Document:

exv4w3

Exhibit
4.3

EXECUTION COPY

$250,000,000

COMMERCIAL VEHICLE GROUP, INC.

7.875% SENIOR SECURED NOTES DUE 2019

REGISTRATION RIGHTS AGREEMENT

April 26, 2011

Credit Suisse Securities (USA) LLC

  c/o Credit Suisse Securities (USA) LLC

     Eleven Madison Avenue

       New York, New York 10010-3629

Dear Sirs:

     Commercial Vehicle Group, Inc., a Delaware corporation (the “Issuer”), proposes to issue and
sell to Credit Suisse Securities (USA) LLC (the “Initial Purchaser”), upon the terms set forth in a
purchase agreement dated April 13, 2011 (the “Purchase Agreement”), $250,000,000 aggregate
principal amount of its 7.875% Senior Secured Notes due 2019 (the “Initial Securities”) to be
unconditionally guaranteed on a senior secured basis by each of the subsidiaries of the Issuer
listed on Schedule A hereto (the “Guarantors” and together with the Issuer, the “Company”). The
Initial Securities will be issued pursuant to an Indenture, dated as of April 26, 2011 (the
 “Indenture”), among the Issuer, the Guarantors and U.S. Bank National Association, as trustee (the
 “Trustee”). As an inducement to the Initial Purchaser, the Company agrees with the Initial
Purchaser, for the benefit of the holders of the Transfer Restricted Securities (as defined below)
(including, without limitation, the Initial Purchaser), the Exchange Securities (as defined below)
and the Private Exchange Securities (as defined below) (collectively the “Holders”), as follows:

     1.. Exchange Offer. If any of the Initial Securities are not Freely Transferable (as
defined below) on the Registration Trigger Date (as defined below), the Company shall, at its own
cost, prepare and file with the Securities and Exchange Commission (the “Commission”) a
registration statement (the “Exchange Offer Registration Statement”) on an appropriate form under
the Securities Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer
(the “Exchange Offer”) to the Holders of Transfer Restricted Securities (as defined in Section 6
hereof), who are not prohibited by any law or policy of the Commission from participating in the
Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a
like aggregate principal amount of debt securities (the “Exchange Securities”) of the Company
issued under the Indenture and identical in all material respects to the Initial Securities (except
for the transfer restrictions relating to the Initial Securities and the provisions relating to the
matters described in Section 6 hereof) that would be registered under the Securities Act. The
Company shall use its commercially reasonable efforts to cause such Exchange Offer Registration
Statement to become effective under the Securities Act as promptly as possible after the
Registration Trigger Date and shall keep the Exchange Offer Registration Statement effective for
not less than 20 business days (or longer, if required by applicable law) after the date notice of
the Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer
Registration Period”).

 

 

     For the purposes of this Agreement:

     (a) “Registration Trigger Date” means the first business day following the one-year
anniversary of the date hereof.

     (b) “Freely Transferable” means, with respect to a Security, a Security that at any
time of determination (i) may be sold to the public in accordance with Rule 144 under the
Securities Act by a person that is not an “affiliate” (as defined in Rule 144 under the
Securities Act) of the Company where no conditions of Rule 144 are then applicable (other
than the holding period requirement in paragraph (d)(1) of Rule 144 so long as such holding
period requirement is satisfied at such time of determination) and (ii) does not bear any
restrictive legends relating to the Securities Act or a restricted CUSIP number.

     If the Company effects the Exchange Offer, the Company will be entitled to close the Exchange
Offer 20 business days after the commencement thereof provided that the Company has accepted all
the Initial Securities theretofore validly tendered in accordance with the terms of the Exchange
Offer.

     Following the declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall as soon as practicable commence the Exchange Offer, it being the objective of
such Exchange Offer to enable each Holder of Transfer Restricted Securities (as defined in Section
6 hereof) electing to exchange Initial Securities for Exchange Securities (assuming that such
Holder is not an affiliate of the Company within the meaning of the Securities Act, acquires the
Exchange Securities in the ordinary course of such Holder’s business and has no arrangements with
any person to participate in the distribution of the Exchange Securities and is not prohibited by
any law or policy of the Commission from participating in the Exchange Offer) to trade such
Exchange Securities from and after their receipt without any limitations or restrictions under the
Securities Act and without material restrictions under the securities laws of the several states of
the United States.

     The Company acknowledges that, pursuant to current interpretations by the Commission’s staff
of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each
Holder which is a broker-dealer electing to exchange Initial Securities, acquired for its own
account as a result of market-making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information
set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange Offer Procedures”
section and the “Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of
Distribution” section of such prospectus in connection with a sale of any such Exchange Securities
received by such Exchanging Dealer pursuant to the Exchange Offer and (ii) if the Initial Purchaser
elects to sell Exchange Securities acquired in exchange for Initial Securities constituting any
portion of an unsold allotment, it is required to deliver a prospectus containing the information
required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such sale.

     The Company shall use its commercially reasonable efforts to keep the Exchange Offer
Registration Statement effective and to amend and supplement the prospectus contained therein, in
order to permit such prospectus to be lawfully delivered by all persons subject to the prospectus
delivery requirements of the Securities Act for such period of time as such persons must comply
with such requirements in order to resell the Exchange Securities; provided, however, that (i) in
the case where such prospectus and any amendment or supplement thereto must be delivered by an
Exchanging Dealer or the Initial Purchaser, such period shall be the lesser of 180 days and the
date on which all Exchanging Dealers and the Initial Purchaser have sold all Exchange Securities
held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company
shall make such prospectus and any amendment or supplement thereto available to any broker-dealer
for use in connection with any resale of any Exchange Securities for a period of not less than 90
days after the consummation of the Exchange Offer.

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     If, upon consummation of the Exchange Offer, the Initial Purchaser holds Initial Securities
acquired by it as part of its initial distribution, the Company, simultaneously with the delivery
of the Exchange Securities pursuant to the Exchange Offer, shall issue and deliver to the Initial
Purchaser upon the written request of the Initial Purchaser, in exchange (the “Private Exchange”)
for the Initial Securities held by the Initial Purchaser, a like principal amount of debt
securities of the Company issued under the Indenture and identical in all material respects
(including the existence of restrictions on transfer under the Securities Act and the securities
laws of the several states of the United States, but excluding provisions relating to the matters
described in Section 6 hereof) to the Initial Securities (the “Private Exchange Securities”). The Initial Securities, the Exchange Securities and the
Private Exchange Securities are herein collectively called the “Securities”.

     In connection with the Exchange Offer, the Company shall:

     (a) mail to each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

     (b) keep the Exchange Offer open for not less than 20 business days (or longer, if
required by applicable law) after the date notice thereof is mailed to the Holders;

     (c) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate of the
Trustee;

     (d) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Exchange Offer shall remain
open; and

     (e) otherwise comply with all applicable laws.

     As soon as practicable after the close of the Exchange Offer or the Private Exchange, as the
case may be, the Company shall:

     (x) accept for exchange all the Initial Securities validly tendered and not withdrawn
pursuant to the Exchange Offer and the Private Exchange;

     (y) deliver to the Trustee for cancellation all the Initial Securities so accepted for
exchange; and

     (z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be,
equal in principal amount to the Initial Securities of such Holder so accepted for exchange.

     The Indenture will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all the Securities will vote and consent together
on all matters as one class and that none of the Securities will have the right to vote or consent
as a class separate from one another on any matter.

     Interest on each Exchange Security and Private Exchange Security issued pursuant to the
Exchange Offer and in the Private Exchange will accrue from the last interest payment date on which
interest was paid on the Initial Securities surrendered in exchange therefor or, if no interest has
been paid on the Initial Securities, from the date of original issue of the Initial Securities.

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     Each Holder participating in the Exchange Offer shall be required to represent to the Company
that at the time of the consummation of the Exchange Offer (i) any Exchange Securities received by
such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the distribution of the Initial
Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such Holder
is not an “affiliate,” as defined in Rule 405 of the Securities Act, of the Company or if it is an
affiliate, such Holder will comply with the registration and prospectus delivery requirements of
the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is
not engaged in, and does not intend to engage in, the distribution of the Exchange Securities and
(v) if such Holder is a broker-dealer, that it will receive Exchange Securities for its own account
in exchange for Initial Securities that were acquired as a result of market-making activities or
other trading activities and that it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus forming part thereof and
any supplement thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such
prospectus, does not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

     Notwithstanding anything in this Section 1 to the contrary, the requirements to file an
Exchange Offer Registration Statement and the requirements to consummate the Exchange Offer shall
terminate at such time as all the Initial Securities are Freely Transferable.

     2. Shelf Registration. If, (i) because of any change in law or in applicable
interpretations thereof by the staff of the Commission, the Company is not permitted to effect an
Exchange Offer, and would otherwise be required to effect an Exchange Offer pursuant to Section 1
hereof, (ii) the Exchange Offer is not consummated within 60 days of the Registration Trigger Date
(or 90 days if the Exchange Offer Registration Statement is reviewed by the Commission) and, at
such time, any Initial Securities are not Freely Transferable, (iii) the Initial Purchaser so
requests with respect to the Initial Securities (or the Private Exchange Securities) not eligible
to be exchanged for Exchange Securities in the Exchange Offer and held by it following consummation
of the Exchange Offer (and such Initial Securities are not otherwise Freely Transferable), (iv) any
Holder (other than an Exchanging Dealer) is not eligible to participate in the Exchange Offer or,
in the case of any Holder (other than an Exchanging Dealer) that participates in the Exchange
Offer, such Holder does not receive Exchange Securities on the date of the exchange (and such
Initial Securities are not otherwise Freely Transferable) or (v) the Initial Purchaser so requests
with respect to Initial Securities that constitute any portion of the Initial Purchaser’s unsold
allotment that cannot be sold by the Initial Purchaser in reliance on Rule 144 of the Securities
Act, the Company shall take the following actions:

     (a) The Company shall, at its cost, as promptly as practicable (but in no event more
than 30 days after so required or requested pursuant to this Section 2) file with the
Commission and thereafter shall use its commercially reasonable efforts to cause to be
declared effective (unless it becomes effective automatically upon filing) a registration
statement (the “Shelf Registration Statement” and, together with the Exchange Offer
Registration Statement, a “Registration Statement”) on an appropriate form under the
Securities Act relating to the offer and sale of the Transfer Restricted Securities (as
defined in Section 6 hereof) by the Holders thereof from time to time in accordance with the
methods of distribution set forth in the Shelf Registration Statement

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and Rule 415 under the
Securities Act (hereinafter, the “Shelf Registration”); provided, however, that no Holder
(other than the Initial Purchaser) shall be entitled to have the Securities held by it
covered by such Shelf Registration Statement unless such Holder agrees in writing to be
bound by all the provisions of this Agreement applicable to such Holder.

     (b) The Company shall use its commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective in order to permit the prospectus included
therein to be lawfully delivered by the Holders of the relevant Securities until all the
Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto
or (ii) are Freely Transferable in the case of clauses (i) through (iv) above or (iii) can
be sold in reliance on Rule 144 by the Initial Purchaser in the case of clause (v) above.
The Company shall be deemed not to have used its commercially reasonable efforts to keep the
Shelf Registration Statement effective during the requisite period if it voluntarily takes
any action that would result in Holders of Securities covered thereby not being able to
offer and sell such Securities during that period, unless such action is required by
applicable law, as reasonably determined by the Company in its good faith judgment.

     (c) Notwithstanding any other provisions of this Agreement to the contrary, the Company
shall cause the Shelf Registration Statement and the related prospectus and any amendment or
supplement thereto, as of the effective date of the Shelf Registration Statement, amendment
or supplement, (i) to comply in all material respects with the applicable requirements of
the Securities Act and the rules and regulations of the Commission and (ii) not to contain
any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.

     3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Exchange Offer contemplated by Section 1
hereof, the following provisions shall apply:

     (a) The Company shall (i) furnish to the Initial Purchaser, prior to the filing thereof
with the Commission, a copy of the Registration Statement and each amendment thereof and
each supplement, if any, to the prospectus included therein and, in the event that the
Initial Purchaser (with respect to any portion of an unsold allotment from the original
offering) is participating in the Exchange Offer or the Shelf Registration Statement, the
Company shall use its commercially reasonable efforts to reflect in each such document, when
so filed with the Commission, such comments as the Initial Purchaser reasonably may propose;
(ii) include the information set forth in Annex A hereto on the cover, in Annex B hereto in
the “Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section and
in Annex C hereto in the “Plan of Distribution” section of the prospectus forming a part of
the Exchange Offer Registration Statement and include the information set forth in Annex D
hereto in the Letter of Transmittal delivered pursuant to the Exchange Offer; (iii) if
requested by the Initial Purchaser, include the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in the prospectus forming a part of
the Exchange Offer Registration Statement; (iv) include within the prospectus contained in
the Exchange Offer Registration Statement a section entitled “Plan of Distribution,”
reasonably acceptable to the Initial Purchaser, which shall contain a summary statement of
the positions taken or policies made by the staff of the Commission with respect to the
potential “underwriter” status of any broker-dealer that is the beneficial owner (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of
Exchange Securities received by such broker-dealer in the Exchange Offer (a “Participating
Broker-Dealer”), whether such positions or policies have been publicly disseminated by the
staff of the Commission or such positions or policies, in the reasonable judgment of the
Initial Purchaser based upon advice of counsel (which may be in-house counsel), represent
the prevailing views of

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the staff of the Commission; and (v) in the case of a Shelf
Registration Statement, include in the prospectus included in the Shelf Registration
Statement (or, if permitted by Commission Rule 430B(b), in a prospectus supplement that
becomes a part thereof pursuant to Commission Rule 430B(f)) that is delivered to any Holder
pursuant to Section 3(d) and (f), the names of the Holders who propose to sell Securities
pursuant to the Shelf Registration Statement as selling securityholders.

     (b) The Company shall give written notice to the Initial Purchaser, the Holders of the
Securities and any Participating Broker-Dealer from whom the Company has received prior
written notice that it will be a Participating Broker-Dealer in the Exchange Offer (which
notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend
the use of the prospectus until the requisite changes have been made):

     (i) when the Registration Statement or any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings for
that purpose, of the issuance by the Commission of a notification of objection to
the use of the form on which the Registration Statement has been filed, and of the
happening of any event that causes the Company to become an “ineligible issuer,” as
defined in Commission Rule 405;

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

     (v) of the happening of any event that requires the Company to make changes in
the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a material fact
nor omit to state a material fact required to be stated therein or necessary to make
the statements therein (in the case of the prospectus, in the light of the
circumstances under which they were made) not misleading.

     (c) The Company shall make every reasonable effort to obtain the withdrawal, at the
earliest possible time, of any order suspending the effectiveness of the Registration
Statement.

     (d) If not otherwise available on the Commission’s Electronic Data Gathering, Analysis
and Retrieval (“EDGAR”) System or similar system, upon the written request of a Holder of
Securities included within the coverage of the Shelf Registration, the Company shall furnish
to each such Holder, without charge, at least one copy of the Shelf Registration Statement
and any post-effective amendment or supplement thereto, including financial statements and
schedules, and, if the Holder so requests in writing, all exhibits thereto (including those,
if any, incorporated by reference). The Company shall not, without the prior consent of the
Initial Purchaser, make any offer relating to the Securities that would constitute a “free
writing prospectus,” as defined in Commission Rule 405.

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     (e) If not otherwise available on the Commission’s EDGAR System or similar system, upon
the written request of any Holder, the Company shall deliver to each Exchanging Dealer and
the Initial Purchaser, and to any other Holder who so requests in writing, without charge,
at least one copy of the Exchange Offer Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, and, if the Initial
Purchaser or any such Holder requests, all exhibits thereto (including those incorporated by
reference).

     (f) The Company shall, during the period of effectiveness of the Shelf Registration,
deliver to each Holder of Securities included within the coverage of the Shelf Registration,
without charge, as many copies of the prospectus (including each preliminary prospectus)
included in the Shelf Registration Statement and any amendment or supplement thereto as such
person may reasonably request. The Company consents, subject to the provisions of this
Agreement, to the use of the prospectus or any amendment or supplement thereto by each of
the selling Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto, included in
the Shelf Registration Statement.

     (g) The Company shall deliver to the Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Exchange Offer, without charge, as many copies of the final prospectus
included in the Exchange Offer Registration Statement and any amendment or supplement
thereto as such persons may reasonably request. The Company consents, subject to the
provisions of this Agreement, to the use of the prospectus or any amendment or supplement
thereto by the Initial Purchaser, if necessary, any Participating Broker-Dealer and such
other persons required to deliver a prospectus following the Exchange Offer in connection
with the offering and sale of the Exchange Securities covered by the prospectus, or any
amendment or supplement thereto, included in such Exchange Offer Registration Statement.

     (h) Prior to any public offering of the Securities, pursuant to any Registration
Statement, the Company shall register or qualify or cooperate with the Holders of the
Securities included therein and their respective counsel in connection with the registration
or qualification of the Securities for offer and sale under the securities or “blue sky”
laws of such states of the United States as any Holder of the Securities reasonably requests
in writing and do any and all other acts or things necessary or advisable to enable the
offer and sale in such jurisdictions of the Securities covered by such Registration
Statement; provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction
where it is not then so qualified or (ii) take any action which would subject it to
general service of process or to taxation in any jurisdiction where it is not then so
subject.

     (i) Unless the Securities are in book-entry form, the Company shall cooperate with the
Holders of the Securities to facilitate the timely preparation and delivery of certificates
representing the Securities to be sold pursuant to any Registration Statement free of any
restrictive legends and in such denominations and registered in such names as the Holders
may request a reasonable period of time prior to sales of the Securities pursuant to such
Registration Statement.

     (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 3(b) above during the period for which the Company is required to maintain an
effective Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the related
prospectus and any other required document so that, as thereafter delivered to Holders of
the Securities or purchasers of Securities, the prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the

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circumstances under which they were made, not misleading. If the Company notifies the Initial Purchaser, the
Holders of the Securities and any known Participating Broker-Dealer in accordance with
paragraphs (ii) through (v) of Section 3(b) above to suspend the use of the prospectus until
the requisite changes to the prospectus have been made, then the Initial Purchaser, the
Holders of the Securities and any such Participating Broker-Dealers shall suspend use of
such prospectus, and the period of effectiveness of the Shelf Registration Statement
provided for in Section 2(b) above and the Exchange Offer Registration Statement provided
for in Section 1 above shall each be extended by the number of days from and including the
date of the giving of such notice to and including the date when the Initial Purchaser, the
Holders of the Securities and any known Participating Broker-Dealer shall have received such
amended or supplemented prospectus pursuant to this Section 3(j). During the period during
which the Company is required to maintain an effective Shelf Registration Statement pursuant
to this Agreement, the Company will prior to the three-year expiration of that Shelf
Registration Statement, to the extent applicable, file, and use its commercially reasonable
efforts to cause to be declared effective (unless it becomes effective automatically upon
filing) within a period that avoids any interruption in the ability of Holders of Securities
covered by the expiring Shelf Registration Statement to make registered dispositions, a new
registration statement relating to the Securities, which shall be deemed the “Shelf
Registration Statement” for purposes of this Agreement.

     (k) Not later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Initial Securities, the Exchange Securities or
the Private Exchange Securities, as the case may be, and provide the applicable trustee with
printed certificates for the Initial Securities, the Exchange Securities or the Private
Exchange Securities, as the case may be, in a form eligible for deposit with The Depository
Trust Company.

     (l) The Company will comply with all rules and regulations of the Commission to the
extent and so long as they are applicable to the Exchange Offer or the Shelf Registration
and will make generally available to its security holders (or otherwise provide in
accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a
12-month period (or 90 days, if such period is a fiscal year) beginning with the first month
of the Company’s first fiscal quarter commencing after the effective date of the
Registration Statement, which statement shall cover such 12-month period.

     (m) The Company shall cause the Indenture to be qualified under the Trust Indenture Act
of 1939, as amended (the “Trust Indenture Act”), in a timely manner and containing such
changes, if any, as shall be necessary for such qualification. In the event that such
qualification would require the appointment of a new trustee under the Indenture, the
Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the
Indenture.

     (n) The Company may require each Holder of Securities to be sold pursuant to the Shelf
Registration Statement to furnish to the Company such information regarding such Holder and
the
distribution of the Securities as the Company may from time to time reasonably require
for inclusion in the Shelf Registration Statement, and the Company may exclude from such
registration the Securities of any Holder that unreasonably fails to furnish such
information within a reasonable time after receiving such request.

     (o) The Company shall enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) and take all such other action, if any, as any
Holder of the Securities shall reasonably request in order to facilitate the disposition of
the Securities pursuant to any Shelf Registration.

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     (p) In the case of any Shelf Registration, the Company shall (i) make reasonably
available for inspection by the Holders of the Securities, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or
other agent retained by the Holders of the Securities or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of the Company and
(ii) cause the Company’s officers, directors, employees, accountants and auditors to supply
all relevant information reasonably requested by the Holders of the Securities or any such
underwriter, attorney, accountant or agent in connection with the Shelf Registration
Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct
a reasonable investigation within the meaning of Section 11 of the Securities Act; provided,
however, that the foregoing inspection and information gathering shall be coordinated on
behalf of the Initial Purchaser by you and on behalf of the other parties, by one counsel
designated by and on behalf of such other parties as described in Section 4 hereof; provided
further that the foregoing inspection and information gathering shall be subject to
reasonable confidentiality procedures instituted by the Company.

     (q) In the case of any Shelf Registration, the Company, if requested by any Holder of
Securities covered thereby, shall cause (i) its counsel to deliver an opinion and updates
thereof relating to the Securities in customary form addressed to such Holders and the
managing underwriters, if any, thereof and dated, in the case of the initial opinion, the
effective date of such Shelf Registration Statement (it being agreed that the matters to be
covered by such opinion shall include, without limitation, the due incorporation and good
standing of the Company and its subsidiaries; the qualification of the Company and its
subsidiaries to transact business as foreign corporations; the due authorization, execution
and delivery of the relevant agreement of the type referred to in Section 3(o) hereof; the
due authorization, execution, authentication and issuance, and the validity and
enforceability, of the applicable Securities; the absence of material legal or governmental
proceedings involving the Company and its subsidiaries; the absence of governmental
approvals required to be obtained in connection with the Shelf Registration Statement, the
offering and sale of the applicable Securities, or any agreement of the type referred to in
Section 3(o) hereof; the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the requirements of
the Securities Act and the Trust Indenture Act, respectively; and (A) as of the date of the
opinion and as of the effective date of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, the absence from such Shelf
Registration Statement and the prospectus included therein, as then amended or supplemented,
and from any documents incorporated by reference therein and (B) as of an applicable time
identified by such Holders or managing underwriters, the absence from such prospectus taken
together with any other documents identified by such Holders or managing underwriters, in
the case of (A) and (B), of an untrue statement of a material fact or the omission to state
therein a material fact required to be stated therein or necessary to make the statements
therein not misleading (in the case of any such incorporated documents, in the light of the
circumstances existing at the time that such documents were filed with the Commission under
the Exchange Act); (ii) its officers to execute and deliver all customary documents and
certificates and updates thereof requested by any underwriters of the applicable Securities
and (iii) its independent public accountants to provide to the selling Holders of the
applicable Securities and any underwriter therefor a comfort letter in customary form and
covering matters of the type customarily covered in comfort letters in connection with
primary underwritten offerings, subject to receipt of appropriate documentation as
contemplated, and only if permitted, by Statement of Auditing Standards No. 72.

     (r) In the case of the Exchange Offer, if requested by the Initial Purchaser or any
known Participating Broker-Dealer, the Company shall cause (i) its counsel to deliver to the
Initial Purchaser or such Participating Broker-Dealer a signed opinion in the form
contemplated by Section 7(c) of the Purchase Agreement with such changes as are customary in
connection with

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the preparation of a Registration Statement and (ii) its independent public
accountants to deliver to the Initial Purchaser or such Participating Broker-Dealer a
comfort letter, in customary form, as contemplated by Section 7(a) of the Purchase
Agreement, with appropriate date changes.

     (s) If an Exchange Offer or a Private Exchange is to be consummated, upon delivery of
the Initial Securities by Holders to the Company (or to such other person as directed by the
Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be, the Company shall mark, or cause to be marked, on the Initial Securities so
exchanged that such Initial Securities are being canceled in exchange for the Exchange
Securities or the Private Exchange Securities, as the case may be; in no event shall the
Initial Securities be marked as paid or otherwise satisfied.

     (t) The Company will use its commercially reasonable efforts to (a) if the Initial
Securities have been rated prior to the initial sale of such Initial Securities, confirm
such ratings will apply to the Securities covered by a Registration Statement, or (b) if the
Initial Securities were not previously rated, cause the Securities covered by a Registration
Statement to be rated with the appropriate rating agencies, if so requested by Holders of a
majority in aggregate principal amount of Securities covered by such Registration Statement,
or by the managing underwriters, if any.

     (u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or selling
group or “assist in the distribution” (within the meaning of the Conduct Rules (the “Rules”)
of the Financial Industry Regulatory Authority, Inc. (“FINRA”)) thereof, whether as a Holder
of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in
respect thereof, or otherwise, the Company will assist such broker-dealer in complying with
the requirements of such Rules, including, without limitation, by (i) if such Rules,
including Rule 2720, shall so require, engaging a “qualified independent underwriter” (as
defined in Rule 2720) to participate in the preparation of the Registration Statement
relating to such Securities, to exercise usual standards of due diligence in respect thereto
and, if any portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the yield
of such Securities, (ii) indemnifying any such qualified independent underwriter to the
extent of the indemnification of underwriters provided in Section 5 hereof and (iii)
providing such information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

     (v) The Company shall use its commercially reasonable efforts to take all other steps
necessary to effect the registration of the Securities covered by a Registration Statement
contemplated hereby.

     4. Registration Expenses. The Company shall bear all fees and expenses incurred in
connection with the performance of its obligations under Sections 1 through 3 hereof (including the
reasonable fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for the Initial
Purchaser, incurred in connection with the Exchange Offer, whether or not the Exchange Offer or a
Shelf Registration is filed or becomes effective, and, in the event of a Shelf Registration, shall
bear or reimburse the Holders of the Securities covered thereby for the reasonable fees and
disbursements of one firm of counsel designated by the Holders of a majority in principal amount of
the Initial Securities covered thereby to act as counsel for the Holders of the Initial Securities
in connection therewith.

     5. Indemnification.
(a) The Company agrees to indemnify and hold harmless each
Holder of the Securities, any Participating Broker-Dealer and each person, if any, who controls
such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the
Exchange Act (each Holder,

10

 

any Participating Broker-Dealer and such controlling persons are
referred to collectively as the “Indemnified Parties”) from and against any losses, claims, damages
or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or actions relating
to purchases and sales of the Securities) to which each Indemnified Party may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus or “issuer free writing
prospectus,” as defined in Commission Rule 433 (“Issuer FWP”), relating to a Shelf Registration, or
arise out of, or are based upon, the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and shall
reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such loss, claim, damage, liability or
action in respect thereof; provided, however, that (i) the Company shall not be liable in any such
case to the extent that such loss, claim, damage or liability arises out of or is based upon any
untrue statement or alleged untrue statement or omission or alleged omission made in a Registration
Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus
or Issuer FWP relating to a Shelf Registration in reliance upon and in conformity with written
information pertaining to such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf
Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to
the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any such
losses, claims, damages or liabilities purchased the Securities concerned, to the extent that a
prospectus relating to such Securities was required to be delivered (including through satisfaction
of the conditions of Commission Rule 172) by such Holder or Participating Broker-Dealer under the
Securities Act in connection with such purchase and any such loss, claim, damage or liability of
such Holder or Participating Broker-Dealer results from the fact that there was not conveyed to
such person, at or prior to the time of the sale of such Securities to such person, an amended or
supplemented prospectus or, if permitted by Section 3(d), an Issuer FWP correcting such untrue
statement or omission or alleged untrue statement or omission if the Company had previously
furnished copies thereof to such Holder or Participating Broker-Dealer; provided further, however,
that this indemnity agreement will be in addition to any liability which the Company may otherwise
have to such Indemnified Party. The Company shall also indemnify underwriters, their officers and
directors and each person who controls such underwriters within the meaning of the Securities Act
or the Exchange Act to the same extent as provided above with respect to the indemnification of the
Holders of the Securities if requested by such Holders.

     (b) Each Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or
any actions in respect thereof, to which the Company or any such controlling person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus or Issuer FWP relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in each case only to the
extent that the untrue statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such Holder and furnished to
the Company by or on behalf of such Holder specifically for inclusion therein; and, subject to the
limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company
for any legal or other expenses reasonably incurred by the Company or any such controlling person
in connection with investigating or defending any loss, claim, damage, liability or action in
respect

11

 

thereof. This indemnity agreement will be in addition to any liability which such Holder
may otherwise have to the Company or any of its controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action or proceeding (including a governmental investigation), such
indemnified party will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 5, notify the indemnifying party of the commencement thereof; but the failure to
notify the indemnifying party shall not relieve the indemnifying party from any liability that it
may have under subsection (a) or (b) above except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided
further that the failure to notify the indemnifying party shall not relieve it from any liability
that it may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any
such action is brought against any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense thereof. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party
unless such settlement (i) includes an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action, and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or (b) above, then each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party or parties on the one hand and the indemnified party on
the other from the exchange of the Securities, pursuant to the Exchange Offer, or (ii) if the
allocation provided by the foregoing clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities (or actions in respect thereof) as well as any other
relevant equitable considerations. The relative fault of the parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by the
Company on the one hand or such Holder or such other indemnified party, as the case may be, on the
other, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid by an indemnified party as a result
of the losses, claims, damages or liabilities referred to in the first sentence of this subsection
(d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which is the subject of
this subsection (d). Notwithstanding any other provision of this Section 5(d), each Holder of
Securities shall not be required to contribute any amount in excess of the amount by which the net
proceeds received by such Holder from the sale of the Securities pursuant to a Registration
Statement exceeds the amount of damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was

12

 

not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such
indemnified party within the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act shall have the same rights to
contribution as the Company.

     (e) The agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any investigation made by or on
behalf of any indemnified party.

     6. Additional Interest Under Certain Circumstances. (a) Additional interest (the
 “Additional Interest”) with respect to the Initial Securities shall be assessed as follows if any
of the Initial Securities are not Freely Transferable by the Registration Trigger Date and any of
the following events occur (each such event in clauses (i) through (iii) below a “Registration
Default”):

     (i) If an Exchange Offer Registration Statement is required to be filed with the
Commission pursuant to Section 1 hereof and the Exchange Offer is not completed within 60
days after the Registration Trigger Date (or 90 days if the Exchange Offer Registration
Statement is reviewed by the Commission);

     (ii) If a Shelf Registration Statement is required to be filed with the Commission
pursuant to Section 2 hereof, but does not become effective within 30 days following any of
the events described in clauses (i), (ii), (iii), (iv) or (v) of Section 2 (or 60 days if
the Shelf Registration Statement is reviewed by the Commission); or

     (iii) If after either an Exchange Offer Registration Statement or a Shelf Registration
Statement is declared (or becomes automatically) effective (A) such Registration Statement
thereafter ceases to be effective; or (B) such Registration Statement or the related
prospectus ceases to be usable (except as permitted in paragraph (b)) in connection with
resales of Securities during the periods specified herein because either (1) any event
occurs as a result of which the related prospectus forming part of such Registration
Statement would include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the Securities
Act or the Exchange Act or the respective rules thereunder or (3) such Registration
Statement is a Shelf Registration Statement that has expired before a replacement Shelf
Registration Statement has become effective.

Additional Interest shall accrue on the Initial Securities over and above the interest set forth in
the title of the Securities from and including the date on which any such Registration Default
shall occur to but excluding the date on which all such Registration Defaults have been cured, at a
rate of 0.50% per annum.

     (b) A Registration Default referred to in Section 6(a)(iii)(B) hereof shall be deemed
not to have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related prospectus or (y)
other material events, with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and
related prospectus to describe such events; provided that the failure of the Company to proceed
promptly shall not be deemed to be a violation of this clause (b)(ii) if the board of

13

 

directors of
the Company determines in its good faith judgment that the disclosure of any such event at such
time would have a material adverse effect on the business or operations of the Company; provided,
further, however, that in any case if such Registration Default occurs for a continuous period in
excess of 45 days, Additional Interest shall be payable in accordance with the above paragraph from
the day such Registration Default occurs until such Registration Default is cured.

     (c) Any amounts of Additional Interest due pursuant to clause (i), (ii) or (iii) of
Section 6(a) above will be payable in cash on the regular interest payment dates with respect to
the Initial Securities. The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Initial Securities, multiplied
by a fraction, the numerator of which is the number of days such Additional Interest rate was
applicable during such period (determined on the basis of a 360-day year comprised of twelve 30-day
months), and the denominator of which is 360.

     (d)  “Transfer Restricted Securities” means each Security until (i) the date on which
such Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a
freely transferable Exchange Security in the Exchange Offer, (ii) following the exchange by a
broker-dealer in the Exchange Offer of an Initial Security for an Exchange Security, the date on
which such Exchange Security is sold to a purchaser who receives from such broker-dealer on or
prior to the date of such sale a copy of the prospectus contained in the Exchange Offer
Registration Statement, (iii) the date on which such Initial Security has been effectively
registered under the Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iv) the date on which all such Initial Securities are Freely Transferable.

     7. Rules 144 and 144A. The Company shall use its commercially reasonable efforts to
file the reports required to be filed by it under the Securities Act and the Exchange Act in a
timely manner and, if at any time the Company is not required to file such reports, it will, upon
the request of any Holder of Initial Securities,
make publicly available other information so long as necessary to permit sales of their
securities pursuant to Rules 144 and 144A. The Company covenants that it will take such further
action as any Holder of Initial Securities may reasonably request, all to the extent required from
time to time to enable such Holder to sell Initial Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rules 144 and 144A (including
the requirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to
prospective purchasers of Initial Securities identified to the Company by the Initial Purchaser
upon request. Upon the request of any Holder of Initial Securities, the Company shall deliver to
such Holder a written statement as to whether it has complied with such requirements.
Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to
register any of its securities pursuant to the Exchange Act.

     8. Underwritten Registrations. If any of the Transfer Restricted Securities covered
by any Shelf Registration are to be sold in an underwritten offering, the investment banker or
investment bankers and manager or managers that will administer the offering will be selected by
the Holders of a majority in aggregate principal amount of such Transfer Restricted Securities to
be included in such offering.

     No person may participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve such arrangements
and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not
be given,

14

 

except by the Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement, waiver or consents.

     (b) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission, or
air courier which guarantees overnight delivery:

          (1) if to a Holder of the Securities, at the most current address given by such Holder to the
Company.

          (2) if to the Initial Purchaser:

               Credit Suisse Securities (USA) LLC

               Eleven Madison Avenue

               New York, New York 10010-3629

               Fax No.: (212) 325-4296

               Attention: Transactions Advisory Group

     with a copy to:

               Cravath, Swaine & Moore LLP

               825 Eighth Avenue

               New York, New York 10019

               Fax No.: (212) 474-3700

               Attention: Kris F. Heinzelman

          (3) if to the Company, at its address as follows:

               Commercial Vehicle Group, Inc.

               7800 Walton Parkway

               New Albany, Ohio 43054

               Fax No.: (614) 289-5365

               Attention: Chad M. Utrup, Chief Financial Officer

     with a copy to:

               Kirkland & Ellis LLP

               300 North LaSalle

               Chicago, Illinois 60654

               Fax No.: (312) 862-2200

               Attention: Dennis M. Myers, P.C.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator,
if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

     (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered
into, nor shall it, on or after the date hereof, enter into, any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders herein or otherwise
conflicts with the provisions hereof.

15

 

     (d) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

     (h) Severability. If any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity,
legality and enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

16

 

If the foregoing is in accordance with your understanding of our agreement, please sign and return
to the Issuer a counterpart hereof, whereupon this instrument, along with all counterparts, will
become a binding agreement among the Initial Purchaser, the Issuer and the Guarantors in accordance
with its terms.

	 	 	 	 	 
	 	Very truly yours,

Commercial Vehicle Group, Inc.

 	 
	 	By:  	/s/ Chad M. Utrup	 
	 	 	Name:  	Chad M. Utrup 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	Trim Systems, Inc.

Trim Systems Operating Corp.

National Seating Company

CVS Holdings, Inc.

Sprague Devices, Inc.

CVG Management Corporation

CVG Logistics, LLC

Mayflower Vehicle Systems, LLC

Monona Corporation

Monona Wire Corporation

Monona (Mexico) Holdings LLC

Cabarrus Plastics, Inc.

CVG European Holdings, LLC

CVG Oregon, LLC

CVG CS LLC

CVG Alabama, LLC

 	 
	 	By:  	/s/ Chad M. Utrup	 
	 	 	Name:  	Chad M. Utrup 	 
	 	 	Title:  	Chief Financial Officer 	 

17

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

by: Credit Suisse Securities (USA) LLC

	 	 	 	 	 
	By:  	/s/ James Nappo	 
	 	Name: 	James Nappo	 
	 	Title: 	Managing Director	 

18

 

ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities
received in exchange for Initial Securities where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make
this Prospectus available to any broker-dealer for use in connection with any such resale. See
“Plan of Distribution.”

 

ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in exchange for
Initial Securities, where such Initial Securities were acquired by such broker-dealer as a result
of market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.”

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed that, for a period of
180 days after the Expiration Date, it will make this prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale. In addition, until
        , 20 , all dealers effecting transactions in the Exchange Securities may be required
to deliver a prospectus.

     The Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such broker-dealer or the purchasers of any such
Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it
for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter” within the meaning of
the Securities Act and any profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and
by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

     For a period of 180 days after the Expiration Date the Company will promptly send additional
copies of this Prospectus and any amendment or supplement to this Prospectus to any broker-dealer
that requests such documents in the Letter of Transmittal. The Company has agreed to pay all
expenses incident to the Exchange Offer other than commissions or concessions of any brokers or
dealers and will indemnify the Holders of the Securities (including any broker-dealers) against
certain liabilities, including liabilities under the Securities Act.

 

ANNEX D

o CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS
AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 	 	 	 	 

	 

	 	Name:	 	 	 	 
	 

	 	 
	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 

	 	 
	 	 

	 	 

If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in,
and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other trading activities,
it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange
Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not
be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

SCHEDULE A

Guarantors

	 	 	 
	Guarantor	 	State of Incorporation or Organization
	Trim Systems, Inc.
	 	Delaware
	 
	Trim Systems Operating Corp.
	 	Delaware
	 
	National Seating Company
	 	Delaware
	 
	CVS Holdings, Inc.
	 	Delaware
	 
	Sprague Devices, Inc.
	 	Delaware
	 
	CVG Management Corporation
	 	Delaware
	 
	CVG Logistics, LLC
	 	Delaware
	 
	Mayflower Vehicle Systems, LLC
	 	Delaware
	 
	Monona Corporation
	 	Delaware
	 
	Monona Wire Corporation
	 	Iowa
	 
	Monona (Mexico) Holdings LLC
	 	Illinois
	 
	Cabarrus Plastics, Inc.
	 	North Carolina
	 
	CVG European Holdings, LLC
	 	Delaware
	 
	CVG Oregon, LLC
	 	Delaware
	 
	CVG CS LLC
	 	Delaware
	 
	CVG Alabama, LLC
	 	Delaware

2exv10w1

Exhibit
10.1

EXECUTION VERSION

 

COMMERCIAL VEHICLE GROUP, INC., and

EACH OTHER BORROWER,

as Borrowers

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

Dated as of April 26, 2011

$40,000,000

CERTAIN FINANCIAL INSTITUTIONS,

as Lenders,

and

BANK OF AMERICA, N.A.,

as Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
	 	 	1	 
	1.1. Definitions
	 	 	1	 
	1.2. Accounting Terms
	 	 	32	 
	1.3. Uniform Commercial Code
	 	 	32	 
	1.4. Certain Matters of Construction
	 	 	33	 
	1.5. Certifications
	 	 	33	 
	1.6. Times of Day
	 	 	33	 
	SECTION 2. CREDIT FACILITIES
	 	 	34	 
	2.1. Revolver Commitments
	 	 	34	 
	2.1.1. Revolver Loans
	 	 	34	 
	2.1.2. Revolver Notes and Denominations
	 	 	34	 
	2.1.3. Use of Proceeds
	 	 	34	 
	2.1.4. Voluntary Reduction or Termination of Revolver Commitments
	 	 	34	 
	2.1.5. Overadvances
	 	 	35	 
	2.1.6. Protective Advances
	 	 	35	 
	2.2. [RESERVED]
	 	 	35	 
	2.3. Letter of Credit Facilities
	 	 	35	 
	2.3.1. Issuance of Letters of Credit
	 	 	36	 
	2.3.2. Reimbursement; Participations
	 	 	37	 
	2.3.3. Cash Collateral
	 	 	38	 
	SECTION 3. INTEREST, FEES AND CHARGES
	 	 	38	 
	3.1. Interest
	 	 	38	 
	3.1.1. Rates and Payment of Interest
	 	 	38	 
	3.1.2. Application of LIBOR to Outstanding Loans
	 	 	39	 
	3.1.3. Interest Periods
	 	 	39	 
	3.2. Fees
	 	 	39	 
	3.2.1. Unused Line Fee
	 	 	39	 
	3.2.2. LC Facility Fees
	 	 	40	 
	3.2.3. Other Fees
	 	 	40	 
	3.3. Computation of Interest, Fees, Yield Protection
	 	 	40	 

-i-

 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	3.4. Reimbursement Obligations
	 	 	40	 
	3.5. Illegality
	 	 	41	 
	3.6. Inability to Determine Rates
	 	 	41	 
	3.7. Increased Costs; Capital Adequacy
	 	 	41	 
	3.7.1. Change in Law
	 	 	41	 
	3.7.2. Capital Adequacy
	 	 	42	 
	3.7.3. Compensation
	 	 	42	 
	3.8. Mitigation
	 	 	42	 
	3.9. Funding Losses
	 	 	43	 
	3.10. Maximum Interest
	 	 	43	 
	SECTION 4. LOAN ADMINISTRATION
	 	 	43	 
	4.1. Manner of Borrowing and Funding Revolver Loans
	 	 	43	 
	4.1.1. Notice of Borrowing
	 	 	43	 
	4.1.2. Fundings by Lenders
	 	 	44	 
	4.1.3. Swingline Loans; Settlement
	 	 	44	 
	4.1.4. Notices
	 	 	45	 
	4.2. Defaulting Lender
	 	 	45	 
	4.3. Number and Amount of LIBOR Loans; Determination of Rate
	 	 	45	 
	4.4. Borrower Agent
	 	 	45	 
	4.5. Obligations
	 	 	46	 
	4.6. Effect of Termination
	 	 	46	 
	SECTION 5. PAYMENTS
	 	 	46	 
	5.1. General Payment Provisions
	 	 	46	 
	5.2. Repayment of Revolver Loans
	 	 	46	 
	5.3. Repayment
	 	 	46	 
	5.3.1. Mandatory Prepayments
	 	 	46	 
	5.4. Payment of Other Obligations
	 	 	47	 
	5.5. Marshaling; Payments Set Aside
	 	 	47	 
	5.6. Allocation of Payments
	 	 	47	 
	5.6.1. Allocations Generally
	 	 	47	 

-ii-

 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	5.6.2. Post-Default Allocation
	 	 	48	 
	5.6.3. Application of Amounts
	 	 	48	 
	5.6.4. Erroneous Application
	 	 	48	 
	5.7. Application of Payments
	 	 	48	 
	5.8. Loan Account; Account Stated
	 	 	49	 
	5.8.1. Loan Account
	 	 	49	 
	5.8.2. Entries Binding
	 	 	49	 
	5.9. Taxes
	 	 	49	 
	5.9.1. Payments Free of Taxes
	 	 	49	 
	5.9.2. Payment
	 	 	49	 
	5.10. Lender Tax Information
	 	 	50	 
	5.10.1. Status of Lenders
	 	 	50	 
	5.10.2. Documentation
	 	 	50	 
	5.10.3. Lender Obligations
	 	 	50	 
	5.11. Nature and Extent of Each Borrower’s Liability
	 	 	51	 
	5.11.1. Joint and Several Liability
	 	 	51	 
	5.11.2. Waivers
	 	 	51	 
	5.11.3. Extent of Liability; Contribution
	 	 	52	 
	5.11.4. Joint Enterprise
	 	 	53	 
	5.11.5. Subordination
	 	 	53	 
	SECTION 6. CONDITIONS PRECEDENT
	 	 	53	 
	6.1. Conditions Precedent to Initial Loans
	 	 	53	 
	6.2. Conditions Precedent to Restatement Effective Date
	 	 	55	 
	6.3. Conditions Precedent to All Credit Extensions
	 	 	56	 
	SECTION 7. COLLATERAL
	 	 	57	 
	7.1. Grant of Security Interest
	 	 	57	 
	7.2. [RESERVED]
	 	 	58	 
	7.3. Lien on Deposit Accounts; Cash Collateral
	 	 	58	 
	7.3.1. Deposit Accounts
	 	 	58	 
	7.3.2. Cash Collateral
	 	 	58	 

-iii-

 

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	 	 	Page	 
	7.4. Real Estate Collateral
	 	 	59	 
	7.4.1. Lien on Real Estate
	 	 	59	 
	7.4.2. Collateral Assignment of Leases
	 	 	59	 
	7.5. Other Collateral
	 	 	59	 
	7.5.1. Commercial Tort Claims
	 	 	59	 
	7.5.2. Certain After-Acquired Collateral
	 	 	59	 
	7.5.3. Aircraft
	 	 	60	 
	7.6. No Assumption of Liability
	 	 	60	 
	7.7. Further Assurances
	 	 	60	 
	7.8. Foreign Subsidiary Stock
	 	 	60	 
	SECTION 8. COLLATERAL ADMINISTRATION
	 	 	60	 
	8.1. Borrowing Base Certificates
	 	 	60	 
	8.2. Administration of Accounts
	 	 	61	 
	8.2.1. Records and Schedules of Accounts
	 	 	61	 
	8.2.2. Taxes
	 	 	61	 
	8.2.3. Account Verification
	 	 	61	 
	8.2.4. Maintenance of Dominion Account
	 	 	61	 
	8.2.5. Proceeds of Collateral
	 	 	62	 
	8.3. Administration of Inventory
	 	 	62	 
	8.3.1. Records and Reports of Inventory
	 	 	62	 
	8.3.2. Returns of Inventory
	 	 	62	 
	8.3.3. Acquisition, Sale and Maintenance
	 	 	62	 
	8.4. Administration of Equipment
	 	 	62	 
	8.4.1. Records and Schedules of Equipment
	 	 	62	 
	8.4.2. Dispositions of Equipment
	 	 	63	 
	8.4.3. Condition of Equipment
	 	 	63	 
	8.5. Administration of Deposit Accounts
	 	 	63	 
	8.6. General Provisions
	 	 	63	 
	8.6.1. Location of Collateral
	 	 	63	 
	8.6.2. Insurance of Collateral; Condemnation Proceeds
	 	 	63	 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	8.6.3. Protection of Collateral
	 	 	64	 
	8.6.4. Defense of Title to Collateral
	 	 	64	 
	8.7. Power of Attorney
	 	 	64	 
	SECTION 9. REPRESENTATIONS AND WARRANTIES
	 	 	65	 
	9.1. General Representations and Warranties
	 	 	65	 
	9.1.1. Organization and Qualification
	 	 	65	 
	9.1.2. Power and Authority
	 	 	65	 
	9.1.3. Enforceability
	 	 	65	 
	9.1.4. Capital Structure
	 	 	65	 
	9.1.5. Title to Properties; Priority of Liens
	 	 	66	 
	9.1.6. Accounts
	 	 	66	 
	9.1.7. Financial Statements
	 	 	67	 
	9.1.8. Surety Obligations
	 	 	67	 
	9.1.9. Taxes
	 	 	67	 
	9.1.10. Brokers
	 	 	67	 
	9.1.11. Intellectual Property
	 	 	67	 
	9.1.12. Governmental Approvals
	 	 	68	 
	9.1.13. Compliance with Laws
	 	 	68	 
	9.1.14. Compliance with Environmental Laws
	 	 	68	 
	9.1.15. Burdensome Contracts
	 	 	68	 
	9.1.16. Litigation
	 	 	68	 
	9.1.17. No Defaults
	 	 	69	 
	9.1.18. ERISA
	 	 	69	 
	9.1.19. Trade Relations
	 	 	70	 
	9.1.20. Labor Relations
	 	 	70	 
	9.1.21. Payable Practices
	 	 	70	 
	9.1.22. Not a Regulated Entity
	 	 	70	 
	9.1.23. Margin Stock
	 	 	70	 
	9.1.24. Tender Offer
	 	 	70	 
	9.2. Complete Disclosure
	 	 	70	 

-v-

 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
	 	 	71	 
	10.1. Affirmative Covenants
	 	 	71	 
	10.1.1. Inspections; Appraisals
	 	 	71	 
	10.1.2. Financial and Other Information
	 	 	71	 
	10.1.3. Notices
	 	 	73	 
	10.1.4. Landlord and Storage Agreements
	 	 	74	 
	10.1.5. Compliance with Laws
	 	 	74	 
	10.1.6. Taxes
	 	 	74	 
	10.1.7. Insurance
	 	 	74	 
	10.1.8. Licenses
	 	 	74	 
	10.1.9. Future Subsidiaries
	 	 	75	 
	10.2. Negative Covenants
	 	 	75	 
	10.2.1. Permitted Debt
	 	 	75	 
	10.2.2. Permitted Liens
	 	 	76	 
	10.2.3. [RESERVED]
	 	 	78	 
	10.2.4. Distributions; Upstream Payments
	 	 	78	 
	10.2.5. Restricted Investments
	 	 	78	 
	10.2.6. Acquisitions
	 	 	79	 
	10.2.7. Disposition of Assets
	 	 	79	 
	10.2.8. [RESERVED]
	 	 	79	 
	10.2.9. Restrictions on Payment of Certain Debt
	 	 	79	 
	10.2.10. Fundamental Changes
	 	 	79	 
	10.2.11. Subsidiaries
	 	 	79	 
	10.2.12. Organic Documents
	 	 	79	 
	10.2.13.  Tax Consolidation
	 	 	80	 
	10.2.14. Accounting Changes
	 	 	80	 
	10.2.15. Restrictive Agreements
	 	 	80	 
	10.2.16. Hedging Agreements
	 	 	80	 
	10.2.17. Conduct of Business
	 	 	80	 
	10.2.18. Affiliate Transactions
	 	 	80	 

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	 	 	Page	 
	10.2.19. Plans
	 	 	80	 
	10.2.20. Third Lien Notes
	 	 	80	 
	10.2.21. Amendments to Subordinated Debt or Indenture
	 	 	80	 
	10.3. Financial Covenants
	 	 	81	 
	10.3.1. Fixed Charge Coverage Ratio
	 	 	81	 
	SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
	 	 	81	 
	11.1. Events of Default
	 	 	81	 
	11.2. Remedies upon Default
	 	 	82	 
	11.3. License
	 	 	83	 
	11.4. Setoff
	 	 	83	 
	11.5. Remedies Cumulative; No Waiver
	 	 	84	 
	11.5.1. Cumulative Rights
	 	 	84	 
	11.5.2. Waivers
	 	 	84	 
	SECTION 12. AGENT
	 	 	84	 
	12.1. Appointment, Authority and Duties of Agent
	 	 	84	 
	12.1.1. Appointment and Authority
	 	 	84	 
	12.1.2. Duties
	 	 	85	 
	12.1.3. Agent Professionals
	 	 	85	 
	12.1.4. Instructions of Required Lenders
	 	 	85	 
	12.2. Agreements Regarding Collateral and Field Examination Reports
	 	 	85	 
	12.2.1. Lien Releases; Care of Collateral
	 	 	85	 
	12.2.2. Possession of Collateral
	 	 	86	 
	12.2.3. Reports
	 	 	86	 
	12.3. Reliance By Agent
	 	 	86	 
	12.4. Action Upon Default
	 	 	86	 
	12.5. Ratable Sharing
	 	 	87	 
	12.6. Indemnification of Agent Indemnitees
	 	 	87	 
	12.7. Limitation on Responsibilities of Agent
	 	 	87	 
	12.8. Successor Agent and Co-Agents
	 	 	88	 
	12.8.1. Resignation; Successor Agent
	 	 	88	 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	12.8.2. Separate Collateral Agent
	 	 	88	 
	12.9. Due Diligence and Non-Reliance
	 	 	88	 
	12.10. Replacement of Certain Lenders
	 	 	89	 
	12.11. Remittance of Payments and Collections
	 	 	89	 
	12.11.1. Remittances Generally
	 	 	89	 
	12.11.2. Failure to Pay
	 	 	89	 
	12.11.3. Recovery of Payments
	 	 	89	 
	12.12. Agent in its Individual Capacity
	 	 	90	 
	12.13. Agent Titles
	 	 	90	 
	12.14. No Third Party Beneficiaries
	 	 	90	 
	SECTION 13. Collection allocation mechanism
	 	 	90	 
	13.1. [RESERVED]
	 	 	90	 
	SECTION 14. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
	 	 	90	 
	14.1. Successors and Assigns
	 	 	90	 
	14.2. Participations
	 	 	90	 
	14.2.1. Permitted Participants; Effect
	 	 	91	 
	14.2.2. Voting Rights
	 	 	91	 
	14.2.3. Benefit of Set-Off
	 	 	91	 
	14.3. Assignments
	 	 	91	 
	14.3.1. Permitted Assignments
	 	 	91	 
	14.3.2. Effect; Effective Date
	 	 	92	 
	SECTION 15. MISCELLANEOUS
	 	 	92	 
	15.1. Consents, Amendments and Waivers
	 	 	92	 
	15.1.1. Amendment
	 	 	92	 
	15.1.2. Limitations
	 	 	92	 
	15.1.3. Payment for Consents
	 	 	93	 
	15.1.4. Technical Amendments
	 	 	93	 
	15.2. Indemnity
	 	 	93	 
	15.3. Notices and Communications
	 	 	93	 

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	 	 	Page	 
	15.3.1. Notice Address
	 	 	93	 
	15.3.2. Electronic Communications; Voice Mail
	 	 	94	 
	15.3.3. Non-Conforming Communications
	 	 	94	 
	15.4. Performance of Borrowers’ Obligations
	 	 	94	 
	15.5. Credit Inquiries
	 	 	94	 
	15.6. Severability
	 	 	94	 
	15.7. Cumulative Effect; Conflict of Terms
	 	 	94	 
	15.8. Counterparts
	 	 	94	 
	15.9. Entire Agreement
	 	 	95	 
	15.10. Relationship with Lenders
	 	 	95	 
	15.11. No Advisory or Fiduciary Responsibility
	 	 	95	 
	15.12. Process Agent
	 	 	95	 
	15.13. Confidentiality
	 	 	96	 
	15.14. Certifications Regarding Second Lien Notes
	 	 	96	 
	15.15. GOVERNING LAW
	 	 	96	 
	15.16. Consent to Forum
	 	 	97	 
	15.17. Waivers by Borrowers
	 	 	97	 
	15.18. Patriot Act Notice
	 	 	97	 
	15.19. Effect of Amendment and Restatement; Schedules
	 	 	97	 
	15.20. Intercreditor Agreement
	 	 	98	 

-ix-

 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 

	Exhibit A

	 	Revolver Note
	Exhibit C

	 	Assignment and Acceptance
	Exhibit D

	 	Assignment Notice
	Exhibit E

	 	Borrowing Base Certificate
	Exhibit F

	 	Compliance Certificate
	Exhibit G

	 	Notice of Borrowing
	Exhibit H

	 	Notice of Conversion/Continuation
	Exhibit I

	 	Form of Joinder

	 	 	 

	Schedule 1.1

	 	Revolver Commitments of Lenders
	Schedule 7.1

	 	Commercial Tort Claims
	Schedule 7.4

	 	Mortgages
	Schedule 8.5

	 	Deposit Accounts
	Schedule 8.6.1

	 	Locations of Collateral
	Schedule 9.1.4

	 	Names and Capital Structure
	Schedule 9.1.11

	 	Patents, Trademarks, Copyrights and Licenses
	Schedule 9.1.14

	 	Environmental Matters
	Schedule 9.1.16

	 	Litigation
	Schedule 9.1.18

	 	Pension Plans
	Schedule 9.1.20

	 	Labor Contracts
	Schedule 10.2.1

	 	Existing Debt
	Schedule 10.2.2

	 	Existing Liens
	Schedule 10.2.5

	 	Permitted Investments
	Schedule 10.2.7

	 	Permitted Asset Dispositions
	Schedule 10.2.15

	 	Restrictive Agreements
	Schedule 10.2.18

	 	Existing Affiliate Transactions
	Schedule 11.1

	 	Events not Constituting an Event of Default

 

 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is dated as of April 26, 2011 (this
“Agreement”), among COMMERCIAL VEHICLE GROUP, INC., a Delaware corporation (the
“Company”), each other Borrower (as herein defined) from time to time party hereto,
(together, with the Company, collectively, “Borrowers”), the financial institutions party
to this Agreement from time to time as lenders (collectively, “Lenders”), and BANK OF
AMERICA, N.A., as agent for Lenders (“Agent”)

R E C I T A L S:

     Borrowers have requested that Lenders provide a credit facility to Borrowers to finance their
mutual and collective business enterprise. Lenders are willing to provide the credit facility on
the terms and conditions set forth in this Agreement.

     WHEREAS, Borrowers, Agent and certain Lenders are party to that certain Loan and Security
Agreement dated as of the Original Closing Date (as amended, supplemented or otherwise modified
prior to the date hereof, the “Original Loan Agreement”);

     WHEREAS, Borrowers, Agent and Lenders desire to amended and restate the Original Loan
Agreement, subject to the terms and conditions set forth herein;

     WHEREAS, on the Original Closing Date (or subsequent thereto (but prior to the Restatement
Date) pursuant to a joinder or similar agreement), each Borrower agreed to secure the Obligations
(as defined in the Original Loan Agreement) by granting to Agent, for the benefit of the Secured
Parties, a security interest in and a Lien upon substantially all of its personal and owned real
property in accordance with and subject to the limitations set forth in the Loan Documents (as
defined in the Original Loan Agreement);

     WHEREAS, on the Original Closing Date, (or subsequent thereto (but prior to the Restatement
Effective Date) pursuant to a joinder or similar agreement), subject to the terms set forth in the
Original Closing Agreement, each Obligor (other than the Borrowers) agreed to guarantee the
Obligations (as defined in the Original Loan Agreement) of the Borrowers and to grant to Agent, for
the benefit of the Secured Parties, a security interest in and Lien upon substantially all of its
personal and owned real property; and

     WHEREAS, Borrowers and each other Obligor desires to reaffirm (i) its Obligations (as defined
in the Original Loan Agreement) arising under the Original Loan Agreement and the other Loan
Documents (as defined in the Original Loan Agreement) and (ii) it prior grant of security interests
to secure any and all Obligations (as defined in the Original Loan Agreement), in each case, as
continued hereunder and the other Loan Documents.

     NOW, THEREFORE, for valuable consideration hereby acknowledged, the parties agree as follows:

SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION

     1.1. Definitions. As used herein, the following terms have the meanings set forth below:

 

 

     Account: as defined in the UCC, including all rights to payment for goods sold or
leased, or for services rendered.

     Account Debtor: a Person who is obligated under an Account, Chattel Paper or General
Intangible.

     Accounts Formula Amount: 85% of the Value of Eligible Accounts.

     Acquisition: (i) any acquisition (whether by purchase, lease, merger or otherwise) of
all or substantially all of any division, product line and/or business operated by any Person who
is not a Subsidiary and (ii) any acquisition of a majority of the outstanding Equity Interests of
any Person.

     Affiliate: with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under common Control with
the Person specified. “Control” means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have correlative meanings.

     Agent Indemnitees: Agent and its officers, directors, employees, Affiliates, agents
and attorneys.

     Agent Professionals: attorneys, accountants, appraisers, auditors, business valuation
experts, environmental engineers or consultants, turnaround consultants, and other professionals
and experts retained by Agent.

     Agreement: as defined in the preamble.

     Allocable Amount: as defined in Section 5.11.3.

     Anti-Terrorism Laws: any laws relating to terrorism or money laundering, including the
Patriot Act.

     Applicable Law: all laws (including common law and equitable principles), rules,
regulations and governmental guidelines having the force of law and applicable to any Person,
conduct, transaction, agreement or matter in question, including all applicable statutory law,
local policies, and all provisions of constitutions, treaties, statutes, rules, regulations,
orders, ordinance, injunction, writ award or decrees of any Governmental Authorities, in each case
having the force of law.

     Applicable Margin: with respect to any Type of Loan, the margin set forth below, as
determined by the Fixed Charge Coverage Ratio for the last Fiscal Quarter:

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Level	 	Ratio	 	Base Rate Loans	 	LIBOR Revolver Loans
	III

	 	£1.25 to 1.00
	 	 	1.50	%	 	 	2.50	%
	II

	 	31.25 to 1.00
but < 1.75 to
1.00
	 	 	1.25	%	 	 	2.25	%
	I

	 	31.75 to 1.00
	 	 	1.00	%	 	 	2.00	%

Until receipt by Agent of the financial statements and corresponding Compliance Certificate for the
Fiscal Quarter ending March 31, 2011 delivered pursuant to Section 10.1.2, margins shall be
determined as if Level II were applicable. Thereafter, the margins shall be subject to increase or
decrease upon receipt by Agent of the financial statements and corresponding Compliance Certificate
delivered pursuant to Section 10.1.2 for the last Fiscal Month in any subsequent Fiscal Quarter,
which change shall be effective on the first day of the calendar month following receipt. If, by
the first day immediately following the date on which the financial statements and corresponding
Compliance Certificate for the last Fiscal Month of any Fiscal Quarter are to be delivered pursuant
to Section 10.1.2, such financial statements and corresponding Compliance Certificate have not been
received, then the margins shall be determined as if Level III were applicable, from such day until
the first day of the calendar month following actual receipt.

     Approved Fund: any Person (other than a natural person) that is engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
its ordinary course of activities, and is administered or managed by a Lender, an entity that
administers or manages a Lender, or an Affiliate of either.

     Asset Disposition: a sale, lease, license, consignment, transfer or other disposition
of Property of an Obligor, including a disposition of Property in connection with a sale-leaseback
transaction or synthetic lease.

     Asset Review and Approval Conditions: with respect to any Acquisition or merger in
respect of which the Accounts and/or Inventory acquired therein or thereby are requested (whether
such request occurs prior to the consummation of the Acquisition, or after the date thereof) to be
included in the Borrowing Base, Agent shall have completed its review of such assets, including,
without limitation, field examinations, audits, appraisals and other due diligence as Agent shall
in its Permitted Discretion require; it being acknowledged and agreed that, (1) such additional
assets, if any, to be included in the Borrowing Base may be subject to different advance rates or
eligibility criteria or may require the imposition of additional reserves with respect thereto as
Agent shall in its Permitted Discretion require in accordance with the definitions of Eligible
Accounts, Eligible Inventory and Reserves, and (2) prior to the inclusion of any additional assets
in the Borrowing Base, all actions shall have been taken to ensure that Agent has a perfected and
continuing first priority security interest in and Lien on such assets subject to the Permitted
Liens.

     Assignment and Acceptance: an assignment agreement between a Lender and Eligible
Assignee, in substantially the form of Exhibit C.

     Availability: (i) the Borrowing Base minus (ii) the principal balance of all
Revolver Loans minus (iii) the Availability Block.

 

 

     Availability Block: means an amount equal to the aggregate amount of Debt and Foreign
Bank Product Debt made available to any Foreign Subsidiary (whether or not such Debt is
outstanding) by Bank of America, N.A. or any of its Affiliates.

     Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve; (b)
the Rent and Charges Reserve; (c) the LC Reserve; (d) the Bank Product Reserve; (e) the aggregate
amount of liabilities secured by Liens upon Collateral that are senior to Agent’s Liens (but
imposition of any such reserve shall not waive an Event of Default arising therefrom); and (f)
such additional reserves, in such amounts and with respect to such matters, as Agent in its
Permitted Discretion may elect to impose from time to time.

     Bank of America: Bank of America, N.A., a national banking association, and its
successors and assigns.

     Bank of America Indemnitees: Bank of America and its officers, directors, employees,
Affiliates, agents and attorneys.

     Bank Product: any of the following products, services or facilities extended to any
Obligor by a Lender or any of its Affiliates: (a) Cash Management Services; (b) products under
Hedging Agreements; (c) commercial credit card and merchant card services, cash management
services and (d) other bank products or services as may be requested by any Obligor, other than
Letters of Credit; provided, however, that for any of the foregoing to be included
as an “Obligation” for purposes of a distribution under Section 5.6.2, the applicable Secured Party
and Obligor must have previously provided written notice to Agent of (i) the existence of such Bank
Product, (ii) the maximum dollar amount of obligations arising thereunder to be included as a Bank
Product Reserve (“Bank Product Amount”), and (iii) the methodology to be used by such
parties in determining the Bank Product Debt owing from time to time. The Bank Product Amount may
be changed from time to time upon written notice to Agent by the Secured Party and Obligor. No
Bank Product Amount may be established or increased at any time that a Default or Event of Default
exists, or if a reserve in such amount would cause an Overadvance.

     Bank Product Amount: as defined in the definition of Bank Product.

     Bank Product Debt: Debt and other obligations of an Obligor relating to Bank Products.

     Bank Product Reserve: the aggregate amount of reserves established by Agent from time
to time in its discretion in respect of Bank Product Debt, which shall be at least equal to the sum
of all Bank Product Amounts.

     Bankruptcy Code: Title 11 of the United States Code, as amended from time to time or
any applicable bankruptcy, insolvency or other similar law now or hereafter in effect.

     Base Rate: the rate of interest announced by Bank of America from time to time as its
prime rate, which in any event will not be less than the rate of interest in effect on such date,
pursuant to this Agreement, for a Borrowing of LIBOR Loans with an Interest Period of one month
plus 1%. Such rate is set by Bank of America on the basis of various factors including its costs
and desired return, general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above or below such rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the day specified in
the public announcement of such change.

 

 

     Base Rate Loan: any Loan that bears interest based on the Base Rate.

     Board of Directors: the Board of Directors of the Company or any committee thereof
duly authorized to act on behalf of such Board of Directors.

     Board of Governors: the Board of Governors of the Federal Reserve System.

     Borrowed Money: with respect to any Obligor, without duplication, its (a) Debt that
(i) arises from the lending of money by any Person to such Obligor (other than trade payables and
accrued expenses in the Ordinary Course of Business), (ii) is evidenced by notes, drafts, bonds,
debentures, credit documents or similar instruments, (iii) accrues interest or is a type upon which
interest charges are customarily paid (excluding trade payables owing in the Ordinary Course of
Business), or (iv) was issued or assumed as full or partial payment for Property; (b) Capital
Leases; (c) reimbursement obligations with respect to letters of credit; and (d) guaranties of any
Debt of the foregoing types owing by another Person.

     Borrower: each of the Company and any other Subsidiary acceptable to Agent that is a
party to this Agreement as a Borrower as of the Restatement Effective Date or becomes party to this
Agreement as a Borrower by executing a Borrower Joinder Agreement.

     Borrower Agent: as defined in Section 4.4.

     Borrower Joinder Agreement: an agreement substantially in the form of Exhibit I or
other agreement in form and substance reasonably satisfactory to Agent, the material terms of which
shall provide that a Subsidiary of the Company shall become a party to and become bound by the
terms of this Agreement and/or the other Loan Documents in the same capacity and to the same extent
as a Borrower hereunder, in each case, to the extent each relevant Loan Document is applicable to
such Borrower.

     Borrowing: a group of Loans of one Type that are made on the same day or are converted
into Loans of one Type on the same day.

     Borrowing Base: on any date of determination, an amount equal to the lesser of (a) the
aggregate amount of Revolver Commitments, minus the LC Reserve; or (b) the sum of the
Accounts Formula Amount, plus the Inventory Formula Amount, minus the Availability
Reserve.

     Borrowing Base Certificate: a certificate, substantially in the form of Exhibit E and
otherwise in form and substance reasonably satisfactory to Agent, by which Borrowers certify
calculation of the Borrowing Base.

     Business Day: (i) with respect to Base Rate Loans, any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the laws of, or are in
fact closed in, North Carolina and Illinois, and (ii) with respect to a LIBOR Loan, any such day on
which dealings in Dollar deposits are conducted between banks in the London interbank Eurodollar
market.

     Capital Expenditures: all liabilities incurred, expenditures made or payments due
(whether or not made) by a Borrower or Subsidiary for the acquisition of any fixed assets, or any
improvements, replacements, substitutions or additions thereto with a useful life of more than

 

 

one year, including the principal portion of Capital Leases, provided, that “Capital
Expenditures” shall not include any such expenditures which constitute an Acquisition permitted by
Section 10.2.6.

     Capital Lease: any lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.

     Cash Collateral: cash, and any interest or other income earned thereon, that is
delivered to Agent to Cash Collateralize any Obligations.

     Cash Collateral Account: a demand deposit, money market or other account established
by Agent at such financial institution as Agent may select in its Permitted Discretion, which
account shall be subject to Agent’s Liens for the benefit of Secured Parties.

     Cash Collateralize: the delivery of cash to Agent, as security for the payment of
Obligations, in an amount equal to (a) with respect to LC Obligations, 103% of the aggregate of
such LC Obligations, and (b) with respect to any inchoate, contingent or other Obligations
(including Obligations arising under Bank Products), Agent’s good faith estimate of the amount due
or to become due, including all fees and other amounts relating to such Obligations. Such deposits
shall not bear interest other than any interest earned on the investment of such deposits, which
investments shall be made only in Cash Equivalents and at the direction of Borrowers and at
Borrowers’ risk and expense. “Cash Collateralization” has a correlative meaning.

     Cash Dominion Trigger Date: the date upon which Availability is less than $12,500,000
for any day on or after the Restatement Effective Date.

     Cash Dominion Trigger Period: the period from and including the Cash Dominion Trigger
Date until the Business Day after Availability has been $12,500,000 or greater for sixty (60)
consecutive days; provided, that if a Cash Dominion Trigger Date shall have occurred more than two
times in any twelve (12) month period, such Cash Dominion Trigger Period shall be the period from
such third Cash Dominion Trigger Date until the first Business Day that (i) Availability has been
$12,500,000 or greater for sixty (60) consecutive days and (ii) such Business Day is at least three
hundred sixty-five (365) days after the last day of the previous Cash Dominion Trigger Period.

     Cash Equivalents: (i) marketable obligations issued or unconditionally guaranteed by,
and backed by the full faith and credit of, the United States government, maturing within 12 months
of the date of acquisition; (ii) certificates of deposit, time deposits and bankers’ acceptances
maturing within 12 months of the date of acquisition, and overnight bank deposits, in each case
which are issued by a commercial bank organized under the laws of the United States or any state or
district thereof, rated A-1 (or better) by S&P or P-1 (or better) by Moody’s at the time of
acquisition, and (unless issued by a Lender) not subject to offset rights; (iii) repurchase
obligations with a term of not more than 30 days for underlying investments of the types described
in clauses (i) and (ii) entered into with any bank meeting the qualifications specified in clause
(ii); (iv) commercial paper rated A-1 (or better) by S&P or P-1 (or better) by Moody’s, and
maturing within nine months of the date of acquisition; and (e) shares of any money market fund
that has substantially all of its assets invested continuously in the types of investments referred
to above, has net assets of at least $500,000,000 and has the highest rating obtainable from either
Moody’s or S&P; and (vi) investments by Foreign Subsidiaries with

 

 

foreign governmental entities which are members of the OECD or foreign banks organized under
the laws of countries which are members of the Organization for Economic Co-Operation and
Development (the “OECD”) similar to the investments set forth above, so long as such
foreign bank has combined capital and surplus of a Dollar Equivalent of not less than $250,000,000.

     Cash Management Services: any services provided from time to time by any Lender or any
of its Affiliates to any Borrower or Subsidiary in connection with operating, collections, payroll,
trust, or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository,
information reporting, lockbox and stop payment services.

     CERCLA: the Comprehensive Environmental Response Compensation and Liability Act (42
U.S.C. § 9601 et seq.).

     Change in Law: the occurrence, after the date hereof, of (a) the adoption or taking
effect of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any Governmental
Authority; or (c) the making or issuance of any request, guideline or directive (whether or not
having the force of law) by any Governmental Authority; provided, however, that
notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued
in connection therewith shall be deemed to have been enacted, adopted or issued after the date of
this Agreement, regardless of the date enacted, adopted or issued other than any final rules,
regulations, orders, requests, guidelines or directives under the Dodd-Frank Wall Street Reform and
Consumer Protection Act that the Lenders are required to comply with prior to the date of this
Agreement.

     Change of Control: the occurrence of any of the following events: (a) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in the Rules 13d-3 and 13d-5 under the Exchange Act, except for purposes of this
clause (a) such person shall be deemed to have “beneficial ownership” of all shares that any such
person has the right to acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of more than 35% of the total voting power of the Voting
Stock of the Company; (b) individuals who on the Original Closing Date constituted the Board of
Directors (together with any new directors whose election by such Board of Directors or whose
nomination for election by the shareholders of the Company was approved by a vote of a majority of
the directors of the Company then still in office who were either directors on the Original Closing
Date or whose election or nomination for election was previously so approved) cease for any reason
to constitute a majority of the Board of Directors then in office; (c) the merger or consolidation
of the Company with or into another Person or the merger of another Person with or into the
Company, or the sale of all or substantially all the assets of the Company (determined on a
consolidated basis) to another Person other than a transaction following which (i) in the case of a
merger or consolidation transaction, holders of securities that represented 100% of the Voting
Stock of the Company immediately prior to such transaction (or other securities into which such
securities are converted as part of such merger or consolidation transaction) own directly or
indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in
such merger or consolidation transaction immediately after such transaction and substantially the
same proportion as before the transaction and (ii) in the case of a sale of assets transaction,
each transferee becomes an obligor in respect of the Obligations and

 

 

a Subsidiary of the transferor of such assets; or (d) a “change of control” under the
Indenture or any similar definition or concept in any Refinancing Debt of any of the foregoing.

     Claims: all liabilities, obligations, losses, damages, penalties, judgments,
proceedings, interest, costs and expenses of any kind (including remedial response costs,
reasonable attorneys’ fees and Extraordinary Expenses) at any time (including after Full Payment of
the Obligations, resignation or replacement of Agent, or replacement of any Lender) incurred by or
asserted against any Indemnitee in any way relating to (a) any Loans, Letters of Credit, Loan
Documents, or the use thereof or transactions relating thereto, (b) any action taken or omitted to
be taken by any Indemnitee in connection with any Loan Documents, (c) the existence or perfection
of any Liens, or realization upon any Collateral, (d) exercise of any rights or remedies under any
Loan Documents or Applicable Law, or (e) failure by any Obligor to perform or observe any terms of
any Loan Document, in each case including all costs and expenses relating to any investigation,
litigation, arbitration or other proceeding (including an Insolvency Proceeding or appellate
proceedings), whether or not the applicable Indemnitee is a party thereto.

     Code: the Internal Revenue Code of 1986.

     Collateral: all Property described in Section 7.1, all Property described in any
Security Documents as security for any Obligations, and all other Property that now or hereafter
secures (or is intended to secure) any Obligations.

     Commitment Termination Date: the earliest to occur of (a) the Revolver Termination
Date; (b) the date on which Borrowers terminate the Revolver Commitments pursuant to Section 2.1.4;
or (c) the date on which the Revolver Commitments are terminated pursuant to Section 11.2.

     Company: as defined in the preamble to this Agreement.

     Compliance Certificate: a certificate, in the form of Exhibit F or such other
certificate, in form and substance satisfactory to Agent, by which Borrowers certify compliance
with Section 10.3 and provide the calculations for the financial convents set forth therein.

     Contingent Obligation: any obligation of a Person arising from a guaranty, indemnity
or other assurance of payment or performance of any Debt, Foreign Bank Product Debt, lease,
dividend or other obligation (“primary obligations”) of another obligor (“primary
obligor”) in any manner, whether directly or indirectly, including any obligation of such
Person under any (a) guaranty, endorsement, co-making or sale with recourse of an obligation of a
primary obligor; (b) obligation to make take-or-pay or similar payments regardless of
nonperformance by any other party to an agreement; and (c) arrangement (i) to purchase any primary
obligation or security therefor, (ii) to supply funds for the purchase or payment of any primary
obligation, (iii) to maintain or assure working capital, equity capital, net worth or solvency of
the primary obligor, (iv) to purchase Property or services for the purpose of assuring the ability
of the primary obligor to perform a primary obligation, or (v) otherwise to assure or hold harmless
the holder of any primary obligation against loss in respect thereof. The amount of any Contingent
Obligation shall be deemed to be the stated or determinable amount of the primary obligation (or,
if less, the maximum amount for which such Person may be liable under the instrument evidencing the
Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated
liability with respect thereto.

 

 

     Copyright Security Agreement: each copyright security agreement pursuant to which an
Obligor grants to Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in
its copyrights, as security for the Obligations.

     CWA: the Clean Water Act (33 U.S.C. §§ 1251 et seq.).

     Debt: as applied to any Person, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations issued, undertaken or assumed as the deferred
purchase price of Property or services, but excluding trade payables and accrued obligations
incurred and being paid in the Ordinary Course of Business; (c) all Contingent Obligations; (d) all
obligations of such Person evidenced by bonds, debentures, notes or similar instruments, including
obligations so incurred in connection with the acquisition of Property, assets or businesses; (e)
all obligations of such Person under conditional sale or other title retention agreements or
incurred as financings relating to Property purchased by such Person; (f) the principal balance of
any synthetic lease, tax retention operating lease, off-balance sheet loan, or similar off-balance
sheet financing, (g) all Capital Leases; (h) all Debt of others secured by (or for which the holder
of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on Property
owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;
(i) all reimbursement obligations in connection with letters of credit issued for the account of
such Person; and (j) in the case of a Borrower, the Obligations. The Debt of a Person shall
include any recourse Debt of any partnership in which such Person is a general partner or joint
venturer to the extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent that terms of such Debt
provide that such Person is liable therefor.

     Default: an event or condition that, with the lapse of time or giving of notice, would
constitute an Event of Default.

     Default Rate: for any Obligation (including, to the extent permitted by law, interest
not paid when due), 2% plus the interest rate otherwise applicable thereto.

     Defaulting Lender: any Lender that (a) fails to make any payment or provide funds to
Agent or any Borrower as required hereunder or fails otherwise to perform its obligations under any
Loan Document, and such failure is not cured within one Business Day, or (b) is the subject of any
Insolvency Proceeding.

     Deposit Account Control Agreements: the deposit account control agreements to be
executed by the applicable Obligor, Agent and each institution maintaining a Deposit Account (other
than payroll, trust, tax withholding, employee benefits and petty cash Deposit Accounts) for each
Obligor, in favor of Agent, for the benefit of Secured Parties, as security for the Obligations.

     Distribution: any declaration or payment of a distribution, interest or dividend on
any Equity Interest (other than payment-in-kind); or any purchase, redemption, or other acquisition
or retirement for value of any Equity Interest; provided, that in no event shall the (i)
cashless exercise of options, (ii) retirement of fractional shares, (iii) repurchases of Equity
Interests deemed to occur in connection with the surrender of shares of Equity Interests to satisfy
tax withholding obligations; provided however, that (a) the aggregate amount of such
repurchases shall not exceed $4,000,000 in any Fiscal Year, (b) no Event of Default shall have
occurred or

 

 

shall occur as a result therefrom, and (c) Availability, on a Pro Forma Basis after giving
effect to such repurchase, for each of the 30 days prior to and including the date such repurchase
is consummated, is at least $16,000,000, or (iv) the cashless exercise of warrants, constitute a
“Distribution”.

     Dollars and $: lawful money of the United States.

     Dollar Equivalent: when used in reference to Euro means the amount, at Agent’s spot
rate, of Dollars which would be required to purchase such amount of Euro, or the amount of Euro
that could be purchased for a particular amount in Dollars.

     Domestic Subsidiary: any direct or indirect Subsidiary of the Company that is
organized under the laws of the United States or any state, protectorate or territory of the United
States.

     Dominion Account: a special account established by Borrowers at Bank of America or
another bank acceptable to Agent, over which Agent has control (as defined in the UCC).

     EBITDA: determined on a consolidated basis for Borrowers and Subsidiaries, the sum of
(i) net income, calculated before (a) interest expense, (b) provision for income taxes, (c)
depreciation and amortization expense, (d) gains or losses arising from the sale of capital assets,
(e) gains arising from the write-up of assets, (f) any extraordinary gains, (g) non-cash charges
and expenses (other than those which represent a reserve for or actual cash item in such period or
any future period), (h) one-time non-recurring costs and expenses associated with the issuance of
Equity Interests, to the extent such costs and expenses are financed with the proceeds of such
issuance, (i) costs and expenses in connection with the termination of the Obligors’ existing
credit facility and the execution of the Loan Documents, (j) severance costs and expenses to the
extent paid in cash in an amount not to exceed $1,000,000 in the aggregate in any Fiscal Year, (k)
any non-cash losses resulting from mark to market accounting of Hedging Agreements, and (l)
one-time non-recurring costs and expenses in connection with the refinancing of certain of the
Existing Senior Notes, the Second Lien Term Loans and the Third Lien Notes (whether or not
consummated) in an amount not to exceed $10,000,000 minus (ii) non-cash gains (including those
resulting from mark to market accounting of Hedging Agreements) minus (iii) cash payments made in
such period to the extent such payments relate to a non-cash loss, charge or expense in any prior
period which was added back in determining EBITDA.

     Eligible Assignee: a Person that is (a) a Lender, U.S.-based Affiliate of a Lender or
Approved Fund; (b) any other financial institution approved by Agent and Borrower Agent (which
approval by Borrower Agent shall not be unreasonably withheld or delayed, and shall be deemed given
if no objection is made within three Business Days after delivery of notice of the proposed
assignment), that is organized under the laws of the United States or any state or district
thereof, has total assets in excess of $5 billion, extends asset-based lending facilities in its
ordinary course of business and whose becoming an assignee would not constitute a prohibited
transaction under Section 4975 of the Code or any other Applicable Law; and (c) during any Event of
Default, any Person reasonably acceptable to Agent in its discretion.

     Eligible Account: an Account owing to a Borrower that arises in the Ordinary Course of
Business from the sale of goods, is payable in Dollars and is deemed by Agent, in its Permitted
Discretion, to be an Eligible Account. Without limiting the foregoing, no Account shall be an
Eligible Account if (a) it is unpaid for more than 60 days after the original due date, or more
than

 

 

90 days after the original invoice date, (or, in the case of Accounts owing to a Borrower by
Volvo or Mack Truck not otherwise excluded, unpaid for more than 90 days after the original due
date or more than 120 days after the original invoice date, up to an aggregate amount of $5,000,000
at any time, for the portion of such Accounts which are unpaid for more than 90 days after the
original invoice date, to the extent the portion of such Accounts does not remain unpaid for more
than 120 days after the original invoice date); (b) 25% or more of the Accounts owing by the
Account Debtor are not Eligible Accounts under the foregoing clause; (c) when aggregated with other
Accounts owing by the Account Debtor, it exceeds 20% of the aggregate Eligible Accounts (or such
higher percentage as Agent may establish for the Account Debtor from time to time); (d) it does not
conform with a covenant or representation herein; (e) it is owing by a creditor or supplier, or is
otherwise subject to offset, counterclaim, dispute, deduction, discount, recoupment, reserve,
defense, chargeback, credit or allowance (but ineligibility shall be limited to the amount
thereof); (f) an Insolvency Proceeding has been commenced by or against the Account Debtor
(provided, that so long as an order exists permitting payment of trade creditors specifically with
respect to such Account Debtor and such Account Debtor has obtained adequate post-petition
financing to pay such Accounts, the Accounts of such Account Debtor shall not be deemed ineligible
under the provisions of this clause to the extent the order permitting such financing allows the
payment of the applicable Account; or the Account Debtor has suspended or ceased doing business, is
liquidating, dissolving or winding up its affairs, or is not Solvent; or Borrower is not able to
bring suit or enforce remedies against the Account Debtor through judicial process; (g) the Account
Debtor is organized or has its principal offices or assets outside the United States or Canada
(provided that, notwithstanding anything in this clause (g) to the contrary, Eligible Accounts may
include Accounts not otherwise excluded in an aggregate not to exceed at any time $2,000,000 owing
to a Borrower by Kenworth/Paccar, Volvo, Caterpillar or such other Account Debtor as approved by
Agent in writing); (h) it is owing by a Government Authority, unless the Account Debtor is the
United States or any department, agency or instrumentality thereof and the Account has been
assigned to Agent in compliance with the Assignment of Claims Act; (i) it is not subject to a duly
perfected, first priority Lien in favor of Agent, or is subject to any other Lien other than the
Liens described in clauses (c), (d), (f), (g), and (l) of Section 10.2.2; (j) the goods giving rise
to it have not been delivered to and accepted by the Account Debtor, the services giving rise to it
have not been accepted by the Account Debtor, or it otherwise does not represent a final sale; (k)
it is evidenced by Chattel Paper or an Instrument, promissory note or bill of exchange of any kind,
or has been reduced to judgment; (l) its payment has been extended, the Account Debtor has made a
partial payment, or it arises from a sale on a cash-on-delivery basis; (m) it arises from a sale to
an Affiliate, from a sale on a bill-and-hold, guaranteed sale, sale or return, sale on approval,
consignment, or other repurchase or return basis, or from a sale to a Person for personal, family
or household purposes; (n) it represents a progress billing or retainage; (o) it includes a billing
for interest, fees or late charges, but ineligibility shall be limited to the extent thereof; or
(p) is an account receivable owned by an Excluded Receivables Subsidiary or which the Company or
its Subsidiaries has agreed to transfer to an Excluded Receivables Subsidiary. In calculating
deli
nquent portions of Accounts under clauses (a) and (b), credit balances more than 90 days old
will be excluded.

     Eligible Finished Goods Inventory: Eligible Inventory constituting finished goods.

     Eligible Inventory: Inventory owned by a Borrower that Agent, in its Permitted
Discretion, deems to be Eligible Inventory. Without limiting the foregoing, no Inventory shall be
Eligible Inventory unless it (a) is finished goods, raw materials, or work-in-process,

 

 

packaging or shipping materials, labels, samples, display items, bags, replacement parts or
manufacturing supplies; (b) is not held on consignment, nor subject to any deposit or downpayment;
(c) is in new and saleable condition and is not damaged, defective, shopworn or otherwise unfit for
sale; (d) is not slow-moving, obsolete or unmerchantable, and does not constitute returned or
repossessed goods; (e) meets all material standards imposed by any Governmental Authority, and does
not constitute hazardous materials under any Environmental Law; (f) conforms with the covenants and
representations herein; (g) is subject to Agent’s duly perfected, first priority Lien, and no other
Lien other than Liens described in clauses (c), (d), (f) and (g) of Section 10.2.2; (h) is within
the continental United States or Canada, is not in transit except between locations of Borrowers,
and is not consigned to any Person; (i) is not subject to any warehouse receipt or negotiable
Document except to the extent Agent’s security interest in such warehouse receipt or negotiable
Document is perfected; (j) is not subject to any License or other arrangement that restricts such
Borrower’s or Agent’s right to dispose of such Inventory, unless Agent has received an appropriate
Lien Waiver; and (k) is not located on leased premises or in the possession of a warehouseman,
processor, repairman, mechanic, shipper, freight forwarder or other Person, unless the lessor or
such Person has delivered a Lien Waiver or an appropriate Rent and Charges Reserve has been
established.

     Eligible Raw Materials Inventory: Eligible Inventory constituting raw materials.

     Eligible Work-in-Process Inventory: Eligible Inventory constituting work-in- process.

     Enforcement Action: any action to enforce any Obligations or Loan Documents or to
realize upon any Collateral (whether by judicial action, self-help, notification of Account
Debtors, exercise of setoff or recoupment, or otherwise).

     Environmental Laws: all Applicable Laws (including all programs, local policies,
permits and guidance promulgated by regulatory agencies), relating to public health (with respect
to exposure to hazardous substances or wastes, but excluding occupational safety and health, to the
extent regulated by OSHA) or the protection or pollution of the environment, including CERCLA, RCRA
and CWA or to the conditions of the workplace, or any emission or substance capable of causing harm
to any living organism or the environment.

     Environmental Notice: a notice from any Governmental Authority or other Person of any
possible noncompliance with, investigation of a possible violation of, litigation relating to, or
potential fine or liability under any Environmental Law, or with respect to any Environmental
Release, environmental pollution or hazardous materials, including any complaint, summons,
citation, order, claim, demand or request for correction, remediation or otherwise.

     Environmental Release: a release as defined in CERCLA or under any other Environmental
Law.

     Equity Interest: the interest of any (a) shareholder in a corporation, company, or
beneficial interests in a trust or other equity ownership interest of a Person and any warrants,
options, or other rights entitling the holder thereof to purchase or acquire any such equity
interest; (b) partner in a partnership (whether general, limited, limited liability or joint
venture); (c) member in a limited liability company; or (d) other Person having any other form of
equity security or ownership interest.

     ERISA: the Employee Retirement Income Security Act of 1974.

 

 

     ERISA Affiliate: any trade or business (whether or not incorporated) under common
control with an Obligor within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

     ERISA Event: (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal
by any Obligor or ERISA Affiliate from a Pension 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) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by any Obligor or ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) any Obligor or ERISA Affiliate fails to meet any funding obligations with respect to any
Pension Plan or Multiemployer Plan, or requests a minimum funding waiver; (f) an event or condition
which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Pension Plan or Multiemployer Plan; or (g) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon any Obligor or ERISA Affiliate.

     Euro or €: the single currency of the European Union as constituted by the
Treaty on European Union and as referred to in the legislative measures of the European Union for
the introduction of, changeover to or operation of the Euro in one or more member states.

     Event of Default: as defined in Section 11.

     Exchange Act: the U.S. Securities Exchange Act of 1934, as amended.

     Excluded Collateral: as defined in Section 7.1.

     Excluded Receivables Subsidiary: any Subsidiary created and operated for the sole
purpose of collecting and selling accounts receivable and assets related thereto pursuant to any
Qualified Receivables Purchase Agreement; provided that such Subsidiary may engage in necessary
corporate governance, accounting and other similar incidental transactions required in connection
with maintaining its existence.

     Excluded Tax: with respect to Agent, any Lender, Issuing Bank or any other recipient
of a payment to be made by or on account of any Obligation, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable Lending Office is located; (b) any branch profits taxes imposed by the
United States or any similar tax imposed by any other jurisdiction in which Borrower Agent is
located; (c) any backup withholding tax required by the Code to be withheld from amounts payable to
a Lender that has failed to comply with Section 5.10; and (d) in the case of a Foreign Lender, any
United States withholding tax that is (i) required pursuant to laws in force at the time such
Lender becomes a Lender (or designates a new Lending Office) hereunder, or (ii) attributable to
such Lender’s failure or inability (other than as a result of a Change in Law) to comply with
Section 5.10, except to the extent that such Foreign Lender (or its assignor, if any)

 

 

was entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from Borrowers with respect to such withholding tax.

     Existing Senior Notes: the 8% Senior Notes due 2013, issued pursuant to the Indenture,
dated as of July 6, 2005, between the Company and U.S. Bank National Association, as trustee.

     Extraordinary Expenses: all costs, expenses or advances that Agent may incur during a
Default or an Event of Default, or during the pendency of an Insolvency Proceeding of an Obligor,
including those relating to (a) any audit, inspection, repossession, storage, repair, appraisal,
insurance, manufacture, preparation or advertising for sale, sale, collection, or other
preservation of or realization upon any Collateral; (b) subject to Section 15.2, any action,
arbitration or other proceeding (whether instituted by or against Agent, any Lender, any Obligor,
any representative of creditors of an Obligor or any other Person) in any way relating to any
Collateral (including the validity, perfection, priority or avoidability of Agent’s Liens with
respect to any Collateral), Loan Documents, Letters of Credit or Obligations, including any lender
liability or other Claims; (c) the exercise, protection or enforcement of any rights or remedies of
Agent in, or the monitoring of, any Insolvency Proceeding; (d) settlement or satisfaction of any
taxes, charges or Liens with respect to any Collateral; (e) any Enforcement Action; (f) negotiation
and documentation of any modification, waiver, workout, restructuring or forbearance with respect
to any Loan Documents or Obligations; and (g) Protective Advances. Such costs, expenses and
advances include transfer fees, Other Taxes, storage fees, insurance costs, permit fees, utility
reservation and standby fees, legal fees, appraisal fees, brokers’ fees and commissions,
auctioneers’ fees and commissions, accountants’ fees, environmental study fees, wages and salaries
paid to employees of any Obligor or independent contractors in liquidating any Collateral, and
travel expenses.

     Fee Letter: the Fee Letter, dated as of April 26, 2011, between Agent and the Company
executed in connection with the transactions contemplated by this Agreement.

     Financial Covenant Trigger Date: the date upon which Availability is less than
$10,000,000 for any day on or after the Restatement Effective Date.

     Financial Covenant Trigger Period: the period from and including the Financial
Covenant Trigger Date until the Business Day after Availability has been $10,000,000 or greater for
sixty (60) consecutive days.

     Financial Reporting Trigger Date: the first date upon which the outstanding balance of
Revolver Loans is greater than zero for any day on or after the Restatement Effective Date.

     Fiscal Month: each fiscal month of Borrowers and Subsidiaries for accounting and tax
purposes.

     Fiscal Quarter: each period of three Fiscal Months, commencing on the first day of a
Fiscal Year.

     Fiscal Year: the fiscal year of Borrowers and Subsidiaries for accounting and tax
purposes, ending on or about December 31 of each year.

     Fixed Charge Coverage Ratio: the ratio, determined on a consolidated basis for
Borrowers and their Subsidiaries as of the last day of the period consisting of the most recent

 

 

four Fiscal Quarters of (a) EBITDA minus Capital Expenditures and net cash taxes paid
(not less than $0) for such period, to (b) Fixed Charges for such period.

     Fixed Charges: the sum of (i) interest expense (other than payment-in-kind or
amortization of fees), (ii) all scheduled principal payments (as such may have been reduced by
prior prepayments) and all prepayments made on Borrowed Money, and (iii) cash Distributions made
by the Company.

     FLSA: the Fair Labor Standards Act of 1938.

     Foreign Bank Product Debt: Debt and other obligations of a Foreign Subsidiary relating
to Bank Products.

     Foreign Lender: any Lender that is organized under the laws of a jurisdiction other
than the laws of the United States, or any state or district thereof.

     Foreign Plan: any employee benefit plan or arrangement (a) maintained or contributed
to by any Obligor or Subsidiary that is not subject to the laws of the United States; or (b)
mandated by a government other than the United States for employees of any Obligor or Subsidiary.

     Foreign Subsidiary: a Subsidiary that is a “controlled foreign corporation” under
Section 957 of the Code.

     Full Payment: with respect to any Obligations (other than contingent obligations not
then due and owing or for which no claim has been made), (a) the full cash payment thereof,
including any interest, fees and other charges accruing during an Insolvency Proceeding (whether or
not allowed in the proceeding); (b) if such Obligations are LC Obligations or are otherwise
contingent and asserted or likely to be asserted, Cash Collateralization thereof (or delivery of a
standby letter of credit reasonably acceptable to Agent in its discretion, in the amount of
required Cash Collateral); and (c) a release of any Claims of Obligors against Agent, Lenders and
Issuing Bank arising on or before the payment date. No Loans shall be deemed to have been paid in
full until all Revolver Commitments related to such Loans have expired or been terminated.

     GAAP: generally accepted accounting principles in effect in the United States from
time to time.

     Governmental Approvals: all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and required reports to, all Governmental
Authorities.

     Governmental Authority: any federal, state, municipal, foreign or other governmental
department, agency, commission, board, bureau, court, tribunal, instrumentality, political
subdivision, local authority, council, regulatory body or other entity or officer exercising
executive, legislative, judicial, regulatory or administrative functions for or pertaining to any
government or court, in each case whether associated with the United States, a state, district or
territory thereof.

     Guarantor: any Person who guarantees payment or performance of any Obligations

 

 

     Guarantor Payment: as defined in Section 5.11.3.

     Guaranty: each guaranty agreement executed by a Guarantor in favor of Agent.

     Hedging Agreement: an agreement relating to any swap, cap, floor, collar, option,
forward, cross right or obligation, or combination thereof or similar transaction, with respect to
interest rate, foreign exchange, currency, commodity, credit or equity risk.

     Immaterial Subsidiary: any Subsidiary of the Company (a) the assets of which
Subsidiary constitute less than or equal to 1% of the total assets of the Company and its
Subsidiaries on a consolidated basis and collectively with all Immaterial Subsidiaries, less than
or equal to 5% of the total assets of the Company and its Subsidiaries on a consolidated basis, and
(b) the revenues of which Subsidiary account for less than or equal to 1% of the total revenues of
the Company and its Subsidiaries on a consolidated basis and collectively with all Immaterial
Subsidiaries, less than or equal to 5% of the total revenues of the Company and its Subsidiaries on
a consolidated basis.

     Indemnified Taxes: Taxes other than Excluded Taxes.

     Indemnitees: Agent Indemnitees, Lender Indemnitees, Issuing Bank Indemnitees and Bank
of America Indemnitees.

     Indenture: the Indenture, dated as of April 26, 2011, between the Company and U.S.
Bank National Association, as Trustee and Collateral Agent, with respect to the Company’s Second
Lien Notes, or any Refinancing Debt in respect thereof.

     Indenture Formula Amount: the amount of Revolver Loans that may be incurred by the
Company and its Subsidiaries pursuant to Section 4.03(b)(1) of the Indenture as in effect on the
date hereof.

     Insolvency Proceeding: any case or proceeding commenced by or against a Person under
any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an
order for relief under the Bankruptcy Code or any other insolvency, debtor relief or debt
adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator
or other custodian or similar officer for such Person or any part of its Property; or (c) a general
assignment or trust mortgage for the benefit of creditors.

     Intellectual Property: all intellectual and similar Property of a Person, including
inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade secrets,
confidential or proprietary information, customer lists, know-how, design rights, software and
databases; all embodiments or fixations thereof and all related documentation, applications,
registrations and franchises; all licenses or other rights to use any of the foregoing; and all
books and records relating to the foregoing.

     Intellectual Property Claim: any claim or assertion (whether in writing, by suit or
otherwise) that a Borrower’s or Subsidiary’s ownership, use, marketing, sale or distribution of any
Inventory, Equipment, Intellectual Property or other Property violates another Person’s
Intellectual Property.

 

 

     Intercreditor Agreement: the Intercreditor Agreement, dated as of April 26, 2011,
among the Agent, the Company and U.S. Bank National Association, as trustee and as second priority
agent.

     Interest Period: as defined in Section 3.1.3.

     Inventory Formula Amount: the sum of (A) the lesser of (1) 65% of the Value of
Eligible Finished Goods Inventory and (2) 85% of the NOLV Percentage of the Eligible Finished Goods
Inventory; plus (B) the lesser of (1) 65% of the Value of Eligible Raw Materials Inventory
and (2) 85% of the NOLV Percentage of Eligible Raw Materials Inventory; plus (C) the lesser
of (i) 50% of the Value of Work-In-Progress Inventory and (ii) 85% of the NOLV Percentage of
Work-In-Progress Inventory.

     Inventory Reserve: reserves established by Agent to reflect factors that may
negatively impact the Value of Inventory, including change in salability, obsolescence,
seasonality, theft, shrinkage, imbalance, change in composition or mix, markdowns and vendor
chargebacks.

     Investment: any Acquisition; any acquisition of record or beneficial ownership of any
Equity Interests of a Person; or any loan, advance or capital contribution to or other investment
in any other Person.

     IRS: the United States Internal Revenue Service.

     Issuing Bank: Bank of America or an Affiliate of Bank of America.

     Issuing Bank Indemnitees: Issuing Bank and its officers, directors, employees,
Affiliates, agents and attorneys.

     LC Application: an application by Borrower Agent to Issuing Bank for issuance of a
Letter of Credit, in form and substance reasonably satisfactory to Issuing Bank.

     LC Conditions: the following conditions necessary for issuance of a Letter of Credit:
(a) each of the conditions set forth in Section 6; (b) after giving effect to such issuance, total
LC Obligations do not exceed the Letter of Credit Subline, no Overadvance exists and, if no
Revolver Loans are outstanding, the LC Obligations do not exceed the Borrowing Base (without giving
effect to the LC Reserve for purposes of this calculation); (c) the expiration date of such Letter
of Credit is (i) no more than 365 days from issuance, in the case of standby Letters of Credit,
(ii) no more than 120 days from issuance, in the case of documentary Letters of Credit, and (iii)
at least 10 Business Days prior to the Revolver Termination Date (except, in each case, for Letters
of Credit which include an automatic renewal provision); (d) the Letter of Credit and payments
thereunder are denominated in Dollars; (e) the purpose and form of the proposed Letter of Credit is
reasonably satisfactory to Agent and Issuing Bank in their discretion; and (f) prior to or upon
giving effect to the issuance of such Letter of Credit, no Default or Event of Default exists or
would exist.

     LC Documents: all documents, instruments and agreements (including LC Requests and LC
Applications) delivered by Borrowers or any other Person to Issuing Bank or Agent in connection
with issuance, amendment or renewal of, or payment under, any Letter of Credit.

 

 

     LC Obligations: the sum (without duplication) of (a) all amounts owing by Borrowers
for any drawings under Letters of Credit; (b) the stated amount of all outstanding Letters of
Credit; and (c) all fees and other amounts due and owing with respect to Letters of Credit.

     LC Request: a request for issuance of a Letter of Credit, to be provided by Borrower
Agent to Issuing Bank, in form satisfactory to Agent and Issuing Bank.

     LC Reserve: the aggregate of all LC Obligations, other than (a) those that have been
Cash Collateralized; (b) if no Event of Default exists, those constituting charges or other amounts
owing to the Issuing Bank; and (c) all fees owing with respect to Letters of Credit.

     Lender Indemnitees: Lenders and their officers, directors, employees, Affiliates,
agents and attorneys.

     Lenders: as defined in the preamble to this Agreement, including Agent in its capacity
as a provider of Swingline Loans and any other Person who hereafter becomes a “Lender” pursuant to
an Assignment and Acceptance.

     Lending Office: the office designated as such by the applicable Lender at the time it
becomes party to this Agreement or thereafter by notice to Agent and Borrower Agent.

     Letter of Credit: any standby or documentary letter of credit issued by Issuing Bank
for the account of a Borrower, or any indemnity, guarantee, exposure transmittal memorandum or
similar form of credit support issued by Agent or Issuing Bank for the benefit of a Borrower.

     Letter of Credit Subline: $10,000,000.

     LIBOR: for any Interest Period with respect to a LIBOR Loan, the per annum rate of
interest (rounded upward, if necessary, to the nearest 1/8th of 1%), determined by Agent at
approximately 11:00 a.m. (London time) two Business Days prior to commencement of such Interest
Period, for a term comparable to such Interest Period, equal to (a) the British Bankers Association
LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source
designated by Agent); or (b) if BBA LIBOR is not available for any reason, the interest rate at
which Dollar deposits in the approximate amount of the LIBOR Loan would be offered by Bank of
America’s London branch to major banks in the London interbank Eurodollar market. If the Board of
Governors imposes a Reserve Percentage with respect to LIBOR deposits, then LIBOR shall be the
foregoing rate, divided by 1 minus the Reserve Percentage.

     LIBOR Loan: each set of LIBOR Revolver Loans having a common length and commencement
of Interest Period.

     LIBOR Revolver Loan: a Revolver Loan that bears interest based on LIBOR.

     License: any license or agreement under which an Obligor is authorized to use
Intellectual Property in connection with (a) any manufacture, marketing, distribution or
disposition of Collateral, (b) any use of Property or (c) any other conduct of its business.

     Licensor: any Person from whom an Obligor obtains the right to use any Intellectual
Property.

 

 

     Lien: any Person’s interest in Property securing an obligation owed to, or a claim by,
such Person, whether such interest is based on common law, statute or contract, including liens
(statutory or other), mortgages, collateral assignments, deposit arrangements, charges,
preferences, priorities or other security arrangements of any kind or nature whatsoever (including
any agreement to give any of the foregoing any conditional sale or retention of title agreement,
any financing or similar agreement), security interests, pledges, hypothecations, statutory trusts,
reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting Property;
provided, however, that non-exclusive licenses of Intellectual Property in the
Ordinary Course of Business are not Liens.

     Lien Waiver: an agreement, in form and substance reasonably satisfactory to Agent, by
which (a) for any Collateral located on leased premises, the lessor waives or subordinates any Lien
it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the
Collateral or to use the premises to store or dispose of the Collateral; (b) for any Collateral
held by a warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives
or subordinates any Lien it may have on the Collateral, agrees to hold any Documents in its
possession relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to
Agent promptly following request; (c) for any Collateral held by a repairman, mechanic or bailee,
such Person acknowledges Agent’s Lien, waives or subordinates any Lien it may have on the
Collateral, and agrees to deliver the Collateral to Agent promptly following request; and (d) for
any Collateral subject to a Licensor’s Intellectual Property rights, the Licensor grants to Agent
the right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to the Collateral,
including the right to dispose of it with the benefit of the Intellectual Property, whether or not
a default exists under any applicable License.

     Loan: a Revolver Loan.

     Loan Account: the loan account established by each Lender on its books pursuant to
Section 5.8.

     Loan Documents: this Agreement, Other Agreements and Security Documents.

     Loan Year: each 12 calendar month period commencing on the Original Closing Date and
on each anniversary of the Original Closing Date.

     Margin Stock: as defined in Regulation U of the Board of Governors.

     Material Adverse Effect: the effect of any event or circumstance that, taken alone or
in conjunction with other events or circumstances, (a) has or could be reasonably expected to have
a material adverse effect on the business, operations, Properties or financial condition of the
Obligors, taken as a whole, on the value of a material portion of the Collateral, on the
enforceability of the Loan Documents, or on the validity or priority of Agent’s Liens on the
Collateral; (b) materially impairs the ability of any Obligor to perform any obligations under the
Loan Documents, including repayment of any Obligations; or (c) otherwise impairs the ability of
Agent or any Lender to enforce or collect any Obligations or to realize upon any Collateral.

     Material Contract: any agreement or arrangement to which an Obligor is party (other
than the Loan Documents) for which breach, termination, nonperformance or failure to renew could
reasonably be expected to have a Material Adverse Effect.

 

 

     Moody’s: Moody’s Investors Service, Inc., and its successors.

     Mortgage: each mortgage, fixed charge, deed of trust or deed to secure debt pursuant
to which a Borrower grants to Agent, for the benefit of Secured Parties, a Lien upon the Real
Estate owned by such Borrower, as security for the Obligations.

     Multiemployer Plan: any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which any Obligor or ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     Net Proceeds: with respect to an Asset Disposition, proceeds (including, when
received, any deferred or escrowed payments) received by an Obligor in cash from such Asset
Disposition, net of (a) reasonable and customary costs and expenses actually incurred in connection
therewith, including legal fees and sales commissions; (b) amounts applied to repayment of Debt
secured by a Permitted Lien on Collateral sold; (c) transfer or similar taxes and the Company’s
good faith estimate of income taxes paid or payable in connection with such sale; (d) reserves for
indemnities or purchase price adjustments, until such reserves are no longer needed and (e) the
Company’s good faith estimate of payments required to be made with respect to unassumed liabilities
relating to the assets sold (provided that, to the extent such cash proceeds are not so used within
180 days of such Asset Disposition, such cash proceeds shall constitute Net Proceeds)

     NOLV Percentage: the net orderly liquidation value of Borrowers’ Inventory, expressed
as a percentage, expected to be realized at an orderly, negotiated sale held within a reasonable
period of time, net of all liquidation expenses, as determined from the most recent appraisal of
Borrowers’ Inventory performed by an appraiser and on terms satisfactory to Agent.

     Notes: each Revolver Note.

     Notice of Borrowing: a Notice of Borrowing to be provided by Borrower Agent to request
a Borrowing of Revolver Loans, in substantially the form attached hereto as Exhibit G or otherwise
in form reasonably satisfactory to Agent.

     Notice of Conversion/Continuation: a Notice of Conversion/Continuation to be provided
by Borrower Agent to request a conversion or continuation of any Loans as LIBOR Loans, in
substantially the form attached hereto as Exhibit H or otherwise in form reasonably satisfactory to
Agent.

     Obligations: all (a) principal of and premium, if any on the Loans, (b) LC Obligations
and other obligations of Obligors with respect to Letters of Credit, (c) interest, expenses, fees
and other sums payable by Obligors under Loan Documents, (d) obligations of Obligors under any
indemnity for Claims, (e) Extraordinary Expenses, (f) Bank Product Debt and (g) other Debts,
obligations and liabilities of any kind owing by Obligors pursuant to the Loan Documents, whether
now existing or hereafter arising, whether evidenced by a note or other writing, whether allowed in
any Insolvency Proceeding, whether arising from an extension of credit, issuance of a letter of
credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct or indirect,
absolute or contingent, due or to become due, primary or secondary, or joint or several.

 

 

     Obligor: each Borrower, Guarantor or other Person that is liable for payment of any
Obligations or that has granted a Lien in favor of Agent on its assets to secure any Obligations.

     Ordinary Course of Business: the ordinary course of business of any Borrower or
Subsidiary, consistent with past practices and undertaken in good faith.

     Organic Documents: with respect to any Person, as applicable, its charter, certificate
or articles of incorporation, bylaws, articles of organization, articles of association,
memorandum, limited liability agreement, operating agreement, members agreement, shareholders
agreement, partnership agreement, certificate of partnership, certificate of formation, voting
trust agreement, or similar agreement or instrument governing the formation or operation of such
Person.

     Original Closing Date: January 7, 2009.

     Original Loan Agreement: the Loan and Security Agreement, dated as of January 7, 2009,
by and among the Company, each other Borrower party thereto, the financial institutions party
thereto as lenders and Bank of America, N.A., as agent, as amended, modified or supplemented prior
to the Restatement Effective Date.

     OSHA: the Occupational Safety and Health Act of 1970.

     Other Agreement: each Note; LC Document; Fee Letter; Lien Waiver; Related Real Estate
Document; Borrowing Base Certificate, Compliance Certificate, financial statement or report
delivered hereunder; or other document or agreement (other than this Agreement or a Security
Document), including any Post-Closing Agreement, now or hereafter delivered by an Obligor or other
Person (providing that an Obligor is also party to thereto) to Agent or a Lender in connection with
any transactions relating hereto.

     Other Taxes: all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made under any Loan Document or
from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document.

     Overadvance: as defined in Section 2.1.5.

     Overadvance Loan: a Base Rate Loan made when an Overadvance exists or is caused by the
funding thereof.

     Participant: as defined in Section 14.2.

     Patent Security Agreement: each patent security agreement pursuant to which an Obligor
grants to Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in its
patents, as security for the Obligations.

     Patriot Act: the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001),
as amended.

     Payment Item: each check, draft or other item of payment payable to a Borrower,
including those constituting proceeds of any Collateral.

 

 

     PBGC: the Pension Benefit Guaranty Corporation.

     Percentage: for any Lender (other than any Defaulting Lender), as applicable, the
percentage of the aggregate Revolver Commitments represented by its Revolver Commitment.

     Pension Plan: any employee pension benefit plan (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by any Obligor or ERISA Affiliate or to which the Obligor or ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
preceding five plan years.

     Pensions Regulator: the body corporate called the Pensions Regulator established
under Part I of the Pension Act.

     Permitted Acquisition: any Acquisition as to which all of the following conditions are
satisfied or waived: (a) such Acquisition is an acquisition of all or substantially all of the
assets or of all of the outstanding Equity Interests of another Person, involving a line or lines
of business or a distribution channel which is related, similar or complementary to, or supportive
of the lines of business or distribution channels in which Borrowers and their Subsidiaries,
considered as an entirety, are engaged on the Restatement Effective Date; (b) such Acquisition is
not actively opposed by the Board of Directors (or similar governing body) of the selling Person or
the Person whose equity interests are to be acquired; (c) Availability, on a Pro Forma Basis after
giving effect to such Acquisition, for each of the 30 days prior to and including the date such
Acquisition is consummated, is at least $16,000,000; (d) the aggregate Purchase Consideration for
all such Acquisitions does not exceed, in any period of 12 consecutive months, $10,000,000
(provided that the aggregate Purchase Consideration for all Acquisitions in any period of
12 consecutive months may exceed $10,000,000, but not in excess of $50,000,000 if, on a Pro Forma
Basis after giving effect to such Acquisition, for each of the 30 days prior to and including the
date such Acquisition is consummated, no Revolver Loans will be incurred or outstanding); (e) as
soon as available, but not less than ten (10) days prior to the closing of such Acquisition (or
such shorter time period as Agent may otherwise agree), the Company shall submit to Agent (i)
notice of such Acquisition together with a reasonably detailed description of the business or
assets to be acquired, (ii) copies of all available business and financial information as
reasonably requested by Agent relating to such Acquisition, (iii) pro forma financial statements,
(iv) audited financial statements for the acquired business or distribution channel for the most
recent fiscal year, unless the same are unavailable, and the most recent unaudited financial
statements for the acquired business or distribution channel, and (v) a certificate of the chief
financial officer of Borrower Agent certifying that such pro forma financial statements present
fairly in all material respects the financial condition of Borrowers and their Subsidiaries on a
consolidated basis as of the date thereof after giving effect to such Acquisition, and which shall
include a representation and warranty as to compliance with each of the other criteria for a
“Permitted Acquisition”; (f) reasonably prior, and in any event at least (i) 10 days prior to the
completion of such Acquisition (or such shorter time period as Agent may otherwise agree), the
Company shall deliver to Agent lien search reports related to the assets or business subject to the
Acquisition, (ii) at least five days prior to the date of such Acquisition (or such shorter time
period as Agent may otherwise agree), the Company shall deliver substantially final copies of the
related purchase agreement, together with lien release letters and other documents as Agent may
reasonably require to evidence the termination of Liens (other than

 

 

Permitted Liens) and any other information as Agent may reasonably request; (g) consents have
been obtained in favor of Agent and Lenders to the collateral assignment of rights and indemnities
under the related acquisition documents or the related acquisition documents shall contain the
right of the purchaser to collaterally assign the rights and indemnities thereunder to a third
party, and, in either case, such rights and indemnities shall have been collaterally assigned to
Agent and Lenders and all consents related thereto shall have been obtained; (h) if the Person so
acquired is intended to be a Borrower and/or the assets acquired in such Acquisition are intended
to be included in the Borrowing Base immediately upon the consummation of the Acquisition (rather
than at a later date upon request), then prior to such Acquisition (1) Agent shall have been
provided with such information as it shall reasonably request to complete its evaluation of any
such Person (including all information necessary to comply with the Patriot Act) and such
Collateral and (2) the Asset Review and Approval Conditions shall have been satisfied; and (i)
after giving effect to the Acquisition, Agent has a perfected and continuing first priority
security interest in and Lien on all Revolving Credit Priority Collateral and subject to the
Intercreditor Agreement, a perfected security interest in and Lien on all other assets that are the
subject of such Acquisition (subject, in each case, to Permitted Liens). Notwithstanding the
foregoing, no assets acquired pursuant to a Permitted Acquisition shall be included in the
Borrowing Base unless (i) Agent shall have been provided with such information as it shall
reasonably request to complete its evaluation of any Person (including all information necessary to
comply with the Patriot Act) and (ii) the Asset Review and Approval Conditions shall have been
satisfied.

     Permitted Asset Disposition: (a) a sale of Inventory in the Ordinary Course of
Business; (b) a disposition of Property that, in the aggregate during any 12 consecutive Fiscal
Month period, has a fair market or book value (whichever is more) of $5,000,000 or less, provided
that the Net Proceeds of such disposition are used to acquire Property useful in the business of
the Obligors within 180 days (or such longer period as Agent shall consent to in writing) of
receipt of such Net Proceeds (or a binding commitment to acquire such Property is entered into
within 180 days and such reinvestment is actually made within 360 days, or, in each case, such
longer period as Agent shall consent to in writing), and to the extent the Net Proceeds exceed
$500,000, Borrower shall have delivered an officer’s certificate within five Business Days of such
disposition stating such intent; (c) a disposition of Inventory that is obsolete, unmerchantable or
otherwise unsaleable in the Ordinary Course of Business and sales, discounts and write-offs of
Accounts in the Ordinary Course of Business; (d) termination of a lease, sublease, license,
sublicense, use agreement or similar agreement of real or personal Property which could not
reasonably be expected to have a Material Adverse Effect; (e) the leasing (including subleasing) or
licensing (including sublicensing) of Intellectual Property, personal Property or real Property in
the Ordinary Course of Business or the abandonment of Intellectual Property in the Ordinary Course
of Business; (f) dispositions of obsolete, uneconomical, negligible, worn-out or surplus property;
(g) sales of Cash Equivalents and marketable securities; (h) sales, transfers, leases, exchanges
and dispositions (1) among the Obligors, (2) from non-Obligors to the Obligors, (4) among
non-Obligors, or (5) to the extent constituting a Permitted Foreign Investment, from Obligors or
Domestic Subsidiaries to non-Obligor Subsidiaries; (i) granting of Permitted Liens; (j) mergers,
consolidations, amalgamations, liquidations and dissolutions to the extent permitted by Section
10.2.10; (k) termination of any Hedging Agreement; (l) any disposition of Real Estate to a
Governmental Authority as a result of casualty or a condemnation of such Real Estate; (m) issuances
of Equity Interests to qualifying directors of Foreign Subsidiaries; (n) the capitalization or
forgiveness of Debt owed to it by other Obligors or Subsidiaries if such capitalization or
forgiveness is required in order to comply with so-called “thin capitalization” rules; (o) the

 

 

cancellation, forgiveness, set off or acceptance of prepayments of Debt owed to a Borrower to
the extent not otherwise prohibited by the terms of this Agreement; (p) the UK Restructuring; (q)
dispositions set forth on Schedule 10.2.7; (r) sale of accounts receivable and related rights or
assets pursuant to any Qualified Receivables Transactions and preliminary intercompany transfers of
accounts receivable and related rights or assets in connection therewith; and (s) dispositions
approved in writing by Agent and Required Lenders.

     Permitted Contingent Obligations: Contingent Obligations (a) arising from endorsements
of Payment Items for collection or deposit in the Ordinary Course of Business; (b) arising from
Hedging Agreements permitted hereunder; (c) existing on the Original Closing Date, and any
extension or renewal thereof that does not increase the amount of such Contingent Obligation when
extended or renewed; (d) incurred in the Ordinary Course of Business with respect to surety, appeal
or performance bonds, or other similar obligations; (e) arising from customary indemnification
obligations in favor of (i) purchasers in connection with Permitted Asset Dispositions and (ii)
sellers in connection with Acquisitions permitted hereunder; (f) arising under the Loan Documents;
or (g) in an aggregate amount of $5,000,000 or less at any time.

     Permitted Discretion: Agent’s reasonable credit judgment (from the perspective of an
asset-based lender), exercised in good faith, based upon its consideration of any factor that it
reasonably believes to be relevant, including, without limitation, any factor that it believes (a)
could adversely affect the quantity, mix or value of Collateral (including any Applicable Law that
may inhibit collection of an Account), the enforceability or priority of Agent’s Liens, or the
amount in liquidation of any Collateral; (b) suggests that any collateral report or financial
information delivered by any Obligor is incomplete, inaccurate or misleading in any material
respect; (c) increases the likelihood of any Insolvency Proceeding involving an Obligor, or (d)
creates or could result in a Default or Event of Default. In exercising such judgment, Agent may
consider any factors that could increase the credit risk of lending to Borrowers on the security of
the Collateral. In exercising its Permitted Discretion with respect to modifying eligibility
criteria for Eligible Accounts and Eligible Inventory, Agent will use commercially reasonable
efforts to notify Borrower Agent prior to modifying the criteria provided in the definitions
thereof on the Original Closing Date or thereafter.

     Permitted Foreign Investment: an Investment (including any Permitted Acquisition) by
any Borrower in a Foreign Subsidiary which is in the form of an intercompany transfer of Property
(other than Accounts or Inventory) or a loan or advance (except that, (i) solely to the extent
required by law in the applicable foreign jurisdiction, any portion of any Investment may be made
in the form of an equity contribution and (ii) in the case of any Permitted Acquisition, such
Investment may be made in the form of Equity Interests); provided, that (i) any loan or advance is
evidenced by a promissory note in favor of such Borrower, (ii) any promissory note is pledged to
Agent as security for the Obligations in form reasonably satisfactory to Agent, (iii) Availability,
on a Pro Forma Basis after giving effect to such Investment, for each of the 30 days prior to and
including the date such Investment is consummated, is at least $16,000,000, and (iv) the aggregate
amount of all Permitted Foreign Investments (other than Permitted Acquisitions) made in any period
of 12 consecutive months does not exceed in the aggregate (net of any return of capital actually
received in respect of any previous Permitted Foreign Investment) $10,000,000 (provided that the
aggregate amount of all Permitted Foreign Investments (including any Permitted Acquisitions) in any
period of 12 consecutive months may exceed $10,000,000, but not exceed $70,000,000, if, on a Pro
Forma Basis after giving effect to such Permitted Foreign Investment, for each of the 30 days prior
to and including the date such

 

 

Investment is consummated, no Revolver Loans will be incurred or outstanding), and in the case
of any Investment in any Foreign Subsidiary which has incurred Debt pursuant to Section 10.2.1(n),
less the aggregate amount of all other Debt incurred by such Foreign Subsidiary.

     Permitted Lien: as defined in Section 10.2.2.

     Permitted Notes Redemption: as defined in Section 10.2.9.

     Permitted Purchase Money Debt: Purchase Money Debt of Borrowers and Subsidiaries that
is unsecured or secured only by a Purchase Money Lien, as long as the aggregate amount does not
exceed $5,000,000 at any time.

     Person: any individual, corporation, limited liability company, partnership, joint
venture, joint stock company, land trust, business trust, unincorporated organization, Governmental
Authority or other entity.

     Plan: any employee benefit plan (as such term is defined in Section 3(3) of ERISA)
established by an Obligor or, with respect to any such plan that is subject to Section 412 of the
Code or Title IV of ERISA, an ERISA Affiliate.

     Pledge Agreement: collectively, the Pledge Agreement, dated as of the Original Closing
Date, among the Company and each other Domestic Subsidiary party thereto, as pledgors and Bank of
America, N.A., as pledgee, and each other pledge agreement executed by an Obligor in favor of
Agent.

     Preferred Stock: as applied to the Equity Interests of any Person, the Equity
Interests of any class or classes (however designated) which are preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution of such Person, over Equity Interests of any other class of such Person.

     Pro Forma Basis: relative to a Specified Transaction, means that such Specified
Transaction and the following transactions in connection therewith shall be deemed to have occurred
as of the first day of the applicable period of measurement: (a) income statement items (whether
positive or negative) attributable to the property or Person subject to such Specified Transaction,
(i) in the case of an Acquisition or permitted Investment described in the definition of “Specified
Transaction”, shall be included and (ii) in the case of a disposition of all or substantially all
of the assets of or all of the Equity Interests of any Subsidiary of a Borrower or any division or
product line of a Borrower or any of its Subsidiaries, shall be excluded, (b) any retirement of
Debt, and (c) any Debt incurred or assumed by a Borrower or any of its Subsidiaries in connection
therewith and if such Debt has a floating or formula rate, shall have an implied rate of interest
for the applicable period for purposes of this definition determined by utilizing the rate which is
or would be in effect with respect to such Debt as at the relevant date of determination.

     Pro Rata: with respect to any Lender, relative to such Lender’s Revolver Commitment, a
percentage (carried out to the ninth decimal place) determined (a) while Revolver Commitments are
outstanding, by dividing the amount of such Lender’s Revolver Commitment by the aggregate amount of
all Revolver Commitments, and (b) at any other time, by dividing the amount of such Lender’s Loans
and LC Obligations by the aggregate amount of all outstanding Loans and LC Obligations.

 

 

     Properly Contested: with respect to any obligation of an Obligor, (i) the obligation
is subject to a bona fide dispute regarding amount or the Obligor’s liability to pay; (ii) the
obligation is being properly contested in good faith by appropriate proceedings promptly instituted
and diligently pursued; (iii) appropriate reserves have been established in accordance with GAAP;
(iv) the failure to pay could not reasonably be expected to have a Material Adverse Effect, nor
result in forfeiture or sale of any assets of the Obligor; (v) no Lien is imposed on assets of the
Obligor, unless bonded and stayed to the reasonable satisfaction of Agent; and (v) if the
obligation results from entry of a judgment or other order, such judgment or order is stayed
pending appeal or other judicial review.

     Property: any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.

     Protective Advance: as defined in Section 2.1.6.

     Purchase Consideration: the aggregate, without duplication, of (i) cash paid or
payable by Borrowers and their Subsidiaries, directly or indirectly to the sellers (including the
repayment of any Debt or other obligations and payments with respect to consulting, non-compete or
other agreements as a result of such Acquisition) in connection with any Acquisition, (ii) the
Debt assumed or incurred by Borrowers and their Subsidiaries, whether in favor of the seller or any
other Person, and whether fixed or contingent, including without limitation earn-outs and/or other
contingent payments and other seller notes in connection with any Acquisition, and (iii) any other
consideration given or obligation incurred by any Borrower or Subsidiary in connection with any
Acquisition in favor of the seller or any Affiliate of the seller.

     Purchase Money Debt: (a) Debt (other than the Obligations) for payment of any of the
purchase price of fixed assets; (b) Debt (other than the Obligations) incurred within 90 days
before or after acquisition of any fixed assets, for the purpose of financing any of the purchase
price thereof; and (c) any renewals, extensions or refinancings (but not increases) thereof.

     Purchase Money Lien: a Lien that secures Purchase Money Debt, encumbering only the
fixed assets acquired with such Debt (and proceeds thereof) and constituting a Capital Lease or a
purchase money security interest under the UCC.

     Qualified Receivables Transaction: any transaction or series of transactions
designated in writing by the Agent to be a “Qualified Receivables Transaction” and which is entered
into by the Borrowers or their Subsidiaries, as applicable, pursuant to which the Borrowers or
their Subsidiaries, as applicable, may sell, convey or otherwise transfer to (i) any Excluded
Receivables Subsidiary or (ii) any other Person (in the case of a transfer by an Excluded
Receivables Subsidiary), or may grant a security interest in, any accounts receivable (whether now
existing or arising in the future) of the Company, and any assets related thereto, including all
collateral securing such accounts receivable, all contracts and all guarantees or other obligations
in respect of such accounts receivable, and proceeds of such accounts receivable and other assets
that are customarily transferred, or in respect of which security interests are customarily
granted, in connection with asset securitization transactions involving accounts receivable;
provided that such transaction shall not involve any recourse to any Borrower or any Subsidiary
(other than recourse only to the Excluded Receivables Subsidiary or, solely with respect to
Standard Securitization Undertakings, any other Subsidiary) for any reason other than repurchases
of non-eligible accounts receivable.

 

 

     RCRA: the Resource Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).

     Real Estate: all right, title and interest (whether as owner, lessor or lessee) in any
real Property or any buildings, structures, parking areas or other improvements thereon.

     Refinancing Conditions: the following conditions for Refinancing Debt: (a) it is in
an aggregate principal amount that does not exceed the principal amount of the Debt being extended,
renewed, refinanced or replaced (except by the amount of any accrued interest, payment in kind
interest, reasonable closing costs, expenses, fees and premium paid in connection with such
extension, renewal, refinancing or replacement); (b) it has a final maturity no sooner than, a
weighted average life no less than, and a cash interest rate no greater than, the Debt being
extended, renewed, refinanced or replaced; (c) the Debt, and/or the Liens securing the Debt, as
applicable, is subordinated to the Obligations at least to the same extent as the Debt, or the
Liens securing the Debt, as applicable, being extended, renewed, refinanced or replaced; (d) the
representations, covenants and defaults applicable to it are not, taken as a whole, less favorable
to Borrowers than those applicable to the Debt being extended, renewed, refinanced or replaced; (e)
no additional Lien is granted to secure it unless otherwise permitted hereunder; (f) the obligor or
obligors under any such Refinancing Debt are the same as the obligor(s) under the Debt being
extended, renewed, refinanced or replaced on such Debt; and (g) upon giving effect to it, no
Default or Event of Default exists.

     Refinancing Debt: Borrowed Money that is the result of an extension, renewal or
refinancing of the Second Lien Notes or Debt permitted under Section 10.2.1(b), (d), (f) or (u), in
each case, so long as each Refinancing Condition is satisfied.

     Reimbursement Date: as defined in Section 2.3.2.

     Related Real Estate Documents: with respect to any Real Estate subject to a Mortgage,
the following, in form and substance satisfactory reasonably to Agent and received by Agent for
review as they become available: (a) a mortgagee title policy (or binder therefor) covering
Agent’s interest under the Mortgage, in a form and amount and by an insurer acceptable to Agent,
which must be fully paid on such effective date; (b) such assignments of leases, estoppel letters,
attornment agreements, consents, waivers and releases as Agent may require with respect to other
Persons having an interest in the Real Estate; (c) a current, as-built survey of the Real Estate,
containing a metes-and-bounds property description and flood plain certification, and certified by
a licensed surveyor reasonably acceptable to Agent; (d) flood insurance in an amount, with
endorsements and by an insurer reasonably acceptable to Agent, if the Real Estate is within a flood
plain; (e) a current appraisal of the Real Estate, prepared by an appraiser acceptable to Agent,
and in form and substance satisfactory to Required Lenders; (f) if available, an environmental
assessment, prepared by environmental engineers acceptable to Agent, and accompanied by such
reports, certificates, studies or data as Agent may reasonably require, which shall all be in form
and substance satisfactory to Required Lenders; and (g) an Environmental Agreement and such other
documents, instruments or agreements as Agent may reasonably require with respect to any
environmental risks regarding the Real Estate.

     Rent and Charges Reserve: the aggregate of (a) all past due rent and other amounts
owing by an Obligor to any landlord, warehouseman, processor, repairman, mechanic, shipper, freight
forwarder, broker or other Person who possesses any Collateral or could assert a Lien on any

 

 

Collateral; and (b) a reserve at least equal to three months rent and other charges that could
be payable to any such Person, unless it has executed a Lien Waiver.

     Report: as defined in Section 12.2.3.

     Reportable Event: any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

     Required Lenders: (i) as long as three or fewer Lenders have Revolver Commitments,
then any two Lenders having, in the aggregate, Revolver Commitments in excess of 50% of the
aggregate Revolver Commitments, and (ii) as long as four or more Lenders have Revolver Commitments,
then Lenders (subject to Section 4.2) having (a) Revolver Commitments in excess of 50% of the
aggregate Revolver Commitments; and (b) if the Revolver Commitments have terminated, Loans in
excess of 50% of all outstanding Loans; provided, that the Commitments of Defaulting
Lenders shall be treated as being equal to zero for the purposes of calculating Required Lenders.

     Reserve Percentage: the reserve percentage (expressed as a decimal, rounded upward to
the nearest 1/8th of 1%) applicable to member banks under regulations issued from time to time by
the Board of Governors for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently
referred to as “Eurocurrency liabilities”).

     Restatement Effective Date: as defined in Section 6.2.

     Restricted Investment: any Investment by a Borrower or Subsidiary, other than (a)
Investments in Subsidiaries to the extent existing on the Restatement Effective Date and other
Investments existing on the Restatement Effective Date and set forth on Schedule 10.2.5; (b) Cash
Equivalents (provided, however, that, to the extent such Cash Equivalents are owned by an Obligor,
such Cash Equivalents are subject to Agent’s Lien and control, pursuant to documentation in form
and substance satisfactory to Agent); (c) Investments consisting of lease, utility and other
similar deposits or any other deposit permitted under Section 10.2.2 in the Ordinary Course of
Business; (d) prepayments and deposits to suppliers in the Ordinary Course of Business; (e) Hedging
Agreements to the extent permitted by Section 10.2.16; (f) Investments (i) by an Obligor in any
other Obligor, or (ii) by Subsidiaries that are non-Obligors into Obligors or other non-Obligors;
(g) the establishment of wholly owned Subsidiaries to the extent they comply with Section 10.1.9;
(h) Investments in securities or other assets of trade creditors, customers or other Persons in the
Ordinary Course of Business that are received in settlement of bona fide disputes or pursuant to
any plan of reorganization or liquidation or similar arrangement upon the bankruptcy or insolvency
of such trade creditors or customers; (i) guarantees, Contingent Obligations and other Investments
permitted under Section 10.2.1; (j) Investments to the extent such Investments reflect an increase
in the value of Investments otherwise permitted under Section 10.2.5 hereof; (k) the capitalization
or forgiveness of Debt owed to it by other Obligors or Subsidiaries if such capitalization or
forgiveness is required in order to comply with so-called “thin capitalization” rules; (l) the
cancellation, forgiveness, set off or acceptance of prepayments of Debt owed to such Borrower to
the extent not otherwise prohibited by the terms of this Agreement; (m) loans and advances to an
officer or employee for salary, travel expenses, commissions and similar items in the Ordinary
Course of Business, not to exceed, in the aggregate, $2,000,000 at any time outstanding; (n)
prepaid expenses and extensions of trade

 

 

credit made in the Ordinary Course of Business; (o) deposits with financial institutions
permitted hereunder; (p) Investments by an Obligor in an Excluded Receivables Subsidiary in
connection with a sale of receivables to such Excluded Receivables Subsidiary pursuant to a
Qualified Receivables Transaction; and (q) other Investments not otherwise listed above not to
exceed, in the aggregate, $1,500,000 at any time outstanding.

     Restrictive Agreement: an agreement (other than a Loan Document) that conditions or
restricts the right of any Borrower, Subsidiary or other Obligor to incur or repay Borrowed Money,
to grant Liens on any assets, to declare or make Distributions, to modify, extend or renew any
agreement evidencing Borrowed Money, or to repay any intercompany Debt.

     Revolver Commitment: for any Lender, its obligation to make Revolver Loans, and to
participate in LC Obligations up to the maximum principal amount shown on Schedule 1.1, or as
hereafter determined pursuant to each Assignment and Acceptance to which it is a party.
“Revolver Commitments” means the aggregate amount of such commitments of all Lenders.

     Revolver Loan: a loan made pursuant to Section 2.1, and any Swingline Loan,
Overadvance Loan or Protective Advance.

     Revolver Note: a promissory note executed by Borrowers in favor of and at the request
of a Lender substantially in the form of Exhibit A, which shall be in the amount of such Lender’s
Revolver Commitment and shall evidence the Revolver Loans made by such Lender.

     Revolver Termination Date: April 26, 2014.

     Revolving Facility Exposure: for any Lender at any time, the sum of (i) the principal
amount of all Revolver Loans made to Borrowers by such Lender and outstanding at such time, and
(ii) such Lender’s share of the LC Outstandings at such time.

     Royalties: all royalties, fees, expense reimbursement and other amounts payable by a
Borrower under a License.

     S&P: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.

     Second Lien Note Collateral Agent: U.S. Bank, National Association, in its capacity
as collateral agent for the Second Lien Noteholders, and any other agent in such similar capacity
pursuant to any Refinancing Debt.

     Second Lien Note Documents: the Indenture and each other document defined as a “Note
Document” in the Indenture.

     Second Lien Noteholders: any Person that is a “Holder” or “Securityholder”, pursuant
to and as defined in the Indenture.

     Second Lien Notes: the 7.875% Senior Secured Notes due April 15, 2019, issued by the
Company under the Indenture, in the aggregate amount of $250,000,000 (plus all interest paid in
kind).

 

 

     Second Lien Term Loan Agreement: the Loan and Security Agreement, dated as of August
4, 2009, by and among the Company, the other parties thereto, and Credit Suisse, as agent.

     Second Lien Term Loans: any “Term Loan” as defined in the Second Lien Term Loan
Agreement.

     Secured Parties: Agent, Issuing Bank, Lenders and providers of Bank Products.

     Security Documents: the Pledge Agreements, Guaranties, Mortgages, Copyright Security
Agreements, Patent Security Agreements, Trademark Security Agreements, Deposit Account Control
Agreements and all other documents, instruments and agreements executed and delivered by an Obligor
now or hereafter securing (or given with the intent to secure) any Obligations.

     Senior Officer: the chairman of the board, president, chief executive officer,
managing director, treasurer, controller, director of finance, chief financial officer or finance
officer of a Borrower.

     Settlement Report: a report delivered by Agent to Lenders summarizing the Revolver
Loans and participations in LC Obligations outstanding as of a given settlement date, allocated to
Lenders on a Pro Rata basis in accordance with their Revolver Commitments.

     Standard Securitization Undertakings: those representations, warranties, covenants and
indemnities entered into by the Company or any Excluded Receivables Subsidiary which are determined
in good faith by the Company to be customary in securitization transactions involving accounts
receivables.

     Solvent: as to any Person, such Person (a) owns Property whose fair saleable value is
greater than the amount required to pay all of its debts (including contingent, subordinated,
unmatured and unliquidated liabilities); (b) owns Property whose present fair saleable value (as
defined below) is greater than the probable total liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of such Person as they become absolute and matured; (c) is
able to generally pay all of its debts as they mature; (d) has capital that is not unreasonably
small for its business and is sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage; (e) is not “insolvent” within the meaning of
Section 101(32) of the Bankruptcy Code; and (f) has not incurred (by way of assumption or
otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or
made any conveyance in connection therewith, with actual intent to hinder, delay or defraud either
present or future creditors of such Person or any of its Affiliates. “Fair saleable value”
means the amount that could be obtained for assets within a reasonable time, either through
collection or through sale under ordinary selling conditions by a capable and diligent seller to an
interested buyer who is willing (but under no compulsion) to purchase on a going concern basis.

     Specified Transaction: (a) any disposition of all or substantially all the assets of
or all the Equity Interests of any Subsidiary or of any division or product line of a Borrower or
any of its Subsidiaries, (b) any Acquisition permitted hereunder, (c) any proposed incurrence of
Debt or (d) the proposed making of a Distribution, in each case, to the extent permitted hereunder.

 

 

     Subordinated Debt: Debt incurred by a Borrower that is expressly subordinate and
junior in right of payment to Full Payment of all Obligations, and is on terms (including maturity,
interest, fees, repayment, covenants and subordination) reasonably satisfactory to Agent, provided,
that (i) the intercompany loan owed by the Company to Bostrom Ltd. and identified on Schedule
10.2.1, and (ii) the intercompany loan owed by the Company to CVS Ltd. and identified on Schedule
10.2.1, in each case shall not be considered Subordinated Debt.

     Subsidiary: any entity at least 50% of whose voting securities or Equity Interests is
owned by the Company (including indirect ownership by the Company through other entities in which
the Company directly or indirectly owns 50% of the voting securities or Equity Interests).

     Swingline Loan: any Borrowing of Base Rate Loans funded with Agent’s funds, until such
Borrowing is settled among Lenders pursuant to Section 4.1.3.

     Taxes: all present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.

     Tender Offer: the offer by the Company to purchase all of (i) the Third Lien Notes and
(ii) the Existing Senior Notes made pursuant to the Offer to Purchase and Consent Solicitation of
Commercial Vehicle Group, Inc. dated April 5, 2011, as amended.

     Third Lien Indenture: the Indenture, dated as of August 4, 2009, by and among the
Company, the other parties thereto and U.S. Bank National Association.

     Third Lien Notes: the 11%/13% Third Lien Senior Secured Notes due 2013, issued by the
Company under the Third Lien Indenture, in the aggregate amount of $42,124,000 (plus all interest
paid in kind).

     Trademark Security Agreement: each trademark security agreement pursuant to which an
Obligor grants to Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in
trademarks, as security for the Obligations.

     Transferee: any actual or potential Eligible Assignee, Participant or other Person
acquiring an interest in any Obligations.

     Type: any type of a Loan (i.e., Base Rate Loan or LIBOR Loan) that has the same
interest option and, in the case of LIBOR Loans, the same Interest Period.

     UCC: the Uniform Commercial Code as in effect in the State of Illinois or, when the
laws of any other jurisdiction govern the perfection or enforcement of any Lien, the Uniform
Commercial Code as in effect in such jurisdiction.

     UK Restructuring: the series of transactions related to that certain transfers of
assets and the exchanging of debt between any direct or indirect Subsidiary of the Borrower
organized under the laws of the United Kingdom, and the necessary corporate structure changes
required in connection therewith, in such manner as disclosed to Agent prior to the date hereof.

     Unfunded Pension Liability: the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined

 

 

in accordance with the assumptions used for funding the Pension Plan pursuant to Sections 412 and
430 of the Code for the applicable plan year.

     Unpaid Sum: any sum due and payable but unpaid by a Borrower under this Agreement.

     Upstream Payment: a Distribution by a Subsidiary of a Borrower to such Borrower or
another Subsidiary (to the extent such Subsidiary is such Person’s direct parent), or in the case
of National Seating Company, pro rata Distributions to the Company and each other holder of Equity
Interests of National Seating Company.

     Value: (a) for Inventory, its value determined on the basis of the lower of cost or
market, calculated on a first-in, first-out basis, and excluding any portion of cost attributable
to intercompany profit among Borrowers and their Affiliates; and (b) for an Account, its face
amount, net of any returns, rebates, discounts (calculated on the shortest terms), credits,
allowances or Taxes (including sales, excise or other taxes) that have been or could be claimed by
the Account Debtor or any other Person.

     Voting Stock: for any Person, all classes of Equity Interests of such Person then
outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof.

     1.2. Accounting Terms.

     Under the Loan Documents (except as otherwise specified herein), all accounting terms shall be
interpreted, all accounting determinations shall be made, and all financial statements shall be
prepared, in accordance with GAAP applied on a basis consistent with the most recent audited
financial statements of Borrowers delivered to Agent before the Original Closing Date and using the
same inventory valuation method as used in such financial statements, except for any change
required or permitted by GAAP if Borrowers’ certified public accountants concur in such change, the
change is disclosed to Agent and Section 10.3 is amended in a manner satisfactory to Required
Lenders to take into account the effects of the change.

     Notwithstanding anything to the contrary contained herein, financial ratios and other
financial calculations pursuant to this Agreement shall, following any Specified Transaction, be
calculated on a Pro Forma Basis.

     If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either Borrower Agent or the Required Lenders shall
so request, Agent, Lenders and Borrower Agent shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and (ii)
Borrower Agent shall provide to Agent and Lenders as reasonably requested hereunder a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP. It is agreed that a change in GAAP contemplated above shall include
the International Financial Reporting Standards, or certain of the standards contained therein,
becoming the required methodology of financial reporting.

     1.3. Uniform Commercial Code.

 

 

     As used herein, the following terms are defined in accordance with the UCC in effect in the
State of Illinois from time to time: “Chattel Paper,” “Commercial Tort Claim,” “Deposit Account,”
“Document,” “Equipment,” “General Intangibles,” “Goods,” “Instrument,” “Inventory,” “Investment
Property,” “Letter-of-Credit Right” and “Supporting Obligation.”

     1.4. Certain Matters of Construction.

     The terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used
shall be deemed to cover all genders. In the computation of periods of time from a specified date
to a later specified date, “from” means “from and including,” and “to” and “until” each mean “to
but excluding.” The terms “including” and “include” shall mean “including, without limitation”
and, for purposes of each Loan Document, the parties agree that the rule of ejusdem generis shall
not be applicable to limit any provision. Section titles appear as a matter of convenience only
and shall not affect the interpretation of any Loan Document. All references to (a) laws or
statutes include all related rules, regulations, interpretations, amendments and successor
provisions; (b) any document, instrument or agreement include any amendments, amendments and
restatements, refinancings, replacements, waivers and other modifications, extensions or renewals
(to the extent permitted by the Loan Documents); (c) any section mean, unless the context otherwise
requires, a section of this Agreement; (d) any exhibits or schedules mean, unless the context
otherwise requires, exhibits and schedules attached hereto, which are hereby incorporated by
reference; (e) any Person include successors and assigns; (f) time of day mean time of day at
Agent’s notice address under Section 15.3.1; or (g) discretion of Agent, Issuing Bank or any Lender
mean the sole and absolute discretion of such Person. All calculations of Value, fundings of
Loans, issuances of Letters of Credit and payments of Obligations shall be in Dollars. Unless the
context otherwise requires, all determinations (including calculations of Borrowing Base and
financial covenants) made from time to time under the Loan Documents shall be made in light of the
circumstances existing at such time. Borrowing Base calculations shall be consistent with
historical methods of valuation and calculation, and otherwise satisfactory to Agent (and not
necessarily calculated in accordance with GAAP). Borrowers shall have the burden of establishing
any alleged negligence, misconduct or lack of good faith by Agent, Issuing Bank or any Lender under
any Loan Documents. No provision of any Loan Documents shall be construed against any party by
reason of such party having, or being deemed to have, drafted the provision. Whenever the phrase
“to the best of Borrowers’ knowledge” or words of similar import are used in any Loan Documents,
including references to “knowledge of any Obligor”, it means actual knowledge of a Senior Officer,
or knowledge that a Senior Officer would have obtained if he or she had engaged in good faith and
diligent performance of his or her duties, including reasonably specific inquiries of employees or
agents and a good faith attempt to ascertain the matter to which such phrase relates.

     1.5. Certifications.

     All certifications to be made hereunder by an officer or representative of an Obligor shall be
made by such person in his or her capacity solely as an officer or a representative of such
Obligor, on such Obligor’s behalf and not in such person’s individual capacity.

     1.6. Times of Day.

 

 

     Unless otherwise specified, all references herein to times of day shall be references to
Central time (daylight or standard, as applicable).

     SECTION 2. CREDIT FACILITIES

         
2.1.  Revolver Commitments.

               2.1.1.  Revolver Loans.

               (a) Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up to its Revolver
Commitment, on the terms set forth herein, to make Revolver Loans to the Borrowers from time to
time prior to the Commitment Termination Date. The Revolver Loans may be repaid and reborrowed as
provided herein. In no event shall Lenders have any obligation to honor a request for a Revolver
Loan if the sum of (i) the Revolving Facility Exposure and (ii) the aggregate outstanding principal
amount of Swingline Loans, would exceed the lesser of the Revolver Commitments and the Borrowing
Base. Revolver Loans may be made as Base Rate Loans or LIBOR Revolving Loans.

               (b) Limitation on Revolver Loans. Notwithstanding the foregoing, (i) so long as any Second
Lien Notes are outstanding, in no event shall Lenders be obligated to make Revolver Loans in excess
of the Indenture Formula Amount, including, without limitation, the making of any Revolver Loans to
a Borrower that would exceed any sublimit of the Indenture Formula Amount as further described in
Section 4.03(b)(1) of the Indenture. To the extent any Refinancing Debt replaces the Second Lien
Notes, in no event shall Lenders be obligated to make Revolver Loans in an amount that would exceed
any similar formula, if any, in such Refinancing Debt.

               2.1.2. Revolver Notes and Denominations.

               The Revolver Loans made by each Lender and interest accruing thereon shall be evidenced by the
records of Agent and such Lender. Promptly following the request of any Lender, Borrowers shall
deliver a Revolver Note to such Lender. Borrowings by a Borrower shall be denominated only in
Dollars.

               2.1.3. Use of Proceeds.

               The proceeds of Revolver Loans shall be used by Borrowers solely (a) to satisfy existing Debt
under the Original Credit Agreement; (b) to pay fees and transaction expenses associated with the
closing of this credit facility; (c) to pay Obligations in accordance with this Agreement; and (d)
for working capital and other lawful corporate purposes of Borrowers (including Capital
Expenditures and the financing of Investments and Acquisitions permitted hereunder).

               2.1.4. Voluntary Reduction or Termination of Revolver Commitments.

               (a) The Revolver Commitments shall terminate on the Revolver Termination Date, unless sooner
terminated in accordance with this Agreement. Upon at least 10 Business Days prior written notice
to Agent at any time after the first Loan Year, Borrowers may, at their option, terminate the
Revolver Commitments and this credit facility. Any notice of termination given by Borrowers shall
be irrevocable (unless given in connection with refinancing the

 

 

Obligations). On the Commitment Termination Date, Borrowers shall make Full Payment of all
Obligations.

          (b) Borrowers may permanently reduce the Revolver Commitments, on a Pro Rata basis for each
Lender, upon at least 10 Business Days prior written notice to Agent, which notice shall specify
the amount of the reduction and shall be irrevocable once given (unless given in connection with
refinancing the Obligations). Each reduction shall be in a minimum amount of $10,000,000, or an
increment of $1,000,000 in excess thereof; provided, that in no event shall such permanent
reduction reduce the Revolver Commitments, in the aggregate, to an amount less than $20,000,000
(other than in connection with refinancing the Obligations).

          2.1.5. Overadvances. If the aggregate Revolver Loans exceed the Borrowing Base, or,
if applicable, the Indenture Formula Amount (“Overadvance”), the excess amount shall be
payable by Borrowers on demand by Agent, but all such Revolver Loans shall nevertheless constitute
Obligations secured by the Collateral and entitled to all benefits of the Loan Documents. Unless
its authority has been revoked in writing by Required Lenders, Agent may require Lenders to honor
requests for Overadvance Loans and to forbear from requiring Borrowers to cure an Overadvance, (a)
when no other Event of Default is known to Agent, as long as (i) the Overadvance does not continue
for more than 30 consecutive days (and no Overadvance may exist for at least five consecutive days
thereafter before further Overadvance Loans are required), and (ii) the Overadvance, when combined
with all other Overadvances and Protective Advances, as applicable, is not known by Agent to
exceed 10% of the Borrowing Base; and (b) regardless of whether an Event of Default exists, if
Agent discovers an Overadvance not previously known by it to exist, as long as from the date of
such discovery the Overadvance (i) is not increased by more than 5% of the Borrowing Base, and (ii)
does not continue for more than 30 consecutive days. In no event shall Overadvance Loans be made
that would cause the outstanding Revolver Loans and LC Obligations to exceed the aggregate Revolver
Commitments. Any funding of an Overadvance Loan or sufferance of an Overadvance shall not
constitute a waiver by Agent or Lenders of the Event of Default caused thereby. In no event shall
any Borrower or other Obligor be deemed a beneficiary of this Section nor authorized to enforce any
of its terms.

          2.1.6. Protective Advances. Agent shall be authorized, in its discretion, at any time
that any conditions in Section 6 are not satisfied, to make Base Rate Loans (“Protective
Advances”), up to an aggregate amount, when combined with all other Protective Advances and
Overadvances outstanding at any time, not to exceed 10% of the Borrowing Base; in each case, (1)
if Agent deems such Loans necessary or desirable to preserve or protect Collateral, or to enhance
the collectibility or repayment of Obligations or (2) to pay any other amounts chargeable to
Obligors under any Loan Documents, including costs, fees and expenses. Each Lender shall
participate in each Protective Advance on a Pro Rata basis. In no event shall any Protective
Advance be made that would cause the outstanding Revolver Loans and LC Obligations to exceed the
aggregate Revolver Commitments. Required Lenders may at any time revoke Agent’s authority to make
further Protective Advances by written notice to Agent. Absent such revocation, Agent’s
determination that funding of a Protective Advance is appropriate shall be conclusive.

     2.2. [RESERVED].

     2.3. Letter of Credit Facilities.

 

 

          2.3.1. Issuance of Letters of Credit. Issuing Bank agrees to issue Letters of Credit
from time to time until 10 Business Days prior to the Revolver Termination Date (or until the
Commitment Termination Date, if earlier), on the terms set forth herein, including the following:

          (a) Each Borrower acknowledges that Issuing Bank’s willingness to issue any Letter of Credit
is conditioned upon Issuing Bank’s receipt of a LC Application with respect to the requested Letter
of Credit, as well as such other instruments and agreements as Issuing Bank may customarily require
for issuance of a letter of credit of similar type and amount. Issuing Bank shall have no
obligation to issue any Letter of Credit unless (i) Issuing Bank receives a LC Request and a LC
Application at least three Business Days (or such shorter time as agreed to by Issuing Bank) prior
to the requested date of issuance; (ii) each LC Condition is satisfied or waived; and (iii) if a
Defaulting Lender exists, such Lender or Borrowers have entered into arrangements satisfactory to
Agent and Issuing Bank to eliminate any funding risk associated with such Defaulting Lender. If
Issuing Bank receives written notice from a Lender at least five Business Days before issuance of a
Letter of Credit that any LC Condition has not been satisfied or waived, Issuing Bank shall have no
obligation to issue the requested Letter of Credit (or any other) until such notice is withdrawn in
writing by that Lender or until Required Lenders have waived such condition in accordance with this
Agreement. Prior to receipt of any such notice, Issuing Bank shall not be deemed to have knowledge
of any failure of LC Conditions.

          (b) Letters of Credit may be requested by a Borrower only (i) to support obligations of such
Borrower incurred in the Ordinary Course of Business; or (ii) for other purposes as Agent may
approve from time to time in writing. The renewal or extension of any Letter of Credit shall be
treated as the issuance of a new Letter of Credit, except that delivery of a new LC Application
shall be required at the discretion of Issuing Bank.

          (c) Borrowers assume all risks of the acts, omissions or misuses of any Letter of Credit by
the beneficiary. In connection with issuance of any Letter of Credit, none of Agent, Issuing Bank
or any Lender shall be responsible for the existence, character, quality, quantity, condition,
packing, value or delivery of any goods purported to be represented by any Documents; any
differences or variation in the character, quality, quantity, condition, packing, value or delivery
of any goods from that expressed in any Documents; the form, validity, sufficiency, accuracy,
genuineness or legal effect of any Documents or of any endorsements thereon; the time, place,
manner or order in which shipment of goods is made; partial or incomplete shipment of, or failure
to ship, any goods referred to in a Letter of Credit or Documents; any deviation from instructions,
delay, default or fraud by any shipper or other Person in connection with any goods, shipment or
delivery; any breach of contract between a shipper or vendor and a Borrower; errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex, telecopy, e-mail, telephone or otherwise; errors in interpretation of technical terms; the
misapplication by a beneficiary of any Letter of Credit or the proceeds thereof; or any
consequences arising from causes beyond the control of Issuing Bank, Agent or any Lender, including
any act or omission of a Governmental Authority. The rights and remedies of Issuing Bank under the
Loan Documents shall be cumulative. Issuing Bank shall be fully subrogated to the rights and
remedies of each beneficiary whose claims against Borrowers are discharged with proceeds of any
Letter of Credit.

 

 

          (d) In connection with its administration of and enforcement of rights or remedies under any
Letters of Credit, LC Documents, Issuing Bank shall be entitled to act, and shall be fully
protected in acting, upon any certification, documentation or communication in whatever form
believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or
made by a proper Person. Issuing Bank may consult with and employ legal counsel, accountants and
other experts to advise it concerning its obligations, rights and remedies, and shall be entitled
to act upon, and shall be fully protected in any action taken in good faith reliance upon, any
advice given by such experts. Issuing Bank may employ agents and attorneys-in-fact in connection
with any matter relating to Letters of Credit, LC Documents, and shall not be liable for the
negligence or misconduct of agents and attorneys-in-fact selected with reasonable care.

          2.3.2. Reimbursement; Participations.

          (a) If Issuing Bank honors any request for payment under a Letter of Credit, Borrowers shall
pay to Issuing Bank, within one Business Day of notice of such payment by the Issuing Bank
(“Reimbursement Date”), the amount paid by Issuing Bank under such Letter of Credit,
together with interest at the interest rate for Base Rate Loans from the date such Letter of Credit
is honored until payment by Borrowers. The obligation of Borrowers to reimburse Issuing Bank for
any payment made under a Letter of Credit shall be absolute, unconditional, irrevocable, and joint
and several, and shall be paid without regard to any lack of validity or enforceability of any
Letter of Credit or the existence of any claim, setoff, defense or other right that Borrowers may
have at any time against the beneficiary. Whether or not Borrower Agent submits a Notice of
Borrowing, Borrowers shall be deemed to have requested a Borrowing of Base Rate Loans in an amount
necessary to pay all amounts due and owing to Issuing Bank on any Reimbursement Date and each
Lender agrees to fund its Pro Rata share of such Borrowing whether or not the Revolver Commitments
have terminated, an Overadvance exists or is created thereby, or the conditions in Section 6 are
satisfied or waived.

          (b) Upon issuance of a Letter of Credit, each Lender shall be deemed to have irrevocably and
unconditionally purchased from Issuing Bank, without recourse or warranty, an undivided Pro Rata
interest and participation in all LC Obligations relating to the Letter of Credit. If Issuing Bank
makes any payment under a Letter of Credit and Borrowers do not reimburse such payment on the
Reimbursement Date, Agent shall promptly notify Lenders and each Lender shall promptly (within one
Business Day) and unconditionally pay to Agent, for the benefit of Issuing Bank, Lender’s Pro Rata
share of such payment. Upon request by a Lender, Issuing Bank shall furnish copies of any Letters
of Credit and LC Documents in its possession at such time.

          (c) The obligation of each Lender to make payments to Agent for the account of Issuing Bank in
connection with Issuing Bank’s payment under a Letter of Credit shall be absolute, unconditional
and irrevocable, not subject to any counterclaim, setoff, qualification or exception whatsoever,
and shall be made in accordance with this Agreement under all circumstances, irrespective of any
lack of validity or unenforceability of any Loan Documents; any draft, certificate or other
document presented under a Letter of Credit having been determined to be forged, fraudulent,
invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any
respect; or the existence of any setoff or defense that any Obligor may have with respect to any
Obligations. Issuing Bank does not assume any responsibility for any failure or delay in
performance or any breach by any Borrower or other

 

 

Person of any obligations under any LC Documents. Issuing Bank does not make to Lenders any
express or implied warranty, representation or guaranty with respect to the Collateral, LC
Documents or any Obligor. Issuing Bank shall not be responsible to any Lender for any recitals,
statements, information, representations or warranties contained in, or for the execution,
validity, genuineness, effectiveness or enforceability of any LC Documents; the validity,
genuineness, enforceability, collectibility, value or sufficiency of any Collateral or the
perfection of any Lien therein; or the assets, liabilities, financial condition, results of
operations, business, creditworthiness or legal status of any Obligor.

          (d) No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any action
taken or omitted to be taken in connection with any LC Documents except as a result of its actual
gross negligence or willful misconduct. Issuing Bank shall not have any liability to any Lender if
Issuing Bank refrains from any taking action under any Letter of Credit or LC Documents until it
receives written instructions from Required Lenders.

          2.3.3. Cash Collateral.

          If any LC Obligations, whether or not then due or payable, shall for any reason be outstanding
at any time (a) that an Event of Default exists, (b) that, with respect to LC Obligations,
Availability is less than zero, (c) after the Commitment Termination Date, or (d) on five Business
Days prior to the Revolver Termination Date, then Borrowers shall, at Issuing Bank’s or Agent’s
request, Cash Collateralize the stated amount of all outstanding Letters of Credit and pay to
Issuing Bank the amount of all other LC Obligations. Borrowers shall, promptly upon demand by
Issuing Bank or Agent from time to time, Cash Collateralize the LC Obligations of any Defaulting
Lender. If Borrowers fail to provide any Cash Collateral as required hereunder, Lenders may (and
shall upon direction of Agent) advance, as Revolver Loans, the amount of the Cash Collateral
required (whether or not the Revolver Commitments have terminated, an Overadvance exists or the
conditions in Section 6 are satisfied) or waived. If Borrowers are required to provide any amount
of Cash Collateral hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to Borrowers promptly after all Events of
Default have been cured or waived.

SECTION 3. INTEREST, FEES AND CHARGES

     3.1.  Interest. 

          3.1.1.  Rates and Payment of Interest. 

          (a) The Obligations shall bear interest (i) if a Base Rate Loan, at the Base Rate in effect
from time to time, plus the Applicable Margin; (ii) if a LIBOR Loan, at LIBOR for the applicable
Interest Period, plus the Applicable Margin; and (iii) if any other Obligation (including, to the
extent permitted by law, interest not paid when due), at the Base Rate in effect from time to time,
plus the Applicable Margin for Base Rate Loans. Interest shall accrue from the date the Loan is
advanced or the Obligation is incurred or payable, until paid by Borrowers. If a Loan is repaid on
the same day made, one day’s interest shall accrue.

          (b) During an Insolvency Proceeding with respect to any Borrower, or during any other Event of
Default if Required Lenders in their discretion so elect, Obligations shall bear interest at the
Default Rate (whether before or after any judgment). Each Borrower acknowledges that the cost and
expense to Agent and Lenders due to an Event of Default are

 

 

difficult to ascertain and that the Default Rate is a fair and reasonable estimate to compensate
Agent and Lenders for this.

          (c) Interest accrued on the Loans shall be due and payable in arrears, (i) on the first day of
each Fiscal Month; (ii) on any date of prepayment, with respect to the principal amount of Loans
being prepaid; and (iii) on the Commitment Termination Date. Interest accrued on any other
Obligations shall be due and payable as provided in the Loan Documents and, if no payment date is
specified, shall be due and payable on demand. Notwithstanding the foregoing, interest accrued at
the Default Rate shall be due and payable on demand.

          3.1.2. Application of LIBOR to Outstanding Loans.

          (a) Borrowers may on any Business Day, subject to delivery of a Notice of
Conversion/Continuation, elect to convert any portion of the Base Rate Loans to, or to continue any
LIBOR Loan at the end of its Interest Period as, a LIBOR Loan. During any Event of Default, Agent
may (and shall at the direction of Required Lenders) declare that no Loan may be made, converted or
continued as a LIBOR Loan.

          (b) Whenever Borrowers desire to convert or continue Loans as LIBOR Loans, Borrower Agent, as
applicable, they shall give Agent a Notice of Conversion/Continuation, no later than 11:00 a.m. at
least three Business Days before the requested conversion or continuation date. Promptly after
receiving any such notice, Agent shall notify each Lender thereof. Subject to Section 3.5 and
Section 3.6, each Notice of Conversion/Continuation shall be irrevocable, and shall specify the
amount of Loans to be converted or continued, the conversion or continuation date (which shall be a
Business Day), and the duration of the Interest Period (which shall be deemed to be 30 days if not
specified). If, upon the expiration of any Interest Period in respect of any LIBOR Loans,
Borrowers shall have failed to deliver a Notice of Conversion/Continuation, they shall be deemed to
have elected to convert such Loans into Base Rate Loans.

          3.1.3. Interest Periods. In connection with the making, conversion or continuation of
any LIBOR Loans, Borrowers shall select an interest period (“Interest Period”) to apply,
which interest period shall be 30, 60 or 90 days; provided, however, that:

          (a) the Interest Period shall commence on the date the Loan is made or continued as, or
converted into, a LIBOR Loan, and shall expire on the numerically corresponding day in the calendar
month at its end;

          (b) if any Interest Period commences on a day for which there is no corresponding day in the
calendar month at its end or if such corresponding day falls after the last Business Day of such
month, then the Interest Period shall expire on the last Business Day of such month; and if any
Interest Period would expire on a day that is not a Business Day, the period shall expire on the
next Business Day; and

          (c) no Interest Period shall extend beyond the Revolver Termination Date.

     3.2. Fees.

          3.2.1. Unused Line Fee. Borrowers shall pay to Agent, for the Pro Rata benefit of
Lenders, a fee equal to (i). 500% per annum times the amount by which the Revolver

 

 

Commitments exceed the average daily balance of Revolver Loans and stated amount of Letters of
Credit (the “Unused Balance”) during any Fiscal Quarter in which the aggregate average daily Unused
Balance is equal to or greater than 50% of the Revolver Commitments or (ii). 375% per annum times
the Unused Balance during any Fiscal Quarter in which the aggregate average daily Unused Balance is
less than 50% of the Revolver Commitments. Such fee shall be calculated payable in arrears, on the
first day of each Fiscal Quarter and on the Commitment Termination Date.

          3.2.2. LC Facility Fees. Borrowers shall pay (a) to Agent, for the Pro Rata benefit
of Lenders with Revolver Commitments, a fee equal to the Applicable Margin in effect for LIBOR
Revolver Loans times the average daily stated amount of Letters of Credit, which fee shall be
payable quarterly in arrears, on the first day of each Fiscal Quarter; (b) to Issuing Bank, for its
own account, a fronting fee equal to. 125% per annum on the stated amount of each Letter of Credit,
which fee shall be payable quarterly in arrears, on the first day of each Fiscal Quarter; and (c)
to Issuing Bank, for its own account, all customary and reasonable charges associated with the
issuance, amending, negotiating, payment, processing, transfer and administration of Letters of
Credit, which charges shall be paid as and when incurred. During an Event of Default, the fee
payable under clause (a) shall be increased by 2% per annum as provided in Section 3.1.1(b).

          3.2.3. Other Fees. Borrowers shall pay to Agent the fees described in the Fee Letter.

     3.3. Computation of Interest, Fees, Yield Protection. All interest in respect of
LIBOR Loans, as well as fees and other charges calculated on a per annum basis shall be computed
for the actual days elapsed, based on a year of 360 days. Fees, interest and charges in respect of
Base Rate Loans shall be calculated for the actual days elapsed, based on a year of 365 days (or
366 days as applicable) and shall be payable in Dollars. Each determination by Agent of any
interest, fees or interest rate hereunder shall be final, conclusive and binding for all purposes,
absent manifest error. All fees shall be fully earned when due and shall not be subject to rebate,
refund or proration. All fees payable under Section 3.2 are compensation for services and are not,
and shall not be deemed to be, interest or any other charge for the use, forbearance or detention
of money. A certificate setting forth amounts payable by Borrowers under Section 3.4, 3.6, 3.7,
3.9 or 5.9, submitted to Borrower Agent by Agent or the affected Lender, as applicable, shall be
final, conclusive and binding for all purposes, absent manifest error, and Borrowers shall pay such
amounts to the appropriate party within 10 Business Days following receipt of the certificate.

     3.4. Reimbursement Obligations. Borrowers shall reimburse Agent for all Extraordinary
Expenses. Borrowers shall also reimburse Agent for all (a) reasonable out-of-pocket legal,
accounting, appraisal, consulting, and other fees, costs and expenses incurred by it in connection
with negotiation and preparation of any Loan Documents, including any amendment or other
modification thereof; (b) legal, accounting, appraisal, consulting and other fees, costs and
expenses in connection with administration of and actions relating to any Collateral, Loan
Documents and transactions contemplated thereby, including any actions taken to perfect or maintain
priority of Agent’s Liens on any Collateral, to maintain any insurance required hereunder or to
verify Collateral; and (c) subject to the limits of Section 10.1.1(b), all fees, costs and expenses
in connection with each inspection, audit or appraisal with respect to any Obligor or Collateral,
whether prepared by Agent’s personnel or a third party. All legal,

 

 

accounting and consulting fees shall be charged to Borrowers by Agent’s professionals at their full
hourly rates, regardless of any reduced or alternative fee billing arrangements that Agent, any
Lender or any of their Affiliates may have with such professionals with respect to any other
transaction. All amounts payable by Borrowers under this Section shall be due and payable promptly
following demand therefor, or in the case of Extraordinary Expenses, on demand.

     3.5. Illegality. If any Lender determines that any Applicable Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or
its applicable Lending Office to make, maintain or fund LIBOR Loans, or to determine or charge
interest rates based upon LIBOR, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to Agent, any obligation of such Lender to
make or continue LIBOR Loans or to convert Base Rate Loans to LIBOR Loans shall be suspended until
such Lender notifies Agent that the circumstances giving rise to such determination no longer
exist. Upon delivery of such notice, Borrowers shall prepay or, if applicable, convert all LIBOR
Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such LIBOR Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such LIBOR Loans. Upon any such prepayment or
conversion, Borrowers shall also pay accrued interest on the amount so prepaid or converted.

     3.6. Inability to Determine Rates. If Agent determines, or if Required Lenders notify
Agent, for any reason in connection with a request for a Borrowing of, or conversion to or
continuation of, a LIBOR Loan that (a) Dollar deposits are not being offered to banks in the London
interbank Eurodollar market for the applicable amount and Interest Period of such Loan, (b)
adequate and reasonable means do not exist for determining LIBOR for the requested Interest Period,
or (c) LIBOR for the requested Interest Period does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, then Agent will promptly so notify Borrower Agent and each
Lender. Thereafter, the obligation of Lenders to make or maintain LIBOR Loans shall be suspended
until Agent (upon instruction by Required Lenders) revokes such notice. Upon receipt of such
notice, Borrower Agent may revoke any pending request for a Borrowing of, conversion to or
continuation of a LIBOR Loan or, failing that, will be deemed to have submitted a request for a
Base Rate Loan.

     3.7.
 Increased Costs; Capital Adequacy. 

          3.7.1.Change
in Law. If any Change in Law shall:

          (a) impose modify or deem applicable any reserve, special deposit, compulsory loan, insurance
charge or similar requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement reflected in LIBOR) or
Issuing Bank;

          (b) subject any Lender or Issuing Bank to any Tax with respect to any Loan, Loan Document,
Letter of Credit or participation in Obligations or change the basis of taxation of payments to
such Lender or Issuing Bank in respect thereof (except for Indemnified Taxes or Other Taxes covered
by Section 5.9 and the imposition of, or any change in the rate of, any Excluded Tax payable by
such Lender or Issuing Bank); or

 

 

          (c) impose on any Lender or Issuing Bank or the London interbank market any other condition,
cost or expense affecting any Loan, Loan Document, Letter of Credit or participation in LC
Obligations;

and the result thereof shall be to increase the cost to such Lender of making or maintaining any
LIBOR Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to
such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the
amount of any sum received or receivable by such Lender or Issuing Bank hereunder (whether of
principal, interest or any other amount) then, within 10 Business Days of receiving the request
from such Lender or Issuing Bank, Borrowers will pay to such Lender or Issuing Bank, as applicable,
such additional amount or amounts as will compensate such Lender or Issuing Bank, as applicable,
for such additional costs incurred or reduction suffered.

          3.7.2. Capital Adequacy. If any Lender or Issuing Bank determines that any Change in
Law affecting such Lender or Issuing Bank or any Lending Office of such Lender or such Lender’s or
Issuing Bank’s holding company, if any, regarding capital requirements has or would have the effect
of reducing the rate of return on such Lender’s, Issuing Bank’s or holding company’s capital as a
consequence of this Agreement, or such Lender’s or Issuing Bank’s Commitments, Loans, Letters of
Credit or participations in LC Obligations, to a level below that which such Lender, Issuing Bank
or holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s, Issuing Bank’s and holding company’s policies with respect to capital adequacy), then
within 10 Business Days of receiving the request from such Lender or Issuing Bank, Borrowers will
pay to such Lender or Issuing Bank, as the case may be, such additional amount or amounts as will
compensate it or its holding company for any such reduction suffered.

          3.7.3. Compensation. Failure or delay on the part of any Lender or Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of its right to demand
such compensation, but Borrowers shall not be required to compensate a Lender or Issuing Bank for
any increased costs incurred or reductions suffered more than nine months prior to the date that
Lender or Issuing Bank notifies Borrower Agent of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or Issuing Bank’s intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the nine-month period referred to above shall be extended to include the period
of retroactive effect thereof).

     3.8. Mitigation. If any Lender gives a notice under Section 3.5 or requests
compensation under Section 3.7, or if Borrowers are required to pay additional amounts with respect
to a Lender under Section 5.9, then such Lender shall use reasonable efforts to designate a
different Lending Office or to assign its rights and obligations hereunder to another of its
offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment
(a) would eliminate the need for such notice or reduce amounts payable or to be withheld in the
future, as applicable; and (b) would not subject Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to it. Borrowers shall promptly following request therefor
pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

 

 

     3.9. Funding Losses. If for any reason (a) any Borrowing of, or conversion to or
continuation of, a LIBOR Loan does not occur on the date specified therefor in a Notice of
Borrowing or Notice of Conversion/Continuation (whether or not withdrawn), (b) any repayment or
conversion of a LIBOR Loan occurs on a day other than the end of its Interest Period, or (c)
Borrowers fail to repay a LIBOR Loan when required hereunder, then Borrowers shall pay to Agent its
customary administrative charge and to each Lender all losses and expenses that it sustains as a
consequence thereof, including loss of anticipated profits and any loss or expense arising from
liquidation or redeployment of funds or from fees payable to terminate deposits of matching funds.
Lenders shall not be required to purchase Dollar deposits in the London interbank market or any
other offshore Dollar market to fund any LIBOR Loan, but the provisions hereof shall be deemed to
apply as if each Lender had purchased such deposits to fund its LIBOR Loans.

     3.10. Maximum Interest. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by Applicable Law (“maximum rate”). If Agent or
any Lender shall receive interest in an amount that exceeds the maximum rate, the excess interest
shall be applied to the principal of the Obligations or, if it exceeds such unpaid principal,
refunded to Borrowers. In determining whether the interest contracted for, charged or received by
Agent or a Lender exceeds the maximum rate, such Person may, to the extent permitted by Applicable
Law, (a) characterize any payment that is not principal as an expense, fee or premium rather than
interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate,
allocate and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

SECTION 4. LOAN ADMINISTRATION

     4.1.  Manner of Borrowing and Funding Revolver Loans. 

          4.1.1.  Notice of Borrowing. 

          (a) Whenever Borrowers desire funding of a Borrowing of Revolver Loans, Borrower Agent shall
give Agent a Notice of Borrowing. Such notice must be received by Agent no later than 12:00 noon
Chicago time (i) on the Business Day of the requested funding date, in the case of Base Rate Loans,
and (ii) at least three Business Days prior to the requested funding date, in the case of LIBOR
Loans. Notices received after 12:00 noon Chicago time shall be deemed received on the next
Business Day. Subject to Section 3.5 and Section 3.6, each Notice of Borrowing shall be
irrevocable and shall specify (A) the amount of the Borrowing, (B) the requested funding date
(which must be a Business Day), (C) whether the Borrowing is to be made as Base Rate Loans, or
LIBOR Loans, and (D) in the case of LIBOR Loans, the duration of the applicable Interest Period
(which shall be deemed to be 30 days if not specified).

          (b) Unless payment is otherwise timely made by Borrowers, the becoming due of any Obligations
(whether principal, interest, fees or other charges, including Extraordinary Expenses, LC
Obligations, Cash Collateral and Bank Product Debt) shall be deemed to be a request for Base Rate
Loans, on the due date, in the amount of such Obligations. The proceeds of such Revolver Loans
shall be disbursed as direct payment of the relevant Obligation. In addition, Agent may, at its
option, charge such Obligations against Borrower Agent’s primary disbursement account maintained
with Agent or any of its Affiliates.

 

 

          (c) If Borrowers establish a controlled disbursement account with Agent or any Affiliate of
Agent, then the presentation for payment of any check or other item of payment drawn on such
account at a time when there are insufficient funds to cover it shall be deemed to be a request for
Base Rate Loans on the date of such presentation, in the amount of the check and items presented
for payment. The proceeds of such Revolver Loans may be disbursed directly to the controlled
disbursement account or other appropriate account.

          4.1.2. Fundings by Lenders. Each Lender shall timely honor its Revolver Commitment by
funding its Pro Rata share of each Borrowing of Revolver Loans that is properly requested
hereunder. Except for Borrowings to be made as Swingline Loans, Agent shall endeavor to notify
Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by 1:00 p.m. Chicago time
on the proposed funding date for Base Rate Loans or by 3:00 p.m. Chicago time, at least two
Business Days before any proposed funding of LIBOR Loans. Each Lender shall fund to Agent such
Lender’s Pro Rata share of the Borrowing to the account specified by Agent in immediately available
funds not later than 2:00 p.m. Chicago time on the requested funding date unless Agent’s notice is
received after the times provided above, in which event Lender shall fund its Pro Rata share by
11:00 a.m. Chicago time on the next Business Day. Subject to its receipt of such amounts from
Lenders, Agent shall disburse the proceeds of the Revolver Loans as directed by Borrower Agent.
Unless Agent shall have received (in sufficient time to act) written notice from a Lender that it
does not intend to fund its Pro Rata share of a Borrowing, Agent may assume that such Lender has
deposited or promptly will deposit its share with Agent, and Agent may disburse a corresponding
amount to Borrowers. If a Lender’s share of any Borrowing or of any settlement pursuant to Section
4.1.3(b) is not received by Agent, then Borrowers agree to repay to Agent on demand the amount of
such share, together with interest thereon from the date disbursed until repaid, at the rate
applicable to the Borrowing.

          4.1.3. Swingline Loans; Settlement.

          (a) Agent may, but shall not be obligated to, advance Swingline Loans to Borrowers, up to an
aggregate outstanding amount equal to 10% of the Revolver Commitments at such time, unless the
funding is specifically required to be made by all Lenders hereunder. Each Swingline Loan shall
constitute a Revolver Loan, for all purposes, except that payments thereon shall be made to Agent
for its own account. The obligation of Borrowers to repay Swingline Loans shall be evidenced by
the records of Agent and need not be evidenced by any promissory note.

          (b) To facilitate administration of the Revolver Loans, Lenders and Agent agree (which
agreement is solely among them, and not for the benefit of or enforceable by any Borrower) that
settlement among them with respect to Swingline Loans and other Revolver Loans may take place on a
date determined from time to time by Agent, which shall occur at least once each week. On each
settlement date, settlement shall be made with each Lender in accordance with the Settlement Report
delivered by Agent to Lenders. Between settlement dates, Agent may in its discretion apply
payments on Revolver Loans to Swingline Loans, regardless of any designation by Borrower or any
provision herein to the contrary. Each Lender’s obligation to make settlements with Agent is
absolute and unconditional, without offset, counterclaim or other defense, and whether or not the
Revolver Commitments have terminated, an Overadvance exists or the conditions in Section 6 are
satisfied or waived. If, due to an Insolvency Proceeding with respect to a Borrower or otherwise,
any Swingline Loan may not be settled among Lenders hereunder, then each Lender having a Revolver
Commitment shall

 

 

be deemed to have purchased from Agent a Pro Rata participation in each unpaid Swingline Loan and
shall transfer the amount of such participation to Agent, in immediately available funds, within
one Business Day after Agent’s request therefor.

          4.1.4. Notices. Each Borrower authorizes Agent and Lenders (and Agent and Lenders
hereby agree) to extend, convert or continue Loans, effect selections of interest rates, and
transfer funds to or on behalf of Borrowers based on telephonic or e-mailed instructions.
Borrowers shall confirm each such request by prompt delivery to Agent of a Notice of Borrowing or
Notice of Conversion/Continuation, if applicable, but if it differs in any material respect from
the action taken by Agent or Lenders, the records of Agent and Lenders shall govern. Neither Agent
nor any Lender shall have any liability for any loss suffered by a Borrower as a result of Agent or
any Lender acting upon its understanding of telephonic or e-mailed instructions from a person
believed in good faith by Agent or any Lender to be a person authorized to give such instructions
on a Borrower’s behalf.

     4.2. Defaulting Lender. Agent may (but shall not be required to), in its discretion,
retain any payments or other funds received by Agent that are to be provided to a Defaulting Lender
hereunder, and may apply such funds to such Lender’s defaulted obligations or readvance the funds
to Borrowers in accordance with this Agreement. The failure of any Lender to fund a Loan, to make
any payment in respect of LC Obligations or to otherwise perform its obligations hereunder shall
not relieve any other Lender of its obligations, and no Lender shall be responsible for default by
another Lender. Lenders and Agent agree (which agreement is solely among them, and not for the
benefit of or enforceable by any Borrower) that, solely for purposes of determining a Defaulting
Lender’s right to vote on matters relating to the Loan Documents and to share in payments, fees and
Collateral proceeds thereunder, a Defaulting Lender shall not be deemed to be a “Lender” until all
its defaulted obligations have been cured.

     4.3. Number and Amount of LIBOR Loans; Determination of Rate. Each Borrowing of LIBOR
Loans when made shall be in a minimum amount of $1,000,000, plus any increment of $100,000 in
excess thereof. No more than six Borrowings of LIBOR Loans may be outstanding at any time, and all
LIBOR Loans denominated in the same currency and having the same length and beginning date of their
Interest Periods shall be aggregated together and considered one Borrowing for this purpose. Upon
determining LIBOR for any Interest Period requested by Borrowers, Agent shall promptly notify
Borrowers thereof by telephone or electronically and, if requested by Borrowers, shall confirm any
telephonic notice in writing.

     4.4. Borrower Agent. Each Borrower hereby designates the Company (“Borrower Agent”)
as its representative and agent for all purposes under the Loan Documents, including requests for
Loans and Letters of Credit, designation of interest rates, delivery or receipt of communications,
preparation and delivery of Borrowing Base and financial reports, receipt and payment of
Obligations, requests for waivers, amendments or other accommodations, actions under the Loan
Documents (including in respect of compliance with covenants), and all other dealings with Agent,
Issuing Bank or any Lender. Borrower Agent hereby accepts such appointment. Agent and Lenders
shall be entitled to rely upon, and shall be fully protected in relying upon, any notice or
communication (including any Notice of Borrowing) delivered by Borrower Agent on behalf of any
Borrower. Agent and Lenders may give any notice or communication with a Borrower hereunder to
Borrower Agent on behalf of such Borrower. Each of Agent, Issuing Bank and Lenders shall have the
right, in its discretion, to deal exclusively with Borrower Agent for any or all purposes under the
Loan Documents. Each

 

 

Borrower agrees that any notice, election, communication, representation, agreement or undertaking
made on its behalf by Borrower Agent shall be binding upon and enforceable against it, as though
made by such Borrower.

     4.5. Obligations. All Revolver Loans, LC Obligations and other Obligations shall
constitute one general obligation of Borrowers and (unless otherwise expressly provided in any Loan
Document) shall be secured by Agent’s Lien upon all Borrowers’ Collateral.

     4.6. Effect of Termination. On the effective date of the termination of the Revolver
Commitments, all Obligations shall be immediately due and payable, and any Lender may terminate its
and its Affiliates’ Bank Products (including, only with the consent of Agent, any Cash Management
Services). All undertakings of Borrowers contained in the Loan Documents shall survive any
termination, and Agent shall retain its Liens in the Collateral and all of its rights and remedies
under the Loan Documents until Full Payment of the Obligations. Notwithstanding Full Payment of
the Obligations, Agent shall not be required to terminate its Liens in any Collateral unless, with
respect to any damages Agent may incur as a result of the dishonor or return of Payment Items
applied to Obligations, Agent receives (a) a written agreement, executed by Borrowers and any
Person whose advances are used in whole or in part to satisfy the Obligations, indemnifying Agent
and Lenders from any such damages; or (b) such Cash Collateral as Agent, in its Permitted
Discretion, deems necessary to protect against any such damages. Sections 2.3, 3.4, 3.6, 3.7, 3.9,
5.5, 5.9, 5.10, 12, 15.2 and this Section, and the obligation of each Obligor and Lender with
respect to each indemnity given by it in any Loan Document, shall survive Full Payment of the
Obligations and any release relating to this credit facility.

SECTION 5. PAYMENTS

     5.1. General Payment Provisions. All payments of Obligations shall be made in
Dollars, without offset, counterclaim or defense of any kind, free of (and without deduction for)
any Taxes, and in immediately available funds, not later than 12:00 noon Chicago time on the due
date. Any payment after such time shall be deemed made on the next Business Day. Any payment of a
LIBOR Loan prior to the end of its Interest Period shall be accompanied by all amounts due under
Section 3.9. Any prepayment of Revolver Loans shall be applied first to Base Rate Loans and then
to LIBOR Loans.

     5.2. Repayment of Revolver Loans. Revolver Loans shall be due and payable in full on
the Revolver Termination Date, unless payment is sooner required hereunder. Revolver Loans may be
prepaid from time to time, without penalty or premium. If any Asset Disposition includes the
disposition of Eligible Accounts or Eligible Inventory, Net Proceeds equal to the greater of (a)
the net book value of such Accounts and Inventory, or (b) the reduction in the Borrowing Base, upon
giving effect to such disposition, shall be applied to the Revolver Loans. Notwithstanding
anything herein to the contrary, if an Overadvance exists, Borrowers shall, on the sooner of
Agent’s demand or the first Business Day after any Borrower has knowledge thereof, repay the
outstanding Revolver Loans in an amount sufficient to reduce the principal balance of such Revolver
Loans to the Borrowing Base.

     5.3.  Repayment. 

          5.3.1.  Mandatory Prepayments. 

 

 

          (a) Within five Business Days of the receipt of any proceeds of insurance or condemnation
awards paid in respect of any Equipment or Real Estate, Borrowers shall prepay Revolver Loans and
Borrowers shall permanently reduce the Revolver Commitments; provided, that (i) Borrowers
shall not be required to effect such permanent reduction in the Revolver Commitments unless the
failure to effect such permanent reduction would create an obligation of any Borrower to make an
offer to repurchase the Second Lien Notes and (ii) such Net Proceeds shall not be required to be so
applied on such date to the extent that Borrower Agent shall have delivered an officer’s
certificate to Agent on or prior to such date stating that such proceeds shall actually be used to
acquire Property useful in the business of the Obligors within 180 days (or such longer period as
Agent shall consent to in writing) of receipt of such Net Proceeds (or a binding commitment to
acquire such Property is entered into within 180 days and such reinvestment is actually made within
360 days or, in each case, such period as Agent shall consent to in writing), provided
further, that (i) no Default or Event of Default exists, (ii) the replaced Property is free
of Liens, other than Permitted Liens; and (iii) the aggregate amount of such proceeds or awards
from any single casualty or condemnation does not exceed $1,000,000. Borrowers shall prepay
Revolver Loans in the amount of any Net Proceeds not actually reinvested within such 180 or 360, as
applicable, day period (or such period as consented to by Agent hereunder) and reduce the Revolver
Commitments in an amount equal to such prepayment.

          (b) On the Commitment Termination Date, Borrowers shall prepay all Revolver Loans (unless
sooner repaid hereunder).

     5.4. Payment of Other Obligations. Obligations other than Loans, including LC
Obligations and Extraordinary Expenses, shall be paid by Borrowers as provided in the Loan
Documents or, if no payment date is specified, on demand.

     5.5. Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any
obligation to marshal any assets in favor of any Obligor or against any Obligations. If any
payment by or on behalf of Borrowers is made to Agent, Issuing Bank or any Lender, or Agent,
Issuing Bank or any Lender exercises a right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by Agent, Issuing Bank or
such Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then to the
extent of such recovery, the Obligation originally intended to be satisfied, and all Liens, rights
and remedies relating thereto, shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred.

     5.6. Allocation of Payments.

          5.6.1. Allocations Generally. Absent an Event of Default, monies to be applied to
Obligations from payments by Obligors, shall be allocated as follows:

          (a) if a specific payment of principal, interest, fees or other sum payable under the Loan
Documents, according to the instruction of Borrower Agent;

          (b) if a mandatory prepayment, according to Section 5.3.1; and

          (c) if any other amount, applied to the Obligations at the discretion of Agent.

 

 

          5.6.2. Post-Default Allocation. During an Event of Default, monies to be applied to
the Obligations, whether arising from payments by Obligors, realization on Collateral, setoff or
otherwise, shall be allocated as follows:

          (a) first, to all costs and expenses, including Extraordinary Expenses, owing to
Agent;

          (b) second, to all amounts owing to Agent on Swingline Loans;

          (c) third, to all amounts owing to Issuing Bank on LC Obligations;

          (d) fourth, to all Obligations constituting fees (excluding amounts relating to Bank
Products);

          (e) fifth, to all Obligations constituting interest (excluding amounts relating to
Bank Products);

          (f) sixth, to provide Cash Collateral for outstanding Letters of Credit;

          (g) seventh, to all other Obligations other than Bank Product Debt;

          (h) eighth, to Bank Product Debt to the extent reserved for in the Borrowing Base;

          (i) ninth, to Bank Product Debt; and

          (j) tenth, to the Borrower.

          5.6.3. Application of Amounts. Amounts shall be applied to each category of
Obligations set forth in Section 5.6.2 until Full Payment thereof and then to the next category.
If amounts are insufficient to satisfy a category, they shall be applied on a pro rata basis among
the Obligations in the category. Amounts distributed with respect to any Bank Product Debt shall
be the lesser of the applicable Bank Product Amount last reported to Agent or the actual Bank
Product Debt as calculated by the methodology reported to Agent for determining the amount due.
Agent shall have no obligation to calculate the amount to be distributed with respect to any Bank
Product Debt, but may rely upon written notice of the amount (setting forth a reasonably detailed
calculation) from the Secured Party. In the absence of such notice, Agent may assume the amount to
be distributed is the Bank Product Amount last reported to it. The allocations set forth in
Section 5.6.2 are solely to determine the rights and priorities of Agent and Lenders as among
themselves, and may be changed by agreement among them without the consent of any Obligor. Section
5.6.2 is not for the benefit of or enforceable by any Borrower.

          5.6.4. Erroneous Application. Agent shall not be liable for any application of
amounts made by it in good faith and, if any such application is subsequently determined to have
been made in error, the sole recourse of any Lender or other Person to which such amount should
have been made shall be to recover the amount from the Person that actually received it (and, if
such amount was received by any Lender, such Lender hereby agrees to return it).

     5.7. Application of Payments. The ledger balance in the main Dominion Account as of
the end of a Business Day shall be applied to the Obligations at the beginning of the next

 

 

Business Day. If, as a result of such application, a credit balance exists, the balance shall not
accrue interest in favor of Borrowers and shall be made available to Borrowers as long as no
Default or Event of Default exists. Each Borrower irrevocably waives the right to direct the
application of any payments or Collateral proceeds, and agrees that Agent shall have the
continuing, exclusive right to apply and reapply same against the Obligations, in such manner as
Agent deems advisable, subject to the proviso in Section 5.6.2 and the following sentence.

     5.8. Loan Account; Account Stated.

          5.8.1. Loan Account. Agent shall maintain in accordance with its usual and customary
practices an account or accounts (“Loan Account”) evidencing the Debt of Borrowers resulting from
each Loan or issuance of a Letter of Credit from time to time. Any failure of Agent to record
anything in the Loan Account, or any error in doing so, shall not limit or otherwise affect the
obligation of Borrowers to pay any amount owing hereunder. Agent may maintain a single Loan
Account in the name of each relevant Borrower for the account of the Obligations. Each Borrower
confirms that such arrangement shall have no effect on the joint and several character of its
liability with each other Borrower for the Obligations.

          5.8.2. Entries Binding. Entries made in the Loan Accounts shall constitute
presumptive evidence of the information contained therein. If any information contained in the
Loan Accounts are provided to or inspected by any Person, then such information shall be conclusive
and binding on such Person for all purposes absent manifest error, except to the extent such Person
notifies Agent in writing within 30 days after receipt or inspection that specific information is
subject to dispute.

     5.9. Taxes.

          5.9.1. Payments Free of Taxes. Except as otherwise provided in this Section 5.9, all
payments by Obligors of Obligations shall be free and clear of and without reduction for any Taxes.
If Applicable Law requires any Obligor or Agent to withhold or deduct any Tax (including backup
withholding or withholding Tax), the withholding or deduction shall be based on information
provided pursuant to Section 5.10 and Agent shall pay the amount withheld or deducted to the
relevant Governmental Authority. If the withholding or deduction is made on account of Indemnified
Taxes or Other Taxes, the sum payable by Borrowers shall be increased so that Agent, Lender or
Issuing Bank, as applicable, receives an amount equal to the sum it would have received if no such
withholding or deduction (including deductions applicable to additional sums payable under this
Section) had been made. Without limiting the foregoing, Borrowers shall timely pay all Other Taxes
to the relevant Governmental Authorities.

          5.9.2. Payment. Borrowers shall indemnify, hold harmless and reimburse (within 10
days after demand therefor) Agent, Lenders and Issuing Bank for any Indemnified Taxes or Other
Taxes (including those attributable to amounts payable under this Section) withheld or deducted by
any Obligor or Agent, or paid by Agent, any Lender or Issuing Bank, with respect to any
Obligations, Letters of Credit or Loan Documents, whether or not such Taxes were properly asserted
by the relevant Governmental Authority, and including all penalties, interest and reasonable
expenses relating thereto, as well as any amount that a Lender or Issuing Bank fails to pay to
Agent under Section 5.10. A certificate as to the amount of any such payment or liability
delivered to Borrower Agent by Agent, or by a Lender or Issuing Bank (with a copy to Agent), shall
be conclusive, absent manifest error. As soon as practicable after any

 

 

payment of Indemnified Taxes or Other Taxes by a Borrower, Borrower Agent shall deliver to Agent a
receipt from the Governmental Authority or other evidence of payment reasonably satisfactory to
Agent.

     5.10. Lender Tax Information.

          5.10.1. Status of Lenders. Each Lender shall deliver documentation and information to
Agent and Borrower Agent, at the times and in form required by Applicable Law or reasonably
requested by Agent or Borrower Agent, sufficient to permit Agent or Borrowers to determine (a)
whether or not payments made with respect to Obligations are subject to Taxes, (b) if applicable,
the required rate of withholding or deduction, and (c) such Lender’s entitlement to any available
exemption from, or reduction of, applicable Taxes for such payments or otherwise to establish such
Lender’s status for withholding tax purposes in the applicable jurisdiction. Nothing in this
Section 5.10.1 shall be construed as requiring any Lender to make available it tax returns (or any
other information relating to its Taxes) which it deems confidential to the relevant Borrower or
any Person.

          5.10.2. Documentation. If a Borrower is resident for tax purposes in the United
States, any Lender that is a “United States person” within the meaning of section 7701(a)(30) of
the Code shall deliver to Agent and Borrower Agent IRS Form W-9 or such other documentation or
information prescribed by Applicable Law or reasonably requested by Agent or Borrower Agent to
determine whether such Lender is subject to backup withholding or information reporting
requirements. If any Foreign Lender is entitled to any exemption from or reduction of withholding
tax for payments with respect to the Obligations, it shall deliver to Agent and Borrower Agent, on
or prior to the date on which it becomes a Lender hereunder (and from time to time thereafter upon
request by Agent or Borrower Agent, but only if such Foreign Lender is legally entitled to do so),
(a) IRS Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United
States is a party; (b) IRS Form W-8ECI; (c) IRS Form W-8IMY and all required supporting
documentation; (d) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, IRS Form W-8BEN and a certificate showing such
Foreign Lender is not (i) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (ii) a
“10 percent shareholder” of any Obligor within the meaning of section 881(c)(3)(B) of the Code, or
(iii) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code; or (e) any
other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in
withholding tax, together with such supplementary documentation necessary to allow Agent and
Borrowers to determine the withholding or deduction required to be made.

          5.10.3. Lender Obligations. Each Lender and Issuing Bank shall promptly notify
Borrowers and Agent of any change in circumstances that would change any claimed Tax exemption or
reduction. Each Lender and Issuing Bank shall indemnify, hold harmless and reimburse (within 10
days after demand therefor) Borrowers and Agent for any Taxes, losses, claims, liabilities,
penalties, interest and expenses (including reasonable attorneys’ fees) incurred by or asserted
against a Borrower or Agent by any Governmental Authority due to such Lender’s or Issuing Bank’s
failure to deliver, or inaccuracy or deficiency in, any documentation required to be delivered by
it pursuant to this Section. Each Lender and Issuing Bank authorizes Agent to set off any amounts
due to Agent under this Section against any amounts payable to such Lender or Issuing Bank under
any Loan Document.

 

 

     5.11. Nature and Extent of Each Borrower’s Liability.

          5.11.1. Joint and Several Liability. Each Borrower agrees that it is jointly and
severally liable for and absolutely and unconditionally guarantees to Agent and Lenders the prompt
payment and performance of, all Obligations and all agreements under the Loan Documents. Each
Borrower agrees that its guaranty obligations hereunder constitute a continuing guaranty of payment
and not of collection, that such obligations shall not be discharged until Full Payment of the
Obligations and that to the extent permitted by Applicable Law, such obligations are absolute and
unconditional, irrespective of (a) the genuineness, validity, regularity, enforceability,
subordination or any future modification of, or change in, any Obligations or Loan Document, or any
other document, instrument or agreement to which any Obligor is or may become a party or be bound;
(b) the absence of any action to enforce this Agreement (including this Section) or any other Loan
Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with respect
thereto; (c) the existence, value or condition of, or failure to perfect a Lien or to preserve
rights against, any security or guaranty for the Obligations or any action, or the absence of any
action, by Agent or any Lender in respect thereof (including the release of any security or
guaranty); (d) the insolvency of any Obligor; (e) any election by Agent or any Lender in an
Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy Code (or the
equivalent in any applicable jurisdiction); (f) any borrowing or grant of a Lien by any other
Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise (or the
equivalent in any applicable jurisdiction); (g) the disallowance of any claims of Agent or any
Lender against any Obligor for the repayment of any Obligations under Section 502 of the Bankruptcy
Code or otherwise (or the equivalent in any applicable jurisdiction); or (h) any other action or
circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor, except Full Payment of all Obligations.

          5.11.2. Waivers.

          (a) To the extent permitted by Applicable Law, each Borrower expressly waives all rights that
it may have now or in the future under any statute, at common law, in equity or otherwise, to
compel Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or
security for the payment or performance of any Obligations before, or as a condition to, proceeding
against such Borrower. To the extent permitted by Applicable Law, each Borrower waives all
defenses available to a surety, guarantor or accommodation co-obligor other than Full Payment of
all Obligations. It is agreed among each Borrower, Agent and Lenders that the provisions of this
Section 5.11 are of the essence of the transaction contemplated by the Loan Documents and that, but
for such provisions, Agent and Lenders would decline to make Loans and issue Letters of Credit.
Each Borrower acknowledges that its guaranty pursuant to this Section is necessary to the conduct
and promotion of its business, and can be expected to benefit such business.

          (b) Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem
appropriate, including realization upon Collateral or any Real Estate by judicial foreclosure or
non-judicial sale or enforcement, without affecting any rights and remedies under this Section
5.11. If, in taking any action in connection with the exercise of any rights or remedies, Agent or
any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency
judgment against any Borrower or other Person, whether because of any Applicable Laws pertaining to
“election of remedies” or otherwise, each Borrower consents

 

 

to such action and waives to the extent permitted by Applicable Law any claim based upon it, even
if the action may result in loss of any rights of subrogation that any Borrower might otherwise
have had. Any election of remedies that results in denial or impairment of the right of Agent or
any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s
obligation to pay the full amount of the Obligations. Each Borrower waives to the extent permitted
by Applicable Law all rights and defenses arising out of an election of remedies, such as
non-judicial foreclosure with respect to any security for the Obligations, even though that
election of remedies destroys such Borrower’s rights of subrogation against any other Person.
Agent may bid all or a portion of the Obligations at any foreclosure or trustee’s sale or at any
private sale, and the amount of such bid need not be paid by Agent but shall be credited against
the Obligations. The amount of the successful bid at any such sale, whether Agent or any other
Person 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
5.11, notwithstanding that any present or future law or court decision 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.

          5.11.3. Extent of Liability; Contribution.

          (a) Notwithstanding anything herein to the contrary, each Borrower’s liability under this
Section 5.11 shall be limited to the greater of (i) all amounts for which such Borrower is
primarily liable, as described below, and (ii) such Borrower’s Allocable Amount.

          (b) If any Borrower makes a payment under this Section 5.11 of any Obligations (other than
amounts for which such Borrower is primarily liable) (a “Guarantor Payment”) that, taking
into account all other Guarantor Payments previously or concurrently made by any other Borrower,
exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the
aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such
Borrower’s Allocable Amount bore to the total Allocable Amounts of all Borrowers, then such
Borrower shall be entitled to receive contribution and indemnification payments from, and to be
reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their
respective Allocable Amounts in effect immediately prior to such Guarantor Payment. The
“Allocable Amount” for any Borrower shall be the maximum amount that could then be
recovered from such Borrower under this Section 5.11 without rendering such payment voidable under
Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance
act, or similar statute or common law.

          (c) Nothing contained in this Section 5.11 shall limit the liability of any Borrower to pay
Loans made directly or indirectly to that Borrower (including Loans advanced to any other Borrower
and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower), LC
Obligations relating to Letters of Credit issued to support such Borrower’s business, and all
accrued interest, fees, expenses and other related Obligations with respect thereto, for which such
Borrower shall be primarily liable for all purposes hereunder. Agent and Lenders shall have the
right, at any time in their Permitted Discretion, to condition Loans and Letters of Credit upon a
separate calculation of borrowing availability for each Borrower and to restrict the disbursement
and use of such Loans and Letters of Credit to such Borrower.

 

 

          5.11.4. Joint Enterprise. Each Borrower has requested that Agent and Lenders make
this credit facility available to Borrowers on a combined basis, in order to finance Borrowers’
business most efficiently and economically. Borrowers’ business is a mutual and collective
enterprise, and Borrowers believe that consolidation of their credit facility will enhance the
borrowing power of each Borrower and ease the administration of their relationship with Lenders,
all to the mutual advantage of Borrowers. Borrowers acknowledge and agree that Agent’s and
Lenders’ willingness to extend credit to Borrowers and to administer the Collateral on a combined
basis, as set forth herein, is done solely as an accommodation to Borrowers and at Borrowers’
request.

          5.11.5. Subordination. Each Borrower hereby subordinates any claims, including any
rights at law or in equity to payment, subrogation, reimbursement, exoneration, contribution,
indemnification or set off, that it may have at any time against any other Obligor, howsoever
arising, to the Full Payment of all Obligations, subject to Section 10.2.9.

SECTION 6. CONDITIONS PRECEDENT

     6.1. Conditions Precedent to Initial Loans. The conditions precedent to the
obligations of the Lenders to fund any requested Loan, issue any Letter of Credit, or otherwise
extend credit to Borrowers under the Original Credit Agreement on the Original Closing Date, in
addition to the conditions set forth in Section 6.3, were satisfied or waived as of the Original
Closing Date and were the following:

          (a) Notes shall have been executed by Borrowers and delivered to each Lender that requests
issuance of a Note. Each other Loan Document shall have been duly executed and delivered to Agent
by each of the signatories thereto, and each Obligor shall be in compliance with all terms thereof;

          (b) Agent shall have received UCC and Lien searches and other evidence satisfactory to Agent
that the only Liens upon the Collateral Permitted Liens;

          (c) Agent shall have received the Related Real Estate Documents for all Real Estate listed on
Schedule 7.4 hereto and subject to a Mortgage;

          (d) Agent shall have received duly executed agreements establishing each Dominion Account and
related lockbox, in form and substance, and with financial institutions, reasonably satisfactory to
Agent;

          (e) Agent shall have received certificates, in form and substance reasonably satisfactory to
it, from a knowledgeable Senior Officer of each Borrower certifying that, after giving effect to
the initial Loans and transactions hereunder, (i) the Borrowers (taken as a whole) are Solvent;
(ii) no Default or Event of Default exists; (iii) the representations and warranties set forth in
Section 9 are true and correct; and (iv) such Borrower has complied with all agreements and
conditions to be satisfied by it under the Loan Documents.

          (f) Agent shall have received a certificate of a duly authorized officer of each Obligor,
certifying (i) that attached copies of such Obligor’s Organic Documents are true and complete, and
in full force and effect, without amendment except as shown; (ii) that an attached copy of
resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that
such resolutions are in full force and effect, were duly adopted, have not been

 

 

amended, modified or revoked, and constitute all resolutions adopted with respect to this credit
facility; and (iii) to the title, name and signature of each Person authorized to sign the Loan
Documents. Agent may conclusively rely on this certificate until it is otherwise notified by the
applicable Obligor in writing;

          (g) Agent shall have received a specimen of the signature of each Person authorized by the
resolution referred to in paragraph (f) above in relation to the Loan Documents and related
documents and executing Loan Documents on the Original Closing Date;

          (h) Agent shall have received evidence that any process agent referred to in Section 15.12 has
accepted its appointment;

          (i) Agent shall have received a written opinion of Kirkland & Ellis LLP, as well as any local
real estate counsel to Borrowers or Agent, in form and substance reasonably satisfactory to Agent;

          (j) Agent shall have received copies of the charter documents of each Obligor, certified by
the Secretary of State or other appropriate official of such Obligor’s jurisdiction of
organization. Agent shall have received good standing certificates, as applicable, for each
Obligor, issued by the Secretary of State or other appropriate official of such Obligor’s
jurisdiction of organization and each jurisdiction where such Obligor’s conduct of business or
ownership of Property necessitates qualification;

          (k) Agent shall have received copies of policies or certificates of insurance for the
insurance policies carried by Borrowers, all in compliance with the Loan Documents;

          (l) Agent and Lead Arrangers shall have completed their business, financial and legal due
diligence of Obligors, including Agent’s roll-forward of its previous field examination, with
results satisfactory to Agent and Lead Arrangers. No material adverse change in the business,
assets, property, liabilities, operations or financial condition of the Obligors taken as a whole
shall have occurred since December 31, 2007;

          (m) Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders on the
Original Closing Date;

          (n) Agent and Lead Arrangers shall have received financial projections in form and substance
satisfactory for them for each year through the Commitment Termination Date (with the current year
to be presented on a month-by month basis) and interim consolidated financial statements for the
Company and its Subsidiaries for the period ending not more than 30 days prior to the Original
Closing Date;

          (o) Agent shall have received a Borrowing Base Certificate prepared as of November 30, 2008.
Upon giving effect to the initial funding of Loans and issuance of Letters of Credit, and the
payment by Borrowers of all fees and expenses incurred in connection herewith as well as any
payables stretched beyond their customary payment practices, Availability shall be at least
$17,500,000; and

          (p) a copy of any other authorization or other document, opinion or assurance which Agent
reasonably deems necessary or desirable in connection with the entry into and

 

 

performance of the transactions contemplated by any Loan Document or for the validity and
enforceability of any Loan Document.

     6.2. Conditions Precedent to Restatement Effective Date. This Agreement shall not
become effective until the date on which each of the following conditions is satisfied or waived in
writing by Agent and the Lenders:

          (a) This Agreement has been executed by each Borrower, Obligor, Agent and Lenders, and
counterparts hereof as so executed shall have been delivered to Agent;

          (b) Agent shall have received an affirmation and consent from each Obligor in form, scope and
substance reasonably satisfactory to Agent.

          (c) Agent shall be satisfied in its sole discretion with the terms of the Second Lien Note
Documents and the Intercreditor Agreement and all related documents;

          (d) Substantially contemporaneously with the Restatement Effective Date, the Company shall
have received gross proceeds from the issuance of the Second Lien Notes in an aggregate amount
equal to at least $250,000,000, which cash proceeds shall be used to prepay the Existing Second
Lien Term Loan, and to pay the purchase price for each of the Third Lien Notes and Existing Senior
Notes tendered pursuant to the Tender Offer, to voluntarily redeem the Third Lien Notes and
Existing Senior Notes which remain outstanding after the consummation of the Tender Offer and to
pay fees, expenses and premiums in connection therewith and for other general corporate purposes;

          (e) Borrowers shall have delivered fully executed amended and restated Deposit Account Control
Agreements, or replacements to existing Deposit Account Control Agreements, in each case in favor
of the Agent on terms satisfactory to the Agent with respect to any Deposit Accounts (other than
Deposit Accounts excluded pursuant to Section 7.3) of Borrowers;

          (f) Agent shall have received certificates, in form and substance reasonably satisfactory to
it, from a knowledgeable Senior Officer of Obligors certifying that, after giving effect to the
initial Loans and transactions hereunder occurring on the Restatement Effective Date, (i) the
Obligors (taken as a whole) are Solvent; (ii) no Default or Event of Default exists; and (iii) the
representations and warranties set forth in Section 9 are true and correct;

          (g) Agent shall have received a certificate of a duly authorized officer of each Obligor,
certifying (i) that attached copies of such Obligor’s Organic Documents are true and complete, and
in full force and effect, without amendment except as shown; (ii) that an attached copy of
resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that
such resolutions are in full force and effect, were duly adopted, have not been amended, modified
or revoked, and constitute all resolutions adopted with respect to this credit facility; and (iii)
that the charter documents of each Obligor have not been amended or modified since the Original
Closing Date, or if any such charter documents have been so amended or modified, Agent shall have
received copies of the charter documents of each Obligor, certified by the Secretary of State or
other appropriate official of such Obligor’s jurisdiction of organization.

 

 

          (h) Agent shall have received good standing certificates, as applicable, for each Obligor,
issued by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of
organization and each jurisdiction where such Obligor’s conduct of business or ownership of
Property necessitates qualification;

          (i) Agent shall have received a written opinion of Kirkland & Ellis LLP in form and substance
reasonably satisfactory to Agent;

          (j) Borrowers have paid all reasonable out-of-pocket fees and expenses of Agent and of legal
counsel to Agent that have been invoiced on or prior to the Restatement Effective Date in
connection with the preparation, negotiation, execution and delivery of this Agreement; and

          (k) Agent shall have received, contemporaneously with the Effective Date, evidence from the
Company that the Second Lien Term Loans have been repaid in full substantially contemporaneously
with the Effective Date and the Liens securing the obligations under the Second Lien Term Loans
have been released (or will be released contemporaneously with such repayment).

          (l) The Tender Offer is consummated substantially concurrently with the effectiveness of this
Agreement, with the tender of at least 50.1% of the principal amount of each of the Third Lien
Notes and the Existing Senior Notes, with supplemental indentures amending each of the Third Lien
Indenture and the indenture governing the Existing Senior Notes having become effective
contemporaneously with the Effective Date, and Agent having received evidence that the Liens
securing the obligations under the Third Lien Notes have been released (or will be released
contemporaneously with the effectiveness of the supplemental indenture).

          (m) The Company shall have paid to the Agent, for its own benefit, the amendment fee pursuant
to the Fee Letter.

     6.3. Conditions Precedent to All Credit Extensions. Agent, Issuing Bank and Lenders
shall not be required to fund any Loans or arrange for issuance of any Letters of Credit unless the
following conditions are satisfied:

          (a) No Default or Event of Default shall exist at the time of, or result from, such funding,
issuance or grant;

          (b) The representations and warranties of each Obligor in the Loan Documents shall be true and
correct in all material respects on the date of, and upon giving effect to, such funding, issuance
or grant (except for representations and warranties that expressly relate to an earlier date, and,
in each such case, shall be true and correct in all material respects as of such earlier date);

          (c) All conditions precedent in any other Loan Document shall be satisfied or waived; and

          (d) With respect to issuance of a Letter of Credit, the LC Conditions shall be satisfied.

 

 

Each request (or deemed request) by Borrowers for funding of a Loan, issuance of a Letter of Credit
or grant of an accommodation shall constitute a representation by Borrowers that the foregoing
conditions are satisfied or waived on the date of such request and on the date of such funding,
issuance or grant.

SECTION 7. COLLATERAL

     7.1. Grant of Security Interest. To secure the prompt payment and performance of all
Obligations, each Borrower and Guarantor hereby grants to Agent for the benefit of Secured Parties,
a continuing security interest in and Lien upon all Property of such Borrower, including all of the
following Property, whether now owned or hereafter acquired, and wherever located:

          (a) all Accounts;

          (b) all Chattel Paper, including electronic chattel paper;

          (c) all Commercial Tort Claims listed on Schedule 7.1 (as amended from time to time);

          (d) all Deposit Accounts;

          (e) all Documents;

          (f) all General Intangibles, including Intellectual Property (excluding intent to use
trademark applications and contracts that prohibit the granting of security interests or
encumbrances);

          (g) all Goods, including Inventory, Equipment and fixtures;

          (h) all Instruments;

          (i) all Investment Property;

          (j) all Letter-of-Credit Rights;

          (k) all Supporting Obligations;

          (l) all monies, whether or not in the possession or under the control of Agent, a Lender, or a
bailee or Affiliate of Agent or a Lender, including any Cash Collateral;

          (m) all accessions to, substitutions for, and all replacements, products, and cash and
non-cash proceeds of the foregoing, including proceeds of and unearned premiums with respect to
insurance policies, and claims against any Person for loss, damage or destruction of any
Collateral; and

          (n) all books and records (including customer lists, files, correspondence, tapes, computer
programs, print-outs and computer records) pertaining to the foregoing.

Notwithstanding the foregoing, in no event shall any of the following Property be subject to the
grant of security pursuant to this Section 7.1 or otherwise constitute Collateral: (i) all motor
vehicles and other assets subject to a certificate of title (other than aircraft) the perfection of
a

 

 

security interest in which is excluded from the UCC in the relevant jurisdiction; (ii) any General
Intangible or other rights arising under contracts, Instruments, licenses, license agreements
(including Licenses) or other documents, to the extent (and only to the extent) that the grant of a
security interest would (x) constitute a violation of a restriction in favor of a third party on
such grant, unless and until any required consents shall have been obtained, (y) give any other
party the right to terminate its obligations thereunder, or (z) violate any law, provided, however,
that (1) any portion of any such General Intangible or other right shall cease to be excluded
pursuant to this clause (ii) at the time and to the extent that the grant of a security interest
therein does not result in any of the consequences specified above and (2) the limitation set forth
in this clause (ii) above shall not affect, limit, restrict or impair the grant by a Grantor of a
security interest pursuant to this Agreement in any such General Intangible or other right, to the
extent that an otherwise applicable prohibition or restriction on such grant is rendered
ineffective by any applicable law, including the Illinois UCC, (iii) Property (and proceeds
thereof) owned by any Obligor on the date hereof or hereafter acquired that is subject to a Lien
securing a purchase money obligation or Capital Lease permitted to be incurred pursuant to this
Agreement, for so long as the contract or other agreement in which such Lien is granted (or the
documentation providing for such purchase money obligation or Capital Lease) validly prohibits the
creation of any other Lien on such Property; (iv) applications filed in the United States Patent
and Trademark Office to register trademarks or service marks on the basis of any Obligor’s “intent
to use” such trademarks or service marks unless and until the filing of a “Statement of Use” or
“Amendment to Allege Use” has been filed and accepted, whereupon such applications shall be
automatically subject to the Lien granted herein and deemed included in the Collateral; (v) any
property or assets to the extent that such grant of a security interest is prohibited by any
Applicable Law, requires a consent not obtained of any Governmental Authority pursuant to such
Applicable Law; (vi) more than 65% of the Equity Interests of any Foreign Subsidiary which
represent Voting Stock to the extent a greater percentage would result in adverse tax consequences
to the Borrowers; (vii) all tax, payroll, employee benefit, fiduciary and trust accounts; (viii)
accounts receivable and any assets related thereto owned by an Excluded Receivables Subsidiary or
which the Company or its Subsidiaries have agreed to transfer to an Excluded Receivables
Subsidiary; or (ix) de minimus Equity Interests of any indirect Foreign Subsidiary or other foreign
Person directly held by a Borrower or any Guarantor solely for the benefit of any Person other than
any Borrower or any Guarantor (clauses (i) through (ix) collectively, the “Excluded Collateral”).
Furthermore, any assets or Property constituting “Excluded Collateral” are expressly excluded from
each term used in the definition of Collateral (and any component definition thereof); provided,
that in no event shall any Collateral that is also Eligible Inventory be considered “Excluded
Collateral” for any purpose.”

     7.2. [RESERVED].

     7.3. Lien on Deposit Accounts; Cash Collateral.

          7.3.1. Deposit Accounts. To further secure the prompt payment and performance of all
Obligations, each Borrower hereby grants to Agent, for the benefit of Secured Parties, a continuing
security interest in and Lien upon all amounts credited to any Deposit Account of such Borrower,
including any sums in any blocked or lockbox accounts or in any accounts into which such sums are
swept. Each Borrower hereby authorizes and directs each bank or other depository to deliver to
Agent, during any Cash Dominion Trigger Period, on a daily basis, all balances in any Deposit
Account (other than payroll, tax, petty cash, employee

 

 

benefit and trust deposit accounts) maintained by such Borrower, for application to the
Obligations, without inquiry into the authority and right of Agent to make such request.

          7.3.2. Cash Collateral. Any Cash Collateral shall be invested, at Borrower Agent’s
election, in Cash Equivalents, and Agent shall have no responsibility for any investment or loss.
Each Borrower hereby grants to Agent, for the benefit of Secured Parties, a security interest in
all Cash Collateral held from time to time and all proceeds thereof, as security for the
Obligations, whether such Cash Collateral is held in a Cash Collateral Account or elsewhere. Agent
may apply Cash Collateral in Deposit Accounts to the payment of any Obligations in accordance with
the provisions of Section 5.6, as they become due and payable. Each Cash Collateral Account and
all Cash Collateral shall be under the sole dominion and control of Agent. No Borrower or other
Person claiming through or on behalf of any Borrower shall have any right to any Cash Collateral,
until Full Payment of all Obligations or such amounts are due to be returned to the Borrowers in
accordance with the terms of this Agreement.

     7.4. Real Estate Collateral.

          7.4.1. Lien on Real Estate. The Obligations shall also be secured by Mortgages upon
all owned Real Estate owned by Borrowers, as listed on Schedule 7.4 hereto. The Mortgages shall be
duly recorded, at Borrowers’ expense, in each office where such recording is required to constitute
a fully perfected Lien on the Real Estate covered thereby. If any Borrower acquires any owned Real
Estate hereafter, Borrowers shall promptly notify Agent of such acquisition and shall, within 45
days of Agent’s request, execute, deliver and record a Mortgage sufficient to create a first
priority Lien (subject to Permitted Liens) in favor of Agent on such Real Estate, and shall
promptly deliver all Related Real Estate Documents.

          7.4.2. Collateral Assignment of Leases. To further secure the prompt payment and
performance of all Obligations, each Borrower hereby grants a security interest and collaterally
assigns to Agent, for the benefit of Secured Parties, all of such Borrower’s right, title and
interest in, to and under all now or hereafter existing leases of real Property to which such
Borrower is a party, whether as lessor or lessee, and all extensions, renewals, modifications and
proceeds thereof; provided, however, the foregoing provision shall exclude any real
Property lease (i) in which Borrower is expressly prohibited from assigning or transferring its
right, title and interest to such real Property lease or (ii) in which such collateral assignment
or grant of security interest would cause a default thereunder, a loss of rights by such Borrower
therein or thereunder or an increase in the obligations of such Borrower (other than an obligation
to provide notice or other ministerial acts); provided, further that in the event consent
is obtained for such assignment and/or transfer, upon the granting of the consent, the real
Property lease so excluded from this collateral assignment shall, by virtue of this proviso
(without any act or delivery by any Person), be then subject to the collateral assignment set forth
in this Section 7.4.2.

     7.5. Other Collateral.

          7.5.1. Commercial Tort Claims. Borrowers shall promptly notify Agent in writing if
any Borrower obtains knowledge that it holds a Commercial Tort Claim (other than, as long as no
Default or Event of Default exists, a Commercial Tort Claim for less than $1,000,000) and, upon
Agent’s request, shall promptly take such actions as Agent deems appropriate to confer upon Agent
(for the benefit of Secured Parties) a duly perfected, first priority Lien upon such claim.

 

 

          7.5.2. Certain After-Acquired Collateral. Borrowers shall promptly notify Agent in
writing if, after the Restatement Effective Date, any Borrower obtains any interest in any
Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Investment
Property or Letter-of-Credit Rights, and, upon Agent’s request, shall promptly take such actions as
Agent deems appropriate to effect Agent’s duly perfected, first priority (subject to Permitted
Liens) Lien upon such Collateral (which is not yet subject to a Lien in favor of Agent), including
obtaining any appropriate possession, control agreement or Lien Waiver. Borrower Agent shall
provide Agent, on a quarterly basis, notification of any Intellectual Property or rights therein
obtained since the last day of the previous Fiscal Quarter, including the owner of such
Intellectual Property and a detailed description thereof. If any Collateral (other than (i)
Property in transit among locations of Borrowers, (ii) Inventory out for processing, and (iii)
Property out for repair or refurbishment or Property in the possession of employees in the Ordinary
Course of Business, in each case with respect to this clause (iii), valued at less than $500,000),
is in the possession of a third party, at Agent’s request, Borrowers shall use commercially
reasonable efforts to obtain an acknowledgment that such third party holds the Collateral for the
benefit of Agent.

          7.5.3. Aircraft. The Obligations shall also be secured by a security agreement
granting Agent a security interest in any aircraft owned by Borrowers. Such security agreement
shall be duly recorded, at Borrowers’ expense, with the International Registry (as defined in such
security agreement) and with the appropriate Federal Aviation Administration office, as applicable.
If any Borrower acquires any aircraft hereafter, Borrowers shall promptly notify Agent of such
acquisition and shall, within 60 days of Agent’s request, execute, deliver and record a security
agreement sufficient to create a first priority Lien (subject to Permitted Liens) in favor of Agent
on such aircraft, and shall promptly deliver all other documents related thereto.

     7.6. No Assumption of Liability. The Lien on Collateral granted hereunder is given as
security only and shall not subject Agent or any Lender to, or in any way modify, any obligation or
liability of Borrowers relating to any Collateral.

     7.7. Further Assurances. Promptly following written request, Borrowers shall deliver
such instruments, collateral assignments, or other documents or agreements, and shall take such
actions, as Agent deems appropriate under Applicable Law to evidence or perfect its Lien on any
Collateral, or otherwise to give effect to the intent of this Agreement. Each Borrower and
Guarantor authorizes Agent to file any financing statement that indicates the Collateral as “all
assets” or “all personal property” of such Borrower or Guarantor, as applicable, or words to
similar effect.

     7.8. Foreign Subsidiary Stock. The Collateral shall include only 65% of the Voting
Stock of any Foreign Subsidiary to the extent such Voting Stock secures any Obligation.

SECTION 8. COLLATERAL ADMINISTRATION

     8.1. Borrowing Base Certificates. By the 20th day after the last day of
each prior Fiscal Month, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to
Lenders) a Borrowing Base Certificate prepared as of the close of business on the last day of the
previous month and at such other times as Agent may request. If at any time, Availability is less
than $12,500,000 on each day for five consecutive Business Days, until such time as Availability
has been greater than $12,500,000 on each day for more than 30 consecutive days, by the third

 

 

Business Day of each week thereafter, Borrowers shall deliver an additional report, in form and
substance acceptable to Agent, reflecting Borrowers’ updated gross accounts receivable, prepared as
of the close of business on the last day of the prior week. All calculations of Availability in
any Borrowing Base Certificate shall originally be made by Borrower Agent and certified by a Senior
Officer, provided that Agent may from time to time review and adjust any such calculation in its
Permitted Discretion (a) to reflect its reasonable estimate of declines in value of any Collateral,
due to collections received in the Dominion Account or otherwise; (b) to adjust advance rates to
reflect changes in dilution, quality, mix and other factors affecting Collateral; and (c) to the
extent the calculation is not made in accordance with this Agreement or does not accurately reflect
the Availability Reserve.

     8.2. Administration of Accounts.

          8.2.1. Records and Schedules of Accounts. Each Borrower shall keep accurate and
complete records of its Accounts, including all payments and collections thereon, and shall submit
to Agent sales, collection, reconciliation and other reports in form satisfactory to Agent, on such
periodic basis as Agent may request. Each Borrower shall also provide to Agent, on or before the
20th day after the last day of each prior Fiscal Month, a detailed aged trial balance of all
Accounts as of the end of the preceding Fiscal Month, specifying each Account’s Account Debtor name
and address, amount, invoice date and due date. With respect to any item delivered pursuant to
this Section 8.2.1, each Borrower shall also provide to Agent such additional documentation showing
any discount, allowance, credit, authorized return or dispute, and including such proof of
delivery, copies of invoices and invoice registers, copies of related documents, repayment
histories, status reports and other information on such periodic basis as Agent may request. If
Accounts in an aggregate face amount of $1,000,000 or more cease to be Eligible Accounts, Borrowers
shall notify Agent of such occurrence promptly (and in any event within one Business Day) after any
Borrower has knowledge thereof.

          8.2.2. Taxes. If an Account of any Borrower includes a charge for any Taxes then due,
Agent is authorized, in its discretion, to pay the amount thereof to the proper taxing authority
for the account of such Borrower and to charge Borrowers therefor; provided, however, that neither
Agent nor Lenders shall be liable for any Taxes that may be due from Borrowers or with respect to
any Collateral.

          8.2.3. Account Verification. Whether or not a Default or Event of Default exists,
Agent shall have the right at any time, in the name of Agent, any designee of Agent or any
Borrower, to verify the validity, amount or any other matter relating to any Accounts of Borrowers
by mail, telephone or otherwise. Borrowers shall cooperate fully with Agent in an effort to
facilitate and promptly conclude any such verification process.

          8.2.4. Maintenance of Dominion Account. Borrowers shall maintain Dominion Accounts
pursuant to lockbox or other arrangements reasonably acceptable to Agent. Borrowers shall obtain
an agreement (in form and substance reasonably satisfactory to Agent) from each lockbox servicer
and Dominion Account bank, establishing Agent’s control over and Lien in the lockbox or Dominion
Account, which may be exercised by Agent during any Cash Dominion Trigger Period, requiring
immediate deposit of all remittances received in the lockbox to a Dominion Account, and waiving or
subordinating offset rights of such servicer or bank, except for customary administrative charges.
If a Dominion Account is not maintained with Bank of America, Agent may, during any Cash Dominion
Trigger Period, require immediate transfer of

 

 

all funds in such account to a Dominion Account maintained with Bank of America, provided,
however, that Borrowers may maintain a balance of no more than $500,000 at any time in its master
disbursement account. Agent and Lenders assume no responsibility to Borrowers for any lockbox
arrangement or Dominion Account, including any claim of accord and satisfaction or release with
respect to any Payment Items accepted by any bank.

          8.2.5. Proceeds of Collateral. Borrowers shall request in writing and otherwise take
all necessary steps to ensure that all payments on Accounts or otherwise relating to Collateral are
made directly to a Dominion Account (or a lockbox relating to a Dominion Account). If any Borrower
or Subsidiary receives cash or Payment Items with respect to any Collateral, it shall hold same in
trust for Agent and promptly (not later than the next Business Day) deposit same into a Dominion
Account. Notwithstanding anything to the contrary contained herein, the Obligors shall be entitled
to maintain amounts of cash and Cash Equivalents in petty cash (in an aggregate amount for all such
accounts not to exceed $500,000), trust, tax, employee benefit and payroll accounts which are not
Dominion Accounts.

     8.3. Administration of Inventory.

          8.3.1. Records and Reports of Inventory. Each Borrower shall keep accurate and
complete records of its Inventory, including costs and daily withdrawals and additions, and shall
submit to Agent inventory and reconciliation reports in form satisfactory to Agent, on such
periodic basis as Agent may request. Each Borrower shall conduct a physical inventory in time and
manner consistent with such Borrower’s past practices (and on a more frequent basis if requested by
Agent when an Event of Default exists) and periodic cycle counts consistent with historical
practices, and shall provide to Agent a report based on each such inventory and count promptly upon
completion thereof, together with such supporting information as Agent may request. Agent may
participate in and observe each physical count, provided that Agent shall be reimbursed for its
participation only in connection with inspections in accordance with Section 10.1.1.

          8.3.2. Returns of Inventory. No Borrower shall return any Inventory to a supplier,
vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is in the
Ordinary Course of Business; (b) no Overadvance exists or would result therefrom; (c) Agent is
promptly notified if the aggregate Value of all Inventory returned in any Fiscal Month exceeds
$2,000,000; and (d) any net cash payment for such proceeds received by a Borrower for a return is
promptly remitted to Agent for application to the Obligations without a corresponding commitment
reduction.

          8.3.3. Acquisition, Sale and Maintenance. Each Borrower shall take all steps to
assure that all Inventory is produced in accordance with Applicable Law, including the FLSA, in
each case except to the extent failure to comply with any Applicable Law could not result in a
Material Adverse Effect. No Borrower shall sell any Inventory on consignment or approval or any
other basis under which the customer may return or require a Borrower to repurchase such Inventory,
except in the Ordinary Course of Business. Borrowers shall use, store and maintain all Inventory
with reasonable care and caution, in accordance with applicable standards of any insurance and in
conformity in all material respects with all Applicable Law and shall make current rent payments
(within applicable grace periods provided for in leases) at all location where any material portion
of the Collateral is located.

 

 

     8.4. Administration of Equipment.

          8.4.1. Records and Schedules of Equipment. Each Borrower shall keep accurate and
complete records of its Equipment, including kind, quantity, cost, acquisitions and dispositions
thereof, and shall submit to Agent, on such periodic basis as Agent may request, a current schedule
thereof, in form and containing such detail as is satisfactory to Agent. Promptly upon request,
Borrowers shall deliver to Agent evidence of their ownership or interests in any Equipment.

          8.4.2. Dispositions of Equipment. No Borrower shall sell, lease or otherwise
dispose of any Equipment, without the prior written consent of Agent, other than (a) a Permitted
Asset Disposition; and (b) replacement of Equipment that is worn, damaged or obsolete with
Equipment of like function and value, if the replacement Equipment is acquired substantially
contemporaneously with such disposition and is free of Liens.

          8.4.3. Condition of Equipment. The Equipment is in satisfactory operating
condition and repair, and all necessary replacements and repairs have been made so that the value
and operating efficiency of the Equipment is preserved at all times, reasonable wear, tear,
casualty and condemnation excepted. No Borrower shall permit any Equipment to become affixed to
real Property unless any landlord or mortgagee delivers a Lien Waiver.

     8.5. Administration of Deposit Accounts. Schedule 8.5 sets forth all Deposit
Accounts maintained by Borrowers, including all Dominion Accounts as of the Restatement Effective
Date. Each Borrower shall take all actions necessary to establish Agent’s control of each such
Deposit Account (other than an account exclusively used for payroll, payroll taxes, taxes, or
employee benefits or an account containing not more than $10,000 at any time (subject to the
limitations in Section 8.2.5)). Each Borrower shall be the sole account holder of each Deposit
Account and shall not allow any other Person (other than Agent and Second Lien Note Collateral
Agent) to have control over a Deposit Account or any Property deposited therein. Each Borrower
shall promptly notify Agent of any opening or closing of a Deposit Account and, with the consent of
Agent, will amend Schedule 8.5 to reflect same.

     8.6. General Provisions.

          8.6.1. Location of Collateral. All tangible items of Collateral, other than
Property (i) in transit, (ii) Inventory out for processing, or (iii) out for repair, refurbishment,
processing, or in the possession of employees in the Ordinary Course of Business and in each case
with respect to this clause (iii) valued at less than $500,000, shall at all times other than in
the Ordinary Course of Business be kept by Borrowers at the business locations set forth in
Schedule 8.6.1 (as amended from time to time) except that Borrowers may (a) make sales or other
dispositions of Collateral in accordance with Section 10.2.7; and (b) (i) move Collateral to any
location in the United States, and (ii) move Collateral located in the United Kingdom or member
state of the European Union to another location in the United Kingdom, member state of the European
Union or the United States, in each case upon five Business Days prior written notice to Agent.

          8.6.2. Insurance of Collateral; Condemnation Proceeds.

          (a) Each Borrower shall maintain insurance with respect to the Collateral, covering
casualty, hazard, theft, malicious mischief, flood and other risks, in amounts, with

 

 

endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved
by Agent) satisfactory to Agent. Agent agrees that the insurance maintained by each Borrower on
the Original Closing Date satisfies this Section 8.6.2. All proceeds under each policy shall be
payable to Agent. From time to time upon request, Borrowers shall promptly following request,
deliver to Agent the certified copies of its insurance policies and updated flood plain searches.
Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing
Agent as loss payee; (ii) to the extent available requiring 30 days prior written notice to Agent
in the event of cancellation of the policy for any reason whatsoever; and (iii) to the extent
available specifying that the interest of Agent shall not be impaired or invalidated by any act or
neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for
purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay
for any insurance, Agent may, at its option, but shall not be required to, procure the insurance
and charge Borrowers therefor. Each Borrower agrees to deliver to Agent, promptly as rendered,
copies of all reports made to insurance companies. While no Event of Default exists, Borrowers may
settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to Agent in
accordance with Section 5.3.1(a). If an Event of Default exists, only Agent shall be authorized to
settle, adjust and compromise such claims.

          (b) Any proceeds of insurance (other than proceeds from workers’ compensation or D&O
insurance or business interruption insurance) and any awards arising from condemnation of any
Collateral shall be paid to Agent in accordance with Section 5.3.1(a). Any such proceeds or awards
that relate to Inventory shall be applied to payment of the Revolver Loans.

          8.6.3. Protection of Collateral. All expenses of protecting, storing,
warehousing, insuring, handling, maintaining and shipping any Collateral, all Taxes payable with
respect to any Collateral (including any sale thereof), and all other payments required to be made
by Agent to any Person to realize upon any Collateral, shall be borne and paid by Borrowers. Agent
shall not be liable or responsible in any way for the safekeeping of any Collateral, for any loss
or damage thereto (except for reasonable care in its custody while Collateral is in Agent’s actual
possession), for any diminution in the value thereof, or for any act or default of any
warehouseman, carrier, forwarding agency or other Person whatsoever, but the same shall be at
Borrowers’ sole risk.

          8.6.4. Defense of Title to Collateral. Each Borrower shall at all times defend
its title to Collateral and Agent’s Liens therein against all Persons, claims and demands
whatsoever, except Permitted Liens and other claims or demands permitted to exist hereunder.

     8.7. Power of Attorney. Each Borrower hereby irrevocably constitutes and appoints
Agent (and all Persons designated by Agent) as such Borrower’s true and lawful attorney (and
agent-in-fact) for the purposes provided in this Section 8.7. Agent, or Agent’s designee, may,
without notice and in either its or a Borrower’s name, but at the cost and expense of Borrowers:

          (a) Endorse a Borrower’s name on any Payment Item or other proceeds of Collateral
(including proceeds of insurance) that come into Agent’s possession or control in accordance with
the terms of the Loan Documents; and

          (b) During an Event of Default, (i) notify any Account Debtors of the assignment of their
Accounts, demand and enforce payment of Accounts by legal proceedings or

 

 

otherwise, and generally exercise any rights and remedies with respect to Accounts; (ii)
settle, adjust, modify, compromise, discharge or release any Accounts or other Collateral, or any
legal proceedings brought to collect Accounts or Collateral; (iii) sell or assign any Accounts and
other Collateral upon such terms, for such amounts and at such times as Agent deems advisable; (iv)
collect, liquidate and receive balances in Deposit Accounts or investment accounts, and take
control, in any manner, of proceeds of Collateral; (v) prepare, file and sign a Borrower’s name to
a proof of claim or other document in a bankruptcy of an Account Debtor, or to any notice,
assignment or satisfaction of Lien or similar document; (vi) receive, open and dispose of mail
addressed to a Borrower, and notify postal authorities to deliver any such mail to an address
designated by Agent; (vii) endorse any Chattel Paper, Document, Instrument, bill of lading, or
other document or agreement relating to any Accounts, Inventory or other Collateral; (viii) use a
Borrower’s stationery and sign its name to verifications of Accounts and notices to Account
Debtors; (ix) to the extent a Borrower has rights sufficient to allow Agent to do so, use
information contained in any data processing, electronic or information systems relating to
Collateral; (x) make and adjust claims under insurance policies; (xi) take any action as may be
necessary or appropriate to obtain payment under any letter of credit, banker’s acceptance or other
instrument for which a Borrower is a beneficiary; and (xii) take all other actions as Agent deems
appropriate to fulfill any Borrower’s obligations under the Loan Documents.

SECTION 9. REPRESENTATIONS AND WARRANTIES

     9.1. General Representations and Warranties. To induce Agent and Lenders to enter
into this Agreement and to make available the Revolver Commitments, Loans and Letters of Credit,
each Borrower represents and warrants that:

          9.1.1. Organization and Qualification. Each Obligor is duly organized, validly
existing and in good standing (if applicable) under the laws of the jurisdiction of its
organization. Each Obligor is duly qualified, authorized to do business and in good standing (if
applicable) as a foreign corporation or company in each jurisdiction where failure to be so
qualified could reasonably be expected to have a Material Adverse Effect.

          9.1.2. Power and Authority. Each Obligor is duly authorized to execute, deliver
and perform its Loan Documents. The execution, delivery and performance of the Loan Documents have
been duly authorized by all necessary action, and do not (a) require any consent or approval of any
holders of Equity Interests of any Obligor, other than those already obtained; (b) contravene the
Organic Documents of any Obligor; (c) violate or cause a default under any Applicable Law, Material
Contract or Restrictive Agreement except to the extent such violation or default could not
reasonably be expected to result in a Material Adverse Effect; or (d) result in or require the
imposition of any Lien (other than Permitted Liens) on any Property of any Obligor.

          9.1.3. Enforceability. Each Loan Document is a legal, valid and binding
obligation of each Obligor party thereto, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement
of creditors’ rights generally.

          9.1.4. Capital Structure. Schedule 9.1.4 shows, for each Obligor, its name, its
jurisdiction of organization, its authorized and issued Equity Interests, the holders of its Equity
Interests, and all agreements binding on such holders with respect to their Equity Interests as of

 

 

the Original Closing Date. Except as disclosed on Schedule 9.1.4, in the five years preceding
the Original Closing Date, no Obligor has acquired any substantial assets from any other Person nor
been the surviving entity in a merger or combination. Each Borrower has good title to its Equity
Interests in its Subsidiaries, subject only to Agent’s Lien and other Permitted Liens, and all such
Equity Interests are duly issued, fully paid and non-assessable to the extent applicable. Except
as set forth on Schedule 9.1.4, as of the Original Closing Date, there are no outstanding purchase
options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom
rights or powers of attorney relating to Equity Interests of any Obligor.

          9.1.5. Title to Properties; Priority of Liens. Each Borrower and Subsidiary has
good and marketable title to (or valid leasehold interests in) all of its material Real Estate, and
good and marketable title to all of its material personal Property, including all such Property
reflected in any financial statements delivered to Agent or Lenders, in each case free of Liens
except Permitted Liens and minor defects in title that do not interfere with its ability to conduct
its business as currently conducted or to utilize such Property for its intended purposes. Each
Borrower and Subsidiary has paid and discharged all lawful claims that, if unpaid, could become a
Lien on its Properties, other than Permitted Liens. To the extent required by the Loan Documents,
all Liens of Agent in the Collateral are duly perfected, valid and enforceable first priority
Liens, subject only to Permitted Liens and minor defects in title that do not interfere with its
ability to conduct its business as currently conducted or to utilize such Property for its intended
purposes; provided, however, that for registered United States trademarks, United States trademark
applications, United States patents, United States patent applications, and registered United
States copyrights, the security interest will be perfected upon filing, to the extent perfection of
a security interest can be accomplished by such a filing, of the Trademark Security Agreement with
the United States Patent and Trademark Office, the Patent Security Agreement with the United States
Patent and Trademark Office, or the Copyright Security Agreement with the United States Copyright
Office, and such perfected security interest is enforceable as such against any and all creditors
of and purchasers from Obligors in the United States.

          9.1.6. Accounts. Agent may rely, in determining which Accounts are Eligible
Accounts, on all statements and representations made by Borrowers with respect thereto. Borrowers
warrant, with respect to each Account at the time it is shown as an Eligible Account in a Borrowing
Base Certificate, that:

          (a) it is genuine and in all respects what it purports to be, and is not evidenced by a
judgment;

          (b) it arises out of a completed, bona fide sale and delivery of goods in the Ordinary
Course of Business, and substantially in accordance with any purchase order, contract or other
document relating thereto;

          (c) it is for a sum certain, maturing as stated in the invoice covering such sale, a copy
of which has been furnished or is available to Agent on request;

          (d) it is absolutely owing by the Account Debtor, without contingency in any respect;

 

 

          (e) no purchase order, agreement, document or Applicable Law restricts assignment of the
Account to Agent (regardless of whether, under the UCC, the restriction is ineffective), and the
applicable Borrower is the sole payee or remittance party shown on the invoice;

          (f) no extension, compromise, settlement, modification, credit, deduction or return has
been authorized with respect to the Account, except discounts or allowances granted in the Ordinary
Course of Business for prompt payment that are reflected in Borrowers’ records related thereto and
in the reports submitted to Agent hereunder; and

          (g) to the best of Borrowers’ knowledge, (i) there are no facts or circumstances that are
reasonably likely to impair the enforceability or collectibility of such Account; (ii) the Account
Debtor had the capacity to contract when the Account arose, continues to meet the applicable
Borrower’s customary credit standards, is Solvent, is not contemplating or subject to an Insolvency
Proceeding, and has not failed, or suspended or ceased doing business; and (iii) there are no
proceedings or actions threatened or pending against any Account Debtor that could reasonably be
expected to have a material adverse effect on the Account Debtor’s financial condition.

          9.1.7. Financial Statements. The consolidated balance sheets, and related
statements of income, cash flow and shareholder’s equity, of Borrowers and Subsidiaries that have
been and are hereafter delivered to Agent and Lenders, are prepared in accordance with GAAP, and
fairly present in all material respects the financial positions and results of operations of
Borrowers and Subsidiaries at the dates and for the periods indicated, subject to, in the case of
monthly or quarterly balance sheets and related statements, to the absence of footnotes and year
end audit adjustments. All projections delivered by the Obligors to Agent and Lenders have been
prepared in good faith, based on reasonable assumptions in light of the circumstances at such time,
it being acknowledged, and agreed by Lenders, however, that projections as to future events are not
viewed as facts and that the actual results during the period or periods covered by said
projections may differ from the projected results and that the differences may be material. Since
December 31, 2007,  there has been no change in the condition (financial or otherwise)
of the Obligors, taken as a whole, that could reasonably be expected to have a Material Adverse
Effect. The Obligors and their Subsidiaries, taken as a whole, are Solvent.

          9.1.8. Surety Obligations. No Borrower or Subsidiary is obligated as surety or
indemnitor under any bond or other contract that assures payment or performance of any obligation
of any Person, except as permitted hereunder.

          9.1.9. Taxes. Each Borrower and Subsidiary has filed all federal, state,
national, regional, provincial and material local tax returns and other material reports and all
other tax returns and reports and all state and foreign income reports and declarations required by
any Jurisdiction to which any of them is subject that it is required by law to file, and has paid,
or made provision for the payment of, all Taxes upon it, its income and its Properties that are due
and payable, except to the extent being Properly Contested or to the extent permitted by Section
10.2.1(s) or 10.2.2(r). The provision for Taxes on the books of each Borrower and Subsidiary is
adequate for all years not closed by applicable statutes, and for its current Fiscal Year.

          9.1.10. Brokers. There are no brokerage commissions, finder’s fees or investment
banking fees payable in connection with any transactions contemplated by the Loan Documents

 

 

other than such commissions and fees payable in connection with the Indenture and transactions
related thereto.

          9.1.11. Intellectual Property. Each Obligor owns or has the lawful right to use
all Intellectual Property necessary for the conduct of its business to the knowledge of such
Obligor without infringing or misappropriating any Intellectual Property rights of others except
to the extent that such failure to own or have such rights to use or any conflict would not
reasonably be expected to result in a Material Adverse Effect. There is no pending or, to any
Borrower’s knowledge, threatened Intellectual Property Claim with respect to any Obligor or any of
their Property (including any Intellectual Property that could reasonably be expected to have a
Material Adverse Effect). Except as disclosed on Schedule 9.1.11, no Obligor pays or owes any
Royalty or other compensation to any Person with respect to any Intellectual Property (excluding
“shrink-wrap”, “click-wrap”, or other “off-the-shelf” software). All registered Intellectual
Property owned by any Obligor is shown on Schedule 9.1.11.

          9.1.12. Governmental Approvals. Each Borrower and Subsidiary has, is in
compliance with, and is in good standing with respect to, all Governmental Approvals necessary to
conduct its business and to own, lease and operate its Properties except to the extent the failure
to have such Governmental Approval would not reasonably be expected to result in a Material Adverse
Effect. All necessary import, export or other licenses, permits or certificates for the import or
handling of any goods or other Collateral have been procured and are in effect, and Borrowers and
Subsidiaries have complied with all foreign and domestic laws with respect to the shipment and
importation of any goods or Collateral, except where noncompliance could not reasonably be expected
to have a Material Adverse Effect.

          9.1.13. Compliance with Laws. Each Borrower and Subsidiary has duly complied, and
its Properties and business operations are in compliance, in all material respects with all
Applicable Law, except where noncompliance could not reasonably be expected to have a Material
Adverse Effect. There have been no citations, notices or orders of material noncompliance issued
to any Borrower or Subsidiary under any Applicable Law which could reasonably be expected to have a
Material Adverse Effect. No Inventory has been produced in violation of the FLSA.

          9.1.14. Compliance with Environmental Laws. Except as disclosed on Schedule
9.1.14, no Obligor’s past or present operations, Real Estate or other Properties are subject to any
federal, state or local investigation to determine whether any remedial action of a material nature
is needed to address any environmental pollution, hazardous material or environmental clean-up. No
Obligor has received any Environmental Notice which would reasonably be expected to result in a
material liability to Borrowers. No Obligor has any contingent liability with respect to any
Environmental Release, environmental pollution or hazardous material on any Real Estate now or
previously owned, leased or operated by it where such liability could reasonably be expected to
result in a Material Adverse Effect.

          9.1.15. Burdensome Contracts. No Borrower or Subsidiary is a party or subject to
any contract, agreement or charter restriction that could reasonably be expected to have a Material
Adverse Effect. No Borrower or Subsidiary is party or subject to any Restrictive Agreement, except
as shown on Schedule 9.1.15 as of the Original Closing Date or as otherwise permitted pursuant to
Section 10.2.15. No such Restrictive Agreement prohibits the execution,

 

 

delivery or performance of any Loan Document by an Obligor. The Obligations do not exceed the
Indenture Formula Amount.

          9.1.16. Litigation. Except as shown on Schedule 9.1.16, there are no proceedings
or investigations pending or, to any Borrower’s knowledge, threatened against any Borrower or
Subsidiary, or any of their businesses, operations, Properties, prospects or conditions, that (a)
relate to any Loan Documents or transactions contemplated thereby; or (b) could reasonably be
expected to have a Material Adverse Effect if determined adversely to any Borrower or Subsidiary.

          9.1.17. No Defaults. No event or circumstance has occurred or exists that
constitutes a Default or Event of Default. No Obligor is in default, and no event or circumstance
has occurred or exists that with the passage of time or giving of notice would constitute a default
(after giving effect to any cure or grace period and waivers or amendments thereof), under any
Material Contract or any Restrictive Agreement. As of the Original Closing Date, there is no basis
upon which any party (other than a Borrower or Subsidiary) could terminate a Material Contract
prior to its scheduled termination date.

          9.1.18. ERISA.

          (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code, and other federal and state laws. Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter or prototype opinion from
the IRS or an application for such a letter is currently being processed by the IRS with respect
thereto and, to the knowledge of Borrowers, nothing has occurred which would reasonably be expected
to prevent, or cause the loss of, such qualification. Each Obligor and ERISA Affiliate has made
all required contributions to each Plan subject to Section 412 of the Code, and no application for
a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.

          (b) There are no pending or, to the knowledge of Borrowers, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably
be expected to have a Material Adverse Effect. There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan that has resulted in or
could reasonably be expected to have a Material Adverse Effect.

          (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension
Plan has any Unfunded Pension Liability that could reasonably be expected to have a Material
Adverse Effect; (iii) no Obligor or ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) no Obligor or ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which, with the giving of
notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of
ERISA with respect to a Multiemployer Plan; and (v) no Obligor or ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.

          (d) Except as disclosed on Schedule 9.18, with respect to any Foreign Plan, (i) all
employer and employee contributions required by law or by the terms of the Foreign Plan

 

 

have been made, or, if applicable, accrued, in accordance with normal accounting practices;
(ii) the fair market value of the assets of each funded Foreign Plan, the liability of each insurer
for any Foreign Plan funded through insurance, or the book reserve established for any Foreign
Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued
benefit obligations with respect to all current and former participants in such Foreign Plan
according to the actuarial assumptions and valuations most recently used to account for such
obligations in accordance with applicable generally accepted accounting principles; and (iii) it
has been registered as required and has been maintained in good standing with applicable regulatory
authorities.

          9.1.19. Trade Relations. There exists no actual or threatened termination,
limitation or modification of any business relationship between any Borrower or Subsidiary and any
customer or supplier, or any group of customers or suppliers, who individually or in the aggregate
are material to the business of the Borrowers taken as a whole.

          9.1.20. Labor Relations. Except as described on Schedule 9.1.20, as of the
Original Closing Date no Obligor is party to or bound by any collective bargaining agreement, or
material management agreement or consulting agreement. Except as described on Schedule 9.1.20, as
of the Original Closing Date there are no material grievances, disputes or controversies with any
union or other organization of any Obligor’s employees, or, to any Borrower’s knowledge, any
asserted or threatened strikes, work stoppages or demands for collective bargaining.

          9.1.21. Payable Practices. No Obligor has made any material change in its
historical accounts payable practices from those in effect on the Original Closing Date.

          9.1.22. Not a Regulated Entity. No Obligor is (a) an “investment company” or a
“person directly or indirectly controlled by or acting on behalf of an investment company” within
the meaning of the Investment Company Act of 1940; or (b) subject to regulation under the Federal
Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable Law
regarding its authority to incur Debt.

          9.1.23. Margin Stock. No Borrower or Subsidiary is engaged, principally or as one
of its important activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock. No Loan proceeds or Letters of Credit will be used by Borrowers to
purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry, any Margin
Stock or for any related purpose governed by Regulations T, U or X of the Board of Governors.

          9.1.24. Tender Offer. The Tender Offer has been consummated as of the Restatement
Effective Date with each of the Third Lien Notes and Existing Senior Notes accepted in the Tender
Offer representing at least 50.1% of the principal amount of the Third Lien Notes and at least
50.1% of the principal amount of the Existing Senior Notes, and the supplemental indentures to the
Third Lien Indenture and the indenture governing the Existing Senior Notes have become effective,
the Agent has received evidence that the Liens securing the obligations under each of the Third
Lien Notes and the Existing Second Lien Term Loan have been released, and the Existing Second Lien
Term Loan has been paid in full.

 

 

     9.2. Complete Disclosure. No Loan Document (as amended or updated as provided for
herein)(including, without limitation, any financial statements delivered to Agent or Lenders at
any time) other than projections, budgets, estimates and other forward looking statements, contains
any untrue statement of a material fact, nor fails to disclose any material fact necessary to make
the statements contained therein not materially misleading. There is no fact or circumstance that
any Obligor has failed to disclose to Agent in writing that could reasonably be expected to have a
Material Adverse Effect.

SECTION 10. COVENANTS AND CONTINUING AGREEMENTS

     10.1. Affirmative Covenants. As long as any Revolver Commitments or Revolver
Loans remain outstanding (other than contingent obligations or Letters of Credit collateralized in
a manner reasonably acceptable to Issuing Bank), each Borrower shall, and shall cause each
Subsidiary to:

          10.1.1. Inspections; Appraisals.

          (a) Permit Agent from time to time, subject (except when an Event of Default exists) to
reasonable notice and normal business hours, to visit and inspect the Properties of any Borrower or
Subsidiary, inspect, audit and make extracts from any Borrower’s or Subsidiary’s books and records
(other than information which is subject to attorney-client privilege or would result in a breach
of a confidentiality obligation of the Obligors to any other Person), and discuss with its
officers, employees, agents, advisors and independent accountants such Borrower’s or Subsidiary’s
business, financial condition, assets, prospects and results of operations. Lenders may
participate in any such visit or inspection, at their own expense; provided,
however, the Obligors shall, absent a continuing Event of Default, be given the opportunity
to be present at any communications with their accountants. Neither Agent nor any Lender shall
have any duty to any Borrower to make any inspection, nor to share any results of any inspection,
appraisal or report with any Borrower. Borrowers acknowledge that all inspections, appraisals and
reports are prepared by Agent and Lenders for their purposes, and Borrowers shall not be entitled
to rely upon them. Agent may allow Borrower Agent to receive copies of any appraisals.

          (b) Reimburse Agent for all reasonable charges, costs and expenses of Agent in connection
with (i) examinations of any Obligor’s books and records or any other financial or Collateral
matters as Agent deems appropriate, up to three times per Loan Year, and (ii) appraisals of
Inventory, Equipment and Real Estate up to two times in the Fiscal Year ending December 31, 2009
and up to one time per calendar year thereafter; provided, however, that if an
examination or appraisal is initiated during an Event of Default, all charges, costs and expenses
therefor shall be reimbursed by Borrowers without regard to such limits. Subject to and without
limiting the foregoing, Borrowers specifically agree to pay Agent’s then standard charges for each
day that an employee of Agent or its Affiliates is engaged in any examination activities, and shall
pay the standard charges of Agent’s internal appraisal group. This Section 10.1.1 shall not be
construed to limit Agent’s right to conduct examinations or to obtain appraisals at any time in its
discretion, nor to use third parties for such purposes.

          10.1.2. Financial and Other Information. Keep adequate records and books of
account with respect to its business activities, in which proper entries are made in accordance
with GAAP in all material respects reflecting all financial transactions; and furnish to Agent and
Lenders:

 

 

          (a) as soon as available, and in any event within 90 days after the close of each Fiscal
Year, balance sheets as of the end of such Fiscal Year and the related statements of income, cash
flow and shareholders’ equity for such Fiscal Year, on a consolidated basis for Borrowers and
Subsidiaries, which consolidated statements shall be audited and certified (without qualification)
by any Big Four firm of independent certified public accountants of recognized standing selected by
Borrowers or such other firm reasonably acceptable to Agent, and shall set forth in comparative
form corresponding figures for the preceding Fiscal Year and other information acceptable to Agent;

          (b) (i) prior to any Financial Reporting Trigger Date, as soon as available, and in any
event within 45 days after the end of each Fiscal Quarter (but within 60 days after the last Fiscal
Quarter in a Fiscal Year), unaudited balance sheets as of the end of such Fiscal Quarter and the
related statements of income and cash flow for such Fiscal Quarter and for the portion of the
Fiscal Year then elapsed, on consolidated basis for Borrowers and Subsidiaries, setting forth in
comparative form corresponding figures for the preceding Fiscal Year and certified by a Senior
Officer of the Company as prepared in accordance with GAAP and fairly presenting in all material
respects the financial position and results of operations for such Fiscal Quarter and period,
subject to normal year-end adjustments and the absence of footnotes; and (ii) on or after any
Financial Reporting Trigger Date, as soon as available, and in any event within 30 days after the
end of each Fiscal Month (but within 45 days after the last Fiscal Month in a Fiscal Quarter and 60
days after the last Fiscal Month in a Fiscal Year), unaudited balance sheets as of the end of such
Fiscal Month and the related statements of income and cash flow for such Fiscal Month and for the
portion of the Fiscal Year then elapsed, on consolidated basis for Borrowers and Subsidiaries,
setting forth in comparative form corresponding figures for the preceding Fiscal Year and certified
by a Senior Officer of the Company as prepared in accordance with GAAP and fairly presenting in all
material respects the financial position and results of operations for such Fiscal Month and
period, subject to normal year-end adjustments and the absence of footnotes

          (c) concurrently with delivery of financial statements under clauses (a) and (b) above, or
more frequently if requested by Agent while an Event of Default exists, (i) a Compliance
Certificate executed by a Senior Officer of the Company and (ii) a calculation of the Indenture
Formula Amount.

          (d) concurrently with delivery of financial statements under clause (a) above, copies of
all management letters and other material reports submitted to Borrowers by their accountants in
connection with such financial statements;

          (e) concurrently with delivery of financial statements under clause (b) above, at the end
of any Fiscal Quarter, a written report satisfactory in form and scope to Agent, as to all Hedging
Agreements entered into by any Borrower or Guarantor, including, without limitation, detailed
calculations with respect to the conversion values of all currency exchange Hedging Agreements and
such other items as Agent, in its sole discretion, may from time to time request;

          (f) not later than 30 days after the end of each Fiscal Year, projections of Borrowers’
consolidated balance sheets, results of operations, cash flow, Availability for the next Fiscal
Year, month by month and for the following Fiscal Years (through 2014), year by year;

 

 

          (g) promptly following Agent’s request, a summary listing of each Borrower’s trade
payables, and a detailed trade payable aging, all in form satisfactory to Agent;

          (h) promptly after the sending or filing thereof, copies of any proxy statements,
financial statements or reports that any Borrower has made generally available to its shareholders;
copies of any regular, periodic and special reports or registration statements or prospectuses that
any Borrower files with the Securities and Exchange Commission or any other Governmental Authority,
or any securities exchange; and copies of any press releases or other statements made available by
a Borrower to the public concerning material changes to or developments in the business of such
Borrower;

          (i) promptly after the sending or filing thereof, copies of any annual report to be filed
in connection with any Pension Plan, and promptly following Agent’s request, after the sending or
filing thereof, copies of any annual report to be filed in connection with each other Plan or
Foreign Plan; and

          (j) such other reports and information (financial or otherwise, including, without
limitation, consolidating balance sheets, related statements of income, cash flow and shareholder’s
equity, but excluding any information subject to the attorney-client privilege or other
confidentiality arrangements with third parties) promptly following Agent’s request therefor from
time to time in connection with any Collateral or any Borrower’s, Subsidiary’s or other Obligor’s
financial condition or business.

Promptly following retention of accountants for their annual audit, Borrowers shall send a letter
to the accountants, with a copy to Agent and Lenders, notifying the accountants that one of the
purposes for retaining their services and obtaining audited financial statements is for use by
Agent and Lenders. Agent is authorized to send such notice if Borrowers fail to do so for any
reason.

Subject to the next succeeding sentence, information delivered pursuant to this Section 10.1.2 to
Agent may be made available by Agent to Lenders by posting such information on the Intralinks
website on the Internet at http://www.intralinks.com. Information delivered pursuant to this
Section 10.1.2 may also be delivered by electronic communication pursuant to procedures approved by
Agent pursuant to Section 15.3 hereto. Information required to be delivered pursuant to this
Section 10.1.2 (to the extent not made available as set forth above) shall be deemed to have been
delivered to Agent on the date on which such information has been posted on (i) Company’s website
on the Internet at http://www.cvgrp.com or (ii) are made available via EDGAR, or any successor
system of the SEC, on the Company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or
8-K, as applicable. Information required to be delivered pursuant to this Section 10.1.2 shall be
in a format which is suitable for transmission.

Unless (i) expressly marked by Borrowers as “PUBLIC” or (ii) copies of the Company’s public filings
with the SEC, any notice or other communication delivered pursuant to this Section 10.1.2, or
otherwise pursuant to this Agreement, shall be deemed to contain material non-public information.

          10.1.3. Notices. Notify Agent (for further distribution to Lenders) in writing,
promptly after a Borrower’s obtaining knowledge thereof, of any of the following that affects an
Obligor: (a) the threat or commencement of any proceeding or investigation, whether or not

 

 

covered by insurance, if an adverse determination could have a Material Adverse Effect; (b)
any pending or threatened labor dispute, strike or walkout, or the expiration of any material labor
contract; (c) any default under or termination of a Material Contract, the Senior Notes, any
Subordinated Debt, or any contract that relates to Debt in any aggregate amount of $5,000,000 or
more; (d) the existence of any Default or Event of Default; (e) any judgment in an amount exceeding
$1,000,000; (f) the assertion of any Intellectual Property Claim, if an adverse resolution could
have a Material Adverse Effect; (g) any violation or asserted violation of any Applicable Law
(including ERISA, OSHA, FLSA, or any Environmental Laws), if an adverse resolution could reasonably
be expected to have a Material Adverse Effect; (h) any Environmental Release by an Obligor or on
any Property owned, leased or occupied by an Obligor that could reasonably be expected to have a
Material Adverse Effect; or receipt of any Environmental Notice that could reasonably be expected
to have a Material Adverse Effect or materially impact the value of any Property of such Borrower;
(i) the occurrence of any ERISA Event that could reasonably be expected to have a Material Adverse
Effect; or (j) the discharge of or any withdrawal or resignation by Borrowers’ independent
accountants.

          10.1.4. Landlord and Storage Agreements. Promptly following request, provide
Agent with copies of all existing agreements, and promptly after execution thereof provide Agent
with copies of all future agreements, between an Obligor and any landlord, warehouseman, processor,
shipper, bailee or other Person that owns any premises at which any material Collateral may be kept
or that otherwise may possess or handle any material Collateral.

          10.1.5. Compliance with Laws. Comply with all Applicable Laws, including ERISA,
Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws regarding collection and payment of
Taxes, and maintain all Governmental Approvals necessary to the ownership of its Properties or
conduct of its business, unless failure to comply (other than failure to comply with Anti-Terrorism
Laws) or maintain could not reasonably be expected to have a Material Adverse Effect. Without
limiting the generality of the foregoing, if any Environmental Release occurs at or on any
Properties of any Borrower or Subsidiary, it shall act promptly and diligently to investigate and
report to Agent and all appropriate Governmental Authorities the extent of, and to make appropriate
remedial action to eliminate, such Environmental Release, whether or not directed to do so by any
Governmental Authority, if, as required by Environmental Law or necessary to preserve the value as
a whole of such Properties.

          10.1.6. Taxes. Pay and discharge all Taxes on or prior to the date which they
become delinquent or penalties attach, unless such Taxes are being Properly Contested or permitted
by Section 10.2.1(s) or 10.2.1(r).

          10.1.7. Insurance. In addition to the insurance required hereunder with respect
to Collateral, maintain insurance with insurers (with a Best Rating of at least A7, unless
otherwise approved by Agent), with respect to the Properties and business of Borrowers and
Subsidiaries of such type (including product liability, workers’ compensation, larceny,
embezzlement, or other criminal misappropriation insurance), in such amounts, and with such
coverages and deductibles as required pursuant to Section 8.6.2.

          10.1.8. Licenses. Keep each License materially affecting any Collateral
(including the manufacture, distribution or disposition of Inventory) in full force and effect
except (i) to the extent not otherwise required herein, (ii) for any Permitted Asset Disposition or
(iii) to the extent any failure to so maintain such License would not reasonably be expected to

 

 

result in a Material Adverse Effect (it being understood that a failure to maintain or replace
any license necessary in connection with the manufacture, distribution or disposition of Inventory
results in a Material Adverse Effect unless such license is being abandoned in the reasonable
business judgment of Borrowers); pay all undisputed Royalties when due; and notify Agent of any
known default or known breach asserted by any Person to have occurred under any material License.

          10.1.9. Future Subsidiaries. Notify Agent within five Business Days (or such
later date as agreed to by Agent) of any Person becoming a Subsidiary and, if such Person is not a
Foreign Subsidiary, cause such Subsidiary (other than an Immaterial Subsidiary or an Excluded
Receivables Subsidiary) to guaranty the Obligations and to execute and deliver such documents,
instruments and agreements and to take such other actions as Agent shall require to evidence and
perfect a Lien in favor of Agent (for the benefit of Secured Parties) on all assets of such Person,
including delivery of such legal opinions, in form and substance reasonably satisfactory to Agent,
as it shall deem appropriate. If at any time any Subsidiary that is an Immaterial Subsidiary as of
the Restatement Effective Date, shall cease to be an Immaterial Subsidiary, such Subsidiary shall
be required, no later than the last Business Day of the Fiscal Month during which such Subsidiary
is no longer an Immaterial Subsidiary, to guaranty the Obligations in accordance with this Section
10.1.9.

          10.1.10. Post Closing Delivery of Amendment to Pledge Agreement and Certificated
Equity Interests. (a) Within 10 Business Days of the Restatement Effective Date, Obligors
shall have delivered to Agent a supplement to the Pledge Agreement to update the schedules and
annexes contained therein, in form and substance reasonably acceptable to Agent; and (b) within 60
days of the Restatement Effective Date, each Obligor shall have (i) delivered to Agent all original
certificated Equity Interests (along with instruments of transfer) for any Pledged Equity Interests
(as defined in the Pledge Agreement and subject to the terms and conditions therein) pledged to
Agent after giving effect to the supplement contemplated in clause (a) above and not previously
delivered, and (ii) at the request of Agent, (A) caused any Pledged Equity Interests which are
uncertificated as of the Restatement Effective Date to become certificated and subsequently
delivered to Agent pursuant to the Pledge Agreement; provided that no such action will be
required with respect to any Pledged Equity Interest that is not required to be certificated under
Applicable Law governing the issuer of such Pledged Equity Interest or (B) taken such other actions
to perfect the security interests of Agent in such uncertificated Pledged Equity Interests (as
defined in the Pledge Agreement) as Agent deems necessary.

     10.2. Negative Covenants. As long as any Revolver Commitments or Obligations are
outstanding, each Borrower shall not, and shall cause each Subsidiary not to:

          10.2.1. Permitted Debt. Create, incur, guarantee or suffer to exist any Debt,
except:

          (a) the Obligations;

          (b) Subordinated Debt;

          (c) Permitted Purchase Money Debt;

 

 

          (d) Borrowed Money and other Debt (other than the Obligations and Subordinated Debt), but
only to the extent identified on Schedule 10.2.1, and outstanding on the Original Closing Date;

          (e) Bank Product Debt,

          (f) Permitted Contingent Obligations;

          (g) Refinancing Debt as long as each Refinancing Condition is satisfied;

          (h) Debt under any Hedging Agreement to the extent such Hedging Agreement is permitted by
this Agreement;

          (i) Intercompany Debt incurred in the Ordinary Course of Business to the extent permitted
by Section 10.2.5, and (ii) Intercompany Debt owed to an Obligor by an Excluded Receivables
Subsidiary in connection with a sale of receivables to such Excluded Receivables Subsidiary
pursuant to a Qualified Receivables Transaction;

          (j) Debt in respect of workers’ compensation claims, self-insurance obligations,
performance bonds, export or import indemnitees or similar instruments, customs bonds, governmental
contracts, leases, surety appeal or similar bonds and completion guarantees provided by an Obligor
or Subsidiary in the Ordinary Course of its Business;

          (k) Debt in respect of taxes, assessments or governmental charges to the extent that
payment thereof shall not at the time be required to be made in accordance with Section 10.1.6;

          (l) Debt consisting of incentive, non-compete, consulting, deferred compensation, or other
similar arrangements entered in the Ordinary Course of Business;

          (m) Debt in respect of netting services and overdraft protections or other cash management
services in connection with deposit accounts and securities accounts, in each case in the Ordinary
Course of Business;

          (n) Debt incurred by Foreign Subsidiaries that are not Obligors for working capital
purposes in an amount not to exceed $25,000,000 at any time outstanding, so long as no Default or
Event of Default exists or would result therefrom;

          (o) Debt in connection with any Permitted Foreign Investment;

          (p) Contingent Obligations in respect of Debt of any Obligor otherwise permitted under
Section 10.2.1 incurred in the Ordinary Course of Business, subject, if applicable, to Section
10.2.5;

          (q) Contingent Obligations of the Company and its Subsidiaries incurred in connection with
the guaranty of Debt extended to a Foreign Subsidiary by Bank of America, N.A. or its Affiliates in
an amount not to exceed $5,000,000 in the aggregate at any time unless otherwise approved by Agent
in writing;

 

 

          (r) Contingent Obligations of an Obligor in respect of leases for an Obligor in an amount
not to exceed $10,000,000 in the aggregate at any time;

          (s) Debt incurred in connection with the financing of insurance premiums in the Ordinary
Course of Business;

          (t) without duplication of any other Debt, non-cash accruals of interest, accretion or
amortization of original issue discount and payment-in-kind interest with respect to Debt permitted
hereunder;

          (u) Debt that is not included in any of the preceding clauses of this Section 10.2.1, is
not secured by a Lien and does not exceed $5,000,000 in the aggregate at any time;

          (v) Debt incurred by any Excluded Receivables Subsidiary in connection with any Qualified
Receivables Transaction provided that the Debt is non-recourse to any Person other than the
Excluded Receivables Subsidiary;

          (w) Debt consisting of the Third Lien Notes and Existing Senior Notes to the extent not
tendered in the Tender Offer, subject to the provisions of Section 10.2.20; and

          (x) Debt incurred pursuant to the Second Lien Note Documents in an aggregate principal
amount not to exceed $250,000,000 (plus accrued interest and payment in kind interest), in each
case, including any Refinancing Debt thereof.

          10.2.2. Permitted Liens. Create or suffer to exist any Lien upon any of its
Property, except the following (collectively, “Permitted Liens”):

          (a) Liens in favor of Agent;

          (b) Purchase Money Liens securing Permitted Purchase Money Debt;

          (c) Liens for Taxes not yet due or being Properly Contested;

          (d) contractual Liens and Liens imposed by law (other than Liens for Taxes or imposed
under ERISA) such as carriers’, warehousemen’s, materialmen’s, landlords’, workmen’s, suppliers’,
repairmen’s and mechanics’ Liens and other similar Liens arising in the Ordinary Course of
Business, but only if (i) payment of the obligations secured thereby is not yet due and payable or
is being Properly Contested, and (ii) such Liens do not materially impair the value or use of the
Property or materially impair operation of the business of any Obligor;

          (e) Liens incurred or deposits made in the Ordinary Course of Business to secure the
performance of tenders, bids, leases, contracts (except those relating to Borrowed Money), surety,
stay customs and appeal bonds, statutory obligations and other similar obligations, or arising as a
result of progress payments under government contracts;

          (f) Liens arising in the Ordinary Course of Business that are subject to Lien Waivers;

          (g) Liens arising by virtue of a judgment or judicial order against any Obligor to the
extent such judgment does not constitute an Event of Default;

 

 

          (h) easements, rights-of-way, survey exceptions, title exceptions, restrictions, covenants
or other agreements of record, minor defects or other irregularities in title and other similar
charges or encumbrances on Real Estate, that do not secure any monetary obligation and do not
materially interfere with the Ordinary Course of Business;

          (i) municipal and zoning ordinances, building and other land use laws imposed by any
governmental authority which are not violated in any material respect by existing improvements or
the present use of Property, or in the case of any Real Estate subject to a mortgage, encumbrances
disclosed in the title insurance policy issued to, and reasonably approved by, Agent;

          (j) leases, subleases, licenses, sublicenses granted to others in the Ordinary Course of
Business;

          (k) any interest or title of a lessor or sublessor, licensor or sublicensor under any
lease or license not prohibited by this Agreement or the other Security Documents;

          (l) normal and customary rights of setoff upon deposits or securities in favor of
depository institutions or brokerages, and Liens of a collecting bank on payment items in the
course of collection, bankers’ Liens securing amounts owing to such bank with respect to
overdrafts, cash management and operating account arrangements, including those involving pooled
accounts and netting arrangements; provided that in no case shall such Liens secure (either
directly or indirectly) the repayment of any Debt (other than on account of such overdrafts,
netting or cash management);

          (m) Liens on insurance proceeds and deposits arising in the ordinary course of business in
connection with the financing of insurance premiums;

          (n) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by such Person in the Ordinary Course of Business
in accordance with the past practices of such Person;

          (o) Liens on Property of a Person existing at the time such Person is acquired or merged
with or into or consolidated with any Obligor or a Subsidiary thereof (and not created in
anticipation or contemplation thereof);

          (p) security given to a public or private utility or any Governmental Authority as
required in the Ordinary Course of Business;

          (q) the filing of financing statements solely as a precautionary measure in connection
with operating leases or consignments;

          (r) other Liens with respect to obligations that do not in the aggregate exceed $1,000,000
at any time outstanding;

          (s) the replacement, extension or renewal of any Permitted Lien; provided, that
such Lien shall at no time be extended to cover any assets or property other than such assets or
property subject thereto on the Original Closing Date or the date such Lien was incurred, as
applicable;

 

 

          (t) Liens granted in connection with Debt permitted by Section 10.2.1(n) provided that
such Liens attach only to Property of Foreign Subsidiaries and not to any Collateral;

          (u) existing Liens shown on Schedule 10.2.2;

          (v) Liens granted to the Second Lien Note Collateral Agent pursuant to the Second Lien
Note Documents and any Refinancing Debt thereof, provided that the Agent, for the benefit of the
Lenders, has a first priority Lien (subject to Permitted Liens) on such assets and the Liens in
favor of the Second Lien Note Collateral Agent are subordinated pursuant to the Intercreditor
Agreement; and

          (w) Liens with respect to those Accounts and related rights and assets subject to purchase
pursuant to any Qualified Receivables Transaction.

          10.2.3. [RESERVED].

          10.2.4. Distributions; Upstream Payments. Make or declare any Distributions other
than, (a) Upstream Payments and (b) dispositions by Obligors and Subsidiaries permitted hereunder.

          10.2.5. Restricted Investments. Make any Restricted Investment, other than
Permitted Foreign Investments, so long as no Default or Event of Default exists or would result
therefrom.

          10.2.6. Acquisitions. Make any Restricted Investment, other than, so long as no
Default or Event of Default exists or would result therefrom, Permitted Acquisitions or Permitted
Foreign Investments.

          10.2.7. Disposition of Assets. Make any Asset Disposition, except a Permitted
Asset Dispositions so long as (other than with respect to (i) sales of Inventory in the Ordinary
Course of Business and (ii) intercompany asset transfers to the extent permitted hereunder) no
Event of Default exists.

          10.2.8. [RESERVED].

          10.2.9. Restrictions on Payment of Certain Debt. Make any payments (whether
voluntary or mandatory, or a prepayment, redemption, retirement, defeasance or acquisition) with
respect to (a) any Subordinated Debt, except regularly scheduled payments of principal, interest
and fees, but only to the extent permitted under any subordination agreement relating to such Debt
(and a Senior Officer of the Company shall certify to Agent, not less than five Business Days prior
to the date of payment, that all conditions under such agreement have been satisfied or waived);
(b) the Second Lien Notes, other than (i) payment of regularly scheduled interest and reimbursement
for fees and expenses of the trustee as provided therein, and (ii) in connection with replacing the
Second Lien Notes with Refinancing Debt, provided that the Refinancing Conditions are met.
Notwithstanding anything to the contrary contained herein or in any other Loan Document, in no
event shall there be any restriction on the ability of Subsidiaries or Obligors to repay any
intercompany Debt owed to the Company.

 

 

          10.2.10. Fundamental Changes. (a) Merge, combine or consolidate with any Person,
or liquidate, wind up its affairs or dissolve itself (unless, in the case of any liquidation,
winding up or dissolution, the assets of such entity are transferred to its corporate parent), in
each case whether in a single transaction or in a series of related transactions, except for the UK
Restructuring and for mergers, consolidations, amalgamations or combinations of (i) a wholly-owned
Domestic Subsidiary (or National Seating Company) with another wholly-owned Domestic Subsidiary
(provided that if any such Subsidiary is an Obligor, the Obligor will be the surviving
company) or into a Borrower, (ii) a Borrower with and into a Borrower, so long as, in the case of
the Company, the Company is the surviving entity, or (iii) a Foreign Subsidiary with and into
another Foreign Subsidiary, provided that if any such Subsidiary is an Obligor, the Obligor
will be the surviving company; or (b) unless 30 days’ advance written notice is given to Agent, (i)
change its name or conduct business under any fictitious name, (ii) change its tax, charter or
other organizational identification number, or (iii) change its form or state of jurisdiction of
organization.

          10.2.11. Subsidiaries. Form or acquire any Subsidiary after the Original Closing
Date, except in accordance with Sections 10.1.9, 10.2.5 or 10.2.6 and except for any Excluded
Receivables Subsidiary, or permit any existing Subsidiary to issue any additional Equity Interests
except director’s qualifying shares.

          10.2.12. Organic Documents. Amend, modify or otherwise change any of its Organic
Documents as in effect on the Original Closing Date to the extent such amendment, modification or
change could reasonably be expected to result in a Material Adverse Effect.

          10.2.13. Tax Consolidation. File or consent to the filing of any consolidated
income tax return with any Person other than Borrowers and Subsidiaries.

          10.2.14. Accounting Changes. Make any material change in accounting treatment or
reporting practices, except as permitted by GAAP and in accordance with Section 1.2; or change its
Fiscal Year without consent of Agent.

          10.2.15. Restrictive Agreements. Become a party to any Restrictive Agreement,
except (a) Restrictive Agreements in effect on the Original Closing Date; (b) Restrictive
Agreements relating to Debt permitted hereunder, as long as the restrictions apply only to
collateral for such Debt; (c) Restrictive Agreements constituting customary restrictions on
assignment, encumbrances or subletting in leases and other contracts; (d) Restrictive Agreements
constituting customary restrictions and conditions contained in any agreement relating to the sale
of any Property permitted under Section 10.2.7 pending the consummation of such sale; (e)
Restrictive Agreements in effect at the time such Subsidiary becomes a Subsidiary of a Borrower, so
long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary
of such Borrower; (f) the documents described on Schedule 10.2.15, (g) the Second Lien Note
Documents as in effect on the date hereof (or otherwise executed in connection with the closing of
the Indenture) and as amended, restated, supplemented or otherwise modified as permitted under the
Intercreditor Agreement, including any Refinancing Debt thereof, (h) any agreements evidencing a
Qualified Receivables Transaction, or (i) agreements related to working capital Debt permitted
under Section 10.2.1(n).

          10.2.16. Hedging Agreements. Enter into any Hedging Agreement, except to hedge
risks arising in the Ordinary Course of Business and not for speculative purposes.

 

 

          10.2.17. Conduct of Business. Engage in any business, other than its business as
conducted on the Original Closing Date and any activities ancillary, incidental, complementary or
reasonably related thereto.

          10.2.18. Affiliate Transactions. Enter into or be party to any transaction with
an Affiliate, except (a) transactions contemplated or otherwise permitted by the Loan Documents;
(b) payment of reasonable compensation to officers and employees for services actually rendered,
and loans and advances permitted by Section 10.2.5; (c) payment of customary directors’ fees and
indemnities; (d) transactions solely among (i) Obligors or (ii) non-Obligors; (e) transactions with
Affiliates that were consummated prior to the Original Closing Date, as shown on Schedule 10.2.18;
and (f) transactions with Affiliates in the Ordinary Course of Business, upon fair and reasonable
terms fully disclosed to Agent and no less favorable than would be obtained in a comparable
arm’s-length transaction with a non-Affiliate.

          10.2.19. Plans. Become party to any (i) Multiemployer Plan or (ii) Foreign Plan
(which would reasonably be expected to result in a material liability to Borrowers), in each case
other than any in existence on the Original Closing Date.

          10.2.20. Third Lien Notes and Existing Senior Notes. The Company shall have paid
all outstanding obligations and liabilities owing in respect of the Third Lien Notes and Existing
Senior Notes in full on or before June 25, 2011.

          10.2.21. Amendments to Subordinated Debt or Indenture. Amend, supplement or
otherwise modify (i) any document, instrument or agreement relating to any Subordinated Debt, if
such modification (a) increases the principal balance of such Debt (other than as a result of
capitalization of fees and interest), or increases any required payment of principal or interest
(other than as a result of capitalization of fees and interest), (b) accelerates the date on which
any installment of principal or any interest is due, or adds any additional redemption, put or
prepayment provisions, (c) shortens the final maturity date or otherwise accelerates amortization,
(d) increases the interest rate, (e) modifies any covenant in a manner or adds any representation,
covenant or default that is more onerous or restrictive in any material respect (when taken as a
whole) for any Obligor, or that is otherwise materially adverse to any Obligor or Lenders, or (f)
results in the Obligations not being fully benefited by the subordination provisions thereof; or
(ii) the Indenture or any other document to the extent such amendment, supplement or modification
results in the Obligations not constituting indebtedness permitted under Section 4.03(b)(1) of the
Indenture if applicable.

     10.3. Financial Covenants. As long as any Revolver Commitments or Obligations are
outstanding, Borrowers shall:

          10.3.1. Fixed Charge Coverage Ratio. During any Financial Covenant Trigger
Period, maintain a Fixed Charge Coverage Ratio of at least 1.10 to 1.0 as of the last day of any
Fiscal Quarter and determined for the period consisting of the most recent four Fiscal Quarters
ended prior to the Financial Covenant Trigger Date.

SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT

     11.1. Events of Default. Each of the following shall be an “Event of Default”
hereunder, if the same shall occur for any reason whatsoever, whether voluntary or involuntary, by
operation of law or otherwise:

 

 

          (a) a Borrower fails to pay any Obligations when due (whether at stated maturity, on
demand, upon acceleration or otherwise);

          (b) any representation, warranty or other written statement of an Obligor made in
connection with any Loan Documents or transactions contemplated thereby is incorrect or misleading
in any material respect when given;

          (c) a Borrower breaches or fail to perform any covenant contained in Section 7.2, 7.3,
7.6, 8.1, 8.2.4, 8.6.2, 10.1.1, 10.1.2, 10.2 or 10.3;

          (d) an Obligor breaches or fails to perform any covenant contained in any Loan Documents
(other than as specified in clauses (a), (b) and (c) above), and such breach or failure is not
cured (i) within five days for any such breach or failure to perform any covenant contained in
Section 7.4 of this Agreement, and (ii) within 30 days for any such breach or failure to perform
any other covenant contained in any Loan Document, in each case after a Senior Officer of such
Obligor has knowledge thereof or receives notice thereof from Agent, whichever is sooner;

          (e) a Guarantor repudiates, revokes or attempts to revoke its Guaranty; an Obligor denies
or contests the validity or enforceability of any Loan Documents or Obligations, or the perfection
or priority of any Lien granted to Agent except for immaterial Collateral with a value not in
excess of $1,000,000 at any time; or any Loan Document ceases to be in full force or effect for any
reason (other than a waiver or release by Agent and Lenders or action or inaction by the Collateral
Agent or as otherwise permitted hereunder);

          (f) any breach or default of an Obligor occurs under any document, instrument or agreement
to which it is a party or by which it or any of its Properties is bound, relating to any Debt
(other than the Obligations) in excess of $5,000,000, if the maturity of or any payment with
respect to such Debt may be accelerated or demanded due to such breach;

          (g) other than any judgment disclosed on Schedule 11.1 (to the extent the aggregate amount
of any such judgment plus accrued interest thereon does not exceed $2,500,000), any judgment or
order for the payment of money is entered against an Obligor in an amount that exceeds,
individually or cumulatively with all unsatisfied judgments or orders against all Obligors,
$2,000,000 (net of any insurance coverage therefor not denied in writing by the insurer);

          (h) an Obligor is enjoined, restrained or in any way prevented by any Governmental
Authority from conducting any material part of its business; there is a cessation of any material
part of an Obligor’s business for a material period of time (other than as permitted hereunder);
any material Collateral or Property of an Obligor is taken or impaired through condemnation; an
Obligor agrees to or commences any liquidation, dissolution or winding up of its affairs (except as
otherwise permitted hereunder); or an Obligor is not Solvent;

          (i) an Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer of
settlement, extension or composition to its unsecured creditors generally; or an Insolvency
Proceeding is commenced against an Obligor and: the Obligor consents to institution of the
proceeding, the petition commencing the proceeding is not timely contested by the Obligor, the
petition is not dismissed within 30 days after filing, or an order for relief is entered in the
proceeding;

 

 

          (j) an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has
resulted or could reasonably be expected to result in a material liability of an Obligor to a
Pension Plan, Multiemployer Plan or PBGC, or that constitutes grounds for appointment of a trustee
for or termination by the PBGC of any Pension Plan or Multiemployer Plan; an Obligor or ERISA
Affiliate fails to pay when due any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan; or any event similar to the foregoing
occurs or exists with respect to a Foreign Plan; or

          (k) a Change of Control occurs.

     11.2. Remedies upon Default. If an Event of Default described in Section 11.1(i)
or (j) occurs with respect to any Borrower, then to the extent permitted by Applicable Law, all
Obligations shall become automatically due and payable and all Revolver Commitments shall
terminate, without any action by Agent or notice of any kind. In addition, or if any other Event
of Default exists, Agent may in its discretion (and shall upon written direction of Required
Lenders) do any one or more of the following from time to time:

          (a) declare any Obligations immediately due and payable, whereupon they shall be due and
payable without diligence, presentment, demand, protest or notice of any kind, all of which are
hereby waived by Borrowers to the fullest extent permitted by law;

          (b) terminate, reduce or condition any Revolver Commitment, or make any adjustment to the
Borrowing Base;

          (c) require Obligors to Cash Collateralize LC Obligations, Bank Product Debt and other
Obligations that are contingent or not yet due and payable, and, if Obligors fail promptly to
deposit such Cash Collateral, Agent may (and shall upon the direction of Required Lenders) advance
the required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or is created
thereby, or the conditions in Section 6 are satisfied); provided, that if Borrowers
are required to provide an amount of cash collateral pursuant to this Section 11.2, such amount (to
the extent not applied in accordance with Section 5.6) shall be returned to Borrowers within three
Business Days after all Events of Default have been cured or waived; and

          (d) exercise any other rights or remedies afforded under any agreement, by law, at equity
or otherwise, including the rights and remedies of a secured party under the UCC. Such rights and
remedies include the rights to (i) take possession of any Collateral; (ii) require Borrowers to
assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place designated by
Agent; (iii) subject to the terms of any Lease Agreement or Lease Waiver, as applicable, enter any
premises where Collateral is located and store Collateral on such premises until sold (and if the
premises are owned or leased by a Borrower, Borrowers agree not to charge for such storage); and
(iv) sell or otherwise dispose of any Collateral in its then condition, or after any further
manufacturing or processing thereof, at public or private sale, with such notice as may be required
by Applicable Law, in lots or in bulk, at such locations, all as Agent, in its discretion, deems
advisable. Each Borrower agrees that 10 days notice of any proposed sale or other disposition of
Collateral by Agent shall be reasonable. Agent shall have the right to conduct such sales on any
Obligor’s premises, without charge, and such sales may be adjourned from time to time in accordance
with Applicable Law. Agent shall have the right to sell, lease or otherwise dispose of any
Collateral for cash, credit or any combination thereof, and Agent may

 

 

purchase any Collateral at public or, if permitted by law, private sale and, in lieu of actual
payment of the purchase price, may set off the amount of such price against the Obligations.

     11.3. License. For the purpose of enabling Agent, upon the occurrence and during
the continuance of an Event of Default, to exercise the rights and remedies under Section 11.2 at
such time as Agent shall be lawfully entitled to exercise such rights and remedies, and for no
other purpose, Borrower hereby grants to Agent a non-exclusive license (subject to the rights of
third parties and to the extent not prohibited in the case of licensed in Intellectual Property and
(i) in the case of trademarks, to sufficient rights to quality control and inspection in favor of
Borrower to avoid the risk of invalidation of such trademarks, and (ii) in the case of trade
secrets, to an obligation of Agent to take steps reasonable under the circumstances to keep trade
secrets confidential to avoid the risk of invalidation of such trade secrets) to use, license or
sub-license (without payment of royalty or other compensation to any Person) any or all
Intellectual Property of Borrowers, computer hardware and software, trade secrets, brochures,
customer lists, promotional and advertising materials, labels, packaging materials and other
Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or
otherwise exercising any rights or remedies with respect to, any Collateral. Each Borrower’s
rights and interests under Intellectual Property shall inure to Agent’s benefit.

     11.4. Setoff. At any time during an Event of Default, Agent, Issuing Bank,
Lenders, and any of their Affiliates are authorized, to the fullest extent permitted by Applicable
Law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency)(other than tax, payroll, trust or employee benefit accounts) at any
time held and other obligations (in whatever currency) at any time owing by Agent, Issuing Bank,
such Lender or such Affiliate to or for the credit or the account of an Obligor against any
Obligations, irrespective of whether or not Agent, Issuing Bank, such Lender or such Affiliate
shall have made any demand under this Agreement or any other Loan Document and although such
Obligations may be contingent or unmatured or are owed to a branch or office of Agent, Issuing
Bank, such Lender or such Affiliate different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of Agent, Issuing Bank, each Lender and each such
Affiliate under this Section 11.4 are in addition to other rights and remedies (including other
rights of setoff) that such Person may have.

     11.5. Remedies Cumulative; No Waiver.

          11.5.1. Cumulative Rights. All agreements, warranties, guaranties, indemnities
and other undertakings of Borrowers under the Loan Documents are cumulative and not in derogation
of each other. The rights and remedies of Agent and Lenders are cumulative, may be exercised at
any time and from time to time, concurrently or in any order, and are not exclusive of any other
rights or remedies available by agreement, by law, at equity or otherwise. All such rights and
remedies shall continue in full force and effect until Full Payment of all Obligations.

          11.5.2. Waivers. No waiver or course of dealing shall be established by (a) the
failure or delay of Agent or any Lender to require strict performance by Borrowers with any terms
of the Loan Documents, or to exercise any rights or remedies with respect to Collateral or
otherwise; (b) the making of any Loan or issuance of any Letter of Credit during a Default, Event
of Default or other failure by the Obligors to satisfy any conditions precedent; or (c) acceptance
by Agent or any Lender of any payment or performance by an Obligor under any Loan Documents in a
manner other than that specified therein. It is expressly acknowledged by

 

 

Borrowers that any failure to satisfy a financial covenant on a measurement date shall not be
cured or remedied by satisfaction of such covenant on a subsequent date.

SECTION 12. AGENT

     12.1. Appointment, Authority and Duties of Agent.

          12.1.1. Appointment and Authority. Each Lender appoints and designates Bank of
America as Agent hereunder. Agent may, and each Lender authorizes Agent to, enter into all Loan
Documents to which Agent is intended to be a party and accept all Security Documents, for Agent’s
benefit and the Pro Rata benefit of Lenders. Each Lender agrees that any action taken by Agent or
Required Lenders in accordance with the provisions of the Loan Documents, and the exercise by Agent
or Required Lenders of any rights or remedies set forth therein, together with all other powers
reasonably incidental thereto, shall be authorized by and binding upon all Lenders. Without
limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to (a)
act as the disbursing and collecting agent for Lenders with respect to all payments and collections
arising in connection with the Loan Documents; (b) execute and deliver as Agent each Loan Document,
including any intercreditor or subordination agreement, and accept delivery of each Loan Document
from any Obligor or other Person; (c) act as collateral agent for Secured Parties for purposes of
perfecting and administering Liens under the Loan Documents, and for all other purposes stated
therein; (d) manage, supervise or otherwise deal with Collateral; and (e) take any Enforcement
Action or otherwise exercise any rights or remedies with respect to any Collateral under the Loan
Documents, Applicable Law or otherwise. The duties of Agent shall be ministerial and
administrative in nature, and Agent shall not have a fiduciary relationship with any Lender,
Secured Party, Participant or other Person, by reason of any Loan Document or any transaction
relating thereto. Agent alone shall be authorized to determine whether any Accounts or Inventory
constitute Eligible Accounts or Eligible Inventory, or whether to impose or release any reserve,
which determinations and judgments, if exercised in good faith, shall exonerate Agent from
liability to any Lender or other Person for any error in judgment.

          12.1.2. Duties. Agent shall not have any duties except those expressly set forth
in the Loan Documents. The conferral upon Agent of any right shall not imply a duty on Agent’s
part to exercise such right, unless instructed to do so by Required Lenders in accordance with this
Agreement.

          12.1.3. Agent Professionals. Agent may perform its duties through agents and
employees. Agent may consult with and employ Agent Professionals, and shall be entitled to act
upon, and shall be fully protected in any action taken in good faith reliance upon, any advice
given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of
any agents, employees or Agent Professionals selected by it with reasonable care.

          12.1.4. Instructions of Required Lenders. The rights and remedies conferred upon
Agent under the Loan Documents may be exercised without the necessity of joinder of any other
party, unless required by Applicable Law. Agent may request instructions from Required Lenders
with respect to any act (including the failure to act) in connection with any Loan Documents, and
may seek assurances to its satisfaction from Lenders of their indemnification obligations under
Section 12.6 against all Claims that could be incurred by Agent in connection with any act. Agent
shall be entitled to refrain from any act until it has received such

 

 

instructions or assurances, and Agent shall not incur liability to any Person by reason of so
refraining. Instructions of Required Lenders shall be binding upon all Lenders, and no Lender
shall have any right of action whatsoever against Agent as a result of Agent acting or refraining
from acting in accordance with the instructions of Required Lenders. Notwithstanding the
foregoing, instructions by and consent of all Lenders shall be required in the circumstances
described in Section 15.1.1, and in no event shall Required Lenders, without the prior written
consent of each Lender, direct Agent to accelerate and demand payment of Loans held by one Lender
without accelerating and demanding payment of all other Loans, nor to terminate the Revolver
Commitment of one Lender without terminating the Revolver Commitments of all Lenders. In no event
shall Agent be required to take any action that, in its opinion, is contrary to Applicable Law or
any Loan Documents or could subject any Agent Indemnitee to personal liability.

     12.2. Agreements Regarding Collateral and Field Examination Reports.

          12.2.1. Lien Releases; Care of Collateral. Lenders authorize Agent to release any
Lien with respect to any Collateral (a) upon Full Payment of the Obligations; (b) that is the
subject of an Asset Disposition which Borrowers certify in writing to Agent is a Permitted Asset
Disposition or a Lien which Borrowers certify is a Permitted Lien entitled to priority over Agent’s
Liens (and Agent may rely conclusively on any such certificate without further inquiry); (c) that
does not constitute a material part of the Collateral; (d) as required to effect any sale or other
disposition of Collateral in connection with any exercise of remedies of Agent pursuant to the
Security Documents; or (e) with the written consent of the Required Lenders. Lenders hereby
authorize Agent to execute and deliver any instruments, documents and agreements necessary or
desirable to evidence and confirm the release of any Collateral pursuant to the foregoing
provisions of this paragraph, all without the further consent or joinder of any Lender. Agent
shall have no obligation whatsoever to any Lenders to assure that any Collateral exists or is owned
by a Borrower, or is cared for, protected, insured or encumbered, nor to assure that Agent’s Liens
have been properly created, perfected or enforced, or are entitled to any particular priority, nor
to exercise any duty of care with respect to any Collateral.

          12.2.2. Possession of Collateral. Agent and Lenders appoint each Lender as agent
(for the benefit of Secured Parties) for the purpose of perfecting Liens in any Collateral held or
controlled by such Lender, to the extent such Liens are perfected by possession or control. If any
Lender obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly
upon Agent’s request, deliver such Collateral to Agent or otherwise deal with it in accordance with
Agent’s instructions.

          12.2.3. Reports. Agent shall promptly forward to each Lender, when complete,
copies of any field audit, examination or appraisal report prepared by or for Agent with respect to
any Obligor or Collateral (“Report”). Each Lender agrees (a) that neither Bank of America
nor Agent makes any representation or warranty as to the accuracy or completeness of any Report,
and shall not be liable for any information contained in or omitted from any Report; (b) that the
Reports are not intended to be comprehensive audits or examinations, and that Agent or any other
Person performing any audit or examination will inspect only specific information regarding
Obligations or the Collateral and will rely significantly upon Borrowers’ books and records as well
as upon representations of Borrowers’ officers and employees; and (c) to keep all Reports
confidential and strictly for such Lender’s internal use, and not to distribute any Report (or the
contents thereof) to any Person (except to such Lender’s Participants, attorneys and

 

 

accountants) or use any Report in any manner other than administration of the Loans and other
Obligations. Each Lender agrees to indemnify and hold harmless Agent and any other Person
preparing a Report from any action such Lender may take as a result of or any conclusion it may
draw from any Report, as well as from any Claims arising as a direct or indirect result of Agent
furnishing a Report to such Lender.

     12.3. Reliance By Agent. Agent shall be entitled to rely, and shall be fully
protected in relying, upon any certification, notice or other communication (including those by
telephone, telex, telegram, telecopy or e-mail) believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person, and upon the advice and statements of Agent
Professionals.

     12.4. Action Upon Default. Agent shall not be deemed to have knowledge of any
Default or Event of Default unless it has received written notice from a Lender or Borrower
specifying the occurrence and nature thereof. If any Lender acquires knowledge of a Default or
Event of Default, it shall promptly notify Agent and the other Lenders thereof in writing. Each
Lender agrees that, except as otherwise provided in any Loan Documents or with the written consent
of Agent and Required Lenders, it will not take any Enforcement Action, accelerate Obligations
under any Loan Documents, or exercise any right that it might otherwise have under Applicable Law
to credit bid at foreclosure sales, UCC sales or other similar dispositions of Collateral.
Notwithstanding the foregoing, however, a Lender may take action to preserve or enforce its rights
against an Obligor where a deadline or limitation period is applicable that would, absent such
action, bar enforcement of Obligations held by such Lender, including the filing of proofs of claim
in an Insolvency Proceeding. Each Lender hereby irrevocably authorizes Agent, based upon the
instruction of the Required Lenders, to credit bid and purchase (either directly or through one or
more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted under
the provisions of the Bankruptcy Code, including pursuant to Sections 9-610 or 9-620 of the
Bankruptcy Code, at any sale thereof conducted under the provisions thereof (including Section 363
of the Bankruptcy Code) or any applicable bankruptcy, insolvency, reorganization or other similar
law (whether domestic or foreign) now or hereafter in effect, or at any sale or foreclosure
conducted by Agent (whether by judicial action or otherwise) in accordance with applicable law.

     12.5. Ratable Sharing. If any Lender shall obtain any payment or reduction of any
Obligation, whether through set-off or otherwise, in excess of its share of such Obligation,
determined on a Pro Rata basis or in accordance with Section 5.6.1, as applicable, such Lender
shall forthwith purchase from Agent, Issuing Bank and the other Lenders such participations in the
affected Obligation as are necessary to cause the purchasing Lender to share the excess payment or
reduction on a Pro Rata basis or in accordance with Section 5.6.1, as applicable. If any of such
payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest. No
Lender shall set off against any Dominion Account without the prior consent of Agent.

     12.6. Indemnification of Agent Indemnitees. EACH LENDER SHALL INDEMNIFY AND HOLD
HARMLESS AGENT INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS (BUT WITHOUT LIMITING THE
INDEMNIFICATION OBLIGATIONS OF OBLIGORS UNDER ANY LOAN DOCUMENTS), ON A PRO RATA BASIS, AGAINST ALL
CLAIMS THAT MAY BE

 

 

INCURRED BY OR ASSERTED AGAINST ANY AGENT INDEMNITEE, PROVIDED THE CLAIM RELATES TO OR ARISES
FROM AN AGENT INDEMNITEE ACTING AS OR FOR AGENT (IN ITS CAPACITY AS AGENT). In Agent’s discretion,
it may reserve for any such Claims made against an Agent Indemnitee, and may satisfy any judgment,
order or settlement relating thereto, from proceeds of Collateral prior to making any distribution
of Collateral proceeds to Lenders. If Agent is sued by any receiver, bankruptcy trustee,
debtor-in-possession or other Person for any alleged preference or fraudulent transfer, then any
monies paid by Agent in settlement or satisfaction of such proceeding, together with all interest,
costs and expenses (including attorneys’ fees) incurred in the defense of same, shall be promptly
reimbursed to Agent by each Lender to the extent of its Pro Rata share.

     12.7. Limitation on Responsibilities of Agent. Agent shall not be liable to
Lenders for any action taken or omitted to be taken under the Loan Documents, except for losses
directly and solely caused by Agent’s gross negligence or willful misconduct. Agent does not
assume any responsibility for any failure or delay in performance or any breach by any Obligor or
Lender of any obligations under the Loan Documents. Agent does not make to Lenders any express or
implied warranty, representation or guarantee with respect to any Obligations, Collateral, Loan
Documents or Obligor. No Agent Indemnitee shall be responsible to Lenders for any recitals,
statements, information, representations or warranties contained in any Loan Documents; the
execution, validity, genuineness, effectiveness or enforceability of any Loan Documents; the
genuineness, enforceability, collectibility, value, sufficiency, location or existence of any
Collateral, or the validity, extent, perfection or priority of any Lien therein; the validity,
enforceability or collectibility of any Obligations; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Obligor or
Account Debtor. No Agent Indemnitee shall have any obligation to any Lender to ascertain or
inquire into the existence of any Default or Event of Default, the observance or performance by any
Obligor of any terms of the Loan Documents, or the satisfaction of any conditions precedent
contained in any Loan Documents.

     12.8. Successor Agent and Co-Agents.

          12.8.1. Resignation; Successor Agent. Subject to the appointment and acceptance
of a successor Agent as provided below, Agent may resign at any time by giving at least 30 days
written notice thereof to Lenders and Borrowers. Upon receipt of such notice, Required Lenders
shall have the right to appoint a successor Agent which shall be (a) a Lender or an Affiliate of a
Lender; or (b) a commercial bank that is organized under the laws of the United States or any state
or district thereof, has a combined capital surplus of at least $200,000,000 and in each case
(provided no Event of Default exists) is reasonably acceptable to Borrowers. If no
successor agent is appointed prior to the effective date of the resignation of Agent, then Agent
may appoint a successor agent from among Lenders. Upon acceptance by a successor Agent of an
appointment to serve as Agent hereunder, such successor Agent shall thereupon succeed to and become
vested with all the powers and duties of the retiring Agent without further act, and the retiring
Agent shall be discharged from its duties and obligations hereunder but shall continue to have the
benefits of the indemnification set forth in Sections 12.6 and 15.2. Notwithstanding any Agent’s
resignation, the provisions of this Section 12 shall continue in effect for its benefit with
respect to any actions taken or omitted to be taken by it while Agent. Any successor to Bank of
America by merger or acquisition of stock or this loan shall continue to be Agent hereunder without
further act on the part of the parties hereto, unless such successor resigns as provided above.

 

 

          12.8.2. Separate Collateral Agent. It is the intent of the parties that there
shall be no violation of any Applicable Law denying or restricting the right of financial
institutions to transact business in any jurisdiction. If Agent believes that it may be limited in
the exercise of any rights or remedies under the Loan Documents due to any Applicable Law, Agent
may appoint an additional Person who is not so limited, as a separate collateral agent or
co-collateral agent; provided such collateral agent or co-collateral agent is reasonably acceptable
to Borrowers (unless an Event of Default exists). If Agent so appoints a collateral agent or
co-collateral agent, each right and remedy intended to be available to Agent under the Loan
Documents shall also be vested in such separate agent. Every covenant and obligation necessary to
the exercise thereof by such agent shall run to and be enforceable by it as well as Agent. Lenders
shall execute and deliver such documents as Agent deems appropriate to vest any rights or remedies
in such agent. If any collateral agent or co-collateral agent shall die or dissolve, become
incapable of acting, resign or be removed, then all the rights and remedies of such agent, to the
extent permitted by Applicable Law, shall vest in and be exercised by Agent until appointment of a
new agent.

     12.9. Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it
has, independently and without reliance upon Agent or any other Lenders, and based upon such
documents, information and analyses as it has deemed appropriate, made its own credit analysis of
each Obligor and its own decision to enter into this Agreement and to fund Loans and participate in
LC Obligations hereunder. Each Lender has made such inquiries concerning the Loan Documents, the
Collateral and each Obligor as such Lender feels necessary. Each Lender further acknowledges and
agrees that the other Lenders and Agent have made no representations or warranties concerning any
Obligor, any Collateral or the legality, validity, sufficiency or enforceability of any Loan
Documents or Obligations. Each Lender will, independently and without reliance upon the other
Lenders or Agent, and based upon such financial statements, documents and information as it deems
appropriate at the time, continue to make and rely upon its own credit decisions in making Loans
and participating in LC Obligations and in taking or refraining from any action under any Loan
Documents. Except for notices, reports and other information expressly requested by a Lender,
Agent shall have no duty or responsibility to provide any Lender with any notices, reports or
certificates furnished to Agent by any Obligor or any credit or other information concerning the
affairs, financial condition, business or Properties of any Obligor (or any of its Affiliates)
which may come into possession of Agent or any of Agent’s Affiliates.

     12.10. Replacement of Certain Lenders. If a Lender (a) is a Defaulting Lender,
(b) fails to give its consent to any amendment, waiver or action for which consent of all Lenders
was required and Required Lenders consented, then, in addition to any other rights and remedies
that any Person may have, Agent may, by notice to such Lender within 10 days after such event,
require such Lender to assign all of its rights and obligations under the Loan Documents to
Eligible Assignee(s) specified by Agent, pursuant to appropriate Assignment and Acceptance(s) and
within 20 days after Agent’s notice. Agent is irrevocably appointed as attorney-in-fact to execute
any such Assignment and Acceptance if Lender fails to execute same. Such Lender shall be entitled
to receive, in cash, concurrently with such assignment, all amounts owed to it under the Loan
Documents, including all principal, interest and fees through the date of assignment (but excluding
any prepayment charge).

     12.11. Remittance of Payments and Collections.

 

 

          12.11.1. Remittances Generally. All payments by any Lender to Agent shall be made
by the time and on the day set forth in this Agreement, in immediately available funds. If no time
for payment is specified or if payment is due on demand by Agent and request for payment is made by
Agent by 11:00 a.m. on a Business Day, payment shall be made by Lender not later than 2:00 p.m. on
such day, and if request is made after 11:00 a.m., then payment shall be made by 11:00 a.m. on the
next Business Day. Payment by Agent to any Lender shall be made by wire transfer, in the type of
funds received by Agent. Any such payment shall be subject to Agent’s right of offset for any
amounts due from such Lender under the Loan Documents.

          12.11.2. Failure to Pay. If any Lender fails to pay any amount when due by it to
Agent pursuant to the terms hereof, such amount shall bear interest from the due date until paid at
the rate determined by Agent as customary in the banking industry for interbank compensation. In
no event shall Borrowers be entitled to receive credit for any interest paid by a Lender to Agent,
nor shall any Defaulting Lender be entitled to interest on any amounts held by Agent pursuant to
Section 4.2.

          12.11.3. Recovery of Payments. If Agent pays any amount to a Lender in the
expectation that a related payment will be received by Agent from an Obligor and such related
payment is not received, then Agent may recover such amount from each Lender that received it. If
Agent determines at any time that an amount received under any Loan Document must be returned to an
Obligor or paid to any other Person pursuant to Applicable Law or otherwise, then, notwithstanding
any other term of any Loan Document, Agent shall not be required to distribute such amount to any
Lender. If any amounts received and applied by Agent to any Obligations are later required to be
returned by Agent pursuant to Applicable Law, each Lender shall pay to Agent, on demand, such
Lender’s Pro Rata share of the amounts required to be returned.

     12.12. Agent in its Individual Capacity. As a Lender, Bank of America shall have
the same rights and remedies under the other Loan Documents as any other Lender, and the terms
“Lenders,” “Required Lenders” or any similar term shall include Bank of America in its capacity as
a Lender. Each of Bank of America and its Affiliates may accept deposits from, maintain deposits
or credit balances for, invest in, lend money to, provide Bank Products to, act as trustee under
indentures of, serve as financial or other advisor to, and generally engage in any kind of business
with, Obligors and their Affiliates, as if Bank of America were any other bank, without any duty to
account therefor (including any fees or other consideration received in connection therewith) to
the other Lenders. In their individual capacity, Bank of America and its Affiliates may receive
information regarding Obligors, their Affiliates and their Account Debtors (including information
subject to confidentiality obligations), and each Lender agrees that Bank of America and its
Affiliates shall be under no obligation to provide such information to Lenders, if acquired in such
individual capacity and not as Agent hereunder.

     12.13. Agent Titles. Each Lender, other than Bank of America, that is designated
(on the cover page of this Agreement or otherwise) by Bank of America as an “Agent” or “Arranger”
of any type shall not have any right, power, responsibility or duty under any Loan Documents other
than those applicable to all Lenders, and shall in no event be deemed to have any fiduciary
relationship with any other Lender.

 

 

     12.14. No Third Party Beneficiaries. This Section 12 is an agreement solely among
Lenders and Agent, and shall survive Full Payment of the Obligations. This Section 12 does not
confer any rights or benefits upon Borrowers or any other Person other than as set forth in Section
12.8. As between Borrowers and Agent, any action that Agent may take under any Loan Documents or
with respect to any Obligations shall be conclusively presumed to have been authorized and directed
by Lenders.

SECTION 13. COLLECTION ALLOCATION MECHANISM

     13.1. [RESERVED].

SECTION 14. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS

     14.1. Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of Borrowers, Agent, Lenders, and their respective successors and assigns, except that
(a) no Borrower shall have the right to assign its rights or delegate its obligations under any
Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section 14.3.
Agent may treat the Person which made any Loan as the owner thereof for all purposes until such
Person makes an assignment in accordance with Section 14.3. Any authorization or consent of a
Lender shall be conclusive and binding on any subsequent transferee or assignee of such Lender.

     14.2. Participations.

          14.2.1. Permitted Participants; Effect. Any Lender may, in the ordinary course of
its business and in accordance with Applicable Law, at any time sell to a financial institution
(“Participant”) a participating interest in the rights and obligations of such Lender under any
Loan Documents. Despite any sale by a Lender of participating interests to a Participant, such
Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall remain
solely responsible to the other parties hereto for performance of such obligations, such Lender
shall remain the holder of its Loans and Revolver Commitment for all purposes, all amounts payable
by Borrowers shall be determined as if such Lender had not sold such participating interests, and
Borrowers and Agent shall continue to deal solely and directly with such Lender in connection with
the Loan Documents. Each Lender shall be solely responsible for notifying its Participants of any
matters under the Loan Documents, and Agent and the other Lenders or Obligors shall not have any
obligation or liability to any such Participant. A Participant that would be a Foreign Lender if
it were a Lender shall not be entitled to the benefits of Section 5.9 unless Borrowers agree
otherwise in writing.

          14.2.2. Voting Rights. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, waiver or other modification of any Loan
Documents other than that which (i) forgives principal (other than mandatory prepayments), interest
or fees (other than wavier of default interest), (ii) reduces the stated interest rate or fees
payable with respect to any Loan or Revolver Commitment in which such Participant has an interest
(other than wavier of default interest), (iii) postpones the Commitment Termination Date or any
date fixed for any regularly scheduled payment of principal, interest or fees on such Loan or
Revolver Commitment, or (iv) releases any Borrower, Guarantor or substantial portion of the
Collateral (except as otherwise permitted herein).

 

 

          14.2.3. Benefit of Set-Off. Borrowers agree that each Participant shall have a
right of set-off in respect of its participating interest to the same extent as if such interest
were owing directly to a Lender, and each Lender shall also retain the right of set-off with
respect to any participating interests sold by it. By exercising any right of set-off, a
Participant agrees to share with Lenders all amounts received through its set-off, in accordance
with Section 12.5 as if such Participant were a Lender.

     14.3. Assignments.

          14.3.1. Permitted Assignments. A Lender may assign to an Eligible Assignee any of
its rights and obligations under the Loan Documents, as long as (a) each assignment is of a
constant, and not a varying, percentage of the transferor Lender’s rights and obligations under the
Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of
$5,000,000 (unless otherwise agreed by Agent in its discretion) and integral multiples of
$1,000,000 in excess of that amount; (b) except in the case of an assignment in whole of a Lender’s
rights and obligations, the aggregate amount of the Revolver Commitments retained by the transferor
Lender is at least $5,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the
parties to each such assignment shall execute and deliver to Agent, for its acceptance and
recording, an Assignment and Acceptance. Nothing herein shall limit the right of a Lender to
pledge or assign any rights under the Loan Documents to (i) any Federal Reserve Bank or the United
States Treasury as collateral security pursuant to Regulation A of the Board of Governors and any
Operating Circular issued by such Federal Reserve Bank, or (ii) counterparties to swap agreements
relating to any Loans; provided, however, that any payment by Borrowers to the assigning Lender in
respect of any Obligations assigned as described in this sentence shall satisfy Borrowers’
obligations hereunder to the extent of such payment, and no such assignment shall release the
assigning Lender from its obligations hereunder.

          14.3.2. Effect; Effective Date. Upon delivery to Agent of an assignment notice
substantially in the form of Exhibit D and a processing fee of $3,500 (unless otherwise agreed by
Agent in its discretion), the assignment shall become effective as specified in the notice, if it
complies with this Section 14.3. From such effective date, the Eligible Assignee shall for all
purposes be a Lender under the Loan Documents, and shall have all rights and obligations of a
Lender thereunder (provided that any liability of Borrowers to such assignee under Section 3.7, 3.8
and 5.9 shall be limited to the amount, if any, that would have been payable thereunder by
Borrowers in the absence of such assignment, except to the extent any such amounts are attributable
to a Change in Law occurring after the date of such assignment). Upon consummation of an
assignment, the transferor Lender, Agent and Borrowers shall make appropriate arrangements for
issuance of replacement and/or new Notes, as applicable. The transferee Lender shall comply with
Section 5.10 and deliver, upon request, an administrative questionnaire satisfactory to Agent.

SECTION 15. MISCELLANEOUS

     15.1. Consents, Amendments and Waivers.

          15.1.1. Amendment. No modification of any Loan Document, including any extension
or amendment of a Loan Document or any waiver of a Default or Event of Default, shall be effective
without the prior written agreement of Agent (with the consent of Required Lenders) and each
Obligor party to such Loan Document; provided, however, that

 

 

          (a) without the prior written consent of Agent, no modification shall be effective with
respect to any provision in a Loan Document that relates to any rights, duties or discretion of
Agent;

          (b) without the prior written consent of Issuing Bank, no modification shall be effective
with respect to any LC Obligations or Section 2.3;

          (c) without the prior written consent of each affected Lender, no modification shall be
effective that would (i) increase the Revolver Commitment of such Lender; or (ii) reduce the amount
of, or waive or delay payment of, any principal, interest or fees payable to such Lender (other
than waiver of default interest or waiver of any Default or Event of Default); and

          (d) without the prior written consent of all Lenders (except a Defaulting Lender as
provided in Section 4.2), no modification shall be effective that would (i) extend the Revolver
Termination Date; (ii) alter Sections 5.6 or 15.1.1; (iii) amend the definitions of Borrowing Base,
Pro Rata or Required Lenders; (iv) increase any advance rate or increase total Revolver
Commitments; (vi) release Collateral with a book value greater than $10,000,000 during any calendar
year, except as contemplated by the Loan Documents; or (vii) release any Obligor from liability for
any Obligations, if such Obligor is Solvent at the time of the release except as permitted by the
Loan Documents.

          15.1.2. Limitations. The agreement of Borrowers shall not be necessary to the
effectiveness of any modification of a Loan Document that deals solely with the rights and duties
of Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to the
Fee Letter or any agreement relating to a Bank Product shall be required for any modification of
such agreement, and any non-Lender that is party to a Bank Product agreement shall have no right to
participate in any manner in modification, amendment, supplement, extension or restatement of any
other Loan Document. Any waiver or consent granted by Agent or Lenders hereunder shall be
effective only if in writing and only for the matter specified.

          15.1.3. Payment for Consents. No Borrower will, directly or indirectly, pay any
remuneration or other thing of value, whether by way of additional interest, fee or otherwise, to
any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender
with any modification of any Loan Documents, unless such remuneration or value is concurrently
paid, on the same terms, on a Pro Rata basis to all Lenders providing their consent.

          15.1.4. Technical Amendments. Notwithstanding anything to the contrary contained
in Section 15.1, if Agent and Borrowers shall have jointly identified any error of a technical
nature in any provision of the Loan Documents, then Agent and Borrowers shall be permitted to amend
such provision and such amendment shall become effective without any further action or consent of
any other party to any Loan Document if the same is not objected to in writing by the Required
Lenders within five Business Days following receipt of notice thereof.

     15.2. Indemnity. EACH BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES
AGAINST ANY CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE, INCLUDING CLAIMS
ARISING FROM THE NEGLIGENCE OF AN INDEMNITEE. In no event shall any party to a Loan Document have
any obligation thereunder to indemnify or hold harmless an Indemnitee with respect to a Claim that
is determined in a final, non-appealable judgment by a

 

 

court of competent jurisdiction to result from the gross negligence or willful misconduct of
such Indemnitee or a Claim solely among the Indemnitees.

     15.3. Notices and Communications.

          15.3.1. Notice Address. Subject to Section 4.1.4, all notices and other
communications by or to a party hereto shall be in writing and shall be given to any Borrower, at
Borrower Agent’s address shown on the signature pages hereof, and to any other Person at its
address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after
the Restatement Effective Date, at the address shown on its Assignment and Acceptance), or at such
other address as a party may hereafter specify by notice in accordance with this Section 15.3.
Each such notice or other communication shall be effective only (a) if given by facsimile
transmission, when transmitted to the applicable facsimile number, if confirmation of receipt is
received; (b) if given by mail, three Business Days after deposit in the U.S. mail, with
first-class postage pre-paid, addressed to the applicable address; or (c) if given by personal
delivery, when duly delivered to the notice address with receipt acknowledged. Notwithstanding the
foregoing, no notice to Agent pursuant to Section 2.1.4, 2.3, 3.1.2, 4.1.1 or 5.3.3 shall be
effective until actually received by the individual to whose attention at Agent such notice is
required to be sent. Any written notice or other communication that is not sent in conformity with
the foregoing provisions shall nevertheless be effective on the date actually received by the
noticed party. Any notice received by Borrower Agent shall be deemed received by all Borrowers.

          15.3.2. Electronic Communications; Voice Mail. Electronic mail and internet
websites may be used only for routine communications, such as financial statements, Borrowing Base
Certificates and other information required by Section 10.1.2, administrative matters, distribution
of Loan Documents for execution and delivery of executed signature pages, matters permitted under
Section 4.1.4 and such other communications as agreed by Agent. Agent and Lenders make no
assurances as to the privacy and security of electronic communications. Electronic and voice mail
may not be used as effective notice under the Loan Documents.

          15.3.3. Non-Conforming Communications. Agent and Lenders may rely upon any
notices purportedly given by or on behalf of any Borrower even if such notices were not made in a
manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as
understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and
hold harmless each Indemnitee from any liabilities, losses, costs and expenses arising from any
telephonic communication purportedly given by or on behalf of a Borrower.

     15.4. Performance of Borrowers’ Obligations. Agent may, in its discretion at any
time and from time to time, at Borrowers’ expense, with, unless an Event of Default is continuing,
five days prior notice to Borrower, pay any amount or do any act required of a Borrower under any
Loan Documents or otherwise lawfully requested by Agent to (a) enforce any Loan Documents or
collect any Obligations; (b) protect, insure, maintain or realize upon any Collateral; or (c)
defend or maintain the validity or priority of Agent’s Liens in any Collateral, including any
payment of a judgment, insurance premium, warehouse charge, finishing or processing charge, or
landlord claim, or any discharge of a Lien. All payments, costs and expenses (including
Extraordinary Expenses) of Agent under this Section 15.4 shall be reimbursed to Agent by Borrowers,
promptly following demand, with interest from the date incurred to the date of payment thereof at
the Default Rate applicable to Base Rate Loans. Any

 

 

payment made or action taken by Agent under this Section 15.4 shall be without prejudice to
any right to assert an Event of Default or to exercise any other rights or remedies under the Loan
Documents.

     15.5. Credit Inquiries. Each Borrower hereby authorizes Agent and Lenders (but
they shall have no obligation) to respond to usual and customary credit inquiries from third
parties concerning any Borrower or Subsidiary.

     15.6. Severability. Wherever possible, each provision of the Loan Documents shall
be interpreted in such manner as to be valid under Applicable Law. If any provision is found to be
invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the
remaining provisions of the Loan Documents shall remain in full force and effect.

     15.7. Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents
are cumulative. The parties acknowledge that the Loan Documents may use several limitations, tests
or measurements to regulate similar matters, and they agree that these are cumulative and that each
must be performed as provided. Except as otherwise provided in another Loan Document (by specific
reference to the applicable provision of this Agreement), if any provision contained herein is in
direct conflict with any provision in another Loan Document, the provision herein shall govern and
control.

     15.8. Counterparts. Any Loan Document may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single
contract. This Loan Agreement shall become effective when Agent has received counterparts bearing
the signatures of all parties hereto. Delivery of a signature page of any Loan Document by
telecopy or other electronic means shall be effective as delivery of a manually executed
counterpart of such agreement.

     15.9. Entire Agreement. Time is of the essence of the Loan Documents. The Loan
Documents constitute the entire contract among the parties relating to the subject matter hereof,
and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof.

     15.10. Relationship with Lenders. The obligations of each Lender hereunder are
several, and no Lender shall be responsible for the obligations or Revolver Commitments of any
other Lender. Amounts payable hereunder to each Lender shall be a separate and independent debt.
It shall not be necessary for Agent or any other Lender to be joined as an additional party in any
proceeding for such purposes. Nothing in this Agreement and no action of Agent or Lenders pursuant
to the Loan Documents shall be deemed to constitute Agent and Lenders to be a partnership,
association, joint venture or any other kind of entity, nor to constitute control of any Borrower.

     15.11. No Advisory or Fiduciary Responsibility. In connection with all aspects of
each transaction contemplated by any Loan Document, Borrowers acknowledge and agree that (a)(i)
this credit facility and any related arranging or other services by Agent, any Lender, any of their
Affiliates or any arranger are arm’s-length commercial transactions between Borrowers and such
Person; (ii) Borrowers have consulted their own legal, accounting, regulatory and tax advisors to
the extent they have deemed appropriate; and (iii) Borrowers are capable of evaluating and
understanding, and do understand and accept, the terms, risks and conditions of

 

 

the transactions contemplated by the Loan Documents; (b) each of Agent, Lenders, their
Affiliates and any arranger is and has been acting solely as a principal in connection with this
credit facility, is not the financial advisor, agent or fiduciary for Borrowers, any of their
Affiliates or any other Person, and has no obligation with respect to the transactions contemplated
by the Loan Documents except as expressly set forth therein; and (c) Agent, Lenders, their
Affiliates and any arranger may be engaged in a broad range of transactions that involve interests
that differ from Borrowers and their Affiliates, and have no obligation to disclose any of such
interests to Borrowers or their Affiliates. To the fullest extent permitted by Applicable Law,
each Borrower hereby waives and releases any claims that it may have against Agent, Lenders, their
Affiliates and any arranger with respect to any breach or alleged breach of agency or fiduciary
duty in connection with any aspect of any transaction contemplated by a Loan Document.

     15.12. Process Agent. Without prejudice to any other mode of service allowed
under any relevant law, each Borrower:

(i) irrevocably appoints National Registered Agents, Inc. as its agent for service of
process in relation to any proceedings before the Illinois courts in connection with any
Loan Document; and

(ii) agrees that failure by an agent for service of process to notify the relevant
Borrower of the process will not invalidate the proceedings concerned.

If any person appointed as an agent for service of process is unable for any reason to act as agent
for service of process, the Company (on behalf of all the Obligors) must immediately (and in any
event within five days of such event taking place) appoint another agent on terms acceptable to
Agent. Failing this, Agent may appoint another agent for this purpose.

     15.13. Confidentiality. Each of Agent, Lenders and Issuing Bank agrees to
maintain the confidentiality of all Information (as defined below) with the same degree of care
that it uses to protect its confidentiality information, except that Information may be disclosed
(a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and representatives (provided such Persons are informed of the
confidential nature of the Information and instructed to keep such Information confidential)
involved in the transaction; (b) to the extent requested by any governmental, regulatory or
self-regulatory authority purporting to have jurisdiction over it or its Affiliates; (c) to the
extent required by Applicable Law or by any subpoena or similar legal process; (d) to any other
party hereto; (e) in connection with any action or proceeding, or other exercise of rights or
remedies, relating to any Loan Documents or Obligations; (f) subject to an agreement containing
provisions substantially the same as this Section 15.5, to any Transferee or, any actual or
prospective party (or its advisors) to any Bank Product; (g) with the consent of Borrower Agent; or
(h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section 15.5 or (ii) is available to Agent, any Lender, Issuing Bank or any of their
Affiliates on a nonconfidential basis from a source other than Borrowers. Notwithstanding the
foregoing, Agent and Lenders may publish or disseminate general information describing this credit
facility, including the names and addresses of Borrowers and a general description of Borrowers’
businesses, and may use Borrowers’ logos, trademarks, product photographs or name in advertising
materials. As used herein, “Information” means all information received from an Obligor or
Subsidiary relating to it or its business or to the Collateral that is identified as

 

 

confidential when delivered. Any Person required to maintain the confidentiality of
Information pursuant to this Section 15.5 shall be deemed to have complied if it exercises the same
degree of care to maintain the confidentiality of such Information that it accords its own
confidential information. Each of Agent, Lenders and Issuing Bank acknowledges that (i)
Information may include material non-public information concerning an Obligor or Subsidiary; (ii)
it has developed compliance procedures regarding the use of material non-public information; and
(iii) it will handle such material non-public information in accordance with Applicable Law,
including federal and state securities laws. This Section 15.13 shall survive Full Payment of the
Obligations.

     15.14. Certifications Regarding Second Lien Notes. Borrowers certify to Agent and
Lenders that neither the execution or performance of the Loan Documents nor the incurrence of any
Obligations by Borrowers violates the Second Lien Notes or the Indenture, including Section
4.03(b)(1) thereof. Agent may condition Borrowings, Letters of Credit and other credit
accommodations under the Loan Documents from time to time upon Agent’s receipt of evidence that the
Revolver Commitments and Obligations continue to be permitted under the Indenture at such time.

     15.15. GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, UNLESS
OTHERWISE SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT GIVING EFFECT
TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

     15.16. Consent to Forum.

          15.16.1. EACH PARTY HERETO HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER ILLINOIS, IN ANY PROCEEDING OR DISPUTE
RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY
IT SOLELY IN ANY SUCH COURT. EACH PARTY HERETO IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS AND
DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR
INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 14.3.1. Nothing herein shall limit the right of Agent or any
Lender to bring proceedings against any Obligor in any other court, nor limit the right of any
party to serve process in any other manner permitted by Applicable Law. Nothing in this Agreement
shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or
jurisdiction.

     15.17. Waivers by Borrowers. To the fullest extent permitted by Applicable Law,
each Borrower waives (a) the right to trial by jury (which Agent and each Lender hereby also
waives) in any proceeding or dispute of any kind relating in any way to any Loan Documents,
Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default,
non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial
paper, accounts, documents, instruments, chattel paper and guaranties at any time held by Agent on
which a Borrower may in any way be liable, and hereby ratifies anything Agent may do in this
regard; (c) notice prior to taking possession

 

 

or control of any Collateral (except as required under the Loan Documents); (d) any bond or
security that might be required by a court prior to allowing Agent to exercise any rights or
remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim against
Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement
Action, Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance
hereof. Each Borrower acknowledges that the foregoing waivers are a material inducement to Agent
and Lenders entering into this Agreement and that Agent and Lenders are relying upon the foregoing
in their dealings with Borrowers. Each Borrower has reviewed the foregoing waivers with its legal
counsel and has knowingly and voluntarily waived its jury trial and other rights following
consultation with legal counsel. In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.

     15.18. Patriot Act Notice. Agent and Lenders hereby notify Borrowers that
pursuant to the requirements of the Patriot Act, Agent and Lenders are required to obtain, verify
and record information that identifies each Borrower, including its legal name, address, tax ID
number and other information that will allow Agent and Lenders to identify it in accordance with
the Patriot Act. Agent and Lenders will also require information regarding each personal
guarantor, if any, and may require information regarding Borrowers’ management and owners, such as
legal name, address, social security number and date of birth.

     15.19. Effect of Amendment and Restatement; Schedules. This Agreement is intended
to amend the Original Loan Agreement, without novation, and solely for convenience of reference, to
restate it. For the avoidance of doubt, this Agreement shall not become effective until the
satisfaction (or waiver) of the requirements set forth in Section 6.2 and the occurrence of the
Restatement Effective Date. The Company and each other Obligor hereby acknowledge, certify and
agree that the “Obligations” outstanding under and as defined in the Original Loan Agreement as of
the Restatement Effective Date, continue to remain Obligations outstanding under this Agreement.
Except as expressly modified herein, all of the terms and provisions of the Original Loan Agreement
shall continue to apply for the periods prior to the Restatement Effective Date, including any
determinations of payment dates, interest rates, compliance with covenants and other obligations,
accuracy of representations and warranties, Events of Default or any amount payable to Agent or
Lenders. From and after the Restatement Effective Date, all references in the Notes and other Loan
Documents to (i) the “Loan Agreement” shall be deemed to include references to this Agreement, and
(ii) the “Lenders” or “Agent” shall mean such terms as defined in this Agreement. As to all
periods occurring on or after the Restatement Effective Date, all of the covenants in the Original
Loan Agreement shall be of no further force and effect (with respect to such periods), it being
understood that all obligations of Borrowers under the Original Loan Agreement shall be governed by
this Agreement from and after the Restatement Effective Date. Upon the effectiveness of this
Agreement, the Schedules to the Original Credit Agreement, as amended, supplemented or otherwise
modified after the Original Closing Date but prior to the Restatement Effective Date, shall
constitute the Schedules hereto, other than Schedule 1.1, Schedule 7.4, Schedule 8.5, Schedule
9.1.11, Schedule 9.1.14, Schedule 9.1.16, Schedule 10.2.1, Schedule 10.2.7 and Schedule 10.2.15 to
this Agreement which are hereby amended and restated in form set forth after the signature pages to
this Agreement.

     15.20. Intercreditor Agreement. Notwithstanding anything herein to the contrary,
any Lien and security interests granted to Agent pursuant to this Agreement or any Security

 

 

Documents and the exercise of any right or remedy by Agent under the Credit Agreement or any
of the Security Documents is subject to the provisions of the Intercreditor Agreement.

[Remainder of page intentionally left blank; signatures begin on following page]

 

 

     IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date set forth
above.

	 	 	 	 	 
	 	BORROWERS:

COMMERCIAL VEHICLE GROUP, INC.

 	 
	 	By:  	/s/ Chad M. Utrup	 
	 	 	Name:  	Chad M. Utrup 	 
	 	 	Title:  
Address: 	Chief Financial
Officer

7800 Walton Parkway

New Albany, OH 43054

Attn: Chief Financial Officer

Telecopy: (614) 289-5365 	 
	 
	 	NATIONAL SEATING COMPANY

CVG CS LLC

MONONA CORPORATION

MONONA WIRE CORPORATION

MONONA (MEXICO) HOLDINGS LLC

TRIM SYSTEMS, INC.

TRIM SYSTEMS OPERATING CORP.

CABARRUS PLASTICS, INC.

CVG OREGON, LLC

CVS HOLDINGS, INC.

SPRAGUE DEVICES, INC.

MAYFLOWER VEHICLE SYSTEMS, LLC

CVG MANAGEMENT CORPORATION

CVG EUROPEAN HOLDINGS, LLC

CVG LOGISTICS, LLC

CVG ALABAMA, LLC

 	 
	 	By:  	/s/ Chad M. Utrup	 
	 	 	Name:  	Chad M. Utrup 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENT AND LENDERS:

BANK OF AMERICA, N.A.,

as Agent and Lender

 	 
	 	By:  	/s/ Philip Nomura	 
	 	 	Name:  	Philip Nomura 	 
	 	 	Title:  
Address:
	Vice President

135 S. LaSalle, 4th Floor

Chicago, IL 60603

Telecopy: (312) 904-7190 	 

 

 

	 	 	 	 	 

SCHEDULE 1.1

to

Loan and Security Agreement

REVOLVER COMMITMENTS OF LENDERS

	 	 	 	 	 
	Lender	 	Revolver Commitment	 
	Bank of America, N.A.
	 	$	40,000,000.00

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