 of the IRC, the trusts created thereunder have been determined to be exempt from tax
under the provisions of Section 501 of the IRC, and nothing has occurred that would cause the loss
of such qualification or tax-exempt status. Each Plan is in compliance in all respects with the
applicable provisions of ERISA, the IRC and its terms, including the timely filing of all reports
required under the IRC or ERISA, except for non-compliance which would not have a Material Adverse
Effect. Neither any Credit Party nor ERISA Affiliate has failed to make any material contribution
or pay any material amount due as required by either Section 412 of the IRC or Section 302 of ERISA
or the terms of any such

30

 

Plan, except for non-compliance which would not have a Material Adverse
Effect. No “prohibited transaction,” as defined in Section 406 of ERISA and Section 4975 of the
IRC, has occurred with respect to any Plan, that would subject any Credit Party to a tax on
prohibited transactions imposed by Section 502(i) of ERISA or Section 4975 of the IRC, which would
have a Material Adverse Effect.

          (b) Except as set forth in Disclosure Schedule (3.12) or in the Company’s Financial
Statements provided to the Lenders from time to time or as would not have a Material Adverse
Effect: (i) no Title IV Plan has any material Unfunded Pension Liability; (ii) no ERISA Event has
occurred or is reasonably expected to occur; (iii) there are no pending, or to the knowledge of any
Credit Party, threatened material claims (other than claims for benefits in the normal course),
sanctions, actions or lawsuits, asserted or instituted against any Plan or any Credit Party or
ERISA Affiliate as fiduciary or sponsor of any Plan; (iv) no Credit Party or ERISA Affiliate has
incurred or reasonably expects to incur any material liability as a result of a complete or partial
withdrawal from a Multiemployer Plan; (v) within the last five years no Title IV Plan of any Credit
Party or ERISA Affiliate has been terminated, whether or not in a “standard termination” as that
term is used in Section 4041 of ERISA, nor has any Title IV Plan of any Credit Party or any ERISA
Affiliate (determined at any time within the last five years) with material Unfunded Pension
Liabilities been transferred outside of the “controlled group” (within the meaning of Section
4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate (determined at such time); and (iv) no
Credit Party or ERISA Affiliate has any material liability with respect to post-retirement benefit
obligations within the meaning of the FASB 106.

     3.13 No Litigation. No action, claim, lawsuit, demand, investigation or proceeding is
now pending or, to the knowledge of any Credit Party, threatened against any Credit Party, before
any Governmental Authority or before any arbitrator or panel of arbitrators (collectively,
“Litigation”), (a) that challenges any Credit Party’s right or power to enter into or
perform any of its obligations under the Loan Documents to which it is a party, or the validity or
enforceability of any Loan Document or any action taken thereunder, or (b) that has a reasonable
risk of being determined adversely to any Credit Party and that, if so determined, could reasonably
be expected to have a Material Adverse Effect. Except as set forth on Disclosure Schedule
(3.13), as of the Closing Date there is no Litigation pending or, to any Credit Party’s
knowledge, threatened, that seeks damages in excess of $250,000 or injunctive relief against, or
alleges criminal misconduct of, any Credit Party.

     3.14 Brokers. Except as set forth on Disclosure Schedule (3.14), no broker or
finder brought about the obtaining, making or closing of the Loans or the Related Transactions, and
no Credit Party or Affiliate thereof has any obligation to any Person in respect of any finder’s or
brokerage fees in connection therewith.

     3.15 Intellectual Property. As of the Closing Date, each Credit Party owns or has
rights to use all Intellectual Property necessary to continue to conduct its business as now
conducted by it or presently
proposed to be conducted by it. Each Patent, Trademark, and registered Copyright existing as
of the Closing Date and each material License in effect as of the Closing Date is listed, together
with application or registration numbers, as applicable, in Disclosure Schedule (3.15). To
its knowledge, each Credit Party conducts its business and affairs without infringement of or
interference with any Intellectual Property of any other Person

31

 

in any material respect. Except as
set forth in Disclosure Schedule (3.15), no Credit Party is aware of any material
infringement claim by any other Person with respect to any Intellectual Property.

     3.16 Full Disclosure. No information contained in this Agreement, any of the other
Loan Documents, Financial Statements or Collateral Reports or other written reports from time to
time prepared by any Credit Party and delivered hereunder or any written statement (other than the
Projections) prepared by any Credit Party and furnished by or on behalf of any Credit Party to
Agent or any Lender pursuant to the terms of this Agreement contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact necessary to make the
statements contained herein or therein, taken as a whole, not misleading in light of the
circumstances under which they were made.

     3.17 Environmental Matters.

          (a) Except as set forth in Disclosure Schedule (3.17), as of the Closing Date: (i) the
Real Estate is free of contamination from any Hazardous Material except for such contamination that
would not adversely impact the value or marketability of such Real Estate and that would not result
in Environmental Liabilities that could reasonably be expected to exceed $100,000; (ii) no Credit
Party has caused or suffered to occur any material Release of Hazardous Materials on, at, in,
under, above, to, from or about any of its Real Estate; (iii) the Credit Parties are and have been
in compliance with all Environmental Laws, except for such noncompliance that would not result in
Environmental Liabilities which could reasonably be expected to exceed $100,000; (iv) the Credit
Parties have obtained, and are in compliance with, all Environmental Permits required by
Environmental Laws for the operations of their respective businesses as presently conducted or as
proposed to be conducted, except where the failure to so obtain or comply with such Environmental
Permits would not result in Environmental Liabilities that could reasonably be expected to exceed
$100,000, and all such Environmental Permits are valid, uncontested and in good standing; (v) no
Credit Party is involved in operations or knows of any facts, circumstances or conditions,
including any Releases of Hazardous Materials, that are likely to result in any Environmental
Liabilities of such Credit Party which could reasonably be expected to exceed $100,000; (vi) there
is no Litigation arising under or related to any Environmental Laws, Environmental Permits or
Hazardous Material that seeks damages, penalties, fines, costs or expenses in excess of $100,000 or
injunctive relief against, or that alleges criminal misconduct by, any Credit Party; (vii) no
notice has been received by any Credit Party identifying it as a “potentially responsible party” or
requesting information under CERCLA or analogous state or foreign statutes, and to the knowledge of
the Credit Parties, there
are no facts, circumstances or conditions that may result in any Credit Party being identified
as a “potentially responsible party” under CERCLA or analogous state or foreign statutes; and
(viii) the Credit Parties have made available to Agent copies of all existing material
environmental reports, reviews and audits and all written information pertaining to actual or
potentially material Environmental Liabilities, in each case relating to any Credit Party.

          (b) Each Credit Party hereby acknowledges and agrees that Agent (i) is not now, and has not
ever been, in control of any of the Real Estate or any Credit Party’s affairs, and (ii) does not
have the capacity through the provisions of the Loan Documents or otherwise to

32

 

influence any Credit
Party’s conduct with respect to the ownership, operation or management of any of its Real Estate or
compliance with Environmental Laws or Environmental Permits.

     3.18 Insurance. Disclosure Schedule (3.18) lists all insurance policies of
any nature maintained, as of the Closing Date, for current occurrences by each Credit Party, as
well as a summary of the terms of each such policy.

     3.19 Deposit and Disbursement Accounts. Disclosure Schedule (3.19) lists all
banks and other financial institutions at which any Credit Party maintains deposit or other
accounts as of the Closing Date, including any Disbursement Accounts, and such Schedule correctly
identifies the name, address and telephone number of each depository, the name in which the account
is held, a description of the purpose of the account, and the complete account number therefor.

     3.20 Government Contracts. Except as set forth in Disclosure Schedule (3.20),
as of the Closing Date, no Credit Party is a party to any contract or agreement with any
Governmental Authority and no Credit Party’s Accounts are subject to the Federal Assignment of
Claims Act (31 U.S.C. Section 3727) or any similar state, local or foreign law.

     3.21 Customer and Trade Relations. As of the Closing Date, there exists no actual or,
to the knowledge of any Credit Party, threatened termination or cancellation of, or any material
adverse modification or change in: the business relationship of any Credit Party with any customer
or group of customers whose purchases during the preceding 12 months caused them to be ranked among
the ten largest
customers of such Credit Party; or the business relationship of any Credit Party with any
supplier essential to its operations.

     3.22 Bonding; Licenses. Except as set forth on Disclosure Schedule (3.22), as
of the Closing Date, no Credit Party is a party to or bound by any surety bond agreement or binding
requirement with respect to products or services sold by it or any trademark or patent license
agreement with respect to products sold by it.

     3.23 Solvency. Before and after giving effect to (a) the Loans and Letter of Credit
Obligations to be made or incurred on the Closing Date or such other date as Loans and Letter of
Credit Obligations requested hereunder are made or incurred, (b) the disbursement of the proceeds
of such Loans pursuant to the instructions of Borrower Representative; (c) the consummation of the
Related Transactions; and (d) the payment and accrual of all transaction costs in connection with
the foregoing, each Credit Party is and will be Solvent.

     3.24 Status of Holdings. Prior to the Closing Date, Holdings has not engaged in any
trade or business.

4. FINANCIAL STATEMENTS AND INFORMATION

     4.1 Reports and Notices.

          (a) Each Credit Party executing this Agreement hereby agrees that from and after the Closing
Date and until the Termination Date, it shall deliver to Agent or to Agent and Lenders,

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as required, the Financial Statements, notices, Projections and other information at the times, to the
Persons and in the manner set forth in Annex E.

          (b) Each Credit Party executing this Agreement hereby agrees that, from and after the Closing
Date and until the Termination Date, it shall deliver to Agent or to Agent and Lenders, as
required, the various Collateral Reports (including Borrowing Base Certificates in the form of
Exhibit 4.1(b)) at the times, to the Persons and in the manner set forth in Annex
F.

     4.2 Communication with Accountants.
Each Credit Party executing this Agreement authorizes (a) Agent and (b) so long as an Event of
Default has occurred and is continuing, each Lender, to communicate directly with its independent
certified public accountants, including KPMG, LLP, and authorizes those accountants and advisors to
communicate to Agent and each Lender information relating to any Credit Party with respect to the
business, results of operations and financial condition of any Credit Party.

5. AFFIRMATIVE COVENANTS

          Each Credit Party executing this Credit Agreement jointly and severally agrees as to all
Credit Parties that from and after the date hereof and until the Termination Date:

     5.1 Maintenance of Existence and Conduct of Business. Each Credit Party shall: do or
cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence in its jurisdiction of formation or organization, as applicable, and its material rights
and franchises; continue to conduct its business substantially as now conducted or as otherwise
permitted hereunder; at all times take all reasonable action to maintain, preserve and protect all
of its assets and properties used or useful in the conduct of its business, and keep the same in
good repair, working order and condition in all material respects (taking into consideration
ordinary wear and tear) and from time to time make, or cause to be made, all necessary or
appropriate repairs, replacements and improvements thereto consistent with industry practices; and
transact business only in such corporate and trade names as are set forth in Disclosure
Schedule (5.1).

     5.2 Payment of Charges.

          (a) Subject to Section 5.2(b), each Credit Party shall pay and discharge or cause to
be paid and discharged promptly all Charges payable by it, including (i) Charges imposed upon it,
its income and profits, or any of its property (real, personal or mixed) and all Charges with
respect to tax, social security and unemployment withholding with respect to its employees, (ii)
lawful claims for labor, materials, supplies and services or otherwise, and (iii) all storage or
rental charges payable to warehousemen or bailees, in each case, before any thereof shall become
past due, except in the case of clauses (ii) and (iii) where the failure to pay or
discharge such Charges would not result in aggregate liabilities in excess of $200,000.

          (b) Each Credit Party may in good faith contest, by appropriate proceedings, the validity or
amount of any Charges, Taxes or claims described in Section 5.2(a); provided that
(i) adequate reserves with respect to such contest are maintained on the books of such Credit
Party, in accordance with GAAP; (ii) no Lien shall be imposed to secure payment of such Charges in
excess of $1,000,000 (other than payments to warehousemen and/or bailees) that is

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superior to any
of the Liens securing the Obligations and such contest is maintained and prosecuted continuously
and with diligence and operates to suspend collection or enforcement of such Charges; (iii) none of
the Collateral becomes subject to forfeiture or loss as a result of such
contest; and (iv) such Credit Party shall promptly pay or discharge such contested Charges,
Taxes or claims and all additional charges, interest, penalties and expenses, if any, and shall
deliver to Agent evidence reasonably acceptable to Agent of such compliance, payment or discharge,
if such contest is terminated or discontinued adversely to such Credit Party or the conditions set
forth in this Section 5.2(b) are no longer met.

     5.3 Books and Records. Each Credit Party shall keep adequate books and records with
respect to its business activities in which proper entries, reflecting all financial transactions,
are made in accordance with GAAP and on a basis consistent with the Financial Statements.

     5.4 Insurance; Damage to or Destruction of Collateral.

          (a) The Credit Parties shall, at their sole cost and expense, maintain the policies of
insurance described on Disclosure Schedule (3.18) as in effect on the date hereof or
otherwise in form and amounts and with insurers reasonably acceptable to Agent. Such policies of
insurance (or the loss payable and additional insured endorsements delivered to Agent) shall
contain provisions pursuant to which the insurer agrees to provide thirty (30) days prior written
notice to Agent in the event of any non-renewal, cancellation or amendment of any such insurance
policy. If any Credit Party at any time or times hereafter shall fail to obtain or maintain any of
the policies of insurance required above, or to pay all premiums relating thereto, Agent may at any
time or times thereafter obtain and maintain such policies of insurance and pay such premiums and
take any other action with respect thereto that Agent deems advisable. Agent shall have no
obligation to obtain insurance for any Credit Party or pay any premiums therefor. By doing so,
Agent shall not be deemed to have waived any Event of Default arising from any Credit Party’s
failure to maintain such insurance or pay any premiums therefor. All sums so disbursed, including
reasonable attorneys’ fees, court costs and other charges related thereto, shall be payable on
demand by Borrowers to Agent and shall be additional Obligations hereunder secured by the
Collateral.

          (b) Each Credit Party shall deliver to Agent, in form and substance reasonably satisfactory to
Agent, endorsements to (i) all “All Risk” and business interruption insurance naming Agent, on
behalf of itself and Lenders, as loss payee, and (ii) all general liability and other liability
policies naming Agent, on behalf of itself and Lenders, as additional insured. Each Credit Party
irrevocably makes, constitutes and appoints Agent (and all officers, employees or agents designated
by Agent), so long as any Event of Default has occurred and is continuing or the anticipated
insurance proceeds exceed $1,000,000, as such Credit Party’s true and lawful agent and
attorney-in-fact for the purpose of making, settling and adjusting claims under such “All Risk”
policies of insurance, endorsing the name of such Credit Party on any check or other item of
payment for the proceeds of such “All Risk” policies of insurance and for making all determinations
and decisions with respect to such “All Risk” policies of insurance. Agent shall have no duty to
exercise any rights or powers granted to it pursuant to the foregoing power-of-
attorney. Borrower Representative shall promptly notify Agent of any loss, damage, or
destruction to the Collateral in the amount of $1,000,000 or more, whether or not covered by
insurance. After deducting from such proceeds (i) the expenses incurred by Agent in the

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collection or handling thereof, and (ii) amounts required to be paid to creditors (other than Lenders) having
Permitted Encumbrances, Agent may, at its option, apply such proceeds to the reduction of the
Obligations in accordance with Section 1.3(c); provided, that in the case of
insurance proceeds pertaining to any Credit Party that is not a Borrower, such insurance proceeds
shall be applied ratably to all of the Loans owing by the Borrowers, or permit or require the
applicable Credit Party to use such money, or any part thereof, to replace, repair, restore or
rebuild the Collateral in a diligent and expeditious manner with materials and workmanship of
substantially the same quality as existed before the loss, damage or destruction. Notwithstanding
the foregoing, if the casualty giving rise to such insurance proceeds could not reasonably be
expected to have a Material Adverse Effect and such insurance proceeds do not exceed $1,000,000 in
the aggregate, Agent shall permit the applicable Credit Party to replace, restore, repair or
rebuild the property; provided that if such Credit Party shall not have completed or
entered into binding agreements, within 180 days of such casualty, or in the case of real property,
12 months of such casualty, to complete such replacement, restoration, repair or rebuilding within
180 days of such casualty, Agent may apply such insurance proceeds to the Obligations in accordance
with Section 1.3(c); provided, further, that in the case of insurance proceeds
pertaining to any Credit Party that is not a Borrower, such insurance proceeds shall applied
ratably to all of the Loan owing by the Borrowers. All insurance proceeds that are to be made
available to any Credit Party to replace, repair, restore or rebuild the Collateral shall be
applied by Agent to reduce the outstanding principal balance of the Revolving Loan (which
application shall not result in a permanent reduction of the Revolving Loan Commitment) and upon
such application, Agent shall establish a Reserve against the Borrowing Base in an amount equal to
the amount of such proceeds so applied. All insurance proceeds made available to any Credit Party
that is not a Borrower to replace, repair, restore or rebuild Collateral shall be deposited in a
cash collateral account. Thereafter, such funds shall be made available to that Credit Party to
provide funds to replace, repair, restore or rebuild the Collateral as follows: (i) Borrower
Representative shall request a Revolving Credit Advance or a release from the cash collateral
account be made to such Credit Party in the amount requested to be released; (ii) so long as the
conditions set forth in Section 2.2 have been met, Revolving Lenders shall make such
Revolving Credit Advance; or Agent shall release funds from the cash collateral account; and (iii)
in the case of insurance proceeds applied against the Revolving Loan, the Reserve established with
respect to such insurance proceeds shall be reduced by the amount of such Revolving Credit Advance.
To the extent not used to replace, repair, restore or rebuild the Collateral, such insurance
proceeds shall be applied in accordance with Section 1.3(c); provided, that in the
case of insurance proceeds pertaining to any Credit Party that is not a Borrower, such insurance
proceeds shall be applied to the Loans.

     5.5 Compliance with Laws. Each Credit Party shall comply with all federal, state,
local and foreign laws and regulations applicable to it, including those relating to ERISA, labor
laws, and Environmental
Laws and Environmental Permits, except to the extent that the failure to comply, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

     5.6 Supplemental Disclosure. From time to time as may be reasonably requested by
Agent (which request will not be made more frequently than once each year absent the occurrence and
continuance of an Event of Default) or at Credit Parties’ election, the Credit Parties shall
supplement each Disclosure Schedule hereto, or any representation herein or in any

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other Loan Document, with respect to any matter hereafter arising that, if existing or occurring at the date
of this Agreement, would have been required to be set forth or described in such Disclosure
Schedule or as an exception to such representation or that is necessary to correct any information
in such Disclosure Schedule or representation which has been rendered inaccurate thereby (and, in
the case of any supplements to any Disclosure Schedule, such Disclosure Schedule shall be
appropriately marked to show the changes made therein); provided that (a) no such
supplement to any such Disclosure Schedule or representation shall amend, supplement or otherwise
modify any Disclosure Schedule or representation, or be or be deemed a waiver of any Event of
Default resulting from the matters disclosed therein, except as consented to by Agent and Requisite
Lenders in writing, and (b) no supplement shall be required or permitted as to representations and
warranties that relate solely to the Closing Date.

     5.7 Intellectual Property. Each Credit Party will conduct its business and affairs
without infringement of or interference with any Intellectual Property of any other Person in any
material respect and shall comply in all material respects with the terms of its Licenses.

     5.8 Environmental Matters. Each Credit Party shall and shall cause each Person within
its control to: (a) conduct its operations and keep and maintain its Real Estate in compliance with
all Environmental Laws and Environmental Permits other than noncompliance that could not reasonably
be expected to have a Material Adverse Effect; (b) implement any and all investigation,
remediation, removal and response actions that are appropriate or necessary to maintain the value
and marketability of the Real Estate or to otherwise comply with Environmental Laws and
Environmental Permits pertaining to the presence, generation, treatment, storage, use, disposal,
transportation or Release of any Hazardous Material on, at, in, under, above, to, from or about any
of its Real Estate in all material respects; (c) notify Agent promptly after such Credit Party
becomes aware of any violation of Environmental Laws or Environmental Permits or any Release on,
at, in, under, above, to, from or about any Real Estate that is reasonably likely to result in
Environmental Liabilities in excess of $250,000; and (d) promptly forward to Agent a copy of any
order, notice, request for information or any
communication or report received by such Credit Party in connection with any such violation or
Release or any other matter relating to any Environmental Laws or Environmental Permits that could
reasonably be expected to result in Environmental Liabilities in excess of $250,000, in each case
whether or not the Environmental Protection Agency or any Governmental Authority has taken or
threatened any action in connection with any such violation, Release or other matter. If Agent at
any time has a reasonable basis to believe that there may be a violation of any Environmental Laws
or Environmental Permits by any Credit Party or any Environmental Liability arising thereunder, or
a Release of Hazardous Materials on, at, in, under, above, to, from or about any of its Real
Estate, that, in each case, could reasonably be expected to have a Material Adverse Effect, then
each Credit Party shall, upon Agent’s written request (i) cause the performance of such
environmental audits including subsurface sampling of soil and groundwater, and preparation of such
environmental reports, at Borrowers’ expense, as Agent may from time to time reasonably request,
which shall be conducted by reputable environmental consulting firms reasonably acceptable to Agent
and shall be in form and substance reasonably acceptable to Agent, and (ii) permit Agent or its
representatives to have access to all Real Estate for the purpose of conducting such environmental
audits and testing as Agent deems appropriate, including subsurface sampling of soil and
groundwater. Borrowers shall reimburse Agent for the

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costs of such audits and tests and the same
will constitute a part of the Obligations secured hereunder.

     5.9 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters and Real Estate Purchases.
Each Credit Party shall use commercially reasonable efforts to obtain a landlord’s agreement,
mortgagee agreement or bailee letter, as applicable, from the lessor of each leased property,
mortgagee of owned property or bailee with respect to any warehouse or manufacturing, processor,
converter or customs broker facility or other location where Collateral is stored or located that
has an aggregate fair market value or purchase price (whichever is higher, as determined by Agent)
in excess of $100,000 at any time from and after the date of this Agreement, which agreement or
letter shall contain a waiver or subordination of all Liens or claims that the landlord, mortgagee
or bailee may assert against the Collateral at that location, and shall otherwise be reasonably
satisfactory in form and substance to Agent. With respect to such locations or warehouse space
leased or owned as of the Closing Date and thereafter, if Agent has not received a landlord or
mortgagee agreement or bailee letter as of the Closing Date (or, if later, as of the date such
location is acquired or leased), any Borrower’s Eligible Inventory at that location shall, in
Agent’s discretion, be excluded from the Borrowing Base or be subject to such Reserves as may be
established by Agent in its reasonable credit judgment. After the Closing Date, no new real
property or new warehouse space shall be leased by any Credit Party and no Inventory shall be
shipped to a processor or converter under arrangements established after the Closing Date if the
Collateral to be stored or located at such location (i) has an aggregate fair market value or
purchase price (whichever is higher, as determined by Agent) in excess of $100,000 or (ii) has an
aggregate fair market value or purchase price (whichever is higher, as determined by Agent) when
aggregated with Collateral which has been stored at new real property or new warehouse spaces
leased after the Closing Date or shipped to a processor or converter under arrangements established
after the Closing Date in excess of $500,000, without
the prior written consent of Agent (which consent, in Agent’s reasonable discretion, may be
conditioned upon the establishment of Reserves acceptable to Agent) or, unless and until a
reasonably satisfactory landlord agreement or bailee letter, as appropriate, shall first have been
obtained with respect to such location. Each Credit Party shall timely and fully pay and perform
its obligations in all material respects under all leases and other agreements with respect to each
leased location or public warehouse where any Collateral is or may be located. In addition to the
foregoing, each of Tweco and Victor may store, keep or otherwise maintain (i) Inventory in an
amount not to exceed $12,000,000 in the aggregate, and (ii) other Collateral in an amount not to
exceed $6,000,000 in the aggregate, at any warehouse or facility operated in Mexico by Victor
Equipment de Mexico S.A. de C.V. (“Victor Mexico”) so long as Victor Mexico is a wholly
owned direct Subsidiary of any Borrower. To the extent otherwise permitted hereunder, if any
Credit Party proposes to acquire a fee ownership interest in Real Estate after the Closing Date, it
shall first provide to Agent a mortgage or deed of trust granting Agent a first priority Lien on
such Real Estate, together with environmental audits, mortgage title insurance commitment, real
property survey, local counsel opinion(s), and, if required by Agent, supplemental casualty
insurance and flood insurance, and such other documents, instruments or agreements reasonably
requested by Agent, in each case, in form and substance reasonably satisfactory to Agent.

     5.10 Collateral Reports.

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          From time to time at the request of Agent, the Collateral Parties will obtain and deliver to
Agent, in each case at Borrowers’ expense, an Inventory Appraisal and Equipment Appraisal in form
and substance and from appraisers reasonably satisfactory to Agent, stating the then current fair
market and Net Orderly Liquidation Values of the Inventory and Eligible Equipment;
provided, however, so long as no Default or Event of Default is continuing, Agent
shall not obtain or request an appraisal as to any particular category of Inventory or Equipment to
be performed more than one time, or, at Agent’s election, two times, during any year at Borrowers’
expense.

     5.11 Further Assurances. Each Credit Party executing this Agreement agrees that it
shall and shall cause each other Credit Party to, at such Credit Party’s expense and upon the
reasonable request of Agent, duly execute and deliver, or cause to be duly executed and delivered,
to Agent such further instruments and do and cause to be done such further acts as may be necessary
or proper (and in the case of the UK Security Documents preserve, establish or otherwise evidence
the fixed nature of such security) in the reasonable opinion of Agent to carry out more effectively
the provisions and purposes of this Agreement and each Loan Document.

     5.12 Refinancing of Second Lien Loan Obligations. Unless the Second Lien Loan
Obligations are prepaid in accordance with
Section 6.3(b)(viii), no later than April 30,
2010, the Second Lien Loan Obligations shall be
refinanced or the terms and provisions of the Second Lien Loan Documents shall be amended, in
each case on terms and conditions satisfactory to Agent in its sole discretion, so that the
Indebtedness refinancing the Second Lien Loan Obligations or the Indebtedness evidenced by the
amended Second Lien Loan Documents, as the case may be, matures no earlier than 92 days after the
fifth anniversary of the Closing Date, and is otherwise on terms and conditions no less favorable
to Agent or any Lender than the terms of the existing Second Lien Loan Documents and as permitted
by the Intercreditor Agreement.

6. NEGATIVE COVENANTS

          Each Credit Party executing this Agreement jointly and severally agrees as to all Credit
Parties that from and after the date hereof until the Termination Date:

     6.1 Mergers, Subsidiaries, Etc. No Credit Party shall, by operation of law or
otherwise, (a) form a new Subsidiary, unless otherwise permitted hereunder, or (b) merge or
amalgamate with, consolidate with, acquire all or substantially all of the assets or Stock of, or
otherwise combine with or acquire, any Person, except (i) any Borrower may merge, amalgamate or
consolidate with, or acquire the assets or Stock of any other Borrower, (ii) any Subsidiary of
Holdings that is not a Credit Party may merge, amalgamate or consolidate with, or acquire the
assets or Stock of another Subsidiary of Holdings that is not a Credit Party, (iii) any Borrower
may merge, amalgamate or consolidate with, or acquire the Stock or assets of any other Subsidiary
of Holdings that is a Credit Party, (iv) any Credit Party that is not a Borrower may merge,
amalgamate or consolidate with, or acquire the assets or Stock of any other Credit Party that is
not a Borrower, and (v) for transactions otherwise permitted under Sections 6.2 or
6.8; provided, that in the case of clause (iii) above, the continuing or
surviving Person, or the transferee, as the case may be, shall be a Borrower.

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     6.2 Investments; Loans and Advances. Except as otherwise expressly permitted by this
Section 6, no Credit Party shall, or shall cause or permit its Foreign Subsidiaries to,
make or permit to exist any investment in, or make, accrue or permit to exist loans or advances of
money to, any Person, through the direct or indirect lending of money, holding of securities or
otherwise, except: (a) that Borrowers and Foreign Subsidiaries may hold investments comprised of
notes payable issued by Account Debtors to any Borrower or any Foreign Subsidiary pursuant to
negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary
course of business consistent with past practices; (b) each Credit Party and Foreign Subsidiary may
maintain its existing investments in its Subsidiaries as of the Closing Date; (c) any Borrower may
make investments in any other Borrower; (d) any Foreign Subsidiary may make investments in any
other Foreign Subsidiaries; (e) any Borrower may make investments in any Credit Party (other
than Holdings) that is not a Borrower; provided that such investments in Credit Parties shall
not exceed $100,000 in the aggregate; (f) any Borrower may make investments in, or create, any
wholly-owned domestic Subsidiary, provided that such Subsidiary becomes a Borrower, the Stock of
such Subsidiary is pledged to Agent, and such Subsidiary grants Liens to Agent on all of its assets
to secure the Obligations, subject only to Permitted Encumbrances; (g) the Credit Parties (other
than Holdings) may make loans to Holdings, in lieu of distributions permitted under Section
6.14(d), the proceeds of which shall be used by Holdings solely to pay out of pocket expenses
for administrative, legal and accounting services provided by third parties that are reasonable and
customary and incurred in the ordinary course of business for such professional services, and to
pay franchise fees, costs and expenses associated with the issuance and maintenance of its capital
stock and similar costs and expenses, in an annual aggregate amount not to exceed $3,000,000 per
Fiscal Year after the Closing Date; (h) the Credit Parties (other than Holdings) may make loans to
Holdings, in lieu of distributions permitted under Section 6.14(e), the proceeds of which
shall be used by Holdings solely to pay taxes as part of a consolidated, combined or unitary group,
(i) any Borrower may make investments in, or create, any wholly-owned Foreign Subsidiary, such that
the aggregate amount of all investments in such direct Foreign Subsidiaries funded after Closing
Date shall not exceed $5,000,000 (exclusive of investments permitted in clause (k) of this
Section 6.2); provided that 65% of the stock of such direct Foreign Subsidiary
shall be pledged to secure the Obligations; provided further that to the extent a portion of the
$5,000,000 basket amount is invested in Thermadyne Victor Ltda. that portion of the basket amount
may be restored to the extent of cash received by any Borrower constituting proceeds of the sale of
assets or stock of Thermadyne Victor Ltda.; (j) any Credit Party or Foreign Subsidiary may maintain
advances, loans and investments in any of their Foreign Subsidiaries that are in existence as of
the date hereof, provided such advances, loans and investments are not increased; (k) any Credit
Party or Foreign Subsidiary may make investments in any of its Foreign Subsidiaries consisting of
the conversion of intercompany loans (but not intercompany accounts payable), outstanding as of the
Closing Date into equity; (l) so long as no Event of Default has occurred and is continuing and
there is no outstanding Revolving Loan balance, Borrowers may make investments, subject to Control
Letters in favor of Agent for the benefit of Lenders or otherwise subject to a perfected security
interest in favor of Agent for the benefit of Lenders, in (i) marketable direct obligations issued
or unconditionally guaranteed by the United States of America or any agency thereof maturing within
one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year
from the date of creation thereof and currently having the highest rating obtainable from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (iii) certificates of deposit
maturing no more

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than one year from the date of creation thereof issued by commercial banks incorporated
under the laws of the United States of America, each having combined capital, surplus and undivided
profits of not less than $300,000,000 and having a senior unsecured rating of “A” or better by a
nationally recognized rating agency (an “A Rated Bank”), (iv) time deposits maturing no
more than thirty (30) days from the date of creation thereof with A Rated Banks and (v) mutual
funds that invest solely in one or more of the investments described in clauses (i) through
(iv) above; (m) other investments by Credit Parties and Foreign Subsidiaries not exceeding
$100,000 in the aggregate at any time outstanding; (n) transactions permitted pursuant to
Section 6.4; (o) the Credit Parties may hold investments comprised of one or more
promissory notes equal to all or a portion of the purchase price paid by the buyer in connection
with the disposition of assets permitted hereunder or occurring prior to the date hereof; (p)
Capital Expenditures not prohibited by subsection (a) of Annex G and (q) investments by the
Borrowers in an aggregate amount not to exceed $2,500,000 in a Chinese Equity Joint Venture
Enterprise with Ningbo Longxing Group Corporation known in English as “Ningbo United Special
Welding Materials Company Limited”.

     6.3 Indebtedness.

          (a) No Credit Party shall, or shall cause or permit its Foreign Subsidiaries to, create,
incur, assume or permit to exist any Indebtedness, except (without duplication) (i) Indebtedness
secured by purchase money security interests and Capital Leases permitted in Section
6.7(d), (ii) the Loans and the other Obligations, (iii) unfunded pension fund and other
employee benefit plan obligations and liabilities to the extent they are permitted to remain
unfunded under applicable law, (iv) existing Indebtedness described in Disclosure Schedule
(6.3) and refinancings thereof or amendments or modifications thereto that do not have the
effect of increasing or decreasing the principal amount thereof or changing the amortization
thereof (other than to extend the same) and that are otherwise on terms and conditions no less
favorable to any Credit Party, Foreign Subsidiary, Agent or any Lender, as reasonably determined by
Agent, than the terms of the Indebtedness being refinanced, amended or modified, (v) Indebtedness
arising from investments, loans or advances among the Credit Parties and any other Subsidiary of
Holdings that are permitted under Section 6.2 (including extensions of the maturity
thereof), (vi) Indebtedness consisting of Guaranteed Indebtedness permitted pursuant to Section
6.6, (vii) Indebtedness owed to JP Morgan Chase Bank, N.A. or any of its banking affiliates in
respect of any liabilities arising from treasury, depository and cash management services or in
connection with any automated clearing house transfers of funds not to exceed $500,000 in the
aggregate at any time outstanding, (viii) Indebtedness consisting of hedging agreements providing
protection against fluctuations in currency values or commodity prices in connection with any
Borrower’s or any of its Subsidiaries’ operations, so long as management of such Borrower or such
Subsidiary, as the case may be, has determined that the entering into of any such hedging agreement
is a bona fide hedging activity (and is not for speculative purposes), (ix) Indebtedness of Foreign
Subsidiaries (excluding Capital Lease Obligations) in an aggregate outstanding principal amount not
to exceed $15,000,000, (x) Indebtedness consisting of intercompany loans and advances made by any
Borrower to any other Borrower; provided that: (A) each Borrower shall record all
intercompany transactions on its books and records in a manner reasonably satisfactory to Agent;
(B) the obligations of each Borrower under any such intercompany loans and advances shall be
subordinated in right of payment to the Obligations of such Borrower hereunder; (C) at the time any
such intercompany loan or advance is made by any Borrower to

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any other Borrower and after giving effect thereto, each such Borrower shall be Solvent; and
(D) no Event of Default would occur and be continuing after giving effect to any such proposed
intercompany loan; (xi) Indebtedness consisting of intercompany loans and advances made by any
Foreign Subsidiary to any other Foreign Subsidiary; (xii) obligations of any Credit Party under any
interest rate swap, cap or collar agreement or similar agreement or arrangement related to exposure
to interest rates with respect to not more than $50 million principal amount of Indebtedness in the
aggregate for all Credit Parties; (xiii) the High Yield Notes and (xiv) Indebtedness consisting of
Second Lien Loan Obligations of Borrowers to Second Lien Lenders (as defined in the Intercreditor
Agreement) under the Second Lien Credit Agreement in an aggregate principal amount not to exceed
$36,000,000.

          (b) No Credit Party shall, directly or indirectly, voluntarily purchase, redeem, defease or
prepay any principal of, premium, if any, interest or other amount payable in respect of any
Indebtedness prior to its scheduled amortization dates, other than:

               (i) the Obligations;

               (ii) Indebtedness secured by a Permitted Encumbrance if the asset securing such Indebtedness
has been sold or otherwise disposed of in accordance with Sections 6.8(b) or (c);

               (iii) Indebtedness permitted by Section 6.3(a)(iv) upon any refinancing thereof in
accordance with Section 6.3(a)(iv);

               (iv) other prepayments of Indebtedness (excluding any Subordinated Debt) not in excess of
$250,000 in the aggregate;

               (v) mandatory prepayments of the High Yield Notes with proceeds of “Asset Dispositions”, as
defined in, and to the extent required by, Section 4.06 of the Indenture;

               (vi) no more than once in any Fiscal Year within 30 days after Agent’s receipt of Borrowers’
annual Financial Statements in accordance with Annex E, a mandatory prepayment of the High
Yield Notes in an amount equal to the Excess Cash Flow Amount (as defined in that certain
Supplemental Indenture attached as Exhibit B (the “Indenture Amendment”) to the Limited
Consent and Fourteenth Amendment to Prior Credit Agreement dated as of May 9, 2006), the
calculation of which shall be reasonably satisfactory to Agent, and otherwise in accordance with
the amendments to the High Yield Notes specified in the Indenture Amendment, so long as Borrower
Representative has given three Business Days’ prior written notice to Agent of such proposed
prepayment and the following conditions shall be met:

                    (1) no Event of Default has occurred and is continuing both before and after giving effect to
such prepayment; and

                    (2) after giving effect to any such prepayment, the average daily Borrowing Availability, as
determined by the Agent, shall have been not less than the greater of (x) $20,000,000 (with all
trade payables being paid current in the ordinary course of business other than those being
contested in the ordinary course of business) and (y) 4.0% of

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revenue for the immediately preceding Fiscal Year as supported by the audited annual Financial
Statements for such Fiscal Year during the 30-day period immediately prior to such payment;

               (vii) voluntary prepayments of the High Yield Notes at any time during a Fiscal Year after the
mandatory prepayment of the High Yield Notes for that Fiscal Year as described in clause (vi) above
has been paid; provided that the following conditions shall be met:

                    (1) no Event of Default has occurred and is continuing both before and after giving effect to
such prepayment;

                    (2) after giving effect to such prepayment, average daily Borrowing Availability, as
determined by the Agent, shall have been not be less than $15,000,000 (with all trade payables
being paid current other than those being contested in the ordinary course of business) during the
30-day period immediately prior to such payment; and

                    (3) Borrowers shall deliver to Agent projections demonstrating that the average daily
Borrowing Availability shall not be less than $15,000,000 (with all trade payables being paid
currently) for the 30-day period after the date of such voluntary prepayment; and

               (viii) prepayment of the Second Lien Loan Obligations, as long as at the time of such
prepayment:

                    (1) no Event of Default has occurred and is continuing both before and after giving effect to
such prepayment;

                    (2) after giving effect to such prepayment, average daily Borrowing Availability, as
determined by the Agent, shall have been not be less than $15,000,000 (with all trade payables
being paid current other than those being contested in the ordinary course of business) during the
30-day period immediately prior to such payment; and

                    (3) Borrowers shall deliver to Agent projections demonstrating that the average daily
Borrowing Availability shall not be less than $15,000,000 (with all trade payables being paid
currently) for the 30-day period after the date of such voluntary prepayment.

     6.4 Employee Loans and Affiliate Transactions.

          (a) No Borrower shall enter into or be a party to any transaction with any other Credit Party
(other than other Borrowers) or any Affiliate thereof except in the ordinary course of and pursuant
to the reasonable requirements of such Borrower’s business and upon fair and reasonable terms that
are no less favorable to such Borrower than would be obtained in a comparable arm’s length
transaction with a Person not an Affiliate of such Borrower (except for transactions otherwise
expressly permitted hereunder). In addition, if any such transaction or series of related
transactions (other than purchases and sales of Inventory in the ordinary course of business)
involves payments in excess of $500,000 in the aggregate, the terms of these transactions must be
disclosed in advance to Agent and Lenders. All such transactions in excess of $500,000 existing as
of the date hereof are described in Disclosure Schedule (6.4(a)).

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          (b) No Credit Party shall enter into any lending or borrowing transaction with any employees
of any Credit Party, except loans to its respective employees in the ordinary course of business
consistent with past practices for travel and entertainment expenses, relocation costs and similar
purposes and stock option financing up to a maximum of $1,000,000 in the aggregate at any one time
outstanding.

     6.5 Capital Structure and Business. If all or part of a Credit Party’s Stock is
pledged to Agent, that Credit Party shall not issue additional Stock. No Credit Party shall amend
its charter or bylaws in a manner that would adversely affect Agent or Lenders or such Credit
Party’s duty or ability to repay the Obligations. No Credit Party shall engage in any business
other than the businesses currently engaged in by it or businesses reasonably related thereto.

     6.6 Guaranteed Indebtedness. No Credit Party shall, or shall cause or permit its
Foreign Subsidiaries to, create, incur, assume or permit to exist any Guaranteed Indebtedness
except (a) by endorsement of instruments or items of payment for deposit to the general account of
any Credit Party, (b) for Guaranteed Indebtedness incurred for the benefit of any other Credit
Party if the primary obligation is expressly permitted by this Agreement, including without
limitation the guaranty of the High Yield Notes by the Collateral Parties and the guaranty of the
Second Lien Loan Obligations by the Credit Parties, and (c) Guaranteed Indebtedness incurred for
the benefit of any Foreign Subsidiary by any other Foreign Subsidiary if the primary obligation is
permitted by this Agreement.

     6.7 Liens. No Credit Party shall, or shall cause or permit its Foreign Subsidiaries
to, create, incur, assume or permit to exist any Lien on or with respect to its Accounts or any of
its other properties or assets (whether now owned or hereafter acquired) except for (a) Permitted
Encumbrances; (b) Liens in existence on the date hereof and summarized on Disclosure Schedule
(6.7) securing the Indebtedness described on Disclosure Schedule (6.3) and permitted
refinancings, extensions and renewals thereof, including extensions or renewals of any such Liens;
provided that the principal amount of the Indebtedness so secured is not increased and the
Lien does not attach to any other property; (c) any Liens granted by Foreign Subsidiaries to secure
Indebtedness permitted by Section 6.3(a); (d) Liens under any conditional sale or other
title retention agreements (including Capital Leases) or in connection with purchase money
Indebtedness with respect to Equipment and Fixtures acquired by (i) any Credit Party in the
ordinary course of business, involving the incurrence of an aggregate amount of purchase money
Indebtedness and Capital Lease Obligations of not more than $23,000,000 outstanding at any one time
for all such Liens and (ii) any Foreign Subsidiary in the ordinary course of business, involving
the incurrence of an aggregate amount of purchase money Indebtedness and Capital Lease Obligations
of not more than $6,500,000 (excluding any sale-leaseback transaction permitted under Section
6.12) outstanding at any one time for all such Liens; provided that, in each case, such
Liens attach only to the assets subject to such purchase money debt and such Indebtedness is
incurred within twenty (20) days following such purchase and does not exceed 100% of the purchase
price of the subject assets; and (e) other Liens securing Indebtedness not exceeding $250,000 in
the aggregate at any time outstanding, so long as such Liens do not attach to any Accounts or
Inventory. In addition, no Credit Party shall become a party to any agreement, note, indenture or
instrument, or take any other action, that would prohibit the creation of a Lien on any of its
properties or other assets in favor of Agent, on behalf of itself and

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Lenders, as additional collateral for the Obligations, except operating leases, Capital Leases
or Licenses which prohibit Liens upon the assets that are subject thereto.

     6.8 Sale of Stock and Assets. No Credit Party shall sell, transfer, convey, assign or
otherwise dispose of any of its properties or other assets, including the Stock of any of its
Subsidiaries (whether in a public or a private offering or otherwise) or any of its Accounts, other
than (a) the sale of Inventory in the ordinary course of business, (b) the sale or other
disposition by a Credit Party of Equipment, Fixtures or Real Estate that are obsolete or no longer
used or useful in such Credit Party’s business and having a book value not exceeding (i) $1,000,000
in the aggregate in any Fiscal Year without Agent’s consent and (ii) $2,000,000 in the aggregate in
any Fiscal Year without the consent of the Requisite Lenders, (c) the sale or discount of overdue
accounts receivable arising in the ordinary course of business, but only in connection with the
compromise or collection thereof; provided, that this sub-section (c) sales of Stock or assets of
any Subsidiary of Holdings in connection with a transaction permitted under Section 6.1(b)
or Sections 6.2(f) or (h), (d) the sale or other disposition of other Equipment and
Fixtures having a book value not exceeding $250,000 in the aggregate in any Fiscal Year and
$500,000 in the aggregate, and (e) as permitted in Section 6.2(k).

     6.9 ERISA. No Credit Party shall, or shall cause or permit any ERISA Affiliate to,
cause or permit to occur (i) an event that could result in the imposition of a Lien under Section
412 of the IRC or Section 302 or 4068 of ERISA or (ii) an ERISA Event to the extent such ERISA
Event would reasonably be expected to result in taxes, penalties and other liabilities in an
aggregate amount in excess of $250,000 in the aggregate.

     6.10 Financial Covenants. Borrowers shall not breach or fail to comply with any of
the Financial Covenants.

     6.11 Hazardous Materials.

          No Credit Party shall cause or permit a Release of any Hazardous Material on, at, in, under,
above, to, from or about any of the Real Estate where such Release would (a) violate in any
respect, or form the basis for any Environmental Liabilities under, any Environmental Laws or
Environmental Permits or (b) otherwise adversely impact the value or marketability of any of the
Real Estate or any of the Collateral, other than such violations or Environmental Liabilities that
could not reasonably be expected to have a Material Adverse Effect.

     6.12 Sale-Leasebacks.

          Except with respect to prior transactions set forth on Disclosure Schedule (6.12),
No Credit Party shall, or shall cause or permit its Foreign Subsidiaries to, engage in any
sale-leaseback or synthetic lease transaction involving any of its assets, except for transactions
not in excess of $2,000,000 in the aggregate for all Foreign Subsidiaries.

     6.13 Cancellation of Indebtedness.

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          No Credit Party shall cancel any claim or debt owing to it, except for reasonable
consideration negotiated on an arm’s length basis and in the ordinary course of its business
consistent with past practices (other than as permitted under Section 6.2(k)).

     6.14 Restricted Payments. No Credit Party shall make any Restricted Payment, except
(a) intercompany loans and advances between Borrowers to the extent permitted by Sections
6.2 and 6.3, (b) dividends and distributions by Subsidiaries of any Borrower paid to
such Borrower, (c) employee loans permitted under Section 6.4(b), (d) payments of principal
and interest on intercompany loans issued in accordance with Section 6.3, (e) distributions
to Holdings, the proceeds of which shall be applied by Holdings directly to pay out of pocket
expenses, for administrative, legal and accounting services provided by third parties that are
reasonable and customary and incurred in the ordinary course of business for such professional
services, or to pay franchise fees, costs and expenses associated with the issuance and maintenance
of its capital stock and similar costs and expenses, in an annual aggregate amount not in excess of
$3,000,000 per Fiscal Year, (f) distributions to Holdings in such amounts as are necessary to
enable Holdings to pay income taxes as part of a consolidated group when and as such income taxes
are due; provided that the aggregate amount distributed to pay such income taxes by Credit
Parties shall not exceed their proportionate share of such income taxes based on the taxable income
generated by the Credit Parties as compared to the taxable income generated by all of Holdings’
Subsidiaries and (g) distributions to Holdings, the proceeds of which will be used by Holdings to
make payments of interest on the High Yield Notes to the extent such payments are not barred under
Article X of the Indenture.

     6.15 Change of Corporate Name, State of Incorporation or Location; Change of Fiscal
Year.

          Without altering the restrictions on mergers involving Credit Parties herein contained, no
Credit Party shall (a) change its name as it appears in official filings in the jurisdiction of its
incorporation or other organization, (b) change its chief executive office, principal place of
business, corporate offices or warehouses or locations at which Collateral is held or stored, or
the location of its records concerning the Collateral, (c) change the type of entity that it is,
(d) change its organization identification number, if any, issued by its jurisdiction of
incorporation or other organization, or (e) change its jurisdiction of incorporation or
organization or incorporate or organize in any additional jurisdictions, in each case without at
least thirty (30) days prior written notice to Agent and after Agent’s written acknowledgment that
any reasonable action requested by Agent in connection therewith, including to continue the
perfection of any Liens in favor of Agent, on behalf of Lenders, in any Collateral, has been
completed or taken, and provided that any such new location shall be in the continental
United States. No Credit Party shall change its Fiscal Year.

     6.16 No Impairment of Intercompany Transfers. No Credit Party shall, or shall cause
or permit its Foreign Subsidiaries to, directly or indirectly enter into or become bound by any
agreement, instrument, indenture or other consensual obligation (other than this Agreement, the
other Loan Documents, the High Yield Notes and any loan documents executed in connection therewith
and any other documents reflecting Indebtedness permitted pursuant to Section 6.3) that
could directly or indirectly restrict, prohibit or require the consent of any Person with respect

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to the payment of dividends or distributions or the making or repayment of intercompany loans
by a Subsidiary of any Borrower to any Borrower or between Borrowers.

     6.17 Real Estate Purchases. No Credit Party shall purchase a fee simple ownership
interest in Real Estate with an aggregate purchase price in excess of $500,000.

     6.18 Changes Relating to High Yield Notes.

          No Credit Party shall change or amend the terms of any Subordinated Debt (or any indenture or
agreement in connection therewith) including, without limitation, the High Yield Notes other than
to add the Collateral Parties as guarantors, if the effect of such amendment is to: (a) increase
the interest rate on such Subordinated Debt; (b) change the dates upon which payments of principal
or interest are due on such Subordinated Debt other than to extend such dates; (c) change any
default or event of default other than to delete or make less restrictive any default provision
therein, or add any covenant with respect to such Subordinated Debt; (d) change the redemption or
prepayment provisions of such Subordinated Debt other than to extend the dates therefor or to
reduce the premiums payable in connection therewith; (e) grant any security or collateral to secure
payment of such Subordinated Debt; or (f) change or amend any other term if such change or
amendment would materially increase the obligations of the Credit Party thereunder or confer
additional material rights on the holder of such Subordinated Debt in a manner adverse to any
Credit Party, Agent or any Lender.

     6.19 Holdings. Holdings shall not engage in any trade or business other than as a
holding company for its Subsidiaries, or own any assets (other than Stock of its Subsidiaries or
interests in joint ventures permitted hereunder) or incur any Indebtedness or Guaranteed
Indebtedness (other than the Obligations and the High Yield Notes); provided, that Holdings
may guarantee leases and other contractual obligations of its Subsidiaries.

7. TERM

     7.1 Termination. The financing arrangements contemplated hereby shall be in effect
until the Commitment Termination Date, and the Loans and all other Obligations shall be
automatically due and payable in full on such date.

     7.2 Survival of Obligations Upon Termination of Financing Arrangements. Except as
otherwise expressly provided for in the Loan Documents, no termination or cancellation (regardless
of cause or procedure) of any financing arrangement under this Agreement shall in any way affect or
impair the obligations, duties and liabilities of the Credit Parties or the rights of Agent and
Lenders relating to any unpaid portion of the Loans or any other Obligations, due or not due,
liquidated, contingent or unliquidated, or any transaction or event occurring prior to such
termination, or any transaction or event, the performance of which is required after the Commitment
Termination Date. Except as otherwise expressly provided herein or in any other Loan Document, all
undertakings, agreements, covenants, warranties and representations of or binding upon the Credit
Parties, and all rights of Agent and each Lender, all as contained in the Loan Documents, shall not
terminate or expire, but rather shall survive any such termination or cancellation and shall
continue in full force and effect until the Termination Date; provided that

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the provisions of Section 11, the payment obligations under Sections 1.13 and
1.14, and the indemnities contained in the Loan Documents shall survive the Termination
Date.

8. EVENTS OF DEFAULT; RIGHTS AND REMEDIES

     8.1 Events of Default. The occurrence of any one or more of the following events
(regardless of the reason therefor) shall constitute an “Event of Default” hereunder:

          (a) Any Borrower (i) fails to make any payment of principal of the Loans or any of the other
Obligations when due and payable, (ii) fails to make any payment of interest on, or Fees owing in
respect of, the Loans or any of the other Obligations when due and payable, and such default shall
continue unremedied for more than three (3) days, or (iii) fails to pay or reimburse Agent or
Lenders for any expense reimbursable hereunder or under any other Loan Document within five (5)
days following Agent’s demand for such reimbursement or payment of expenses.

          (b) Any Credit Party fails or neglects to perform, keep or observe any of the provisions of
Sections 1.4, 1.6, 5.4(a), 5.13 or 6, or any of the provisions set forth in
Annexes C or G, respectively; provided that if the Credit Parties fail to comply
with the Enhanced Financial Covenants consisting of the Fixed Charge Coverage Ratio or minimum
EBITDA, no Event of Default shall occur (x) if the Cash Flow Portion has been repaid within 30 days
after such Default if the Senior Leverage Ratio at the time of such Default is less than 3.00 or
(y) if the Cash Flow Portion has been repaid within 10 days after such Default if the Senior
Leverage Ratio at the time of such Default is equal to or greater than 3.00.

          (c) Any Borrower fails or neglects to perform, keep or observe any of the provisions of
Section 4.1 or any provisions set forth in Annex E, and the same shall remain
unremedied for three (3) Business Days or more.

          (d) Any Credit Party fails or neglects to perform, keep or observe any other provision of this
Agreement or of any of the other Loan Documents (other than any provision embodied in or covered by
any other clause of this Section 8.1) and the same shall remain unremedied for twenty-five
(25) days or more.

          (e) A default or breach occurs under any other agreement, document or instrument to which any
Credit Party is a party that is not cured within any applicable grace period therefor, and such
default or breach (i) involves the failure to make any payment when due in respect of any
Indebtedness or Guaranteed Indebtedness (other than the Obligations) of any Credit Party in excess
of $500,000 in the aggregate (including amounts owing to all creditors under any combined or
syndicated credit arrangements), or (ii) causes, or permits any holder of such Indebtedness or
Guaranteed Indebtedness or a trustee to cause, Indebtedness or Guaranteed Indebtedness or a portion
thereof in excess of $500,000 in the aggregate to become due prior to its stated maturity or prior
to its regularly scheduled dates of payment, or cash collateral in respect thereof to be demanded,
in each case, regardless of whether such default is waived, or such right is exercised, by such
holder or trustee.

          (f) Any information contained in any Borrowing Base Certificate is untrue or incorrect in any
respect (other than (i) inadvertent, immaterial errors not exceeding $250,000 in

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the aggregate in any Borrowing Base Certificate, (ii) errors understating the Borrowing Base
or (iii) errors occurring when Borrowing Availability continues to exceed $10,000,000 after giving
effect to the correction of such errors), or any representation or warranty herein or in any Loan
Document or in any written statement, report, financial statement or certificate (other than a
Borrowing Base Certificate) made or delivered to Agent or any Lender by any Credit Party is untrue
or incorrect in any material respect as of the date when made or deemed made.

          (g) Assets of any Credit Party with a fair market value of $250,000 or more are attached,
expropriated, seized, levied upon or subjected to a writ, distress, warrant, sequestration,
execution or analogous procedure in any jurisdiction, or come within the possession of any
receiver, manager, administrative receiver, administrator, examiner, trustee, custodian,
supervisor, compulsory or interim manager, assignee or other similar officer acting for the benefit
of creditors of any Credit Party and such condition continues for twenty (20) days or more.

          (h) (i) A case or proceeding is commenced or petition or other filing is made against any
Credit Party seeking a decree or order in respect of such Credit Party (x) under the Bankruptcy
Code, or any other applicable federal, state or foreign bankruptcy or other similar law, (y)
appointing a custodian, receiver, receiver or manager, administrative receiver, administrator
examiner, trustee, supervisor, compulsory or interim manager, liquidator, assignee, trustee or
sequestrator (or similar official) for such Credit Party or for any substantial part of any such
Credit Party’s assets, or (z) ordering the winding-up, liquidation, bankruptcy, dissolution,
administration, examination or reorganization (by way of voluntary arrangement, scheme of
arrangement or otherwise) of the affairs of such Credit Party, and such case or proceeding shall
remain undismissed or unstayed for sixty (60) days or more or a decree or order granting the relief
sought in such case or proceeding is granted by a court of competent jurisdiction.

          (i) Any Credit Party (i) files a petition seeking relief under the Bankruptcy Code, or any
other applicable federal, state or foreign bankruptcy or other similar law, (ii) consents to or
fails to contest in a timely and appropriate manner the institution of proceedings thereunder or
the filing of any such petition or the appointment of or taking possession by a custodian,
receiver, manager, administrative receiver, administrator, examiner, trustee, supervisor,
compulsory or interim manager, liquidator, assignee, trustee or sequestrator (or similar official)
for such Credit Party or for any substantial part of any such Credit Party’s assets, (iii) makes an
assignment, composition, compromise or any arrangement for the benefit of creditors, (iv) takes any
action in furtherance of any of the foregoing; or (v) admits in writing its inability to, or is
generally unable to, pay its debts as such debts become due or suspends making payments.

          (j) A final judgment or judgments for the payment of money in excess of $1,000,000 in the
aggregate at any time are outstanding against one or more of the Credit Parties, and the same are
not, within thirty (30) days after the entry thereof, discharged or execution thereof stayed or
bonded pending appeal, or such judgments are not discharged prior to the expiration of any such
stay.

          (k) Any material provision of any Loan Document for any reason ceases to be valid, binding and
enforceable in accordance with its terms (or any Credit Party shall challenge

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the enforceability of any Loan Document or shall assert in writing, or engage in any action or
inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to
be or otherwise is not valid, binding and enforceable in accordance with its terms), or any Lien
created under any Loan Document ceases to be a valid and perfected first priority Lien (except as
otherwise permitted herein or therein) in any of the Collateral purported to be covered thereby
other than as a result of actions or omissions of Agent.

          (l) Any Change of Control occurs.

          (m) Any material uninsured claims relating to exposure to asbestos shall be asserted against
any Credit Party, which claims have a reasonable likelihood of success.

     8.2 Remedies.

          (a) If any Event of Default has occurred and is continuing, Agent may (and at the written
request of the Requisite Lenders shall), without notice, suspend the Revolving Loan facility with
respect to additional Advances and/or the incurrence of additional Letter of Credit Obligations,
whereupon any additional Advances and additional Letter of Credit Obligations shall be made or
incurred in Agent’s sole discretion (or in the sole discretion of the Requisite Lenders, if such
suspension occurred at their direction) so long as such Event of Default is continuing. If any
Event of Default has occurred and is continuing, Agent may (and at the written request of Requisite
Lenders shall), without notice except as otherwise expressly provided herein, increase the rate of
interest applicable to the Loans and the Letter of Credit Fees to the Default Rate.

          (b) If any Event of Default has occurred and is continuing, Agent may (and at the written
request of the Requisite Lenders shall), without notice: (i) terminate the Revolving Loan facility
with respect to further Advances or the incurrence of further Letter of Credit Obligations; and
(ii) reduce the Revolving Loan Commitment from time to time. If any Event of Default has occurred
and is continuing, Agent may (and at the written request of Requisite Lenders shall), without
notice: (i) declare all or any portion of the Obligations, including all or any portion of any Loan
to be forthwith due and payable, and require that the Letter of Credit Obligations be cash
collateralized in the manner set forth in Annex B, all without presentment, demand, protest
or further notice of any kind, all of which are expressly waived by Borrowers and each other Credit
Party; and (ii) exercise any rights and remedies provided to Agent under the Loan Documents or at
law or equity, including all remedies provided under the Code; provided that upon the
occurrence of an Event of Default specified in Sections 8.1(h) or (i), the
Commitments shall be immediately terminated and all of the Obligations, including the aggregate
Revolving Loan, shall become immediately due and payable without declaration, notice or demand by
any Person.

     8.3 Waivers by Credit Parties. Except as otherwise provided for in this Agreement or
by applicable law, each Credit Party waives (including for purposes of Section 12): (a)
presentment, demand and protest and notice of presentment, dishonor, notice of intent to
accelerate, notice of acceleration, protest, default, nonpayment, maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts, contract rights,
documents, instruments, chattel paper and guaranties at any time held by Agent on which any

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Credit Party may in any way be liable, and hereby ratifies and confirms whatever Agent may do
in this regard, (b) all rights to notice and a hearing prior to Agent’s taking possession or
control of, or to Agent’s replevy, attachment or levy upon, the Collateral or any bond or security
that might be required by any court prior to allowing Agent to exercise any of its remedies, and
(c) the benefit of all valuation, appraisal, marshaling and exemption laws.

9. ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT

     9.1 Assignment and Participations.

          (a) Subject to the terms of this Section 9.1, any Lender may make an assignment to a
Qualified Assignee of, or sell participations in, at any time or times, the Loan Documents, Loans,
Letter of Credit Obligations and any Commitment or any portion thereof or interest therein,
including any Lender’s rights, title, interests, remedies, powers or duties thereunder. Any
assignment by a Lender shall: (i) require the consent of Agent (which consent shall not be
unreasonably withheld or delayed with respect to a Qualified Assignee) and the execution of an
assignment agreement (an “Assignment Agreement”) substantially in the form attached hereto
as Exhibit 9.1(a) and otherwise in form and substance reasonably satisfactory to, and
acknowledged by, Agent; (ii) be conditioned on such assignee Lender representing to the assigning
Lender and Agent that it is purchasing the applicable Loans to be assigned to it for its own
account, for investment purposes and not with a view to the distribution thereof; (iii) after
giving effect to any such partial assignment, the assignee Lender shall have Commitments in an
amount at least equal to $2,500,000 and the assigning Lender shall have retained Commitments in an
amount at least equal to $2,500,000; (iv) include a payment to Agent of an assignment fee of
$3,500; and (v) so long as no Event of Default has occurred and is continuing, require the consent
of Borrower Representative, which shall not be unreasonably withheld or delayed, provided,
further, that an assignment will not be effective unless it is recorded by Agent in the
Loan Account. In the case of an assignment by a Lender under this Section 9.1, the
assignee shall have, to the extent of such assignment, the same rights, benefits and obligations as
all other Lenders hereunder, provided, however that such assignee shall not be entitled to receive
any greater payment under Section 1.13 than the assigning Lender would have received had
such assignment not occurred. The assigning Lender shall be relieved of its obligations hereunder
with respect to its Commitments or assigned portion thereof from and after the date of such
assignment. Each Borrower hereby acknowledges and agrees that any assignment shall give rise to a
direct obligation of Borrowers to the assignee and that the assignee shall be considered to be a
“Lender”. In all instances, each Lender’s liability to make Loans hereunder shall be several and
not joint and shall be limited to such Lender’s Pro Rata Share of the applicable Commitment. In
the event Agent or any Lender assigns or otherwise transfers all or any part of the Obligations,
Agent or any such Lender shall so notify Borrowers and Borrowers shall, upon the request of Agent
or such Lender, execute new Notes in exchange for the Notes, if any, being assigned.
Notwithstanding the foregoing provisions of this Section 9.1(a), (i) any Lender may at any
time pledge the Obligations held by it and such Lender’s rights under this Agreement and the other
Loan Documents to a Federal Reserve Bank, provided that no such pledge to a Federal Reserve
Bank shall release such Lender from such Lender’s obligations hereunder or under any other Loan
Document, and (ii) any Lender that is an investment fund may assign the Obligations held by it and
such Lender’s rights under this Agreement and the other Loan Documents to another investment fund
managed by the same investment advisor, provided further that such

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Lender shall notify Agent of any such assignment for purposes of maintaining the Loan Account
in accordance with Section 1.10 hereof, and such assignment will not become effective
unless such assignment is recorded in the Loan Account.

          (b) Any participation by a Lender of all or any part of its Commitments shall be made with the
understanding that all amounts payable by Borrowers hereunder shall be determined as if that Lender
had not sold such participation, and that the holder of any such participation shall not be
entitled to require such Lender to take or omit to take any action hereunder except actions
directly affecting (i) any reduction in the principal amount of, or interest rate or Fees payable
with respect to, any Loan in which such holder participates, (ii) any extension of the scheduled
amortization of the principal amount of any Loan in which such holder participates or the final
maturity date thereof, and (iii) any release of all or substantially all of the Collateral (other
than in accordance with the terms of this Agreement, the Collateral Documents or the other Loan
Documents). No Borrower or Credit Party shall have any obligation or duty to any participant.
Neither Agent nor any Lender (other than the Lender selling a participation) shall have any duty to
any participant and may continue to deal solely with the Lender selling a participation as if no
such sale had occurred. In addition, each Lender granting a participation under this Section
9.1 shall keep a register, meeting the requirements of Treasury Regulation Section 5f.103-1(c),
of each participant, specifying such participant’s entitlement to payments of principal and
interest with respect to such participation.

          (c) Except as expressly provided in this Section 9.1, no Lender shall, as between
Borrowers and that Lender, or Agent and that Lender, be relieved of any of its obligations
hereunder as a result of any sale, assignment, transfer or negotiation of, or granting of
participation in, all or any part of the Loans, the Notes or other Obligations owed to such Lender.

          (d) Each Credit Party executing this Agreement shall assist any Lender permitted to sell
assignments or participations under this Section 9.1 as reasonably required to enable the
assigning or selling Lender to effect any such assignment or participation, including the execution
and delivery of any and all agreements, notes and other documents and instruments as shall be
reasonably requested and, if requested by Agent, the preparation of informational materials for,
and the participation of management in meetings with and/or conference calls with, potential
assignees or participants. Each Credit Party executing this Agreement shall certify the
correctness, completeness and accuracy in all material respects of all descriptions of the Credit
Parties and their respective affairs contained in any selling materials provided by them and all
other information provided by them and included in such materials, except that any Projections
delivered by Borrowers shall only be certified by Borrowers as having been prepared by Borrowers in
compliance with the representations contained in Section 3.4(c) and shall be subject to
confidentiality covenants substantially equivalent to those contained in Section 11.8.

          (e) Any Lender may furnish any information concerning Credit Parties in the possession of such
Lender from time to time to assignees and participants (including prospective assignees and
participants); provided that such Lender shall obtain from assignees or participants
confidentiality covenants substantially equivalent to those contained in Section 11.8.

          (f) So long as no Event of Default has occurred and is continuing, no Lender shall assign or
sell participations in any portion of its Loans or Commitments to a potential

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Lender or participant, if, as of the date of the proposed assignment or sale, the assignee
Lender or participant would be subject to capital adequacy or similar requirements under
Section 1.14(a), increased costs under Section 1.14(b), an inability to fund LIBOR
Loans under Section 1.14(c), or withholding taxes in accordance with Section 1.13.

          (g) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”), may grant to a special purpose funding vehicle (an “SPC”), identified as such
in writing by the Granting Lender to Agent and Borrowers, the option to provide to Borrowers all or
any part of any Loans that such Granting Lender would otherwise be obligated to make to Borrowers
pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment
by any SPC to make any Loan; and (ii) if an SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such
Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if such Loan were made by such
Granting Lender. No SPC shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender). Any SPC may (i) with
notice to, but without the prior written consent of, Borrowers and Agent and assign all or a
portion of its interests in any Loans to the Granting Lender or to any financial institutions
(consented to by Borrowers and Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to
such SPC. This Section 9.1(g) may not be amended without the prior written consent of each
Granting Lender, all or any of whose Loans are being funded by an SPC at the time of such
amendment. For the avoidance of doubt, the Granting Lender shall for all purposes, including
without limitation, the approval of any amendment or waiver of any provision of any Loan Document
or the obligation to pay any amount otherwise payable by the Granting Lender under the Loan
Documents, continue to be the Lender of record hereunder. In addition, each Granting Lender (i)
shall keep a register, meeting the requirements of Treasury Regulation Section 5f.103-1(c), of each
SPC which has funded all or any part of any Loan that such Granting Lender would otherwise be
obligated to make to Borrowers pursuant to this Agreement, specifying such SPC’s entitlement to
payments of principal and interest with respect to such Loan and (ii) shall collect, prior to the
time such SPC receives payments with respect to such funded Loan, from each such SPC the
appropriate forms, certificates and statements described in Section 1.13 (and updated as
required by Section 1.13) as if such SPC were a Lender under Section 1.13.

          (h) For purposes of this Section 9.1 with respect to each Letter of Credit, if an L/C
Issuer transfers its rights with respect to a Borrower’s reimbursement obligation with respect to a
Letter of Credit, (i) such L/C Issuer shall give notice of such transfer to the Agent for notation
in the Loan Account, (ii) each such transfer shall be notated in the Loan Account and (iii) no such
transfer will be effective for purposes of this Agreement unless it has been recorded in the Loan
Account.

     9.2 Appointment of Agent. GE Capital is hereby appointed to act on behalf of all
Lenders as Agent under this Agreement and the other Loan Documents. The provisions of this
Section 9.2 are solely for the benefit of Agent and Lenders and no Credit Party nor any
other

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Person shall have any rights as a third party beneficiary of any of the provisions hereof. In
performing its functions and duties under this Agreement and the other Loan Documents, except to
the extent provided in Section 1.10, Agent shall act solely as an agent of Lenders and does
not assume and shall not be deemed to have assumed any obligation toward or relationship of agency
or trust with or for any Credit Party or any other Person. Agent shall have no duties or
responsibilities except for those expressly set forth in this Agreement and the other Loan
Documents. The duties of Agent shall be mechanical and administrative in nature and Agent shall
not have, or be deemed to have, by reason of this Agreement, any other Loan Document or otherwise a
fiduciary relationship in respect of any Lender. Except as expressly set forth in this Agreement
and the other Loan Documents, Agent shall not have any duty to disclose, and shall not be liable
for failure to disclose, any information relating to any Credit Party or any of their respective
Subsidiaries or any Account Debtor that is communicated to or obtained by GE Capital or any of its
Affiliates in any capacity. Neither Agent nor any of its Affiliates nor any of their respective
officers, directors, employees, agents or representatives shall be liable to any Lender for any
action taken or omitted to be taken by it hereunder or under any other Loan Document, or in
connection herewith or therewith, except for damages caused by its or their own gross negligence or
willful misconduct.

          If Agent shall request instructions from Requisite Lenders, Supermajority Revolving Lenders or
all affected Lenders with respect to any act or action (including failure to act) in connection
with this Agreement or any other Loan Document, then Agent shall be entitled to refrain from such
act or taking such action unless and until Agent shall have received instructions from Requisite
Lenders, Supermajority Revolving Lenders or all affected Lenders, as the case may be, and Agent
shall not incur liability to any Person by reason of so refraining. Agent shall be fully justified
in failing or refusing to take any action hereunder or under any other Loan Document (a) if such
action would, in the opinion of Agent, be contrary to law or the terms of this Agreement or any
other Loan Document, (b) if such action would, in the opinion of Agent, expose Agent to
Environmental Liabilities or (c) if Agent shall not first be indemnified to its satisfaction
against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. Without limiting the foregoing, no Lender shall have any right
of action whatsoever against Agent as a result of Agent acting or refraining from acting hereunder
or under any other Loan Document in accordance with the instructions of Requisite Lenders,
Supermajority Revolving Lenders or all affected Lenders, as applicable.

     9.3 Agent’s Reliance, Etc. Neither Agent nor any of its Affiliates nor any of their
respective directors, officers, agents or employees shall be liable for any action taken or omitted
to be taken by it or them under or in connection with this Agreement or the other Loan Documents,
except for damages caused by its or their own gross negligence or willful misconduct. Without
limiting the generality of the foregoing, Agent: (a) may treat the payee of any Note as the
holder thereof until Agent receives written notice of the assignment or transfer thereof signed by
such payee and in form reasonably satisfactory to Agent; (b) may consult with legal counsel,
independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts; (c) makes no warranty or representation to any Lender and shall
not be responsible to any Lender for any statements, warranties or representations made in or in
connection with this Agreement or the other Loan Documents; (d) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of

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the terms, covenants or conditions of this Agreement or the other Loan Documents on the part
of any Credit Party or to inspect the Collateral (including the books and records) of any Credit
Party; (e) shall not be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or the other Loan Documents or
any other instrument or document furnished pursuant hereto or thereto; and (f) shall incur no
liability under or in respect of this Agreement or the other Loan Documents by acting upon any
notice, consent, certificate or other instrument or writing (which may be by telecopy, telegram,
cable or telex) believed by it to be genuine and signed or sent by the proper party or parties.

     9.4 GE Capital and Affiliates. With respect to its Commitments hereunder, GE Capital
shall have the same rights and powers under this Agreement and the other Loan Documents as any
other Lender and may exercise the same as though it were not Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include GE Capital in its individual
capacity. GE Capital and its Affiliates may lend money to, invest in, and generally engage in any
kind of business with, any Credit Party, any of their Affiliates and any Person who may do business
with or own securities of any Credit Party or any such Affiliate, all as if GE Capital were not
Agent and without any duty to account therefor to Lenders. GE Capital and its Affiliates may
accept fees and other consideration from any Credit Party for services in connection with this
Agreement or otherwise without having to account for the same to Lenders. GE Capital owns certain
equity interests in Holdings. Each Lender acknowledges the potential conflict of interest between
GE Capital as owner of that equity investment and GE Capital as Agent.

     9.5 Lender Credit Decision. Each Lender acknowledges that it has, independently and
without reliance upon Agent or any other Lender and based on the Financial Statements referred to
in Section 3.4(a) and such other documents and information as it has deemed appropriate,
made its own credit and financial analysis of the Credit Parties and its own decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement. Each Lender acknowledges the potential conflict of interest of each other
Lender as a result of Lenders holding disproportionate interests in the Loans, and expressly
consents to, and waives any claim based upon, such conflict of interest.

     9.6 Indemnification. Lenders agree to indemnify Agent (to the extent not reimbursed
by Credit Parties and without limiting the obligations of Credit Parties hereunder), ratably
according to their respective Pro Rata Shares, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted
against Agent in any way relating to or arising out of this Agreement or any other Loan Document or
any action taken or omitted to be taken by Agent in connection therewith; provided that no
Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting from Agent’s gross
negligence or willful misconduct. Without limiting the foregoing, each Lender agrees to reimburse
Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including
reasonable counsel fees) incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through

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negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement and each other Loan Document, to the extent that Agent is
not reimbursed for such expenses by Credit Parties.

     9.7 Successor Agent. Agent may resign at any time by giving not less than thirty (30)
days’ prior written notice thereof to Lenders and Borrower Representative. Upon any such
resignation, the Requisite Lenders shall have the right to appoint a successor Agent. If no
successor Agent shall have been so appointed by the Requisite Lenders and shall have accepted such
appointment within thirty (30) days after the resigning Agent’s giving notice of resignation, then
the resigning Agent may, on behalf of Lenders, appoint a successor Agent, which shall be a Lender,
if a Lender is willing to accept such appointment, or otherwise shall be a commercial bank or
financial institution or a subsidiary of a commercial bank or financial institution if such
commercial bank or financial institution is organized under the laws of the United States of
America or of any State thereof and has a combined capital and surplus of at least $300,000,000.
If no successor Agent has been appointed pursuant to the foregoing, within thirty (30) days after
the date such notice of resignation was given by the resigning Agent, such resignation shall become
effective and the Requisite Lenders shall thereafter perform all the duties of Agent hereunder
until such time, if any, as the Requisite Lenders appoint a successor Agent as provided above. Any
successor Agent appointed by Requisite Lenders hereunder shall be subject to the approval of
Borrower Representative, such approval not to be unreasonably withheld or delayed; provided
that such approval shall not be required if a Default or an Event of Default has occurred and is
continuing. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall succeed to and become vested with all the rights, powers, privileges and
duties of the resigning Agent. Upon the earlier of the acceptance of any appointment as Agent
hereunder by a successor Agent or the effective date of the resigning Agent’s resignation, the
resigning Agent shall be discharged from its duties and obligations under this Agreement and the
other Loan Documents, except that any indemnity rights or other rights in favor of such resigning
Agent shall continue. After any resigning Agent’s resignation hereunder, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was acting as Agent under this Agreement and the other Loan Documents.

     9.8 Setoff and Sharing of Payments. In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights, upon the occurrence
and during the continuance of any Event of Default and subject to Section 9.9(f), each
Lender is hereby authorized at any time or from time to time, without prior notice to any Credit
Party or to any Person other than Agent, any such notice being hereby expressly waived, to offset
and to appropriate and to apply any and all balances held by it at any of its offices for the
account of any Borrower or Guarantor (regardless of whether such balances are then due to such
Borrower or Guarantor) and any other properties or assets at any time held or owing by that Lender
or that holder to or for the credit or for the account of any Borrower or Guarantor against and on
account of any of the Obligations that are not paid when due; provided that the Lender exercising
such offset rights shall give notice thereof to the affected Credit Party promptly after exercising
such rights. Any Lender exercising a right of setoff or otherwise receiving any payment on account
of the Obligations in excess of its Pro Rata Share thereof shall purchase for cash (and the other
Lenders or holders shall sell) such participations in each such other Lender’s or holder’s Pro Rata
Share of the Obligations as would be necessary to cause such Lender to

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share the amount so offset or otherwise received with each other Lender or holder in
accordance with their respective Pro Rata Shares (other than offset rights exercised by any Lender
with respect to Sections 1.11, 1.13 or 1.14). Each Lender’s obligation under this
Section 9.8 shall be in addition to and not in limitation of its obligations to purchase a
participation in an amount equal to its Pro Rata Share of the Swing Line Loans under Section
1.1. Each Credit Party that is a Borrower or Guarantor agrees, to the fullest extent permitted
by law, that (a) any Lender may exercise its right to offset with respect to amounts in excess of
its Pro Rata Share of the Obligations and may sell participations in such amounts so offset to
other Lenders and holders and (b) any Lender so purchasing a participation in the Loans made or
other Obligations held by other Lenders or holders may exercise all rights of offset, bankers’
lien, counterclaim or similar rights with respect to such participation as fully as if such Lender
or holder were a direct holder of the Loans and the other Obligations in the amount of such
participation. Notwithstanding the foregoing, if all or any portion of the offset amount or
payment otherwise received is thereafter recovered from the Lender that has exercised the right of
offset, the purchase of participations by that Lender shall be rescinded and the purchase price
restored without interest.

     9.9 Advances; Payments; Non-Funding Lenders; Information; Actions in Concert.

          (a) Advances; Payments.

               (i) Revolving Lenders shall refund or participate in the Swing Line Loan in accordance with
clauses (iii) and (iv) of Section 1.1(d). If the Swing Line Lender
declines to make a Swing Line Loan or if Swing Line Availability is zero, Agent shall notify
Revolving Lenders, promptly after receipt of a Notice of Revolving Credit Advance and in any event
prior to 1:00 p.m. (New York time) on the date such Notice of Revolving Advance is received, by
telecopy, telephone or other similar form of transmission. Each Revolving Lender shall make the
amount of such Lender’s Pro Rata Share of such Revolving Credit Advance available to Agent in same
day funds by wire transfer to Agent’s account as set forth in Annex H not later than 3:00
p.m. (New York time) on the requested funding date, in the case of an Index Rate Loan, and not
later than 12:00 noon (New York time) on the requested funding date, in the case of a LIBOR Loan.
After receipt of such wire transfers (or, in the Agent’s sole discretion, before receipt of such
wire transfers), subject to the terms hereof, Agent shall make the requested Revolving Credit
Advance to the Borrower designated by Borrower Representative in the Notice of Revolving Credit
Advance. All payments by each Revolving Lender shall be made without setoff, counterclaim or
deduction of any kind.

               (ii) Not less than once during each calendar week or more frequently at Agent’s election
(each, a “Settlement Date”), Agent shall advise each Lender by telephone, or telecopy of
the amount of such Lender’s Pro Rata Share of principal, interest and Fees paid for the benefit of
Lenders with respect to each applicable Loan. Provided that each Lender has funded all payments or
Advances required to be made by it and has purchased all participations required to be purchased by
it under this Agreement and the other Loan Documents as of such Settlement Date, Agent shall pay to
each Lender such Lender’s Pro Rata Share of principal, interest and Fees paid by Borrowers since
the previous Settlement Date for the benefit of such Lender on the Loans held by it. To the extent
that any Lender (a “Non-Funding Lender”) has failed to fund all such payments and Advances
or failed to fund the purchase of all such participations, Agent shall be entitled to set off the
funding short-fall against that Non-Funding

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Lender’s Pro Rata Share of all payments received from Borrowers. Such payments shall be made
by wire transfer to such Lender’s account (as specified by such Lender in Annex H or the
applicable Assignment Agreement) not later than 2:00 p.m. (New York time) on the next Business Day
following each Settlement Date.

          (b) Availability of Lender’s Pro Rata Share. Agent may assume that each Revolving
Lender will make its Pro Rata Share of each Revolving Credit Advance available to Agent on each
funding date. If such Pro Rata Share is not, in fact, paid to Agent by such Revolving Lender when
due, Agent will be entitled to recover such amount on demand from such Revolving Lender without
setoff, counterclaim or deduction of any kind. If any Revolving Lender fails to pay the amount of
its Pro Rata Share forthwith upon Agent’s demand, Agent shall promptly notify Borrower
Representative and Borrowers shall immediately repay such amount to Agent. Nothing in this
Section 9.9(b) or elsewhere in this Agreement or the other Loan Documents shall be deemed
to require Agent to advance funds on behalf of any Revolving Lender or to relieve any Revolving
Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that
Borrowers may have against any Revolving Lender as a result of any default by such Revolving Lender
hereunder. To the extent that Agent advances funds to any Borrower on behalf of any Revolving
Lender and is not reimbursed therefor on the same Business Day as such Advance is made, Agent shall
be entitled to retain for its account all interest accrued on such Advance until reimbursed by the
applicable Revolving Lender.

          (c) Return of Payments.

               (i) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that
a related payment has been or will be received by Agent from Borrowers and such related payment is
not received by Agent, then Agent will be entitled to recover such amount from such Lender on
demand without setoff, counterclaim or deduction of any kind.

               (ii) If Agent determines at any time that any amount received by Agent under this Agreement
must be returned to any Borrower or paid to any other Person pursuant to any insolvency law or
otherwise, then, notwithstanding any other term or condition of this Agreement or any other Loan
Document, Agent will not be required to distribute any portion thereof to any Lender. In addition,
each Lender will repay to Agent on demand any portion of such amount that Agent has distributed to
such Lender, together with interest at such rate, if any, as Agent is required to pay to any
Borrower or such other Person, without setoff, counterclaim or deduction of any kind.

          (d) Non-Funding Lenders. The failure of any Non-Funding Lender to make any Revolving
Credit Advance or any payment required by it hereunder or to purchase any participation in any
Swing Line Loan to be made or purchased by it on the date specified therefor shall not relieve any
other Lender (each such other Revolving Lender, an “Other Lender”) of its obligations to
make such Advance or purchase such participation on such date, but neither any Other Lender nor
Agent shall be responsible for the failure of any Non-Funding Lender to make an Advance, purchase a
participation or make any other payment required hereunder. Notwithstanding anything set forth
herein to the contrary, a Non-Funding Lender shall not have any voting or consent rights under or
with respect to any Loan Document or constitute a

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“Lender” or a “Revolving Lender” (or be included in the calculation of “Requisite Lenders” or
“Supermajority Revolving Lenders” hereunder) for any voting or consent rights under or with respect
to any Loan Document. At Borrower Representative’s request, Agent or a Person reasonably
acceptable to Agent shall have the right with Agent’s consent and in Agent’s sole discretion (but
shall have no obligation) to purchase from any Non-Funding Lender, and each Non-Funding Lender
agrees that it shall, at Agent’s request, sell and assign to Agent or such Person, all of the
Commitments of that Non-Funding Lender for an amount equal to the principal balance of all Loans
held by such Non-Funding Lender and all accrued interest and fees with respect thereto through the
date of sale, such purchase and sale to be consummated pursuant to an executed Assignment
Agreement.

          (e) Dissemination of Information. Agent shall use reasonable efforts to provide
Lenders with any notice of an Event of Default received by Agent from, or delivered by Agent to,
any Credit Party, with notice of any Event of Default of which Agent has actually become aware and
with notice of any action taken by Agent following any Event of Default; provided that
Agent shall not be liable to any Lender for any failure to do so, except to the extent that such
failure is attributable to Agent’s gross negligence or willful misconduct. Lenders acknowledge
that Borrowers are required to provide Financial Statements to Lenders in accordance with Annex
E hereto and agree that Agent shall have no duty to provide the same to Lenders.

          (f) Actions in Concert. Anything in this Agreement to the contrary notwithstanding,
each Lender hereby agrees with each other Lender that no Lender shall take any action to protect or
enforce its rights arising out of this Agreement or the Notes (including exercising any rights of
setoff) without first obtaining the prior written consent of Agent and Requisite Lenders, it being
the intent of Lenders that any such action to protect or enforce rights under this Agreement and
the Notes shall be taken in concert and at the direction or with the consent of Agent or Requisite
Lenders.

10. SUCCESSORS AND ASSIGNS

     10.1 Successors and Assigns. This Agreement and the other Loan Documents shall be
binding on and shall inure to the benefit of each Credit Party, Agent, Lenders and their respective
successors and assigns (including, in the case of any Credit Party, a debtor-in-possession on
behalf of such Credit Party), except as otherwise provided herein or therein. No Credit Party may
assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties
hereunder or under any of the other Loan Documents without the prior express written consent of
Agent and Lenders. Any such purported assignment, transfer, hypothecation or other conveyance by
any Credit Party without the prior express written consent of Agent and Lenders shall be void. The
terms and provisions of this Agreement are for the purpose of defining the relative rights and
obligations of each Credit Party, Agent and Lenders with respect to the transactions contemplated
hereby and no Person shall be a third party beneficiary of any of the terms and provisions of this
Agreement or any of the other Loan Documents.

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11. MISCELLANEOUS

     11.1 Complete Agreement; Modification of Agreement. The Loan Documents constitute the
complete agreement between the parties with respect to the subject matter thereof and may not be
modified, altered or amended except as set forth in Section 11.2. Any letter of interest,
commitment letter, fee letter or confidentiality agreement, if any, between any Credit Party and
Agent or any Lender or any of their respective Affiliates, predating this Agreement and relating to
a financing of substantially similar form, purpose or effect shall be superseded by this Agreement.
Notwithstanding the foregoing, the GE Capital Fee Letter shall survive the execution and delivery
of this Agreement and shall continue to be binding obligations of the parties.

     11.2 Amendments and Waivers.

          (a) Except for actions expressly permitted to be taken by Agent, no amendment, modification,
termination or waiver of any provision of this Agreement or any other Loan Document, or any consent
to any departure by any Credit Party therefrom, shall in any event be effective unless the same
shall be in writing and signed by Agent and Borrowers, and by Requisite Lenders, Supermajority
Revolving Lenders or all affected Lenders, as applicable. Except as set forth in clauses
(b) and (c) below, all such amendments, modifications, terminations or waivers
requiring the consent of any Lenders shall require the written consent of Requisite Lenders.

          (b) No amendment, modification, termination or waiver of or consent with respect to any
provision of this Agreement or the Loan Documents that (i) releases any Guaranty or (ii) increases
the multiplier set forth in the definition of the Borrowing Base or modifies the definition of
EBITDA to make more credit available under the Revolving Loan facility, shall be effective unless
the same shall be in writing and signed by Agent, Supermajority Revolving Lenders and Borrowers.
No amendment, modification, termination or waiver of or consent with respect to any provision of
this Agreement that waives compliance with the conditions precedent set forth in Section
2.2 to the making of any Loan or the incurrence of any Letter of Credit Obligations shall be
effective unless the same shall be in writing and signed by Agent, Requisite Lenders and Borrowers.
Notwithstanding anything contained in this Agreement to the contrary, no waiver or consent with
respect to any Default or any Event of Default shall be effective for purposes of the conditions
precedent to the making of Loans or the incurrence of Letter of Credit Obligations set forth in
Section 2.2 unless the same shall be in writing and signed by Agent, Requisite Lenders and
Borrowers.

          (c) No amendment, modification, termination or waiver shall, unless in writing and signed by
Agent and each Lender directly affected thereby: (i) increase the principal amount of any Lender’s
Commitment (which action shall be deemed only to affect those Lenders whose Commitments are
increased and may be approved by Requisite Lenders, including those Lenders whose Commitments are
increased); (ii) reduce the principal of, rate of interest on or Fees payable with respect to any
Loan or Letter of Credit Obligations of any affected Lender; (iii) extend any scheduled payment
date (other than payment dates of mandatory prepayments under Section 1.3(b)) or final
maturity date of the principal amount of any Loan of any affected Lender; (iv) waive, forgive,
defer, extend or postpone any payment of interest or Fees as to any

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affected Lender; (v) except as otherwise permitted herein or in the other Loan Documents,
release, or permit any Credit Party to sell or otherwise dispose of, any Collateral with a value
exceeding $5,000,000 in the aggregate (which action shall be deemed to directly affect all
Lenders); (vi) change the percentage of the Commitments or of the aggregate unpaid principal amount
of the Loans that shall be required for Lenders or any of them to take any action hereunder; and
(vii) amend or waive this Section 11.2 or the definitions of the terms “Requisite Lenders”
or “Supermajority Revolving Lenders” insofar as such definitions affect the substance of this
Section 11.2. Furthermore, no amendment, modification, termination or waiver affecting the
rights or duties of Agent or L/C Issuer under this Agreement or any other Loan Document shall be
effective unless in writing and signed by Agent or L/C Issuer, as the case may be, in addition to
Lenders required hereinabove to take such action. Each amendment, modification, termination or
waiver shall be effective only in the specific instance and for the specific purpose for which it
was given. No amendment, modification, termination or waiver shall be required for Agent to take
additional Collateral pursuant to any Loan Document. No amendment, modification, termination or
waiver of any provision of any Note shall be effective without the written concurrence of the
holder of that Note. No notice to or demand on any Credit Party in any case shall entitle such
Credit Party or any other Credit Party to any other or further notice or demand in similar or other
circumstances. Any amendment, modification, termination, waiver or consent effected in accordance
with this Section 11.2 shall be binding upon each holder of the Notes at the time
outstanding and each future holder of the Notes.

          (d) If, in connection with any proposed amendment, modification, waiver or termination:

               (i) requiring the consent of all affected Lenders, the consent of Requisite Lenders is
obtained, but the consent of other Lenders whose consent is required is not obtained (any such
Lender whose consent is not obtained as described in this clause (i) or in any of
clauses (ii) or (iii) below being referred to as a “Non-Consenting
Lender”);

               (ii) requiring the consent of Supermajority Revolving Lenders, the consent of Requisite
Lenders is obtained, but the consent of Supermajority Revolving Lenders is not obtained; or

               (iii) requiring the consent of Requisite Lenders, the consent of Revolving Lenders holding 51%
or more of the aggregate Revolving Loan Commitments is obtained, but the consent of Requisite
Lenders is not obtained.

then, so long as Agent is not a Non-Consenting Lender, at Borrower Representative’s request, Agent
or a Person reasonably acceptable to Agent shall have the right with Agent’s consent and in Agent’s
sole discretion (but shall have no obligation) to purchase from such Non-Consenting Lenders, and
such Non-Consenting Lenders agree that they shall, upon Agent’s request, sell and assign to Agent
or such Person, all of the Commitments of such Non-Consenting Lenders for an amount equal to the
principal balance of all Loans held by the Non-Consenting Lenders and all accrued interest and Fees
with respect thereto through the date of sale, such purchase and sale to be consummated pursuant to
an executed Assignment Agreement.

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          (e) Upon payment in full in cash and performance of all of the Obligations (other than
indemnification Obligations), termination of the Commitments and a release of all claims against
Agent and Lenders, and so long as no suits, actions, proceedings or claims are pending or
threatened against any Indemnified Person asserting any damages, losses or liabilities that are
Indemnified Liabilities, Agent shall deliver to Borrowers termination statements, mortgage releases
and other documents necessary or appropriate to evidence the termination of the Liens securing
payment of the Obligations.

     11.3 Fees and Expenses. Borrowers shall reimburse (i) Agent for all reasonable fees,
costs and expenses (including the reasonable fees and expenses of all of its counsel, advisors,
consultants and auditors) and (ii) Agent (and, with respect to clauses (c) and (d)
below, all Lenders) for all reasonable fees, costs and expenses, including the reasonable fees,
costs and expenses of counsel or other advisors (including environmental and management consultants
and appraisers), incurred in connection with the negotiation, preparation and filing and/or
recordation of the Loan Documents and incurred in connection with:

          (a) any amendment, modification or waiver of, consent with respect to, or termination of, any
of the Loan Documents or Related Transactions Documents or advice in connection with the
syndication and administration of the Loans made pursuant hereto or its rights hereunder or
thereunder;

          (b) any litigation, contest, dispute, suit, proceeding or action (whether instituted by Agent,
any Lender, any Credit Party or any other Person and whether as a party, witness or otherwise) in
any way relating to the Collateral, any of the Loan Documents or any other agreement to be executed
or delivered in connection herewith or therewith, including any litigation, contest, dispute, suit,
case, proceeding or action, and any appeal or review thereof, in connection with a case commenced
by or against any or all of the Credit Parties or any other Person that may be obligated to Agent
by virtue of the Loan Documents; including any such litigation, contest, dispute, suit, proceeding
or action arising in connection with any work-out or restructuring of the Loans during the pendency
of one or more Events of Default; provided that in the case of reimbursement of counsel for
Lenders other than Agent, such reimbursement shall be limited to one counsel for all such Lenders;
provided, further, that no Person shall be entitled to reimbursement under this clause
(c) in respect of any litigation, contest, dispute, suit, proceeding or action to the extent
any of the foregoing results from such Person’s gross negligence or willful misconduct;

          (c) any attempt to enforce any remedies of Agent against any or all of the Credit Parties or
any other Person that may be obligated to Agent or any Lender by virtue of any of the Loan
Documents, including any such attempt to enforce any such remedies in the course of any work-out or
restructuring of the Loans during the pendency of one or more Events of Default; provided
that in the case of reimbursement of counsel for Lenders other than Agent, such reimbursement shall
be limited to one counsel for all such Lenders;

          (d) any workout or restructuring of the Loans during the pendency of one or more Events of
Default; and

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          (e) efforts to (i) monitor the Loans or any of the other Obligations, (ii) evaluate, observe
or assess any of the Credit Parties or their respective affairs, and (iii) verify, protect,
evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of any of the Collateral;

including, as to each of clauses (a) through (e) above, all reasonable attorneys’
and other professional and service providers’ fees arising from such services and other advice,
assistance or other representation, including those in connection with any appellate proceedings,
and all expenses, costs, charges and other fees incurred by such counsel and others in connection
with or relating to any of the events or actions described in this Section 11.3, all of
which shall be payable, on demand, by Borrowers to Agent, provided, however, that
Borrowers shall not reimburse Agent or any Lenders for any fees, costs, or expenses with respect to
taxes, levies, imposts, deductions, charges or withholdings imposed by any Governmental Authority,
or any liabilities with respect thereto, the indemnification for which shall be governed solely and
exclusively by Section 1.13. Without limiting the generality of the foregoing, such
expenses, costs, charges and fees may include: fees, costs and expenses of accountants,
environmental advisors, appraisers, investment bankers, management and other consultants and
paralegals; court costs and expenses; photocopying and duplication expenses; court reporter fees,
costs and expenses; long distance telephone charges; air express charges; telegram or telecopy
charges; secretarial overtime charges; and expenses for travel, lodging and food paid or incurred
in connection with the performance of such legal or other advisory services.

     11.4 No Waiver. Agent’s or any Lender’s failure, at any time or times, to require
strict performance by the Credit Parties of any provision of this Agreement or any other Loan
Document shall not waive, affect or diminish any right of Agent or such Lender thereafter to demand
strict compliance and performance herewith or therewith. Any suspension or waiver of an Event of
Default shall not suspend, waive or affect any other Event of Default whether the same is prior or
subsequent thereto and whether the same or of a different type. Subject to the provisions of
Section 11.2, none of the undertakings, agreements, warranties, covenants and
representations of any Credit Party contained in this Agreement or any of the other Loan Documents
and no Event of Default by any Credit Party shall be deemed to have been suspended or waived by
Agent or any Lender, unless such waiver or suspension is by an instrument in writing signed by an
officer of or other authorized employee of Agent and the applicable required Lenders, and directed
to Borrowers specifying such suspension or waiver.

     11.5 Remedies. Agent’s and Lenders’ rights and remedies under this Agreement shall be
cumulative and nonexclusive of any other rights and remedies that Agent or any Lender may have
under any other agreement, including the other Loan Documents, by operation of law or otherwise.
Recourse to the Collateral shall not be required.

     11.6 Severability. Wherever possible, each provision of this Agreement and the other
Loan Documents shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement or any other Loan Document shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity without invalidating the remainder of such provision or the remaining
provisions of this Agreement or such other Loan Document.

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     11.7 Conflict of Terms. Except as otherwise provided in this Agreement or any of the
other Loan Documents by specific reference to the applicable provisions of this Agreement, if any
provision contained in this Agreement conflicts with any provision in any of the other Loan
Documents, the provision contained in this Agreement shall govern and control.

     11.8 Confidentiality. Agent and each Lender agree (i) to use any confidential
information provided to them by the Credit Parties only in connection with the transactions
contemplated by this Agreement and (ii) to use commercially reasonable efforts (equivalent to the
efforts Agent or such Lender applies to maintaining the confidentiality of its own confidential
information) to maintain as confidential such confidential information for a period of two (2)
years following payment in full of the Obligations, except that Agent and any Lender may disclose
such information following notice to Borrower Representative (a) to Persons employed or engaged by
Agent or such Lender; (b) to any bona fide assignee or participant or potential assignee or
participant that has agreed to comply with the covenant contained in this Section 11.8 (and
any such bona fide assignee or participant or potential assignee or participant may disclose such
information to Persons employed or engaged by them as described in clause (a) above); (c)
as required or requested by any Governmental Authority or reasonably believed by Agent or such
Lender to be compelled by any court decree, subpoena or legal or administrative order or process;
(d) as, on the advice of Agent’s or such Lender’s counsel, is required by law; (e) in connection
with the exercise of any right or remedy under the Loan Documents or in connection with any
Litigation to which Agent or such Lender is a party; or (f) that ceases to be confidential through
no fault of Agent or any Lender. Notwithstanding anything to the contrary set forth herein or in
any other agreement to which the parties hereto are parties or by which they are bound, the
obligations of confidentiality contained herein and therein, as they relate to the transactions
contemplated by this Agreement, shall not apply to the federal tax structure or federal tax
treatment of such transactions, and each party hereto (and any employee, representative, or agent
of any party hereto) may disclose to any and all persons, without limitation of any kind, the
federal tax structure and federal tax treatment of such transactions. The preceding sentence is
intended to cause such transactions not to be treated as having been offered under conditions of
confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor provision) of the Treasury
regulations promulgated under IRC Section 6011, and shall be construed in a manner consistent with
such purpose. In addition, each party hereto acknowledges that it has no proprietary or exclusive
rights to the tax structure of such transactions or any tax matter or tax idea related to such
transactions.

     11.9 GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN
DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE
LOAN DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT
STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS
AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK
SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CREDIT
PARTIES, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY

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OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED THAT AGENT, LENDERS AND THE CREDIT PARTIES
ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF
NEW YORK COUNTY; PROVIDED FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED
OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE
A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH CREDIT PARTY EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND
EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.
EACH CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED
IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS SET FORTH
IN ANNEX I OF THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE
EARLIER OF SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE UNITED
STATES MAILS, PROPER POSTAGE PREPAID.

     11.10 Notices. Except as otherwise provided herein, whenever it is provided herein
that any notice, demand, request, consent, approval, declaration or other communication shall or
may be given to or served upon any of the parties by any other parties, or whenever any of the
parties desires to give or serve upon any other parties any communication with respect to this
Agreement, each such notice, demand, request, consent, approval, declaration or other communication
shall be in writing and shall be deemed to have been validly served, given or delivered: (a) upon
the earlier of actual receipt and three (3) Business Days after deposit in the United States Mail,
registered or certified mail, return receipt requested, with proper postage prepaid; (b) upon
transmission, when sent by telecopy or other similar facsimile transmission (with such telecopy or
facsimile promptly confirmed by delivery of a copy by personal delivery or United States Mail as
otherwise provided in this Section 11.10); (c) one (1) Business Day after deposit with a
reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by
messenger, all of which shall be addressed to the party to be notified and sent to the address or
facsimile number indicated in Annex I or to such other address (or facsimile number) as may
be substituted by notice given as herein provided. The giving of any notice required hereunder may
be waived in writing by the party entitled to receive such notice. Failure or delay in delivering
copies of any notice, demand, request, consent, approval, declaration or other communication to any
Person (other than Borrower Representative or Agent) designated in Annex I to receive
copies shall in no way adversely affect the effectiveness of such notice, demand, request, consent,
approval, declaration or other communication.

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     11.11 Section Titles. The Section titles and Table of Contents contained in this
Agreement are and shall be without substantive meaning or content of any kind whatsoever and are
not a part of this Agreement between the parties hereto.

     11.12 Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall collectively and separately constitute one agreement.

     11.13 WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX
FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT
PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE
LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING
BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT,
LENDERS AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

     11.14 Press Releases and Related Matters. Each Credit Party executing this Agreement
agrees that neither it nor its Affiliates will in the future issue any press releases or other
public disclosure using the name of GE Capital or its affiliates or referring to this Agreement,
the other Loan Documents or the Related Transactions Documents without at least two (2) Business
Days’ prior notice to GE Capital and without the prior written consent of GE Capital unless (and
only to the extent that) such Credit Party or Affiliate is required to do so under law and then, in
any event, such Credit Party or Affiliate will consult with GE Capital before issuing such press
release or other public disclosure. Each Credit Party consents to the publication by Agent or any
Lender of advertising material relating to the financing transactions contemplated by this
Agreement using Borrower’s name, product photographs, logo or trademark. Agent or such Lender
shall provide a draft of any advertising material to each Credit Party for review and comment prior
to the publication thereof. Agent reserves the right to provide to industry trade organizations
information necessary and customary for inclusion in league table measurements.

     11.15 Reinstatement. This Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Credit Party for
liquidation or reorganization, should any Credit Party become insolvent or make an assignment for
the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or
any significant part of any Credit Party’s assets, and shall continue to be effective or to be
reinstated, as the case may be, if at any time payment and performance of the Obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” “fraudulent preference,” or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part thereof, is rescinded,
reduced,

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restored or returned, the Obligations shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

     11.16 Advice of Counsel. Each of the parties represents to each other party hereto
that it has discussed this Agreement and, specifically, the provisions of Sections 11.9 and
11.13, with its counsel.

     11.17 No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

     11.18 Limitation on Security Interest with respect to Foreign Subsidiaries.

          No Credit Party shall be required to pledge with respect to any directly held Foreign
Subsidiary more than the sum of (a) 65% of the total combined voting power of all classes of Stock
of such Foreign Subsidiary that are entitled to vote, and (b) 100% of all nonvoting Stock of any
such Subsidiary. No Credit Party shall be required to pledge any of the Stock of any indirectly
held Foreign Subsidiary (except for the Australian Subsidiaries, Canadian Subsidiaries and UK
Subsidiaries).

12. CROSS-GUARANTY

     12.1 Cross-Guaranty. Each Credit Party hereby agrees that such Credit Party is
jointly and severally liable for, and hereby absolutely and unconditionally guarantees to Agent and
Lenders and their respective successors and assigns, the full and prompt payment (whether at stated
maturity, by acceleration or otherwise) and performance of, all Obligations owed or hereafter owing
to Agent and Lenders by each other Credit Party. Each Credit Party agrees that its guaranty
obligation hereunder is a continuing guaranty of payment and performance and not of collection,
that its obligations under this Section 12 shall not be discharged until payment and
performance, in full, of the Obligations has occurred, and that its obligations under this
Section 12 shall be absolute and unconditional, irrespective of, and unaffected by,

          (a) the genuineness, validity, regularity, enforceability or any future amendment of, or
change in, this Agreement, any other Loan Document or any other agreement, document or instrument
to which any Credit Party is or may become a party;

          (b) the absence of any action to enforce this Agreement (including this Section 12) or
any other Loan Document or the waiver or consent by Agent and Lenders with respect to any of the
provisions thereof;

          (c) the existence, value or condition of, or failure to perfect its Lien against, any security
for the Obligations or any action, or the absence of any action, by Agent and Lenders in respect
thereof (including the release of any such security);

          (d) the insolvency of any Credit Party; or

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          (e) any other action or circumstances that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor.

Each Credit Party shall be regarded, and shall be in the same position, as principal debtor with
respect to the Obligations guaranteed hereunder.

     12.2 Waivers by Credit Parties. Each Credit Party expressly waives all rights it may
have now or in the future under any statute, or at common law, or at law or in equity, or
otherwise, to compel Agent or Lenders to marshal assets or to proceed in respect of the Obligations
guaranteed hereunder against any other Credit Party, any other party or against any security for
the payment and performance of the Obligations before proceeding against, or as a condition to
proceeding against, such Credit Party. It is agreed among each Credit Party, Agent and Lenders
that the foregoing waivers are of the essence of the transaction contemplated by this Agreement and
the other Loan Documents and that, but for the provisions of this Section 12 and such
waivers, Agent and Lenders would decline to enter into this Agreement.

     12.3 Benefit of Guaranty. Each Credit Party agrees that the provisions of this
Section 12 are for the benefit of Agent and Lenders and their respective successors,
transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other
Credit Party and Agent or Lenders, the obligations of such other Credit Party under the Loan
Documents.

     12.4 Waiver of Subrogation, Etc. Notwithstanding anything to the contrary in this
Agreement or in any other Loan Document, and except as set forth in Section 12.7, each
Credit Party hereby expressly and irrevocably waives any and all rights at law or in equity to
subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all
defenses available to a surety, guarantor or accommodation co-obligor. Each Credit Party
acknowledges and agrees that this waiver is intended to benefit Agent and Lenders and shall not
limit or otherwise affect such Credit Party’s liability hereunder or the enforceability of this
Section 12, and that Agent, Lenders and their respective successors and assigns are
intended third party beneficiaries of the waivers and agreements set forth in this Section
12.4.

     12.5 Election of Remedies. If Agent or any Lender may, under applicable law, proceed
to realize its benefits under any of the Loan Documents giving Agent or such Lender a Lien upon any
Collateral, whether owned by any Credit Party or by any other Person, either by judicial
foreclosure or by non-judicial sale or enforcement, Agent or any Lender may, at its sole option,
determine which of its remedies or rights it may pursue without affecting any of its rights and
remedies under this Section 12. If, in the exercise of any of its rights and remedies,
Agent or any Lender shall forfeit any of its rights or remedies, including its right to enter a
deficiency judgment against any Credit Party or any other Person, whether because of any applicable
laws pertaining to “election of remedies” or the like, each Credit Party hereby consents to such
action by Agent or such Lender and waives any claim based upon such action, even if such action by
Agent or such Lender shall result in a full or partial loss of any rights of subrogation that each
Credit Party might otherwise have had but for such action by Agent or such Lender. Any election of
remedies that results in the denial or impairment of the right of Agent or any Lender to seek a
deficiency judgment against any Credit Parties shall not impair any other Credit Party’s obligation
to pay the full amount of the Obligations. In the event Agent or any Lender shall bid

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at any foreclosure or trustee’s sale or at any private sale permitted by law or the Loan
Documents, Agent or such Lender may bid all or less than the amount of the Obligations and the
amount of such bid need not be paid by Agent or such Lender but shall be credited against the
Obligations. The amount of the successful bid at any such sale, whether Agent, Lender or any other
party is the successful bidder, shall be conclusively deemed to be the fair market value of the
Collateral and the difference between such bid amount and the remaining balance of the Obligations
shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section
12, notwithstanding that any present or future law or court decision or ruling may have the
effect of reducing the amount of any deficiency claim to which Agent or any Lender might otherwise
be entitled but for such bidding at any such sale.

     12.6 Limitation. Notwithstanding any provision herein contained to the contrary, each
Credit Party’s liability under this Section 12 (which liability is in any event in addition
to amounts for which such Credit Party is primarily liable under Section 1) shall be
limited to an amount not to exceed as of any date of determination the greater of:

          (a) the net amount of all Loans advanced to any other Credit Party under this Agreement and
then re-loaned or otherwise transferred to, or for the benefit of, such Credit Party; and

          (b) the amount that could be claimed by Agent and Lenders from such Credit Party under this
Section 12 without rendering such claim voidable or avoidable under Section 548 of Chapter
11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or common law after taking into account, among other
things, such Credit Party’s right of contribution and indemnification from each other Credit Party
under Section 12.7.

     12.7 Contribution with Respect to Guaranty Obligations.

          (a) To the extent that any Credit Party shall make a payment under this Section 12 of
all or any of the Obligations (other than Loans made to that Credit Party for which it is primarily
liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments then
previously or concurrently made by any other Credit Party, exceeds the amount that such Credit
Party would otherwise have paid if each Credit Party had paid the aggregate Obligations satisfied
by such Guarantor Payment in the same proportion that such Credit Party’s “Allocable Amount” (as
defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate
Allocable Amounts of each of the Credit Parties as determined immediately prior to the making of
such Guarantor Payment, then, following indefeasible payment in full in cash of the Obligations and
termination of the Commitments, such Credit Party shall be entitled to receive contribution and
indemnification payments from, and be reimbursed by, each other Credit Party for the amount of such
excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such
Guarantor Payment.

          (b) As of any date of determination, the “Allocable Amount” of any Credit Party shall
be equal to the maximum amount of the claim that could then be recovered from such Credit Party
under this Section 12 without rendering such claim voidable or avoidable under

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Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform
Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.

          (c) This Section 12.7 is intended only to define the relative rights of Credit Parties
and nothing set forth in this Section 12.7 is intended to or shall impair the obligations
of Credit Parties, jointly and severally, to pay any amounts as and when the same shall become due
and payable in accordance with the terms of this Agreement, including Section 12.1.
Nothing contained in this Section 12.7 shall limit the liability of any Credit Party to pay
the Loans made directly or indirectly to that Credit Party and accrued interest, Fees and expenses
with respect thereto for which such Credit Party shall be primarily liable.

          (d) The parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Credit Party to which such contribution and
indemnification is owing.

          (e) The rights of the indemnifying Credit Parties against other Credit Parties under this
Section 12.7 shall be exercisable upon the full and indefeasible payment of the Obligations
and the termination of the Commitments.

     12.8 Liability Cumulative. The liability of Credit Parties under this Section
12 is in addition to and shall be cumulative with all liabilities of each Credit Party to Agent
and Lenders under this Agreement and the other Loan Documents to which such Credit Party is a party
or in respect of any Obligations or obligation of the other Credit Party, without any limitation as
to amount, unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

     12.9 Guarantee Unconditional. The obligations of each Credit Party under this
Section 12 are continuing, unconditional and absolute and, without limiting the generality
of the foregoing, will not be released, discharged, diminished, limited or otherwise affected by
(and each Credit Party hereby consents to or waives, as applicable, to the fullest extent permitted
by applicable law): (a) any extension, other indulgence, renewal, settlement, discharge,
compromise, waiver, subordination or release in respect of any Obligation, security, Person or
otherwise; (b) any modification or amendment of or supplement to the Obligations, including any
increase or decrease in the principal, the rates of interest or other amounts payable thereunder;
(c) any release, non-perfection or invalidity of any direct or indirect security for any
Obligation; (d) any change in the existence, structure, constitution, name, objects, powers,
business, control or ownership of any Borrower or any other Person, or any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any Borrower or any other person or its
assets; (e) the existence of any claim, set-off or other rights which any Credit Party may have at
any time against any Borrower, the Agent, any Lender, or any other Person, whether in connection
herewith or any unrelated transactions; (f) any invalidity, illegality or unenforceability relating
to or against any Borrower or any provision of applicable law or regulation purporting to prohibit
the payment by any Borrower of the principal or interest under the Obligations; (g) any limitation,
postponement, prohibition, subordination or other restriction on the rights of the Agent or any
Lender to payment of the Obligations; (h) any release, substitution or addition of any cosigner,
endorser or other guarantor of the Obligations; (i) any defence arising by reason of any failure of
the Agent or any Lender to make any presentment,

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demand for performance, notice of non-performance, protest, and any other notice, including
notice of all of the following: acceptance of this Section 12.9, partial payment or
non-payment of all or any part of the Obligations and the existence, creation, or incurring of new
or additional Obligations; (j) any defence arising by reason of any failure of the Agent or any
Lender to proceed against any Borrower or any other Person, to proceed against, apply or exhaust
any security held from any Borrower or any other Person for the Obligations, to proceed against,
apply or exhaust any security held from any Credit Party or any other Person for this Section
12.9 or to pursue any other remedy in the power of the Agent or any Lender whatsoever; (k) any
law which provides that the obligation of a guarantor must neither be larger in amount nor in other
respects more burdensome than that of the principal obligation or which reduces a guarantor’s
obligation in proportion to the principal obligation; (l) any defence arising by reason of any
incapacity, lack of authority, or other defence of any Borrower or any other Person, or by reason
of any limitation, postponement, prohibition on the Agent’s or any Lender’s right to payment of the
Obligations or any part thereof, or by reason of the cessation from any cause whatsoever of the
liability of any Borrower or any other Person with respect to all or any part of the Obligations,
or by reason of any act or omission of the Agent, any Lender or others which directly or indirectly
results in the discharge or release of any Borrower or any other Person or all or any part of the
Obligations or any security or guarantee therefor, whether by contract, operation of law or
otherwise; (m) any defence arising by reason of any failure by the Agent or any Lender to obtain,
perfect or maintain a perfected or prior (or any) security interest in or lien or encumbrance upon
any property of any Borrower or any other Person, or by reason of any interest of the Agent or any
Lender in any property, whether as owner thereof or the holder of a security interest therein or
lien or encumbrance thereon, being invalidated, voided, declared fraudulent or preferential or
otherwise set aside, or by reason of any impairment by the Agent or any Lender of any right to
recourse or collateral; (n) any defence arising by reason of the failure of the Agent or any Lender
to marshall any assets; (o) any defence based upon any failure of the Agent or any Lender to give
to any Borrower or any Credit Party notice of any sale or other disposition of any property
securing any or all of the Obligations or any guarantee thereof, or any defect in any notice that
may be given in connection with any sale or other disposition of any such property, or any failure
of the Agent or any Lender to comply with any provision of applicable law in enforcing any security
interest in or lien upon any such property, including any failure by the Agent to dispose of any
such property in a commercially reasonable manner; (p) any dealing whatsoever with any Borrower or
other person or any security, whether negligently or not, or any failure to do so; (q) any defence
based upon or arising out of any bankruptcy, insolvency, reorganization, moratorium, arrangement,
readjustment of debt, liquidation or dissolution proceeding commenced by or against any Borrower or
any other Person, including any discharge of, or bar against collecting, any of the Obligations, in
or as a result of any such proceeding; or (r) any other act or omission to act or delay of any kind
by any Borrower, the Agent, any Lender, or any other Person or any other circumstance whatsoever,
whether similar or dissimilar to the foregoing, which might, but for the provisions of this Section
12, constitute a legal or equitable discharge, limitation or reduction of any Credit Party’s
obligations hereunder (other than the payment in full of all of the Obligations). The foregoing
provisions apply (and the foregoing waivers will be effective) even if the effect of any action (or
failure to take action) by the Agent or any Lender is to destroy or diminish any Credit Party’s
subrogation rights, each Credit Party’s right to proceed against any Borrower for reimbursement,

71

 

each Credit Party’s right to recover contribution from any other guarantor or any other right
or remedy.

     12.10 Foreign Currency Obligations. Each Credit Party will make payment under this
Section 12.10 relative to each Obligation in the currency (the “Original Currency”)
in which the relevant Borrower is required to pay such Obligation. If any Credit Party makes
payment relative to any Obligation in a currency (the “Other Currency”) other than the
Original Currency (whether voluntarily or pursuant to an order or judgment of a court or tribunal
of any jurisdiction), such payment will constitute a discharge of the liability of any Credit Party
hereunder in respect of such Obligation only to the extent of the amount of the Original Currency
which the Agent is able to purchase in Chicago, Illinois with the amount it receives on the date of
receipt. If the amount of the Original Currency which the Agent is able to purchase is less than
the amount of such currency originally due to it in respect to the relevant Obligation, each Credit
Party will indemnify and save the Agent and the Lenders harmless from and against any loss or
damage arising as a result of such deficiency. This indemnity will constitute an obligation
separate and independent from the other obligations contained in this Section 12.10, will
give rise to a separate and independent cause of action, will apply irrespective of any indulgence
granted by the Agent or any Lender and will continue in full force and effect notwithstanding any
judgment or order in respect of any amount due hereunder or under any judgment or order.

     12.11 Section 956 of the IRC. If the Obligations incurred hereunder by any of the
UK Collateral Party, the Canadian Collateral Party or the Australian Collateral Party would result
in adverse tax liabilities under Section 956 of the IRC (or any similar statute) for Borrowers or
the other Credit Parties (as demonstrated by Borrowers in a manner reasonably satisfactory to
Agent), at Borrower Representative’s request Agent shall take one or more of the following actions,
as requested, (a) release Agent’s Liens on such Foreign Collateral Party’s assets, (b) reduce the
pledge of such Foreign Collateral Party’s stock to 65% of its voting Stock, (c) exclude such
Foreign Collateral Party’s Accounts and Inventory from the Borrowing Base, (d) release such Foreign
Collateral Party from its Guaranty of the Obligations and (e) make such other amendments or
modifications to this Agreement as are mutually agreed upon by Required Lenders and Borrowers to
reflect the foregoing (collectively, a “956 Discharge”); provided that after giving
effect to such 956 Discharge (x) no Event of Default shall have occurred, (y) the average daily
Borrowing Availability shall have been not be less than $15,000,000 (with all trade payables being
paid current other than those being contested in the ordinary course of business) during the 30-day
period immediately prior to such payment, and (z) Borrowers shall deliver to Agent projections
demonstrating that the average daily Borrowing Availability shall not be less than $15,000,000
(with all trade payables being paid currently) for the 30-day period after the date of such 956
Discharge.

13. RESTATEMENT OF PRIOR CREDIT AGREEMENT

          The parties hereto agree that, on the Closing Date, the following transactions shall be deemed
to occur automatically, without further action by any party hereto:

72

 

          (a) the Prior Credit Agreement shall be deemed to be amended and restated in its entirety in
the form of this Agreement;

          (b) all Existing Obligations (including, without limitation, all Prior Loans) outstanding on
the Closing Date shall, to the extent not paid on the Closing Date, in all respects be continuing
and shall be deemed to be Obligations outstanding hereunder;

          (c) the guaranties and Collateral Documents, including the Liens created thereunder in favor
of Agent for the benefit of Agent and Lenders or in favor of Agent and Lenders, as applicable, and
securing payment of the Existing Obligations, as amended and restated on the Closing Date, shall
remain in full force and effect with respect to the Obligations and are hereby reaffirmed; and

          (d) all references in the other Loan Documents to the Prior Credit Agreement shall be deemed
to refer without further amendment to this Agreement.

The parties acknowledge and agree that this Agreement and the other Loan Documents do not
constitute a novation, payment and reborrowing or termination of the Existing Obligations and that
all such Existing Obligations (including, without limitation, the Prior Loans) are in all respects
continued and outstanding as Obligations under this Agreement and the Notes with only the terms
being modified from and after the effective date of this Agreement as provided in this Agreement,
the Notes and the other Loan Documents. After giving effect to this Agreement and all Revolving
Credit Advances funded on the Closing Date, the aggregate outstanding principal balances of the
Loans on the Closing Date are as set forth on Annex K hereto.

[Signature pages follow]

73

 

\

     IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first written above.

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	THERMADYNE INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	THERMAL DYNAMICS CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	TWECO PRODUCTS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	VICTOR EQUIPMENT COMPANY
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	C & G SYSTEMS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 

[Signature Page to Third Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	 	STOODY COMPANY
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	THERMADYNE INTERNATIONAL CORP.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	PROTIP CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 

[Signature Page to Third Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL

CORPORATION,
	 	 	as Agent and Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Timothy Canon
	 

	 	 	 	 
	 

	 	 	 	Duly Authorized Signatory

[Signature Page to Third Amended and Restated Credit Agreement]

 

 

     The following Persons are signatories to this Agreement in their capacity as Credit Parties
and not as Borrowers.

	 	 	 	 	 
	 	 	THERMADYNE HOLDINGS CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	MECO HOLDING COMPANY
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	C&G SYSTEMS HOLDING, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	THERMADYNE AUSTRALIA PTY LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	DUXTECH PTY LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CIGWELD PTY LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 

[Signature Page to Third Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	 	QUETALA PTY. LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	QUETACK PTY. LTD.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	THERMADYNE WELDING PRODUCTS CANADA LIMITED
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	THERMADYNE INDUSTRIES LIMITED
	 
	 	 	 	 
	 

	 	By:	 	/s/ Patricia S. Williams
	 

	 	 	 	 
	 

	 	Name:	 	Patricia S. Williams
	 

	 	 	 	 
	 

	 	Title:	 	Vice President, Secretary &
General Counsel
	 

	 	 	 	 

[Signature Page to Third Amended and Restated Credit Agreement]

 

 

ANNEX A (Recitals)

to

CREDIT AGREEMENT

DEFINITIONS

          Capitalized terms used in the Loan Documents shall have (unless otherwise provided elsewhere
in the Loan Documents) the following respective meanings, and all references to Sections, Exhibits,
Schedules or Annexes in the following definitions shall refer to Sections, Exhibits, Schedules or
Annexes of or to this Agreement:

          “ABL Borrowing Base” means that portion of the Borrowing Base equal to the sum of the
amount represented by clauses (a)-(h) of the Borrowing Base.

          “ABL Portion” means that portion of the principal balance of the Revolving Loan from
time to time outstanding in an amount up to, but not in excess of, the ABL Borrowing Base.

          “Account Debtor” means any Person who may become obligated to any Credit Party under,
with respect to, or on account of, an Account, Chattel Paper or General Intangibles (including a
payment intangible).

          “Accounting Changes” has the meaning ascribed thereto in Annex G.

          “Accounts” means all “accounts,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, including (a) all accounts receivable, other receivables,
book debts and other forms of obligations (other than forms of obligations evidenced by Chattel
Paper, or Instruments), (including any such obligations that may be characterized as an account or
contract right under the Code), (b) all of each Credit Party’s rights in, to and under all purchase
orders or receipts for goods or services, (c) all of each Credit Party’s rights to any goods
represented by any of the foregoing (including unpaid sellers’ rights of rescission, replevin,
reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), (d)
all rights to payment due to any Credit Party for property sold, leased, licensed, assigned or
otherwise disposed of, for a policy of insurance issued or to be issued, for a secondary obligation
incurred or to be incurred, for energy provided or to be provided, for the use or hire of a vessel
under a charter or other contract, arising out of the use of a credit card or charge card, or for
services rendered or to be rendered by such Credit Party or in connection with any other
transaction (whether or not yet earned by performance on the part of such Credit Party), (e) all
health care insurance receivables and (f) all collateral security of any kind, given by any Account
Debtor or any other Person with respect to any of the foregoing.

          “Advance” means any Revolving Credit Advance or Swing Line Advance, as the context may
require.

          “Affiliate” means, with respect to any Person, (a) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary,
10% or more of the Stock having ordinary voting power in the election of directors of such

A-1

 

Person,
(b) each Person that controls, is controlled by or is under common control with such
Person, (c) each of such Person’s officers, directors, joint venturers and partners and (d) in
the case of Borrowers, the immediate family members, spouses and lineal descendants of individuals
who are Affiliates of any Borrower. For the purposes of this definition, “control” of a
Person shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of its management or policies, whether through the ownership of voting securities, by
contract or otherwise; provided, however, that neither Agent nor Lender shall be
deemed to be an Affiliate of the Credit Parties.

          “Agent” means GE Capital in its capacity as Agent for Lenders or its successor
appointed pursuant to Section 9.7.

          “Amortization Amount” has the meaning ascribed to it in clause (i) of the definition
of Borrowing Base.

          “Appendices” has the meaning ascribed to it in the recitals to this Agreement.

          “Applicable ABL Portion Index Margin” means the per annum interest rate margin from
time to time in effect and payable in addition to the Index Rate applicable to the ABL Portion of
the Revolving Loan, as determined by reference to Section 1.5(a).

          “Applicable ABL Portion LIBOR Margin” means the per annum interest rate from time to
time in effect and payable in addition to the LIBOR Rate applicable to the ABL Portion of the
Revolving Loan, as determined by reference to Section 1.5(a).

          “Applicable Cash Flow Portion Index Margin” means the per annum interest rate margin
from time to time in effect and payable in addition to the Index Rate applicable to the Cash Flow
Portion of the Revolving Loan, as determined by reference to Section 1.5(a).

          “Applicable Cash Flow Portion LIBOR Margin” means the per annum interest rate from
time to time in effect and payable in addition to the LIBOR Rate applicable to the Cash Flow
Portion of the Revolving Loan, as determined by reference to Section 1.5(a).

          “Applicable L/C Margin” means the per annum fee, from time to time in effect, payable
with respect to outstanding Letter of Credit Obligations as determined by reference to Section
1.5(a).

          “Applicable Margins” means collectively the Applicable L/C Margin, the Applicable
Unused Line Fee Margin, the Applicable ABL Portion Index Margin, and the Applicable ABL Portion
LIBOR Margin, the Applicable Cash Flow Portion Index Margin and, the Applicable Cash Flow Portion
LIBOR Margin.

          “Applicable Unused Line Fee Margin” means the per annum fee, from time to time in
effect, payable in respect of Borrowers’ non-use of committed funds pursuant to Section
1.7(b), which fee is determined by reference to Section 1.5(a).

          “Assignment Agreement” has the meaning ascribed to it in Section 9.1(a).

A-2

 

          “Australian Collateral Party” means Cigweld Pty Ltd (ACN 007 226 815).

          “Australian Subsidiary” means each Subsidiary of any Borrower organized under the laws
of Australia.

          “Bankruptcy Code” means the provisions of Title 11 of the United States Code, 11
U.S.C. §§101 et seq.

          “Borrower Representative” means Holdings in its capacity as Borrower Representative
pursuant to the provisions of Section 1.1(e).

          “Borrowers” and “Borrower” have the respective meanings ascribed thereto in
the preamble to this Agreement.

          “Borrowing Availability” means as of any date of determination, the lesser of (i) the
Maximum Amount and (ii) the Borrowing Base, in each case, less the sum of the aggregate
Revolving Loans and Swing Line Loans then outstanding, less, in each case, Reserves
established by Agent in its reasonable judgment.

          “Borrowing Base” means, as of any date of determination by Agent, from time to time,
an amount equal to the sum at such time of:

          (a) up to 85% of the book value of Collateral Parties’ Eligible Accounts; plus

          (b) the lesser of (i) up to 85% of the Net Orderly Liquidation Value of the sum of the
Collateral Parties’ Eligible Inventory multiplied by the then current NOLV Factor, by category, of
Eligible Inventory; and (ii) up to 65% of the book value of sum of the Collateral Parties’ Eligible
Inventory valued at the lower of cost (determined on a first-in, first-out basis) or market;
plus

          (c) the lesser of (i) up to 85% of the Net Orderly Liquidation Value of the sum of the
Collateral Parties’ Eligible In-Transit Inventory multiplied by the then current NOLV Factor, by
category, of Eligible In-Transit Inventory; and (ii) up to 65% of the book value of sum of the
Collateral Parties’ Eligible In-Transit Inventory valued at the lower of cost (determined on a
first-in, first-out basis) or market; less

          (d) the Rent Reserve; less

          (e) the Shipping Reserve; less

          (f) the Processors Reserve; less

          (g) [intentionally omitted]; less

          (h) in each of (a), (b) and (c) above, any other Reserves established by Agent at such time
(in addition, the Agent may at any time make any adjustments to the Borrowing Base at its sole
discretion to reflect fluctuations in currency values); plus

A-3

 

          (i) the lesser of (x) $8,000,000 and (y) 85% of the Net Orderly Liquidation Value of Eligible
Equipment as reflected in the initial Equipment Appraisal less 85% of the Net
Orderly Liquidation Value of Eligible Equipment sold or otherwise disposed of on or after the
Closing Date, reduced by the sum of 3.571% of the amount that is the lesser of (x) or (y) above
(the “Amortization Amount”) on the first day of each calendar quarter commencing with the
first calendar quarter after the initial Equipment Appraisal is delivered to Agent; plus

          (j) the lesser of (x) $20,000,000 and (y) 0.4 multiplied by EBITDA of Holdings and its
Subsidiaries for the trailing twelve months most recently ended for which financial statements are
available.

          “Borrowing Base Certificate” means a certificate to be executed and delivered from
time to time by each Borrower in the form attached to this Agreement as Exhibit 4.1(b).

          “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or permitted to be closed in the State of Illinois or New York and in reference to
LIBOR Loans shall mean any such day that is also a LIBOR Business Day.

          “C & G” has the meaning ascribed thereto in the preamble to this Agreement.

          “C&G Holdings” means C&G Systems Holding, Inc., a Delaware corporation.

          “Canadian Collateral Party” means Thermadyne Welding Products Canada, Limited.

          “Canadian Subsidiaries” means each Subsidiary of any Borrower organized under the laws
of Canada or any province of Canada.

          “Capital Expenditures” means, with respect to any Person, all expenditures (by the
expenditure of cash or the incurrence of Indebtedness) by such Person during any measuring period
for any fixed assets or improvements or for replacements, substitutions or additions thereto that
have a useful life of more than one year and that are required to be capitalized under GAAP, plus,
without duplication, cash investments in Foreign Subsidiaries. Solely for purposes of calculating
the Fixed Charge Coverage Ratio for any Fiscal Quarter on or after the Closing Date, cash
investments in Foreign Subsidiaries shall be calculated net (but for the avoidance of doubt, at no
time shall such netting produce a negative number) of cash received by any Borrower from any
Foreign Subsidiary as a result of a sale of assets or Stock, in whole or in part, of such Foreign
Subsidiary, on or after the Closing Date and within twelve months following the date of the
corresponding cash investment.

          “Capital Lease” means, with respect to any Person, any lease of any property (whether
real, personal or mixed) by such Person as lessee that, in accordance with GAAP, would be required
to be classified and accounted for as a capital lease on a balance sheet of such Person.

A-4

 

          “Capital Lease Obligation” means, with respect to any Capital Lease of any Person, the
amount of the obligation of the lessee thereunder that, in accordance with GAAP, would appear on a
balance sheet of such
lessee in respect of such Capital Lease.

          “Cash Collateral Account” has the meaning ascribed to it Annex B.

          “Cash Equivalents” has the meaning ascribed to it in Annex B.

          “Cash Flow Borrowing Base” means that portion of Borrowing Base represented by clause
(j) of the Borrowing Base.

          “Cash Flow Portion” means that portion of the principal balance of the Revolving Loan
from time to time outstanding in an amount in excess of the ABL Borrowing Base.

          “Cash Management Systems” has the meaning ascribed to it in Section 1.6.

          “Certificate of Exemption” has the meaning ascribed to it in Section
1.13(b)(i).

          “Change of Control” means any of the following: (a) any person or group of persons
(within the meaning of the Securities Exchange Act of 1934), other than Angelo, Gordon & Co. or the
High Yield Note Holders, shall have acquired beneficial ownership (within the meaning of Rule 13d-3
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934) of
30% or more of the issued and outstanding shares of capital Stock of Holdings having the right to
vote for the election of directors of Holdings under ordinary circumstances; (b) during any period
of twelve consecutive calendar months, individuals who at the beginning of such period constituted
the board of directors of Holdings (together with any new directors whose election by the board of
directors of Holdings or whose nomination for election by the Stockholders of Holdings was approved
by a vote of at least two-thirds of the directors then still in office who either were directors at
the beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason other than death or disability to constitute a majority of the
directors then in office; or (c) a “Change of Control” as defined in the Indenture.

          “Charges” means all federal, state, county, city, municipal, local, foreign or other
governmental taxes (including taxes owed to the PBGC at the time due and payable), levies,
assessments, charges, liens, claims or encumbrances upon or relating to (a) the Collateral, (b) the
Obligations, (c) the employees, payroll, income or gross receipts of any Credit Party, (d) any
Credit Party’s ownership or use of any properties or other assets, or (e) any other aspect of any
Credit Party’s business.

          “Chattel Paper” means any “chattel paper,” as such term is defined in the Code,
including electronic chattel paper, now owned or hereafter acquired by any Credit Party.

          “Closing Checklist” means the schedule, including all appendices, exhibits or
schedules thereto, listing certain documents and information to be delivered in connection with
this Agreement, the other Loan Documents and the transactions contemplated thereunder,
substantially in the form attached hereto as Annex D.

A-5

 

          “Closing Date” means June 29, 2007.

          “Code” means the Uniform Commercial Code as the same may, from time to time, be
enacted and in effect in the State of New York, provided that to the extent that the Code
is used to define any term herein or in any Loan Document and such term is defined differently in
different Articles or Divisions of the Code, the definition of such term contained in Article or
Division 9 shall govern; provided further, that in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies
with respect to, Agent’s or any Lender’s Lien on any Collateral is governed by the Uniform
Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the
term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority or remedies and for purposes of definitions related to such provisions.

          “Collateral” means the property covered by the Security Agreement and the other
Collateral Documents and any other property, real or personal, tangible or intangible, now existing
or hereafter acquired, that may at any time be or become subject to a security interest or Lien in
favor of Agent, on behalf of itself and Lenders, to secure the Obligations.

          “Collateral Documents” means the Security Agreement, the Pledge Agreements, the
Guaranties, the Copyright Security Agreements, Patent Security Agreement, the Trademark Security
Agreement, and all similar agreements entered into guaranteeing payment of, or granting a Lien upon
property as security for payment of, the Obligations, including but not limited to, those
agreements entered into under the Initial Credit Agreement and Prior Credit Agreement.

          “Collateral Parties” means, collectively, the Borrowers and their Domestic
Subsidiaries.

          “Collection Account” means that certain account of Agent, account number 50279513 in
the name of Agent at Deutsche Bank Trust Company Americas in New York, New York ABA No. 021 001
033, or such other account as may be specified in writing by Agent as the “Collection Account.”

          “Commitment Termination Date” means the earliest of (a) the fifth anniversary of the
Closing Date, (b) the date of termination of Lenders’ obligations to make Advances and to incur
Letter of Credit Obligations or permit existing Loans to remain outstanding pursuant to Section
8.2(b), and (c) the date of indefeasible prepayment in full by Borrowers of the Loans and the
cancellation and return (or stand-by guarantee) of all Letters of Credit or the cash
collateralization of all Letter of Credit Obligations pursuant to Annex B, and the
permanent reduction of all Commitments to zero dollars ($0).

          “Commitments” means (a) as to any Lender, the aggregate of such Lender’s Revolving
Loan Commitment (including without duplication the Swing Line Lender’s Swing Line Commitment as a
subset of its Revolving Loan Commitment) as set forth on Annex J to this Agreement or in
the most recent Assignment Agreement executed by such Lender and (b) as to

A-6

 

all Lenders, all
Lenders’ Revolving Loan Commitments (including without duplication the Swing Line Lender’s Swing
Line Commitment as a subset of its Revolving Loan Commitment), which commitment shall be One
Hundred Million Dollars ($100,000,000) on the Closing Date, as to each of clauses (a) and
(b), as such Commitments may be reduced, amortized or adjusted from time to time in
accordance with this Agreement.

          “Compliance Certificate” means a certificate to be executed and delivered from time to
time by Borrower Representative in the form attached to this Agreement as Exhibit C.

          “Contracts” means all “contracts,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, in any event, including all contracts, undertakings, or
agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in or under
which any Credit Party may now or hereafter have any right, title or interest, including any
agreement relating to the terms of payment or the terms of performance of any Account.

          “Control Letter” means a letter agreement between Agent and (i) the issuer of
uncertificated securities with respect to uncertificated securities in the name of any Credit
Party, (ii) a securities intermediary with respect to securities, whether certificated or
uncertificated, securities entitlements and other financial assets held in a securities account in
the name of any Credit Party, (iii) a futures commission merchant or clearing house, as applicable,
with respect to commodity accounts and commodity contracts held by any Credit Party, whereby, among
other things, the issuer, securities intermediary or futures commission merchant limits any
security interest in the applicable financial assets in a manner reasonably satisfactory to Agent,
acknowledges the Lien of Agent, on behalf of itself and Lenders, on such financial assets, and
agrees to follow the instructions or entitlement orders of Agent without further consent by the
affected Credit Party.

          “Copyright License” means rights under any written agreement now owned or herein after
acquired by any Credit Party granting any right to use any Copyright.

          “Copyright Security Agreements” means those certain Copyright Security Agreements
dated as of May 23, 2003 (as amended, restated, supplemented or otherwise modified from time to
time) made in favor of Agent, on behalf of itself and Lenders, by each applicable Credit Party.

          “Copyrights” means all of the following now owned or hereafter adopted or acquired by
any Credit Party: (a) all copyrights and works of authorship (whether registered or unregistered),
all registrations and recordings thereof, and all applications in connection therewith, including
all registrations, recordings and applications in the United States Copyright Office or in any
similar office or agency of the United States, any state or territory thereof, or any other country
or any political subdivision thereof, and (b) all reissues, extensions or renewals thereof.

          “Credit Parties” means Holdings, MECO Holdings, C&G Holdings, each Borrower, each
domestic Subsidiary of a Borrower, the Australian Collateral Party, Duxtech Pty

A-7

 

Ltd. (ACN 007 211
190), Thermadyne Australia Pty Ltd. (ACN 071 843 028), Quetala Pty. Ltd. (ACN 007 246 862), Quetack
Pty. Ltd. (ACN 007 226 575), the Canadian Collateral Party and the UK Collateral Party.

          “Default” means any event that, with the passage of time or notice or both, would,
unless cured or waived, become an Event of Default.

          “Default Rate” has the meaning ascribed to it in Section 1.5(e).

          “Deposit Accounts” means all “deposit accounts” as such term is defined in the Code,
now or hereafter held in the name of any Credit Party.

          “Disbursement Accounts” has the meaning ascribed to it in Annex C.

          “Disclosure Schedules” means the Schedules prepared by Borrowers and denominated as
Disclosure Schedules (1.4) through (6.7) in the Index to this Agreement.

          “Documents” means all “documents,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located.

          “Dollar Equivalent” means, with respect to any amount denominated in Dollars, such
amount of Dollars, and with respect to any amount denominated in a currency other than Dollars, the
amount of Dollars, as of any date of determination, into which such other currency can be converted
in accordance with the terms hereof.

          “Dollars” or “$” means lawful currency of the United States of America.

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

          “Dynamics” has the meaning ascribed thereto in the preamble to this Agreement.

          “EBITDA” means, with respect to any Person for any fiscal period, without duplication,
an amount equal to (a) consolidated net income of such Person for such period determined in
accordance with GAAP, minus (b) the sum of (i) income tax credits, (ii) interest income, (iii) gain
from extraordinary items and dispositions of discontinued operations for such period, (iv) any
aggregate net gain (but not any aggregate net loss) during such period arising from the sale,
exchange or other disposition of capital assets by such Person (including any fixed assets, whether
tangible or intangible, all inventory sold in conjunction with the disposition of fixed assets and
all securities), and (v) any other non-cash gains that have been added in determining consolidated
net income, in each case to the extent included in the calculation of consolidated net income of
such Person for such period in accordance with GAAP, but without duplication, plus (c) the sum of
(i) any provision for income taxes, (ii) Interest Expense, (iii) loss from extraordinary items and
dispositions of discontinued operations and from impairments for such period (which for the
avoidance of doubt, such losses shall in no case include operating losses from discontinued
operations), (iv) depreciation and amortization for such period, (v) amortized debt discount for
such period, (vi) the amount of any deduction to consolidated net income as the result of any grant
to any members of the management of such Person of any

A-8

 

Stock, (vii) any non-recurring employee
severance expenses to the extent included in the calculation of consolidated net income of such
Person for such period in accordance with GAAP, but without duplication, (viii) the accrual, net of
any payment in cash, related to the net periodic post retirement benefits, and (ix) any non-cash
loss resulting from a revaluation of any interest rate swap (provided, however, that if the Second
Lien Credit Agreement is not amended by June 30, 2007 to add a corresponding add-back to “EBITDA”
as defined therein, EBITDA shall be calculated without giving effect to this clause (ix) for
purposes of calculating the Financial
Covenants for all periods ending September 30, 2007 and thereafter), plus or minus as
applicable (d) the impact of any net change in the Borrowers’ LIFO inventory reserve. For purposes
of this definition, the following items shall be excluded in determining consolidated net income of
a Person: (1) the income (or deficit) of any other Person accrued prior to the date it became a
Subsidiary of, or was merged or consolidated into, such Person or any of such Person’s
Subsidiaries; (2) the income (or deficit) of any other Person (other than a Subsidiary) in which
such Person has an ownership interest, except to the extent any such income has actually been
received by such Person in the form of cash dividends or distributions; (3) the undistributed
earnings of any Subsidiary of such Person to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of
any contractual obligation or requirement of law applicable to such Subsidiary; (4) any restoration
to income of any contingency reserve, except to the extent that provision for such reserve was made
out of income accrued during such period; (5) any write-up of any asset; (6) any net gain from the
collection of the proceeds of life insurance policies; (7) any net gain arising from the
acquisition of any securities, or the extinguishment, under GAAP, of any Indebtedness, of such
Person; (8) in the case of a successor to such Person by consolidation or merger or as a transferee
of its assets, any earnings of such successor prior to such consolidation, merger or transfer of
assets; (9) any deferred credit representing the excess of equity in any Subsidiary of such Person
at the date of acquisition of such Subsidiary over the cost to such Person of the investment in
such Subsidiary; and (10) any write off of previously deferred financing charges incurred in
connection with this Agreement or the Second Lien Credit Agreement.

          “Eligible Consigned Inventory” shall mean Eligible Inventory of any Borrower on
consignment (a) located in the United States, (b) at a location at which the aggregate book value
of such Eligible Inventory is no less than $100,000, (c) with a consignee of such Borrower with
respect to which the aggregate book value of such consigned Eligible Inventory is not less than
$100,000, and (d) with respect to which Agent shall have received, in each case in form and
substance satisfactory to Agent: (i) a valid consignment agreement or arrangement which is
reasonably satisfactory to Agent is in place with respect to such Eligible Inventory; (ii) UCC
searches against the consignee in those jurisdictions in which such Eligible Inventory is subject
to consignment and the jurisdiction in which the consignee is organized or maintains its principal
place of business and such other searches that the Agent deems necessary or appropriate; (iii)
UCC-1 financing statements between the consignee and such Borrower, as consignor, in form and
substance satisfactory to Agent, which are duly assigned to Agent; (iv) a written notice to any
lender to the consignee of the first priority security interest in such Eligible Inventory of
Agent; and (v) an agreement in writing, in form and substance satisfactory to Agent, from the
consignee, pursuant to which such consignee, inter alia, acknowledges the first priority security
interest of Agent in such Collateral, agrees to waive any and all claims such consignee may, at

A-9

 

any
time, have against such Collateral, whether for processing, storage, breach of warranty (with
respect to prior purchases) or otherwise, and agrees to permit Agent access to the premises of such
consignee so as to remove such Collateral from such premises and acknowledges that it holds and
will hold possession of the Collateral for the benefit of Agent and agrees to follow all
instructions of Agent with respect thereto.

          “Eligible Equipment” means, on any date of determination, all of the Equipment owned
by and in the possession of the Borrowers, and located in the United States of America, properly
reflected on Schedule A-1, excluding Equipment that:

               (i) is not located at one of the business locations in the United States of such Persons set
forth on Schedule A-1, as amended from time to time with the consent of Agent;

               (ii) is not subject to a perfected first priority Lien in favor of the Agent for the benefit
of the Agent and the Lenders, or which is subject to any Lien other than Permitted Encumbrances
(excluding Liens under clauses (b) and (c) of Section 6.7);

               (iii) breaches any of the representations or warranties pertaining to such Equipment set forth
in this Agreement or the other Loan Documents;

               (iv) is not covered by property or casualty insurance required by this Agreement;

               (v) has not been appraised by an independent appraisal or audit firm designated by the Agent
and reasonably acceptable to the Borrower on or after June 1, 2007;

               (vi) Borrowers do not have good, valid, and marketable title thereto;

               (vii) is located on real property leased by a Borrower, unless such Equipment is subject to a
landlord access agreement, in form and substance reasonably acceptable to Agent, executed by the
lessor, or other third party, as the case may be, and unless it is segregated or otherwise
separately identifiable from goods of other Persons, if any, stored on the premises;

               (viii) is damaged, defective or obsolete, or constitutes furnishings, parts, fixtures or is
affixed to real Property; or

               (ix) is located at an owned location subject to a mortgage or other financing arrangement in
favor of a lender other than the Agent (unless a reasonably satisfactory mortgagee waiver or
similar waiver and/or consent has been delivered to the Agent).

          “Eligible In-Transit Inventory” means all raw materials and finished goods Inventory
owned by Borrowers, and not covered by Letters of Credit, and which Inventory is in transit to one
of the Borrowers’ facilities and which Inventory (a) has been paid for, unless the supplier (other
than a supplier which is a Credit Party) has waived rights to stoppage in-transit and the law of
the applicable jurisdiction where such supplier is located permits such waiver, (b)

A-10

 

is owned by one
of the Borrowers, as applicable (c) is fully insured, (d) is subject to a first priority security
interest in and lien upon such goods (and any insurance proceeds in respect thereof) in favor of
Agent (except for any possessory lien upon such goods in the possession of a freight carrier or
shipping company securing only the freight charges for the transportation of such goods to such
Borrowers), (e) is evidenced or deliverable pursuant to a valid and binding bill of lading (i)
issued by a reputable shipping company or its accredited agent, (ii) bearing a description of the
relevant Inventory either in general or particular terms, and (iii) made out to or
otherwise endorsed in favour of the Borrowers, as applicable, an original of which (together
with any required number of non-negotiable copies) has been delivered to Agent or an agent acting
on its behalf or designating Agent as consignee, (f) has been shipped by a Foreign Subsidiary of
the Credit Parties and (g) is otherwise deemed to be “Eligible Inventory” hereunder.

          “Enhanced Financial Covenants” means the financial covenants set forth in Annex
G.

          “Environmental Laws” means all applicable federal, state, local and foreign laws,
statutes, ordinances, codes, rules, standards and regulations (including equivalent legislation and
by-laws applicable in Australian federal, state and municipal jurisdictions), now or hereafter in
effect, and any applicable judicial or administrative interpretation thereof, including any
applicable judicial or administrative order, consent decree, order or judgment, imposing liability
or standards of conduct for or relating to the regulation and protection of the environment and
natural resources (including ambient air, surface water, groundwater, wetlands, land surface or
subsurface strata, wildlife, aquatic species and vegetation) or human health and safety as it
relates to environmental protection. Environmental Laws include any applicable provision of the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601
et seq.) (“CERCLA”); the Hazardous Materials Transportation Authorization Act of
1994 (49 U.S.C. §§ 5101 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act
(7 U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act (42 U.S.C. §§ 6901 et
seq.); the Toxic Substance Control Act (15 U.S.C. §§ 2601 et seq.); the Clean Air Act
(42 U.S.C. §§ 7401 et seq.); the Federal Water Pollution Control Act (33 U.S.C. §§ 1251
et seq.); and the Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), and any
and all applicable regulations promulgated thereunder, and all applicable analogous state, local
and foreign counterparts or equivalents and any transfer of ownership notification or approval
statutes.

          “Environmental Liabilities” means, with respect to any Person in any jurisdiction, all
liabilities, obligations, responsibilities, response, remedial and removal costs, investigation and
feasibility study costs, capital costs, operation and maintenance costs, losses, damages, punitive
damages, property damages, natural resource damages, consequential damages, treble damages, costs
and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and
consultants), fines, penalties, sanctions and interest incurred as a result of or related to any
claim, suit, action, investigation, proceeding or demand by any Person arising under or related to
any Environmental Laws, Environmental Permits, or in connection with any Release of a Hazardous
Material at, on, in, under, to or from any real or personal property whether based in contract,
tort, implied or express warranty, strict liability, criminal or civil statute or common law.

A-11

 

          “Environmental Permits” means all permits, licenses, authorizations, certificates,
approvals or registrations required by any Governmental Authority under any Environmental Laws.

          “Equipment” means all “equipment,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located and, in any event, including all such
Credit Party’s machinery and equipment, including processing equipment, conveyors, machine tools,
data processing and computer equipment, including embedded software and
peripheral equipment and all engineering, processing and manufacturing equipment, office
machinery, furniture, materials handling equipment, tools, attachments, accessories, automotive
equipment, trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and
other equipment of every kind and nature, trade fixtures and fixtures not forming a part of real
property, together with all additions and accessions thereto, replacements therefor, all parts
therefor, all substitutes for any of the foregoing, fuel therefor, and all manuals, drawings,
instructions, warranties and rights with respect thereto, and all products and proceeds thereof and
condemnation awards and insurance proceeds with respect thereto.

          “Equipment Appraisal” means the equipment appraisal delivered to Agent within 120 days
after the Closing Date setting forth the Net Orderly Liquidation Value of Equipment and each
equipment appraisal in form and substance reasonably satisfactory to Agent delivered to Agent
pursuant to Section 5.10.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any applicable regulations promulgated thereunder.

          “ERISA Affiliate” means, with respect to any Credit Party, any Person that, together
with such Credit Party, are treated as a single employer within the meaning of Sections 414(b),
(c), (m) or (o) of the IRC.

          “ERISA Event” means, with respect to any Credit Party or any ERISA Affiliate, (a) with
respect to a Title IV Plan, any event described in Section 4043(c) of ERISA for which notice to the
PBGC has not been waived; (b) the withdrawal of any Credit Party or ERISA Affiliate from a Title IV
Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal of any Credit Party
or any ERISA Affiliate from any Multiemployer Plan; (d) the filing of a notice of intent to
terminate a Title IV Plan in a distress termination described in Section 4041(c) of ERISA or the
treatment of a plan amendment as a termination under Section 4041 of ERISA; (e) the institution of
proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) with respect to a
Title IV Plan, the existence of an “accumulated funding deficiency” (as defined in Section 412 of
the IRC or Section 302 of ERISA) whether or not waived, or the failure to make by its due date a
required installment under Section 412(m) of the Code or the failure to make any required
contribution to a Multiemployer Plan; (g) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect
to a Title IV Plan; (h) the making of any amendment to any Title IV Plan which could result in the
imposition of a lien or the posting of a bond or other security; (i) with respect to a Title IV
Plan an event described in Section 4062(e) of

A-12

 

ERISA; (j) any other event or condition that would
reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the
imposition of liability under Section 4069 or 4212(c) of ERISA; (k) the termination of a
Multiemployer Plan under Section 4041A of ERISA or the reorganization or insolvency of a
Multiemployer Plan under Section 4241 or 4245 of ERISA; or (l) the loss of a Qualified Plan’s
qualification or tax exempt status.

          “European Account Debtors” means Account Debtors whose principal place of business is
located in any of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain or Sweden, in each case to the extent that such
countries remain member states of the European Union.

          “Event of Default” has the meaning ascribed to it in Section 8.1.

          “Existing Obligations” shall mean the “Obligations”, as defined in the Prior Credit
Agreement.

          “Federal Funds Rate” means, for any day, a floating rate equal to the weighted average
of the rates on overnight Federal funds transactions among members of the Federal Reserve System,
as determined by Agent in its sole discretion, which determination shall be final, binding and
conclusive (absent manifest error).

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

          “Fees” means any and all fees payable to Agent or any Lender pursuant to this
Agreement or any of the other Loan Documents.

          “Financial Covenants” means the financial covenants set forth in Annex G.

          “Financial Statements” means the consolidated and consolidating income statements and
balance sheets and consolidated statements of cash flows of Holdings and its Subsidiaries delivered
in accordance with Section 3.4(a) and Annex E (subsections (a) and (c) only).

          “Fiscal Month” means any of the monthly accounting periods of Borrowers.

          “Fiscal Quarter” means any of the quarterly accounting periods of Borrowers, ending on
March 31, June 30, September 30 and December 31 of each year.

          “Fiscal Year” means any of the annual accounting periods of Borrowers ending on
December 31st of each year.

          “Fixed Charge Coverage Ratio” means, with respect to any Person for any fiscal period,
the ratio of EBITDA to Fixed Charges (calculated without giving effect to any non-cash loss or gain
resulting from a revaluation of any interest rate swap).

A-13

 

          “Fixed Charges” means, with respect to any Person for any fiscal period, (a) the
aggregate of all Interest Expense paid or accrued (without duplication) during such period (less
any interest income received in cash during such period), plus (b) scheduled payments of
principal with respect to Indebtedness during such period, including amortization of the ABL
Borrowing Base in the amount of the Amortization Amount per calendar quarter in accordance with
clause (h) of the definition of Borrowing Base, plus (c) Capital Expenditures during such
period (other than that portion of such Capital Expenditures financed by lenders other than the
Lenders hereunder), plus (d) income taxes paid or currently payable in cash with respect to
such fiscal period.

          “Fixtures” means all “fixtures” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party.

          “Foreign Collateral Parties” means, collectively, the Australian Collateral Party,
the Canadian Collateral Party and the UK Collateral Party.

          “Foreign Lender” has the meaning ascribed to it in Section 1.13(b)(i).

          “Foreign Subsidiary” shall mean a Subsidiary created or organized outside the United
States or under the law of a jurisdiction other than the United States or any political subdivision
thereof.

          “Funded Debt” means, with respect to any Person, without duplication, all Indebtedness
for borrowed money evidenced by notes, bonds, debentures, or similar evidences of Indebtedness, and
specifically including Capital Lease Obligations, revolving credit and short-term debt, and also
including, in the case of Borrowers, the Obligations and, without duplication, Guaranteed
Indebtedness consisting of guaranties of Funded Debt of other Persons, but expressly excluding any
obligation attributable to any hedging agreement related to currency values or commodity prices
permitted under Section 6.3(a)(viii) or any interest rate agreement or arrangement
permitted under Section 6.3(a)(xii).

          “GAAP” means generally accepted accounting principles in the United States of America
consistently applied, as such term is further defined in Annex G to this Agreement.

          “GE Capital Fee Letter” means that certain letter, dated as of the date hereof,
between GE Capital and Borrowers with respect to certain Fees to be paid by Borrowers to GE.

          “General Intangibles” means all “general intangibles,” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party, including all right, title and interest
that such Credit Party may now or hereafter have in or under any Contract, all payment intangibles,
customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefor and
reissues, extensions or renewals thereof, rights in Intellectual Property, interests in
partnerships, joint ventures and other business associations, licenses, permits, copyrights, trade
secrets, proprietary or confidential information, inventions (whether or not patented or
patentable), technical information, procedures, designs, knowledge, know-how, software, data bases,
data, skill, expertise, experience, processes, models, drawings, materials and records, goodwill
(including the goodwill associated with any Trademark or Trademark License), all

A-14

 

rights and claims
in or under insurance policies (including insurance for fire, damage, loss and casualty, whether
covering personal property, real property, tangible rights or intangible rights, all liability,
life, key man and business interruption insurance, and all unearned premiums), uncertificated
securities, choses in action, deposit, checking and other bank accounts, rights to receive tax
refunds and other payments, rights to receive dividends, distributions, cash, Instruments and other
property in respect of or in exchange for pledged Stock and Investment Property, rights of
indemnification, all books and records, correspondence, credit files, invoices and other papers,
including without limitation all tapes, cards, computer runs and other papers and documents in the
possession or under the control of such Credit Party or any computer bureau or service company from
time to time acting for such Credit Party.

          “Goods” means all “goods” as defined in the Code, now owned or hereafter acquired by
any Credit Party, wherever located, including embedded software to the extent included in “goods”
as defined in the Code, manufactured homes, standing timber that is cut and removed for sale and
unborn young of animals.

          “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, and any agency, department or other entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government in any
jurisdiction.

          “Guaranteed Indebtedness” means as to any Person, any obligation of such Person
guaranteeing, providing comfort or otherwise supporting any Indebtedness, lease, dividend, or other
obligation (“primary obligation”) of any other Person (the “primary obligor”) in
any manner, including any obligation or arrangement of such Person to (a) purchase or repurchase
any such primary obligation, (b) advance or supply funds (i) for the purchase or payment of any
such primary obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency or any balance sheet condition of the
primary obligor, (c) purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary obligor to make
payment of such primary obligation, (d) protect the beneficiary of such arrangement from loss
(other than product warranties given in the ordinary course of business) or (e) indemnify the owner
of such primary obligation against loss in respect thereof. The amount of any Guaranteed
Indebtedness at any time shall be deemed to be an amount equal to the lesser at such time of (x)
the stated or determinable amount of the primary obligation in respect of which such Guaranteed
Indebtedness is incurred and (y) the maximum amount for which such Person may be liable pursuant to
the terms of the instrument embodying such Guaranteed Indebtedness, or, if not stated or
determinable, the maximum reasonably anticipated liability (assuming full performance) in respect
thereof.

          “Guaranties” means any guaranty executed by any Guarantor in favor of Agent and
Lenders in respect of the Obligations.

          “Guarantors” means each Person, if any, that executes a guaranty or other similar
agreement in favor of Agent, for itself and the ratable benefit of Lenders, in connection with the
transactions contemplated by this Agreement and the other Loan Documents.

A-15

 

          “Hazardous Material” means any substance, material or waste that is regulated as
hazardous, toxic, pollutant, or words of similar meaning or effect, under any Environmental Laws,
including any material or substance that is (a) defined as a “solid waste,” “hazardous waste,”
“hazardous material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous
waste,” “pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic substance” or
other similar term or phrase under any Environmental Laws, or (b) petroleum or any fraction or
by-product thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive substance.

          “High Yield Notes” means the 9.25% Senior Subordinated Notes due 2014 issued by
Holdings and guaranteed by the other Credit Parties pursuant to that certain Indenture dated as of
February 5, 2004 (the “Indenture”) in an aggregate principal amount of $175,000,000.

          “Holdings” means Thermadyne Holdings Corporation, a Delaware corporation.

          “Indebtedness” means, with respect to any Person, without duplication, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase price of property
payment for which is deferred 6 months or more, but excluding obligations to trade creditors
incurred in the ordinary course of business that are unsecured and not overdue by more than 6
months unless being contested in good faith, (b) all reimbursement and other obligations with
respect to letters of credit, bankers’ acceptances and surety bonds, whether or not matured, (c)
all obligations evidenced by notes, bonds, debentures or similar instruments, (d) all indebtedness
created or arising under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default are limited to repossession or sale of such property), (e)
all Capital Lease Obligations and the present value (discounted at the Index Rate as in effect on
the Closing Date) of future rental payments under all synthetic leases, (f) all obligations of such
Person under commodity purchase or option agreements or other commodity price hedging arrangements,
in each case whether contingent or matured, (g) all obligations of such Person under any foreign
exchange contract, currency swap agreement, interest rate swap, cap or collar agreement or other
similar agreement or arrangement designed to alter the risks of that Person arising from
fluctuations in currency values or interest rates, in each case whether contingent or matured, (h)
all Indebtedness referred to above secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien upon or in property or other
assets (including accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness, and (i) the Obligations.

          “Indemnified Liabilities” has the meaning ascribed to it in Section 1.11(a).

          “Indemnified Person” has the meaning ascribed to in Section 1.11.

          “Indenture” has the meaning ascribed to it in the definition of “High Yield
Notes”.

A-16

 

          “Index Rate” means, for any day, a floating rate equal to the higher of (i) the rate
publicly quoted from time to time by The Wall Street Journal as the “prime rate” (or, if
The Wall Street Journal ceases quoting a prime rate, the highest per annum rate of interest
published by the Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled
“Selected Interest Rates” as the Bank prime loan rate or its equivalent), and (ii) the Federal
Funds Rate plus 50 basis points per annum. Each change in any interest rate provided for in this
Agreement based upon the Index Rate shall take effect at the time of such change in the Index Rate.

          “Index Rate Loan” means a Loan or portion thereof bearing interest by reference to the
Index Rate.

          “Industries” has the meaning ascribed thereto in the preamble to this Agreement.

          “Initial Credit Agreement” means that certain Credit Agreement, dated as of February
5, 2004, by and among the Borrowers, Credit Parties (as defined therein), Agent and other Persons
signatory thereto.

          “Instruments” means all “instruments,” as such term is defined in the Code, now owned
or hereafter acquired by any Credit Party, wherever located, and, in any event, including all
certificated securities, all certificates of deposit, and all promissory notes and other evidences
of indebtedness, other than instruments that constitute, or are a part of a group of writings that
constitute, Chattel Paper.

          “Intellectual Property” means any and all Licenses, Patents, Copyrights, Trademarks,
and the goodwill associated with such Trademarks.

          “Intercreditor Agreement” means that certain Amended and Restated Intercreditor
Agreement dated as of the date hereof by and among First Lien Agent, the First Lien Lenders, the
Second Lien Agent and the Second Lien Lenders (as each such term is defined therein).

          “Interest Expense” means, with respect to any Person for any fiscal period, interest
expense (whether cash or non-cash) of such Person determined in accordance with GAAP for the
relevant period ended on such date, including, without duplication, interest expense with respect
to any Funded Debt of such Person and interest expense for the relevant period that has been
capitalized on the balance sheet of such Person, but excluding prepayment fees payable with respect
to the Second Lien Loan Obligations and closing fees or amendment fees payable with respect to the
Obligations or the Second Lien Obligations.

          “Interest Payment Date” means (a) as to any Index Rate Loan, the first Business Day of
each month to occur while such Loan is outstanding, and (b) as to any LIBOR Loan, the last day of
the applicable LIBOR Period provided that, in addition to the foregoing, each of (x) the
date upon which all of the Commitments have been terminated and the Loans have been paid in full
and (y) the Commitment Termination Date shall be deemed to be an “Interest Payment Date” with
respect to any interest that has then accrued under this Agreement.

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          “International” has the meaning ascribed thereto in the preamble to this Agreement.

          “Inventory” means all “inventory,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located, and in any event including inventory,
merchandise, goods and other personal property that are held by or on behalf of any Credit Party
for sale or lease or are furnished or are to be furnished under a contract of service, or that
constitute raw materials, work in process, finished goods, returned goods, or materials or supplies
of any kind, nature or description used or consumed or to be used or consumed in such Credit
Party’s business or in the processing, production, packaging, promotion, delivery or shipping of
the same, including all supplies and embedded software.

          “Inventory Appraisal” means the inventory appraisal delivered to Agent prior to the
Closing Date setting forth the Net Orderly Liquidation Value of Inventory and each inventory
appraisal in form and substance reasonably satisfactory to Agent delivered to Agent pursuant to
Section 5.10.

          “Investment Property” means all “investment property” as such term is defined in the
Code now owned or hereafter acquired by any Credit Party, wherever located, including (i) all
securities, whether certificated or uncertificated, including stocks, bonds, interests in limited
liability companies, partnership interests, treasuries, certificates of deposit, and mutual fund
shares; (ii) all securities entitlements of any Credit Party, including the rights of any Credit
Party to any securities account and the financial assets held by a securities intermediary in such
securities account and any free credit balance or other money owing by any securities intermediary
with respect to that account; (iii) all securities accounts of any Credit Party; (iv) all commodity
contracts of any Credit Party; and (v) all commodity accounts held by any Credit Party.

          “IRC” means the Internal Revenue Code of 1986 and all regulations promulgated
thereunder.

          “IRS” means the Internal Revenue Service.

          “Joint Account” has the meaning ascribed to it in Annex C.

          “L/C Issuer” has the meaning ascribed to it in Annex B.

          “L/C Sublimit” has the meaning ascribed to it in Annex B.

          “Lenders” means GE Capital, the other Lenders named on the signature pages of this
Agreement, and, if any such Lender shall decide to assign all or any portion of the Obligations,
such term shall include any assignee of such Lender.

          “Letter of Credit Fee” has the meaning ascribed to it in Annex B.

          “Letter of Credit Obligations” means all outstanding obligations incurred by Agent and
Lenders at the request of Borrower Representative, whether direct or indirect,

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contingent or
otherwise, due or not due, in connection with the issuance of Letters of Credit by Agent or another
L/C Issuer or the purchase of a participation as set forth in Annex B with respect to any
Letter of Credit. The amount of such Letter of Credit Obligations shall equal the maximum amount
that may be payable at such time or at any time thereafter by Agent or Lenders thereupon or
pursuant thereto.

          “Letter-of-Credit Rights” means “letter-of-credit rights” as such term is defined in
the Code, now owned or hereafter acquired by any Credit Party, including rights to payment or
performance under a letter of credit, whether or not such Credit Party, as beneficiary, has
demanded or is entitled to demand payment or performance.

          “Letters of Credit” means documentary or standby letters of credit issued for the
account of any Borrower by any L/C Issuer, and bankers’ acceptances issued by any Borrower, for
which Agent and Lenders have incurred Letter of Credit Obligations.

          “LIBOR Business Day” means a Business Day on which banks in the City of London are
generally open for interbank or foreign exchange transactions.

          “LIBOR Loan” means a Loan or any portion thereof bearing interest by reference to the
LIBOR Rate.

          “LIBOR Period” means, with respect to any LIBOR Loan, each period commencing on a
LIBOR Business Day selected by Borrower Representative pursuant to this Agreement and ending one,
two or three months thereafter, as selected by Borrower Representative’s irrevocable notice to
Agent as set forth in Section 1.5(e); provided that the foregoing provision
relating to LIBOR Periods is subject to the following:

          (a) if any LIBOR Period would otherwise end on a day that is not a LIBOR Business Day,
such LIBOR Period shall be extended to the next succeeding LIBOR Business Day unless the
result of such extension would be to carry such LIBOR Period into another calendar month in
which event such LIBOR Period shall end on the immediately preceding LIBOR Business Day;

          (b) any LIBOR Period that would otherwise extend beyond the Commitment Termination Date
shall end two (2) LIBOR Business Days prior to such date;

          (c) any LIBOR Period that begins on the last LIBOR Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such LIBOR Period) shall end on the last LIBOR Business Day of a calendar month;

          (d) Borrower Representative shall select LIBOR Periods so as not to require a payment
or prepayment of any LIBOR Loan during a LIBOR Period for such Loan; and

A-19

 

          (e) Borrower Representative shall select LIBOR Periods so that there shall be no more
than seven (7) separate LIBOR Loans in existence at any one time.

          “LIBOR Rate” means for each LIBOR Period, a rate of interest determined by Agent equal
to:

          (a) the offered rate for deposits in United States Dollars for the applicable LIBOR
Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time), on the second full
LIBOR Business Day next preceding the first day of such LIBOR Period (unless such date is
not a Business Day, in which event the next succeeding Business Day will be used); divided
by

          (b) a number equal to 1.0 minus the aggregate (but without duplication) of the rates
(expressed as a decimal fraction) of reserve requirements in effect on the day that is two (2)
LIBOR Business Days prior to the beginning of such LIBOR Period (including basic, supplemental,
marginal and emergency reserves under any regulations of the Federal Reserve Board or other
Governmental Authority having jurisdiction with respect thereto, as now and from time to time in
effect) for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation
D of the Federal Reserve Board) that are required to be maintained by a member bank of the Federal
Reserve System.

          If such interest rates shall cease to be available from Telerate News Service (or its
successor satisfactory to Agent), the LIBOR Rate shall be determined from such financial reporting
service or other information as shall be mutually acceptable to Agent and Borrower Representative.

          “License” means any Copyright License, Patent License, Trademark License or other
license of rights or interests now held or hereafter acquired by any Credit Party.

          “Lien” means any mortgage or deed of trust, pledge, hypothecation, deposit
arrangement, lien, charge, claim, security interest, easement or encumbrance, or preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any lease or title retention agreement, any financing lease having substantially the
same economic effect as any of the foregoing, and the filing of, or agreement to give, any
financing statement perfecting a security interest under the Code or comparable law of any
jurisdiction).

          “Litigation” has the meaning ascribed to it in Section 3.13.

          “Loan Account” has the meaning ascribed to it in Section 1.10.

          “Loan Documents” means this Agreement, the Notes, the Collateral Documents, the Master
Standby Agreement, and all other agreements, instruments, documents and certificates identified in
the Closing Checklist (or previously delivered under the Initial Credit Agreement or Prior Credit
Agreement) executed and delivered to, or in favor of, Agent or any Lenders and including all other
pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements
and all other written matter whether heretofore, now or

A-20

 

hereafter executed by or on behalf of any
Credit Party, or any employee of any Credit Party, and delivered to Agent or any Lender in
connection with this Agreement or the transactions contemplated thereby. Any reference in this
Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or
schedules thereto, and all amendments, restatements, supplements or other modifications thereto,
and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all
times such reference becomes operative.

          “Loan Year” means each succeeding period of twelve consecutive months ending on an
anniversary of the Prior Credit Agreement Closing Date.

          “Loans” means the Revolving Loan and the Swing Line Loan.

          “Lock Boxes” has the meaning ascribed to it in Annex C.

          “Margin Stock” has the meaning ascribed to in Section 3.10.

          “Master Disbursement Account” has the meaning ascribed to it in Annex C.

          “Master Standby Agreement” means that certain Master Agreement for Standby Letters of
Credit dated as of May 23, 2003 (as amended, restated, supplemented or otherwise modified from time
to time) among Borrowers, as Applicant(s), and GE Capital, as issuer.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or financial or other condition of the Credit Parties considered as a whole,
(b) any Borrower’s ability to pay any of the Loans or any of the other Obligations in accordance
with the terms of this Agreement, (c) the Collateral or Agent’s Liens, on behalf of itself and
Lenders, on the Collateral or the priority of such Liens, or (d) Agent’s or any Lender’s rights and
remedies under this Agreement and the other Loan Documents. Without limiting the generality of the
foregoing, any event or occurrence adverse to one or more Credit Parties which results or could
reasonably be expected to result in losses, costs, damages, liabilities or expenditures in excess
of $ 10,000,000 shall constitute a Material Adverse Effect.

          “Maximum Amount” means, as of any date of determination, an amount equal to the
Revolving Loan Commitment of all Lenders as of that date.

          “MECO Holdings” means MECO Holding Company, a Delaware corporation.

          “Mortgaged Property” means that certain property located at 73 Gower Street, Preston
VICTORIA 3072 referred to in the title records as CT Volume 10746 Folio 083.

          “Mortgages” means each of the mortgages, deeds of trust, leasehold mortgages,
leasehold deeds of trust, collateral assignments of leases or other real estate security documents
delivered by any Credit Party to Agent on behalf of itself and Lenders with respect to the
Mortgaged Properties, all in form and substance reasonably satisfactory to Agent.

A-21

 

          “Multiemployer Plan” means a “multiemployer plan” as defined in Sections 3(37) or
4001(a)(3) of ERISA, and to which any Credit Party or ERISA Affiliate has or has had any obligation
or liability, contingent or otherwise, is making, is obligated to make or has made or been
obligated to make, contributions on behalf of participants who are or were employed by any of them.

          “Net Orderly Liquidation Value” means the proceeds of Inventory or Equipment (as
applicable) which could be obtained in an orderly liquidation (net of all liquidation expenses,
costs of sale, operating expenses and retrieval and related costs), as determined pursuant to the
most recent Inventory Appraisal or Equipment Appraisal delivered to Agent and notified to Borrowers
and the Lenders.

          “NOLV Factor” means, as of the date of the Inventory Appraisal most recently received
by Agent, the relationship between the book value of Inventory and the Net Orderly
Liquidation Value of Inventory, expressed as a percentage. The NOLV Factor will be increased
or reduced promptly upon receipt by Agent of each updated Inventory Appraisal.

          “Non-Funding Lender” has the meaning ascribed to it in Section 9.9(a)(ii).

          “Notes” means, collectively, the Revolving Notes and the Swing Line Notes.

          “Notice of Conversion/Continuation” has the meaning ascribed to it in Section
1.5(f).

          “Notice of Revolving Credit Advance” has the meaning ascribed to it in Section
1.1(a).

          “Obligations” means all loans, advances, debts, liabilities and obligations for the
performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such
performance is then required or contingent, or such amounts are liquidated or determinable) owing
by any Credit Party to Agent or any Lender, and all covenants and duties regarding such amounts, of
any kind or nature, present or future, whether or not evidenced by any note, agreement, letter of
credit agreement or other instrument, arising under this Agreement or any of the other Loan
Documents. This term includes all principal, interest (including all interest that accrues after
the commencement of any case or proceeding by or against any Credit Party in bankruptcy, whether or
not allowed in such case or proceeding), Fees, hedging obligations under swaps, caps and collar
arrangements provided by any Lender, expenses, attorneys’ fees and any other sum chargeable to any
Credit Party under this Agreement or any of the other Loan Documents.

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

          “Overadvances” has the meaning ascribed to it in Section 1.1(a)(iii).

A-22

 

          “Patent License” means rights under any written agreement now owned or hereafter
acquired by any Credit Party granting any right with respect to any invention that is claimed in an
existing Patent.

          “Patent Security Agreements” means those certain Patent Security Agreements dated as
of May 23, 2003 (as amended, restated, supplemented or otherwise modified from time to time) made
in favor of Agent, on behalf of itself and Lenders, by each applicable Credit Party.

          “Patents” means all of the following in which any Credit Party now holds or hereafter
acquires any interest: (a) all letters patent of the United States or of any other country, all
registrations and recordings thereof, and all applications for letters patent of the United States
or of any other country, including registrations, recordings and applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States or any other
country, and (b) all reissues, continuations, continuations-in-part or extensions thereof.

          “PBGC” means the Pension Benefit Guaranty Corporation.

          “Permitted Encumbrances” means the following encumbrances: (a) Liens for taxes or
assessments or other governmental Charges not yet due and payable or which are being contested in
accordance with Section 5.2(b); (b) pledges or deposits of money securing statutory
obligations under workmen’s compensation, unemployment insurance, social security or public
liability laws or similar legislation (excluding Liens under ERISA); (c) pledges or deposits of
money securing bids, tenders, contracts (other than contracts for the payment of money) or leases
to which any Credit Party or Foreign Subsidiary is a party as lessee made in the ordinary course of
business; (d) inchoate and unperfected workers’, mechanics’ or similar liens arising in the
ordinary course of business, so long as such Liens attach only to Equipment, Fixtures and/or Real
Estate; (e) carriers’, warehousemen’s, suppliers’ or other similar possessory liens arising in the
ordinary course of business and securing liabilities in an outstanding aggregate amount not in
excess of $1,000,000 at any time, so long as such Liens attach only to Inventory; (f) deposits
securing, or in lieu of, surety, appeal or customs bonds in proceedings to which any Credit Party
or Foreign Subsidiary is a party; (g) any attachment or judgment lien not constituting an Event of
Default under Section 8.1(j); (h) zoning restrictions, easements, licenses, or other
restrictions on the use of any Real Estate or other minor irregularities in title (including
leasehold title) thereto, so long as the same do not materially impair the use, value, or
marketability of such Real Estate; (i) presently existing or hereafter created Liens in favor of
Agent, on behalf of Lenders; (j) Liens expressly permitted under clauses (b) and
(c) of Section 6.7 of this Agreement; (k) customary Liens and set-off rights in
favor of banks maintaining accounts for the Credit Parties or other Foreign Subsidiaries, (l) other
customary Liens imposed in the jurisdiction of a Foreign Subsidiary provided such Lien is not
reasonably expected to have a material adverse effect on such Foreign Subsidiary and (m) Liens
pursuant to the Second Lien Loan Documents solely to the extent securing Second Lien Loan
Obligations.

          “Person” means any individual, sole proprietorship, partnership, company, joint
venture, trust, unincorporated organization, association, corporation, limited liability company,
institution, public benefit corporation, other entity or government (whether federal, state,
county,

A-23

 

city, municipal, local, foreign, or otherwise, including any instrumentality, division,
agency, body or department thereof).

          “Plan” means, at any time, an “employee benefit plan”, as defined in Section 3(3) of
ERISA, that any Credit Party or ERISA Affiliate has or has had any obligation or liability,
contingent or otherwise, maintains, contributes to or has an obligation to contribute to or has
maintained, contributed to or had an obligation to contribute to at any time within the past 7
years on behalf of participants who are or were employed by any Credit Party or ERISA Affiliate.

          “Plan of Reorganization” means, that certain First Amended and Restated Joint Plan of
Reorganization under Chapter 11 of the Bankruptcy Code dated January 17, 2003, filed in the Chapter
11 Cases including the First Amended and Restated Disclosure Statement filed in conjunction
therewith.

          “Pledge Agreements” means those certain Pledge Agreements dated as of May 23, 2003 (as
amended, restated, supplemented or otherwise modified from time to time) by
Holdings and each Borrower, pledging to Agent 100% of the Stock of all of their domestic
Subsidiaries (other than Thermadyne Cylinder Co.) and 100% of the non-voting Stock and 65% of the
voting Stock of all Foreign Subsidiaries directly owned by a domestic Credit Party and any pledge
agreements entered into after the Closing Date by any Credit Party (as required by this Agreement
of any other Loan Document).

          “Prior Credit Agreement” has the meaning ascribed thereto in the recitals to this
Agreement.

          “Prior Loans” has the meaning ascribed thereto in the recitals to this Agreement.

          “Proceeds” means “proceeds,” as such term is defined in the Code, including (a) any
and all proceeds of any insurance, indemnity, warranty or guaranty payable to any Credit Party from
time to time with respect to any of the Collateral, (b) any and all payments (in any form
whatsoever) made or due and payable to any Credit Party from time to time in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral
by any Governmental Authority (or any Person acting under color of governmental authority), (c) any
claim of any Credit Party against third parties (i) for past, present or future infringement of any
Patent or Patent License, or (ii) for past, present or future infringement or dilution of any
Copyright, Copyright License, Trademark or Trademark License, or for injury to the goodwill
associated with any Trademark or Trademark License, (d) any recoveries by any Credit Party against
third parties with respect to any litigation or dispute concerning any of the Collateral including
claims arising out of the loss or nonconformity of, interference with the use of, defects in, or
infringement of rights in, or damage to, Collateral, (e) all amounts collected on, or distributed
on account of, other Collateral, including dividends, interest, distributions and Instruments with
respect to Investment Property and pledged Stock, and (f) any and all other amounts, rights to
payment or other property acquired upon the sale, lease, license, exchange or other disposition of
Collateral and all rights arising out of Collateral.

A-24

 

          “Processors Reserve” means, as of any date of determination, Reserves from time to
time established at the Agent’s sole discretion based on amounts owing to one or more processors of
a Collateral Party’s Inventory.

          “Projections” means Holdings’ and its Subsidiaries’ projections as described in
Section 3.4(c) hereto.

          “Pro Rata Share” means with respect to all matters relating to any Lender, (a) prior
to the Commitment Termination Date, the percentage obtained by dividing (i) the aggregate
Commitments of that Lender by (ii) the aggregate Commitments of all Lenders, in each case, as any
such percentages may be adjusted by assignments permitted pursuant to Section 9.1, and (b)
with respect to all Loans on and after the Commitment Termination Date, the percentage obtained by
dividing (i) the aggregate outstanding principal balance of the Loans held by that Lender, by (ii)
the outstanding principal balance of the Loans held by all Lenders.

          “ProTip” has the meaning ascribed thereto in the preamble to this Agreement.

          “Qualified Assignee” means (a) any Lender, any Affiliate of any Lender and, with
respect to any Lender that is an investment fund that invests in commercial loans, any other
investment fund that invests in commercial loans and that is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor, and (b) any
commercial bank, savings and loan association or savings bank or any other entity which is an
“accredited investor” (as defined in Regulation D under the Securities Act of 1933) which extends
credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease
financing companies and commercial finance companies, in each case, which has a rating of BBB or
higher from S&P and a rating of Baa2 or higher from Moody’s at the date that it becomes a Lender
and which, through its applicable lending office, is capable of lending to Borrowers without the
imposition of any withholding or similar taxes; provided that no Person proposed to become
a Lender after the Closing Date and determined by Agent to be acting in the capacity of a vulture
fund or distressed debt purchaser shall be a Qualified Assignee, and no Person or Affiliate of such
Person proposed to become a Lender after the Closing Date and that holds Subordinated Debt or Stock
issued by any Credit Party shall be a Qualified Assignee.

          “Qualified Plan” means a Plan that is intended to be tax-qualified under Section
401(a) of the IRC.

          “Real Estate” has the meaning ascribed to it in Section 3.6.

          “Refunded Swing Line Loan” has the meaning ascribed to it in Section
1.1(d)(iii).

          “Related Transactions” means the borrowing under the Revolving Loan on the Closing
Date and the payment of all fees, costs and expenses associated therewith.

          “Relationship Bank” has the meaning ascribed to it in Annex C.

          “Release” means any release, spill, emission, leaking, pumping, pouring, emitting,
emptying, escape, injection, deposit, disposal, discharge, dispersal, dumping, leaching or

A-25

 

migration of Hazardous Material in the environment, including the movement of Hazardous Material
through or in the air, soil, surface water, ground water or property.

          “Rent Reserve” means, as of any date determination, a Reserve established at the
Agent’s sole discretion for up to four (4) months rent owing under leases of any of the Collateral
Parties with respect to locations as to which Agent has not received a landlord agreement in form
and substance reasonably satisfactory to the Agent or otherwise waived such requirement, or as to
which rent for such location is not current.

          “Requisite Lenders” means Lenders having (a) more than 66 2/3% of the Commitments of
all Lenders, or (b) if the Commitments have been terminated, more than 66 2/3% of the aggregate
outstanding amount of all Loans; provided that so long as there are only two Lenders,
Requisite Lenders shall mean all Lenders.

          “Reserves” means (a) the Rent Reserve, (b) reserves established by Agent from time to
time against Eligible Inventory pursuant to Section 5.9, (c) reserves established pursuant
to Section 5.4(b), (d) reserves established to reflect UK Prior Claims, (e) such other
reserves
against Eligible Accounts, Eligible Inventory or Borrowing Availability of the Collateral
Parties that Agent may, in its reasonable credit judgment, establish from time to time. Without
limiting the generality of the foregoing, Reserves established to ensure the payment of accrued
Interest Expenses or Indebtedness shall be deemed to be a reasonable exercise of Agent’s credit
judgment.

          “Restricted Payment” means, with respect to any Credit Party (a) the declaration or
payment of any dividend or the incurrence of any liability to make any other payment or
distribution of cash or other property or assets in respect of Stock; (b) any payment on account of
the purchase, redemption, defeasance, sinking fund or other retirement of such Credit Party’s Stock
or any other payment or distribution made in respect thereof, either directly or indirectly; (c)
any payment or prepayment of principal of, premium, if any, or interest, fees or other charges on
or with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or similar
payment and any claim for rescission with respect to, any Subordinated Debt; (d) any payment made
to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire Stock of such Credit Party now or hereafter outstanding; (e) any
payment of a claim for the rescission of the purchase or sale of, or for material damages arising
from the purchase or sale of, any shares of such Credit Party’s Stock or of a claim for
reimbursement, indemnification or contribution arising out of or related to any such claim for
damages or rescission; (f) any payment, loan, contribution, or other transfer of funds or other
property to any Stockholder of such Credit Party other than payment of compensation in the ordinary
course of business to Stockholders who are employees of such Person; and (g) any payment of
management fees (or other fees of a similar nature) by such Credit Party to any Stockholder of such
Credit Party or its Affiliates.

          “Retiree Welfare Plan” means, at any time, a Plan that is a welfare plan (within the
meaning of Section 3(1) of ERISA) and that provides for continuing coverage
or benefits for any
participant or any beneficiary of a participant after the last day of the calendar month following
such participant’s termination of employment, other than continuation coverage

A-26

 

provided pursuant to
Section 4980B of the IRC or other similar state law and at the sole expense of the participant or
the beneficiary of the participant.

          “Revolving Credit Advance” has the meaning ascribed to it in Section
1.1(a)(i).

          “Revolving Lenders” means, as of any date of determination, Lenders having a Revolving
Loan Commitment.

          “Revolving Loan” means, at any time, the sum of (i) the aggregate amount of Revolving
Credit Advances outstanding to Borrower plus (ii) the aggregate Letter of Credit
Obligations incurred on behalf of Borrower. Unless the context otherwise requires, references to
the outstanding principal balance of the Revolving Loan shall include the outstanding balance of
Letter of Credit Obligations.

          “Revolving Loan Commitment” means (a) as to any Lender, the aggregate commitment of
such Lender to make Revolving Credit Advances or incur Letter of Credit Obligations as set forth on
Annex J to this Agreement or in the most recent Assignment Agreement executed by such
Lender, and (b) as to all Lenders, the aggregate commitment of all
Lenders to make Revolving Credit Advances or incur Letter of Credit Obligations, which
aggregate commitment shall be One Hundred Million Dollars ($100,000,000) on the Closing Date as
such amount may be further adjusted, if at all, from time to time in accordance with this
Agreement.

          “Revolving Note” has the meaning ascribed to it in Section 1.1(a)(ii).

          “Second Lien Credit Agreement” shall that certain Second Lien Credit Agreement, dated
as of July 29, 2004, by and among [Credit Suisse, Cayman Islands Branch (f/k/a Credit Suisse First
Boston, acting through its Cayman Islands Branch)], as administrative agent, the Borrowers and the
other Persons signatory thereto, as amended, restated, supplemented or otherwise modified from time
to time in accordance with the Intercreditor Agreement.

          “Second Lien Loan Documents” has the meaning ascribed to in the Intercreditor
Agreement.

          “Second Lien Loan Obligations” has the meaning ascribed to it in the Intercreditor
Agreement.

          “Security Agreement” means that certain Security Agreement dated as of May 23, 2003
(as amended, restated, supplemented or otherwise modified from time to time) entered into by and
among Agent, on behalf of itself and Lenders, and each Credit Party that is a signatory thereto.

          “Security Trustee” means the Agent acting in its capacity as security trustee pursuant
to the UK Security Documents.

A-27

 

          “Senior Leverage Ratio” means, with respect to Holdings and its Subsidiaries, on a
consolidated basis, the ratio of (a) Funded Debt (less all cash and cash equivalents on hand and
subject to a blocked account agreement in accordance with Annex C) as of any date of determination
(including the average daily closing balance of the Revolving Loan for the thirty (30) days
preceding and including any date of determination), less Subordinated Debt to (b) EBITDA
for the twelve months ending on that date of determination.

          “Shipping Reserve” means, as of any date of determination, a Reserve established at
the Agent’s sole discretion for shipping and related costs related to Eligible In-Transit
Inventory.

          “Software” means all “software” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, other than software embedded in any category of Goods,
including all computer programs and all supporting information provided in connection with a
transaction related to any program.

          “Solvent” means, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is greater than the total amount of liabilities,
including contingent liabilities, of such Person; (b) the present fair salable value of the assets
of such Person is not less than the amount that will be required to pay the probable liability of
such
Person on its debts as they become absolute and matured; (c) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
as such debts and liabilities mature; (d) such Person is not engaged in a business or transaction,
and is not about to engage in a business or transaction, for which such Person’s property would
constitute an unreasonably small capital; and (e) with respect to such Person incorporated under
the laws of England and Wales only, a Person that is not “unable to pay its debts”. In this
context, “unable to pay its debts” means that there are no grounds on which such Person would be
deemed unable to pay its debts (as defined in Section 123(1) of the United Kingdom Insolvency Act
1986 (as amended by the United Kingdom Enterprise Act 2002)) or on which a court would be satisfied
that the value of such Person’s assets is less than the amount of its liabilities, taking into
account its contingent and prospective liabilities (as such term would be construed for the
purposes of Section 123(2) of the United Kingdom Insolvency Act 1986 (as amended by the United
Kingdom Enterprise Act 2002)). The amount of contingent liabilities (such as litigation,
guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light
of all the facts and circumstances existing at the time, represents the amount that can be
reasonably be expected to become an actual or matured liability.

          “Stock” means all shares, options, warrants, general or limited partnership interests,
membership interests or other equivalents (regardless of how designated) of or in a corporation,
partnership, limited liability company or equivalent entity whether voting or nonvoting, including
common stock, preferred stock or any other “equity security” (as such term is defined in Rule
3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934).

          “Stockholder” means, with respect to any Person, each holder of Stock of such Person.

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          “Stoody” has the meaning ascribed thereto in the preamble to this Agreement.

          “Subordinated Debt” means any unsecured Indebtedness of any Credit Party subordinated
to the Obligations in a manner and form satisfactory to Agent and Lenders in their sole discretion,
as to right and time of payment and as to any other rights and remedies thereunder.

          “Subsidiary” means, with respect to any Person, (a) any corporation of which an
aggregate of more than 50% of the outstanding Stock having ordinary voting power to elect a
majority of the board of directors of such corporation (irrespective of whether, at the time, Stock
of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time, directly or indirectly, owned legally or
beneficially by such Person or one or more Subsidiaries of such Person, or with respect to which
any such Person has the right to vote or designate the vote of 50% or more of such Stock whether by
proxy, agreement, operation of law or otherwise, and (b) any partnership or limited liability
company in which such Person and/or one or more Subsidiaries of such Person shall have an interest
(whether in the form of voting or participation in profits or capital contribution) of more than
50% or of which any such Person is a general partner or may exercise the powers of a general
partner. Unless the context otherwise requires, each reference to a Subsidiary shall be a
reference to a Subsidiary of a Borrower.

          “Supermajority Revolving Lenders” means Lenders having (a) 80% or more of the
Revolving Loan Commitments of all Lenders, or (b) if the Revolving Loan Commitments have been
terminated, 80% or more of the aggregate outstanding amount of the Revolving Loan (with the Swing
Line Loan being attributed to the Lender making such Loan) and Letter of Credit Obligations;
provided that so long as there are only two Lenders, Supermajority Revolving Lenders shall
mean all Lenders.

          “Supporting Obligations” means all “supporting obligations” as such term is defined in
the Code, including letters of credit and guaranties issued in support of Accounts, Chattel Paper,
Documents, General Intangibles, Instruments, or Investment Property.

          “Swing Line Advance” has the meaning ascribed to it in Section 1.1(d)(i).

          “Swing Line Availability” has the meaning ascribed to it in Section 1.1(d)(i).

          “Swing Line Commitment” means, as to the Swing Line Lender, the commitment of the
Swing Line Lender to make Swing Line Advances as set forth on Annex J to this Agreement,
which commitment constitutes a subfacility of the Revolving Loan Commitment of the Swing Line
Lender.

          “Swing Line Lender” means GE Capital.

          “Swing Line Loan” means, as the context may require, at any time, the aggregate amount
of Swing Line Advances outstanding to any Borrower or to all Borrowers.

          “Swing Line Note” has the meaning ascribed to it in Section 1.1(d)(ii).

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          “Taxes” means taxes, levies, imposts, deductions, charges or withholdings imposed by
any Governmental Authority, and all liabilities with respect thereto, excluding franchise taxes and
taxes imposed on or measured by the net income or overall gross receipts of Agent or a Lender or an
L/C Issuer or similar taxes imposed on Agent or a Lender or an L/C Issuer by the jurisdictions
under the laws of which such Agent or such Lender or such L/C Issuer, as applicable, is organized,
conducts business or has a present or former connection or any political subdivision thereof.

          “Termination Date” means the date on which (a) the Loans have been indefeasibly repaid
in full, (b) all other Obligations under this Agreement and the other Loan Documents have been
completely discharged (c) all Letter of Credit Obligations have been cash collateralized, canceled
or backed by standby letters of credit in accordance with Annex B, and (d) none of
Borrowers shall have any further right to borrow any monies under this Agreement.

          “Title IV Plan” means a Plan (other than a Multiemployer Plan), that is subject to
Title IV of ERISA or Section 412 of the IRC.

          “Trademark License” means rights under any written agreement now owned or hereafter
acquired by any Credit Party granting any right to use any Trademark.

          “Trademark Security Agreements” means those certain Trademark Security Agreements
dates as of May 23, 2003 (as amended, restated, supplemented or otherwise modified from time to
time) made in favor of Agent, on behalf of Lenders, by each applicable Credit Party.

          “Trademarks” means all of the following now owned or hereafter existing or adopted or
acquired by any Credit Party: (a) all trademarks, trade names, corporate names, business names,
trade styles, trade dress, service marks, logos, and other source or business identifiers (whether
registered or unregistered), all registrations and recordings thereof, and all applications in
connection therewith, including registrations, recordings and applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States, any state or
territory thereof, or any other country or any political subdivision thereof; (b) all reissues,
extensions or renewals thereof; and (c) all goodwill associated with or symbolized by any of the
foregoing.

          “Tweco” has the meaning ascribed thereto in the preamble to this Agreement.

          “UK Collateral Party” means Thermadyne Industries Limited registered in England and
Wales with company number 01144214.

          “UK Subsidiary” means any Subsidiary organized under the laws of the United Kingdom.

          “Unfunded Pension Liability” means, at any time, the aggregate amount, if any, of the
sum of (a) the amount by which the present value of all accrued benefits under each Title IV Plan
exceeds the fair market value of all assets of such Title IV Plan allocable to such benefits in
accordance with Title IV of ERISA, all determined as of the most recent valuation date for each

A-30

 

such Title IV Plan using the actuarial assumptions for funding purposes in effect under such Title
IV Plan, and (b) for a period of five (5) years following a transaction which might reasonably be
expected to be covered by Section 4069 of ERISA, the liabilities (whether or not accrued) that
could be avoided by any Credit Party or any ERISA Affiliate as a result of such transaction.

          “U.S. Lender” has the meaning ascribed to it in Section 1.13(b)(ii).

          “Victor” has the meaning ascribed thereto in the preamble to this Agreement.

          “Victor Mexico” has the meaning ascribed to it in Section 5.9.

          Rules of construction with respect to accounting terms used in this Agreement or the other
Loan Documents shall be as set forth in Annex G. All other undefined terms contained in
any of the Loan Documents shall, unless the context indicates otherwise, have the meanings provided
for by the Code to the extent the same are used or defined therein; in the event that any term is
defined differently in different Articles or Divisions of the Code, the definition contained in
Article or Division 9 shall control. Unless otherwise specified, references in this Agreement or
any of the Appendices to a Section, subsection or clause refer to such Section, subsection or
clause as contained in this Agreement. The words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole, including all Annexes, Exhibits and
Schedules, as the same may from time to time be amended, restated, modified or supplemented,
and not to any particular section, subsection or clause contained in this Agreement or any such
Annex, Exhibit or Schedule.

          Wherever from the context it appears appropriate, each term stated in either the singular or
plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or
neuter gender shall include the masculine, feminine and neuter genders. The words “including”,
“includes” and “include” shall be deemed to be followed by the words “without limitation”; the word
“or” is not exclusive; references to Persons include their respective successors and assigns (to
the extent and only to the extent permitted by the Loan Documents) or, in the case of governmental
Persons, Persons succeeding to the relevant functions of such Persons; and all references to
statutes and related regulations shall include any amendments of the same and any successor
statutes and regulations.

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ANNEX B (Section 1.2)

to

CREDIT AGREEMENT

LETTERS OF CREDIT

          (a) Issuance. Subject to the terms and conditions of this Agreement, Agent and
Revolving Lenders agree to incur, from time to time prior to the Commitment Termination Date, upon
the request of Borrower Representative on behalf of the applicable Borrower and for such Borrower’s
account, Letter of Credit Obligations by causing Letters of Credit to be issued by GE Capital or a
Subsidiary thereof or a bank or other legally authorized Person selected by or acceptable to Agent
in its sole discretion (each, an “L/C Issuer”) for such Borrower’s account and guaranteed
by Agent; provided that if the L/C Issuer is a Revolving Lender, then such Letters of
Credit shall not be guaranteed by Agent but rather each Revolving Lender shall, subject to the
terms and conditions hereinafter set forth, purchase (or be deemed to have purchased) risk
participations in all such Letters of Credit issued with the written consent of Agent, as more
fully described in paragraph (b)(ii) below. The aggregate amount of all such Letter of Credit
Obligations shall not at any time exceed the least of (i) Twenty Five Million Dollars ($25,000,000)
(the “L/C Sublimit”) and (ii) the Maximum Amount less the aggregate outstanding principal
balance of the Revolving Credit Advances and the Swing Line Loan, and (iii) the Borrowing Base less
the aggregate outstanding principal balance of the Revolving Credit Advances and the Swing Line
Loan. No such Letter of Credit shall have an expiry date that is more than one year following the
date of issuance thereof, unless otherwise determined by the Agent, in its sole discretion
(including with respect to customary evergreen provisions), and neither Agent nor Revolving Lenders
shall be under any obligation to incur Letter of Credit Obligations in respect of, or purchase risk
participations in, any Letter of Credit having an expiry date that is later than the Commitment
Termination Date.

          (b) (i) Advances Automatic; Participations. In the event that Agent or any Revolving
Lender shall make any payment on or pursuant to any Letter of Credit Obligation, such payment shall
then be deemed automatically to constitute a Revolving Credit Advance to the applicable Borrower
under Section 1.1(a) of this Agreement regardless of whether an Event of Default has
occurred and is continuing and notwithstanding any Borrower’s failure to satisfy the conditions
precedent set forth in Section 2, and each Revolving Lender shall be obligated to pay its
Pro Rata Share thereof in accordance with this Agreement. The failure of any Revolving Lender to
make available to Agent for Agent’s own account its Pro Rata Share of any such Revolving Credit
Advance or payment by Agent under or in respect of a Letter of Credit shall not relieve any other
Revolving Lender of its obligation hereunder to make available to Agent its Pro Rata Share thereof,
but no Revolving Lender shall be responsible for the failure of any other Revolving Lender to make
available such other Revolving Lender’s Pro Rata Share of any such payment.

               (ii) If it shall be illegal or unlawful for any Borrower to incur Revolving Credit Advances as
contemplated by paragraph (b)(i) above because of an Event of Default described in Sections
8.1(h) or (i) or otherwise or if it shall be illegal or unlawful for any Revolving Lender to be
deemed to have assumed a ratable share of the reimbursement

B-1

 

obligations owed to an L/C Issuer, or
if the L/C Issuer is a Revolving Lender, then (A)
immediately and without further action whatsoever, each Revolving Lender shall be deemed to
have irrevocably and unconditionally purchased from Agent (or such L/C Issuer, as the case may be)
an undivided interest and participation equal to such Revolving Lender’s Pro Rata Share (based on
the Revolving Loan Commitments) of the Letter of Credit Obligations in respect of all Letters of
Credit then outstanding and (B) thereafter, immediately upon issuance of any Letter of Credit, each
Revolving Lender shall be deemed to have irrevocably and unconditionally purchased from Agent (or
such L/C Issuer, as the case may be) an undivided interest and participation in such Revolving
Lender’s Pro Rata Share (based on the Revolving Loan Commitments) of the Letter of Credit
Obligations with respect to such Letter of Credit on the date of such issuance. Each Revolving
Lender shall fund its participation in all payments or disbursements made under the Letters of
Credit in the same manner as provided in this Agreement with respect to Revolving Credit Advances.

          (c) Cash Collateral.

               (i) If Borrowers are required to provide cash collateral for any Letter of Credit Obligations
pursuant to this Agreement, including Section 8.2 of this Agreement, prior to the
Commitment Termination Date, each Borrower will pay to Agent for the ratable benefit of itself and
Revolving Lenders cash or cash equivalents acceptable to Agent (“Cash Equivalents”) in an
amount equal to 105% of the maximum amount then available to be drawn under each applicable Letter
of Credit outstanding for the benefit of such Borrower. Such funds or Cash Equivalents shall be
held by Agent in a cash collateral account (the “Cash Collateral Account”) maintained at a
bank or financial institution acceptable to Agent. The Cash Collateral Account shall be in the
name of the applicable Borrower and shall be pledged to, and subject to the control of, Agent, for
the benefit of Agent and Lenders, in a manner satisfactory to Agent. Each Borrower hereby pledges
and grants to Agent, on behalf of itself and Lenders, a security interest in all such funds and
Cash Equivalents held in the Cash Collateral Account from time to time and all proceeds thereof, as
security for the payment of all amounts due in respect of the Letter of Credit Obligations and
other Obligations, whether or not then due. This Agreement, including this Annex B, shall
constitute a security agreement under applicable law.

               (ii) If any Letter of Credit Obligations, whether or not then due and payable, shall for any
reason be outstanding on the Commitment Termination Date, Borrowers shall either (A) provide cash
collateral therefor in the manner described above, or (B) cause all such Letters of Credit and
guaranties thereof, if any, to be canceled and returned, or (C) deliver a stand-by letter (or
letters) of credit in guaranty of such Letter of Credit Obligations, which stand-by letter (or
letters) of credit shall be of like tenor and duration (plus thirty (30) additional days) as, and
in an amount equal to 105% of, the aggregate maximum amount then available to be drawn under, the
Letters of Credit to which such outstanding Letter of Credit Obligations relate and shall be issued
by a Person, and shall be subject to such terms and conditions, as are be satisfactory to Agent in
its reasonable discretion.

               (iii) From time to time after funds are deposited in the Cash Collateral Account by any
Borrower, whether before or after the Commitment Termination Date, Agent may apply such funds or
Cash Equivalents then held in the Cash Collateral Account to the

B-2

 

payment of any amounts, and in
such order as Agent may elect, as shall be or shall become due and payable by such Borrower to
Agent and Lenders with respect to such Letter of Credit
Obligations of such Borrower and, upon the satisfaction in full of all Letter of Credit
Obligations of such Borrower, to any other Obligations of any Borrower then due and payable.

               (iv) No Borrower nor any Person claiming on behalf of or through any Borrower shall have any
right to withdraw any of the funds or Cash Equivalents held in the Cash Collateral Account, except
that upon the termination of all Letter of Credit Obligations and the payment of all amounts
payable by Borrowers to Agent and Lenders in respect thereof, any funds remaining in the Cash
Collateral Account shall be applied to other Obligations then due and owing and upon payment in
full of such Obligations, any remaining amount shall be paid to Borrowers or as otherwise required
by law. Interest earned on deposits in the Cash Collateral Account shall be held as additional
collateral.

          (d) Fees and Expenses. Borrowers agree to pay to Agent for the benefit of Revolving
Lenders, as compensation to such Lenders for Letter of Credit Obligations incurred hereunder, (i)
all costs and expenses incurred by Agent or any Lender on account of such Letter of Credit
Obligations, and (ii) for each month during which any Letter of Credit Obligation shall remain
outstanding, a fee (the “Letter of Credit Fee”) in an amount equal to the Applicable L/C
Margin from time to time in effect multiplied by the maximum amount available from time to time to
be drawn under the applicable Letter of Credit. Such fee shall be paid to Agent for the benefit of
the Revolving Lenders in arrears, on the first day of each month and on the Commitment Termination
Date. In addition, Borrowers shall pay to any L/C Issuer, on demand, such fees (including all per
annum fees), charges and expenses of such L/C Issuer in respect of the issuance, negotiation,
acceptance, amendment, transfer and payment of such Letter of Credit or otherwise payable pursuant
to the application and related documentation under which such Letter of Credit is issued.
Notwithstanding anything to the contrary set forth herein, Borrowers shall not pay to Agent for the
benefit of Revolving Lenders or to any L/C Issuer any amount pursuant to this clause (d)
with respect to taxes, levies, imposts, deductions, charges or withholdings imposed by any
Governmental Authority, or any liabilities with respect thereto, the indemnification for which
shall be governed solely and exclusively by Section 1.13 of this Agreement.

          (e) Request for Incurrence of Letter of Credit Obligations. Borrower Representative
shall give Agent at least two (2) Business Days’ prior written notice requesting the incurrence of
any Letter of Credit Obligation. The notice shall be accompanied by the form of the Letter of
Credit (which shall be acceptable to the L/C Issuer) and a completed Application for Standby Letter
of Credit or Application for Documentary Letter of Credit (as applicable), attached hereto.
Notwithstanding anything contained herein to the contrary, Letter of Credit applications by
Borrower Representative and approvals by Agent and the L/C Issuer may be made and transmitted
pursuant to electronic codes and security measures mutually agreed upon and established by and
among Borrower Representative, Agent and the L/C Issuer.

          (f) Obligation Absolute. The obligation of Borrowers to reimburse Agent and Revolving
Lenders for payments made with respect to any Letter of Credit Obligation shall be absolute,
unconditional and irrevocable, without necessity of presentment, demand, protest or

B-3

 

other formalities, and the obligations of each Revolving Lender to make payments to Agent with respect to
Letters of Credit shall be unconditional and irrevocable. Such obligations of
Borrowers and Revolving Lenders shall be paid strictly in accordance with the terms hereof
under all circumstances including the following:

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

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

          (iii) any draft, demand, certificate 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;

          (iv) payment by Agent (except as otherwise expressly provided in paragraph
(g)(ii)(C) below) or any L/C Issuer under any Letter of Credit or guaranty thereof
against presentation of a demand, draft or certificate or other document that does
not comply with the terms of such Letter of Credit or such guaranty;

          (v) any other circumstance or event whatsoever, that is similar to any of the
foregoing; or

          (vi) the fact that a Default or an Event of Default has occurred and is
continuing.

          (g) Indemnification; Nature of Lenders’ Duties.

               (i) In addition to amounts payable as elsewhere provided in this Agreement, Borrowers hereby
agree to pay and to protect, indemnify, and save harmless Agent and each Lender from and against
any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including
reasonable attorneys’ fees and allocated costs of internal counsel) that Agent or any Lender may
incur or be subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of
Credit or guaranty thereof, or (B) the failure of Agent or any Lender seeking indemnification or of
any L/C Issuer to honor a demand for payment under any Letter of Credit or guaranty thereof as a
result of any act or omission, whether rightful or wrongful, of any present or future de jure or de
facto government or Governmental Authority, in each case other than (i) to the extent solely as a
result of the gross negligence or willful

B-4

 

misconduct of Agent, L/C Issuer or such Lender (as
finally determined by a court of competent jurisdiction) or (ii) with respect to taxes, levies,
imposts, deductions, charges or withholdings
imposed by any Governmental Authority, or any liabilities with respect thereto, the
indemnification for which shall be governed solely and exclusively by Section 1.13 of this
Agreement.

               (ii) As between Agent, L/C Issuer and any Lender and Borrowers, Borrowers assume all risks of
the acts and omissions of, or misuse of any Letter of Credit by beneficiaries, of any Letter of
Credit. In furtherance and not in limitation of the foregoing, to the fullest extent permitted by
law, neither Agent nor any Lender shall be responsible for: (A) the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document issued by any party in connection with the
application for and issuance of any Letter of Credit, even if it should in fact prove to be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged; (B) the validity or
sufficiency of any instrument transferring or assigning or purporting to transfer or assign any
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
that may prove to be invalid or ineffective for any reason; (C) failure of the beneficiary of any
Letter of Credit to comply fully with conditions required in order to demand payment under such
Letter of Credit; provided that in the case of any payment by Agent or L/C Issuer under any
Letter of Credit or guaranty thereof, Agent or L/C Issuer shall be liable to the extent such
payment was made solely as a result of its gross negligence or willful misconduct (as finally
determined by a court of competent jurisdiction) in determining that the demand for payment under
such Letter of Credit or guaranty thereof complies on its face with any applicable requirements for
a demand for payment under such Letter of Credit or guaranty thereof; (D) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex or otherwise, whether or not they may be in cipher; (E) errors in interpretation of technical
terms; (F) any loss or delay in the transmission or otherwise of any document required in order to
make a payment under any Letter of Credit or guaranty thereof or of the proceeds thereof; (G) the
credit of the proceeds of any drawing under any Letter of Credit or guaranty thereof; and (H) any
consequences arising from causes beyond the control of Agent, L/C Issuer or any Lender. None of the
above shall affect, impair, or prevent the vesting of any of Agent’s, L/C Issuer’s or any Lender’s
rights or powers hereunder or under this Agreement.

               (iii) Nothing contained herein shall be deemed to limit or to expand any waivers, covenants or
indemnities made by Borrowers in favor of any L/C Issuer in any letter of credit application,
reimbursement agreement or similar document, instrument or agreement between or among Borrowers and
such L/C Issuer, including a Master Standby Agreement entered into with Agent.

B-5

 

ANNEX C (Section 1.8)

to

CREDIT AGREEMENT

CASH MANAGEMENT SYSTEM

          Each Borrower shall, and shall cause its domestic Subsidiaries to, establish and maintain the
Cash Management Systems described below:

          (a) On or before the Closing Date and until the Termination Date, each Collateral Party shall
(i) establish lock boxes (“Lock Boxes”) or with respect to accounts in Canada, Australia or
the United Kingdom or otherwise at Agent’s discretion, blocked accounts, at one or more of the
banks set forth in Disclosure Schedule (3.19) (each, a “Relationship Bank”), which
banks shall be reasonably satisfactory to Agent, and shall request in writing and otherwise take
such reasonable steps to ensure that all Account Debtors forward payment directly to such Lock
Boxes, and (ii) deposit and cause each Subsidiary which is a Guarantor to deposit or cause to be
deposited promptly, and in any event no later than the first Business Day after the date of receipt
thereof, all cash, checks, drafts or other similar items of payment relating to or constituting
payments made in respect of any and all Collateral not otherwise delivered to a Lock Box into the
JPMorgan Chase Bank, N.A. accounts listed on Disclosure Schedule (3.19) (collectively, the
“JPMC Account”); provided, however that no more than $200,000 in the
aggregate may be maintained in the JPMC Account and, in the event that the balance in JPMC Account
exceeds $200,000, the Collateral Parties shall promptly (and in any event within one (1) Business
Day) transfer funds to the Master Disbursement Account (as defined below) at least in the amount of
such excess. On or before the Closing Date, the Collateral Parties shall have established a master
depository account in their name (the “Joint Account”) at a Relationship Bank into which
all items deposited into the Lock Boxes are swept on a daily basis.

          (b) Each Collateral Party may maintain, in its name, an account (each a “Disbursement
Account” and collectively, the “Disbursement Accounts”) at a Relationship Bank. Agent
shall, from time to time, deposit into Industries’ Disbursement Account (the “Master
Disbursement Account”) proceeds of Revolving Credit Advances and Swing Line Advances made to
Borrowers pursuant to Section 1.1 for use by Borrowers solely in accordance with the
provisions of Section 1.4. Industries may transfer such proceeds from the Master
Disbursement Account into the Disbursement Accounts of the other Collateral Parties from time to
time, subject to the limitations set forth herein.

          (c) On or before the Closing Date, all Relationship Banks (other than Arvest Bank with respect
to any credit card collection accounts) shall have entered into blocked account agreements with
Agent (for the benefit of itself and Lenders) and the applicable Collateral Party and each
Subsidiary thereof which is a Guarantor, as applicable, in form and substance reasonably acceptable
to Agent, which shall become operative on or prior to the Closing Date. Each such blocked account
agreement shall provide, among other things, that (i) all items of payment deposited in the account
covered thereby and proceeds thereof deposited therein are held by such Relationship Bank as agent
or bailee-in-possession for Agent, on behalf of itself

C-1

 

and Lenders, (ii) the Relationship Bank
executing such agreement has no rights of setoff or
recoupment or any other claim against such account, as the case may be, other than for payment
of its service fees and other charges directly related to the administration of such account and
for returned checks or other items of payment, but only in the case of non-payment thereof by the
Collateral Parties or any Subsidiary thereof which is a Guarantor, and (iii) from and after the
Closing Date (A) with respect to Relationship Banks at which a Lock Box is maintained, each such
Relationship Bank agrees to forward promptly (and in any event within one (1) Business Day) all
amounts in each such Lock Box to the Joint Account and commence the process of daily sweeps from
the Lock Boxes into the Joint Account and (B) with respect to the Relationship Bank at which the
Joint Account is maintained, such Relationship Bank agrees to promptly (and in any event within one
(1) Business Day) forward all available funds in the Joint Account to the Collection Account
through daily sweeps from such Joint Account into the Collection Account. Each of (i) any
Relationship Bank at which a Disbursement Account (including, without limitation, the Master
Disbursement Account) is maintained and (ii) JPMorgan Chase Bank, N.A. with respect to the JPMC
Account, shall have entered into, or, in the case of the JPMC Account, will enter into within 30
days after the Closing Date, a blocked account agreement among such Relationship Bank, Industries
and Agent whereby Agent shall have control over the Disbursement Accounts or the JPMC Account, as
applicable, upon notice to that Relationship Bank so long as any Event of Default has occurred and
is continuing. The Collateral Parties may maintain up to $50,000 in the Joint Account to cover
returned items and other charges imposed by the Relationship Bank. The Collateral Parties agree to
cause the Relationship Bank at which the Master Disbursement Account is maintained, to promptly
(and in any event within one (1) Business Day) forward all amounts received in the Master
Disbursement Account to the Collection Account to the extent that amounts on deposit in the Master
Disbursement Account exceed $3,000,000 at any time. Other than in respect of the Master
Disbursement Account and the Joint Account, no Collateral Party shall, or shall cause or permit any
Subsidiary thereof which is a Guarantor to, accumulate or maintain cash in its Disbursement
Accounts or payroll accounts as of any date of determination in excess of checks outstanding
against such accounts as of that date and amounts necessary to meet minimum balance requirements.
Notwithstanding the foregoing, the Collateral Parties may maintain the depository accounts
identified under the heading “Payroll Accounts” on Disclosure Schedule (3.19) and that
certain disbursement account numbered 11-03787 at Bank One, NA, which accounts will not be subject
to a blocked account agreement and shall only be used by the Collateral Parties to pay payroll of
their employees.

          (d) So long as no Event of Default has occurred and is continuing, the Collateral Parties may
amend Disclosure Schedule (3.19) to add or replace a Relationship Bank, Lock Box or Joint
Account or to replace any Disbursement Account (including the Master Disbursement Account);
provided that (i) Agent shall have consented in writing in advance to the opening of such
account or Lock Box with the relevant bank and (ii) prior to the time of the opening of such
account or Lock Box, the applicable Collateral Party or any Subsidiary thereof which is a
Guarantor, as applicable, and such bank shall have executed and delivered to Agent a tri-party
blocked account agreement, in form and substance reasonably satisfactory to Agent. The Collateral
Parties shall close any of their accounts (and establish replacement accounts in accordance with
the foregoing sentence) promptly and in any event within thirty (30) days following notice from
Agent that the creditworthiness of any bank holding an account is no

C-2

 

longer acceptable in Agent’s
reasonable judgment, or as promptly as practicable and in any event within sixty (60) days
following notice from Agent that the operating performance, funds
transfer or availability procedures or performance with respect to accounts or Lock Boxes of
the bank holding such accounts or Agent’s liability under any tri-party blocked account agreement
with such bank is no longer acceptable in Agent’s reasonable judgment.

          (e) The Lock Boxes, Joint Account and Disbursement Accounts (including the Master Disbursement
Account) shall be cash collateral accounts, with all cash, checks and other similar items of
payment in such accounts securing payment of the Loans and all other Obligations, and in which each
Collateral Party and Subsidiary thereof which is a Guarantor thereof shall have granted a Lien to
Agent, on behalf of itself and Lenders, pursuant to the Security Agreement.

          (f) All amounts deposited in the Collection Account shall be deemed received by Agent in
accordance with Section 1.8 and shall be applied (and allocated) by Agent in accordance
with Section 1.9. In no event shall any amount be so applied unless and until such amount
shall have been credited in immediately available funds to the Collection Account.

          (g) Each Collateral Party shall and shall cause its domestic Affiliates, officers, employees,
agents, directors or other Persons acting for or in concert with such Collateral Party (each a
“Related Person”) to (i) hold in trust for Agent, for the benefit of itself and Lenders,
all checks, cash and other items of payment received by such Collateral Party or any such Related
Person, and (ii) within one (1) Business Day after receipt by such Collateral Party or any such
Related Person of any checks, cash or other items of payment, deposit the same into the Missouri
State Bank account identified on Disclosure Schedule (3.19) subject to the limitations set
forth in clause(c) above. Each Collateral Party on behalf of itself and each Related
Person thereof acknowledges and agrees that all cash, checks or other items of payment constituting
proceeds of Collateral are part of the Collateral. All proceeds of the sale or other disposition
of any Collateral, shall be deposited directly into the Joint Account.

C-3

 

ANNEX D (Section 2.1(a))

to

CREDIT AGREEMENT

CLOSING CHECKLIST

In addition to, and not in limitation of, the conditions described in Section 2.1 of this
Agreement, pursuant to Section 2.1(a), the items set forth on the closing checklist
attached hereto must be received by Agent in form and substance satisfactory to Agent on or prior
to the Closing Date (each capitalized term used but not otherwise defined therein shall have the
meaning ascribed thereto in Annex A to this Agreement)

D-1

 

AMENDED AND RESTATED ANNEX E (Section 4.1(a))

to

CREDIT AGREEMENT

FINANCIAL STATEMENTS AND PROJECTIONS — REPORTING

          Borrowers shall deliver or cause to be delivered to Agent or to Agent and Lenders, as
indicated, the following:

          (a) Monthly Financials. To Agent and Lenders, within thirty (30) days (or with
respect to the last Fiscal Month of each Fiscal Year, forty-five (45) days) after the end of each
Fiscal Month, financial information regarding Holdings and its Subsidiaries, certified by the Chief
Financial Officer of Borrower Representative, consisting of consolidated and consolidating (i)
unaudited balance sheets as of the close of such Fiscal Month and the related consolidated and
consolidating statement of income and consolidated statement of cash flows for that portion of the
Fiscal Year ending as of the close of such Fiscal Month and (ii) unaudited statements of income and
cash flows for such Fiscal Month, setting forth in comparative form the figures for the
corresponding period in the prior year and the figures contained in the Projections for such Fiscal
Year, all prepared in accordance with GAAP (subject to normal year-end adjustments). Such
financial information shall be accompanied by a certification of the Chief Financial Officer of
Borrower Representative that (x) such financial information presents fairly in all material
respects in accordance with GAAP (subject to normal year-end adjustments) the financial position
and results of operations of Holdings and its Subsidiaries, on a consolidated and consolidating
basis, in each case as at the end of such Fiscal Month and for that portion of the Fiscal Year then
ended and (y) any other information presented is true, correct and complete in all material
respects and that there was no Event of Default in existence as of such time or, if an Event of
Default has occurred and is continuing, describing the nature thereof and all efforts undertaken to
cure such Event of Default. In addition, the financial information for the last month of each
Fiscal Quarter shall be accompanied by (A) a Compliance Certificate and (B) a management discussion
and analysis that includes a comparison to budget for that Fiscal Quarter and a comparison of
performance for that Fiscal Quarter to the corresponding period in the prior year.

          (b) Operating Plan. To Agent and Lenders, as soon as available after the end of each
Fiscal Year, a preliminary annual operating plan for Holdings and its Subsidiaries, on a
consolidated and consolidating basis, and within twenty (20) Business Days after the end of each
Fiscal Year, a final operating plan approved by the Board of Directors of Holdings and its
Subsidiaries, for the following Fiscal Year, which (i) includes a statement of all of the material
assumptions on which such plan is based, (ii) includes monthly balance sheets, income statements
and statements of cash flows for the following year and (iii) integrates sales, gross profits,
operating expenses, operating profit, cash flow projections and Borrowing Availability projections,
all prepared on the same basis and in similar detail as that on which operating results are
reported (and in the case of cash flow projections, representing management’s good faith estimates
of future financial performance based on historical performance), and including plans for
personnel, Capital Expenditures and facilities.

E-1

 

          (c) Annual Audited Financials. To Agent and Lenders, within ninety (90) days after the
end of each Fiscal Year, audited Financial Statements for Holdings and its Subsidiaries on a
consolidated basis, consisting of balance sheets and statements of income and retained earnings and
cash flows, setting forth in comparative form in each case the figures for the previous Fiscal
Year, which Financial Statements shall be prepared in accordance with GAAP and certified without
qualification, by an independent certified public accounting firm of national standing or otherwise
acceptable to Agent. Such Financial Statements shall be accompanied by (i) a reconciliation of the
Compliance Certificate previously delivered in connection with the financial statements for
December of each year, (ii) a report from such accounting firm to the effect that, in connection
with their audit examination, nothing has come to their attention to cause them to believe that an
Event of Default has occurred with respect to the Financial Covenants (or specifying those Events
of Default that they became aware of), it being understood that such audit examination extended
only to accounting matters and that no special investigation was made with respect to the existence
of Events of Default, (iii) the annual letters to such accountants in connection with their audit
examination detailing contingent liabilities and material litigation matters, and (iv) the
certification of the Chief Executive Officer or Chief Financial Officer of Borrowers that all such
Financial Statements present fairly in all material respects in accordance with GAAP the financial
position, results of operations and statements of cash flows of Borrowers and their Subsidiaries on
a consolidated and consolidating basis, as at the end of such Fiscal Year and for the period then
ended, and that there was no Event of Default in existence as of such time or, if an Event of
Default has occurred and is continuing, describing the nature thereof and all efforts undertaken to
cure such Event of Default.

          (d) Management Letters. To Agent and Lenders, within five (5) Business Days after
receipt thereof by any Credit Party, copies of all management letters, exception reports or similar
letters or reports received by such Credit Party from its independent certified public accountants.

          (e) Default Notices. To Agent and Lenders, as soon as practicable, and in any event
within five (5) Business Days after an executive officer of any Borrower has actual knowledge of
the existence of any Event of Default or other event that has had a Material Adverse Effect,
telephonic or telecopied notice specifying the nature of such Event of Default or other event,
including the anticipated effect thereof, which notice, if given telephonically, shall be promptly
confirmed in writing on the next Business Day.

          (f) SEC Filings and Press Releases. To Agent and Lenders, promptly upon there
becoming available, copies of: (i) all Financial Statements, reports, notices and proxy statements
made publicly available by any Credit Party to its security holders; (ii) all regular and periodic
reports and all registration statements and prospectuses, if any, filed by any Credit Party with
any securities exchange or with the Securities and Exchange Commission or any governmental or
private regulatory authority; and (iii) all press releases and other statements made available by
any Credit Party to the public concerning material changes or developments in the business of any
such Person.

          (g) Subordinated Debt and Equity Notices. To Agent, as soon as practicable, copies of
all material written notices given or received by any Credit Party with respect to any

E-2

 

Subordinated Debt or Stock of such Person, and, within two (2) Business Days after any Credit
Party obtains knowledge of any matured or unmatured event of default with respect to any
Subordinated Debt, notice of such event of default.

          (h) Supplemental Schedules. To Agent, supplemental disclosures, if any, required by
Section 5.6.

          (i) Litigation. To Agent in writing, promptly upon learning thereof, notice of any
Litigation commenced or threatened against any Credit Party that (i) seeks damages in excess of
$250,000 excluding damages in product liability claims other than actual damages, (ii) seeks
injunctive relief, (iii) is asserted or instituted against any Plan, its fiduciaries or its assets
or against any Credit Party or ERISA Affiliate in connection with any Plan, (iv) alleges criminal
misconduct by any Credit Party, (v) alleges the violation of any law regarding, or seeks remedies
in connection with, any Environmental Liabilities or (vi) involves any product recall.

          (j) Insurance Notices. To Agent, disclosure of losses or casualties required by
Section 5.4.

          (k) Lease Default Notices. To Agent, (i) within two (2) Business Days after receipt
thereof, copies of any and all default notices received under or with respect to any leased
location or public warehouse where Collateral is located, (ii) monthly within three (3) Business
Days after payment thereof, evidence of payment of lease or rental payments as to each leased or
rented location for which a landlord or bailee waiver has not been obtained and (iii) such other
notices or documents as Agent may reasonably request.

          (l) Lease Amendments. To Agent, within two (2) Business Days after receipt thereof,
copies of all material amendments to real estate leases.

          (m) Hedging Agreements. To Agent, within two (2) Business Days after entering into
such agreement or amendment, copies of all interest rate, commodity or currency hedging agreements
or amendments thereto.

          (n) Good Standing Certificates. Not less frequently than once during each calendar
quarter, each Credit Party shall, unless Agent shall otherwise consent, provide to Agent a
certificate of good standing, certificate of compliance, certificate of status or other comparable
certification from its jurisdiction of incorporation or organization.

          (o) Foreign Investments and Advances. To Agent, concurrently with the delivery of the
monthly financial statements delivered pursuant to clause (a) of this Annex E, a
report describing any foreign investment or advances made by any Credit Party and their
Subsidiaries.

          (p) Thermadyne Consolidated Statement of Cash Flow. To Agent, concurrently with the
delivery of the monthly financial statements delivered pursuant to clause (a) of this
Annex E, a consolidated statement of cash flow including the impact of foreign currency
adjustments.

E-3

 

          (q) Intercompany Report. To Agent, concurrently with the delivery of the monthly
financial statements delivered pursuant to clause (a) of this Annex E, a report
describing
the year to date changes in accounts payable, notes payable and other investments among the
Credit Parties and their Subsidiaries.

          (r) Other Documents. To Agent and Lenders, such other financial and other information
respecting any Credit Party’s business or financial condition as Agent or any Lender shall from
time to time reasonably request.

E-4

 

AMENDED AND RESTATED ANNEX F (Section 4.1(b))

to

CREDIT AGREEMENT

COLLATERAL REPORTS

          Borrowers shall deliver or cause to be delivered the following:

          (a) To Agent, upon its request, and in any event no less frequently than ten (10) Business
Days after the end of each Fiscal Month (together with a copy of all or any part of the following
reports requested by any Lender in writing after the Closing Date), each of the following reports,
each of which shall be prepared by the applicable Borrower as of the last day of the immediately
preceding Fiscal Month:

          (i) a Borrowing Base Certificate with respect to each Collateral Party, in each case
accompanied by such supporting detail and documentation as shall be requested by Agent in
its reasonable discretion;

          (ii) with respect to each Collateral Party, a summary of Inventory by location and type
with a supporting perpetual Inventory report, in each case accompanied by such supporting
detail and documentation as shall be requested by Agent in its reasonable discretion; and

          (iii) with respect to each Collateral Party, a monthly aging summary showing Accounts
outstanding aged from invoice date as follows: 1 to 30 days, 31 to 60 days, 61 to 90 days
and 91 days or more, accompanied by such supporting detail and documentation as shall be
requested by Agent in its reasonable discretion.

          (b) To Agent, in addition to the Borrowing Base Certificate delivered pursuant to clause
(a) of this Exhibit F, five (5) Business Days after the 15th day of each
Fiscal Month a modified Borrowing Base Certificate showing updated gross inventory and accounts
receivable as of the 15th day of the current Fiscal Month with respect to each
Collateral Party with ineligibles and reserves calculated, but not updated, as of the last day of
the immediately preceding Fiscal Month, in each case accompanied by such supporting detail and
documentation for gross inventory and accounts receivable as shall be requested by Agent in its
reasonable discretion, prepared by the applicable Borrower;

          (c) To Agent, on a monthly basis or at such more frequent intervals as Agent may request from
time to time (together with a copy of all or any part of such delivery requested by any Lender in
writing after the Closing Date), collateral reports with respect to each Collateral Party,
including all additions and reductions (cash and non-cash) with respect to Accounts of such
Collateral Party, in each case accompanied by such supporting detail and documentation as shall be
requested by Agent in its reasonable discretion each of which shall be prepared by the applicable
Collateral Party as of the last day of the immediately preceding week;

F-1

 

          (d) To Agent, at the time of delivery of each of the monthly Financial Statements delivered
pursuant to Annex E:

          (i) a reconciliation of the Accounts trial balance of each Collateral Party to such
Collateral Party’s most recent Borrowing Base Certificate, general ledger and monthly
Financial Statements delivered pursuant to Annex E, in each case accompanied by such
supporting detail and documentation as shall be requested by Agent in its reasonable
discretion;

          (ii) a reconciliation of the perpetual inventory by location of each Collateral Party
to such Collateral Party’s most recent Borrowing Base Certificate, general ledger and
monthly Financial Statements delivered pursuant to Annex E, in each case accompanied
by such supporting detail and documentation as shall be requested by Agent in its reasonable
discretion;

          (iii) an aging of accounts payable and a reconciliation of that accounts payable aging
to each Borrower’s general ledger and monthly Financial Statements delivered pursuant to
Annex E, in each case accompanied by such supporting detail and documentation as
shall be requested by Agent in its reasonable discretion;

          (iv) a reconciliation of the outstanding Loans as set forth in the monthly Loan Account
statement provided by Agent to the Borrowers general ledger and monthly Financial Statements
delivered pursuant to Annex E, in each case accompanied by such supporting detail
and documentation as shall be requested by Agent in its reasonable discretion;

          (v) a detailed report of unpaid shipping and related charges that are owing or will be
owing to shippers with respect to Eligible In-Transit Inventory reported on the Borrowing
Base for such Fiscal Month;

          (vi) a detailed report of the Inventory in-transit from the United States to Canada on
the date thereof; and

          (vii) a detailed report of any amounts payable to any of the Collateral Party’s
consignee’s with respect to Eligible Consigned Inventory.

     (e) To Agent, at the time of delivery of each of the annual Financial Statements delivered
pursuant to Annex E, (i) a listing of government contracts of each Collateral Party subject
to the Federal Assignment of Claims Act of 1940 or the Financial Administration Act (Canada); and
(ii) a list of any applications for the registration of any Patent, Trademark or Copyright filed by
any Credit Party with the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency (in the United States of America or any other jurisdiction)
in the prior Fiscal Quarter;

     (f) Each Collateral Party, at its own expense, shall deliver to Agent the results of each
physical verification, if any, that such Collateral Party or any of its Subsidiaries may in
their discretion have made, or caused any other Person to have made on their behalf, of all or
any

F-2

 

portion of their Inventory (and, if a Default or an Event of Default has occurred and is
continuing, each Collateral Party shall, upon the request of Agent, conduct, and deliver the
results of, such physical verifications as Agent may require);

     (g) Each Collateral Party, at its own expense, shall deliver to Agent such appraisals of its
assets as Agent may request at any time, such appraisals to be conducted by an appraiser, and in
form and substance reasonably satisfactory to Agent; provided, however, so long as
no Default or Event of Default is continuing, Agent shall not obtain or request an appraisal as to
any particular category of Collateral to be performed more than two times during any Year at
Borrower’s expense; and

     (h) Such other reports, statements and reconciliations with respect to the Borrowing Base,
Collateral or Obligations of any or all Credit Parties as Agent shall from time to time request in
its reasonable discretion.

F-3

 

AMENDED AND RESTATED ANNEX G (Section 6.10)

to

CREDIT AGREEMENT

FINANCIAL COVENANTS

          (a) Financial Covenants. Borrowers shall not breach or fail to comply with any of the
following financial covenants, each of which shall be calculated in accordance with GAAP
consistently applied:

               (i) Maximum Capital Expenditures. Holdings and its Subsidiaries on a consolidated
basis shall not make Capital Expenditures during any Fiscal Year in excess of $18,000,000;
provided, however, that the amount of permitted Capital Expenditures referenced
above will be increased in any period by the positive amount equal to the lesser of (i) 50% of the
amount of permitted Capital Expenditures for the immediately prior period, and (ii) the amount (if
any), equal to the difference obtained by taking the Capital Expenditures limit specified above for
the immediately prior period minus the actual amount of any Capital Expenditures expended
during such prior period (the “Carry Over Amount”), and for purposes of measuring
compliance herewith, the Carry Over Amount shall be deemed to be the last amount spent on Capital
Expenditures in that succeeding year.

               (ii) Minimum Fixed Charge Coverage Ratio. Holdings and its Subsidiaries shall have on
a consolidated basis at the end of each Fiscal Quarter, a Fixed Charge Coverage Ratio for the
12-month period then ended of not less than 1.10.

          (b) So long as the Second Lien Loan Obligations are outstanding, Holdings and its Subsidiaries
shall have on a consolidated basis at the end of each Fiscal Quarter, a Senior Leverage Ratio as of
the last day of that Fiscal Quarter and for the 12-month period then ended of not more than 2.75.

          (c) In addition to clause (a)(i) above, so long as any Cash Flow Portion is outstanding,
Borrower shall not breach or fail to comply with the following Financial Covenants (the “Enhanced
Financial Covenants”):

               (i) Holdings and its Subsidiaries shall have on a consolidated basis at the end of each Fiscal
Quarter, a Fixed Charge Coverage Ratio for the 12-month period then ended of not less than 1.25;

               (ii) Holdings and its Subsidiaries shall have on a consolidated basis at the end of each
Fiscal Quarter, a Senior Leverage Ratio as of the last day of that Fiscal Quarter and for the
12-month period then ended of not more than 2.75; and

G-1

 

               (iii) Holdings and its Subsidiaries shall have on a consolidated basis at the end of each
Fiscal Quarter, EBITDA of not less than $45,000,000 for the 12-month period then ended.

          For the measuring periods ending June 30, 2007 and September 30, 2007, EBITDA shall be
calculated as follows: (a) for the measuring period ending June 30, 2007, EBITDA shall equal the
actual amounts thereof for the period from January 1, 2007 through June 30, 2007 multiplied by 2.0
and (b) for the measuring period ending September 30, 2007, EBITDA shall equal the actual amounts
thereof for the period from January 1, 2007 through September 30, 2007 multiplied by 1.33.

          Unless otherwise specifically provided herein, any accounting term used in the Agreement shall
have the meaning customarily given such term in accordance with GAAP, and all financial
computations hereunder shall be computed in accordance with GAAP consistently applied. That
certain items or computations are explicitly modified by the phrase “in accordance with GAAP” shall
in no way be construed to limit the foregoing. If any “Accounting Changes” (as defined below)
occur and such changes result in a change in the calculation of the financial covenants, standards
or terms used in the Agreement or any other Loan Document, then Borrowers, Agent and Lenders agree
to enter into negotiations in order to amend such provisions of the Agreement so as to equitably
reflect such Accounting Changes with the desired result that the criteria for evaluating Borrowers’
and their Subsidiaries’ financial condition shall be the same after such Accounting Changes as if
such Accounting Changes had not been made; provided, however, that the agreement of
Requisite Lenders to any required amendments of such provisions shall be sufficient to bind all
Lenders. “Accounting Changes” means (i) changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants (or successor thereto or
any agency with similar functions); (ii) changes in accounting principles concurred in by any
Borrower’s certified public accountants; (iii) purchase accounting adjustments under A.P.B. 16 or
17 and EITF 88-16, and the application of the accounting principles set forth in FASB 109,
including the establishment of reserves pursuant thereto and any subsequent reversal (in whole or
in part) of such reserves; and (iv) the reversal of any reserves established as a result of
purchase accounting adjustments. All such adjustments resulting from expenditures made subsequent
to the Closing Date (including capitalization of costs and expenses or payment of pre-Closing Date
liabilities) shall be treated as expenses in the period the expenditures are made and deducted as
part of the calculation of EBITDA in such period. If Agent, Borrowers and Requisite Lenders agree
upon the required amendments, then after appropriate amendments have been executed and the
underlying Accounting Change with respect thereto has been implemented, any reference to GAAP
contained in the Agreement or in any other Loan Document shall, only to the extent of such
Accounting Change, refer to GAAP, consistently applied after giving effect to the implementation of
such Accounting Change. If Agent, Borrowers and Requisite Lenders cannot agree upon the required
amendments within thirty (30) days following the date of implementation of any Accounting Change,
then all Financial Statements delivered and all calculations of financial covenants and other
standards and terms in accordance with the Agreement and the other Loan Documents shall be
prepared, delivered and made without regard to the underlying Accounting Change. For purposes of
Section 8.1, a breach of a Financial Covenant contained in this Annex G shall
be deemed to have

G-2

 

occurred as of any date of determination by Agent or as of the last day of any
specified measurement period, regardless of when the Financial Statements reflecting such breach
are delivered to Agent.

G-3

 

ANNEX H (Section 9.9(a))

to

CREDIT AGREEMENT

WIRE TRANSFER INFORMATION

 

 

ANNEX I (Section 11.10)

to

CREDIT AGREEMENT

NOTICE ADDRESSES

	(A)	 	If to Agent or GE Capital, at:

General Electric Capital Corporation

500 West Monroe Street

Chicago, Illinois 60661

Attention: Thermadyne, Account Manager

Telecopier No.: (312) 419-7500

with a copy to:

General Electric Capital Corporation

201 High Ridge Road

Stamford, Connecticut 06927-5100

Attention: Corporate Counsel — Commercial Finance

Telecopier No.: (203) 316-7889

	(B)	 	If to any Borrower, to Borrower Representative, at:

Thermadyne Holdings Corporation

16052 Swingley Ridge Rd., Suite 300

Chesterfield, MO 63017

Attention: Chief Financial Officer

Telecopier No.: 636-728-3010

with copies to:

Thermadyne Holdings Corporation

16052 Swingley Ridge Rd., Suite 300

Chesterfield, MO 63017

Attention: General Counsel

Telecopier No.: 636-728-3011

and 

Armstrong Teasdale LLP

One Metropolitan Square

Suite 2600 St. Louis, Missouri 63102

Attention: John L. Sullivan

Telecopier No.: 314-621-5065

I-1

 

ANNEX J (from Annex A — Commitments definition)

to

CREDIT AGREEMENT

	 	 	 
	 	 	Lender
	Revolving Loan Commitment
(including a Swing Line Commitment
of $1,000,000):

	 	General Electric Capital Corporation
	 
	 	 
	$100,000,000 as of the Closing Date
	 	 

J-1

 

ANNEX K (from Section 13)

to

CREDIT AGREEMENT

Outstanding Principal Balance of Prior Loans on the Closing Date

	 	 	 	 	 
	Revolving Loan

	 	$	 	 
	 
	 	 	 	 
	(includes aggregate Letter of Credit Obligations in the amount of
$                    )
	 	 	 	 

K-1

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