Document:

Filed by Bowne Pure Compliance

Exhibit 10.3.2

CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

This Confidentiality and Non-Competition Agreement (the “Agreement”) is made as of this 6th
day of August, 2008 (the “Effective Date”), by and between HEALTH GRADES, INC. (the “Company”) and
KERRY R. HICKS (“Employee”).

RECITALS

	1.	 	The Company is a Delaware corporation with its principal place of business at 500 Golden
Ridge Road, Suite 100, Golden, Colorado 80401. In the course of its business, the Company has
developed significant confidential and proprietary information and trade secrets from which it
derives independent economic advantage as a result of that information and those trade secrets
being not generally known.

	2.	 	Employee is a founder of the Company and has served as the Company’s Chief Executive Officer
and a director since the Company’s inception in 1995. Employee currently is Chief Executive
Officer, President and Chairman of the Board of the Company. The Company and Employee
previously entered into a Noncompetition and Nonsolicitation Agreement effective as of
effective as of March 17, 2000, and amended and restated effective December 31, 2007 (the
“Prior Noncompete Agreement”). The Company and Employee also previously entered into an
Employment Agreement effective as of April 1, 1996, and amended and restated effective
December 31, 2007 (the “Prior Employment Agreement”).

	3.	 	The Company and Employee desire to amend, restate and replace the Prior Noncompete Agreement
with a new agreement that, among other things, (i) more clearly defines the business of the
Company, (ii) extends Employee’s noncompetition period to a period that the Company and
Employee agree is commensurate with, among other things, Employee’s positions with the Company
and his special experience with and knowledge of the Company’s business, and (iii) provides
Employee with compensation for his noncompetition and other agreements that the Company and
Employee believe is reasonable and appropriate under the circumstances. Contemporaneous with
this Agreement, the Company and Employee are entering into an Amended and Restated Employment
Agreement that amends, restates and replaces the Prior Employment Agreement (the “New
Employment Agreement”).

	4.	 	Employee acknowledges that Employee’s position is an executive or management level position.
Due to Employee’s special training, experience, and knowledge that Employee has regarding the
Company’s business as a result of Employee’s employment with the Company, Employee
acknowledges that this Agreement is intended to protect the Company from competition by
Employee for the period of time and in the location(s) stated in Section 4 below.

	5.	 	Employee recognizes and acknowledges that the Company has developed significant confidential
and proprietary information and trade secrets from which it derives independent economic
advantage as a result of that information and those trade secrets being not generally known.
Employee further recognizes and acknowledges that Employee’s position with the Company is one
of trust and confidence by reason of Employee’s access to, development of, or contact with the
Company’s confidential information and proprietary information and trade secrets.

NOW, THEREFORE, in consideration of these premises, the mutual promises and covenants
contained herein, the consideration recited above, the compensation and benefits to be paid by the
Company, the services to be rendered by Employee, and intending to be legally and equitably bound
hereby, the parties hereto agree as follows:

 

 

 

1. Confidentiality.

(a) Employee shall, during and after Employee’s term of employment with the Company: (i) keep
confidential all Confidential Information (as defined in Section 1(b) below) at any time known to
Employee concerning the Company or the Business, as defined in Section 4, (ii) not disclose or use
any Confidential Information for non-business reasons or for Employee’s benefit, (iii) not disclose
any Confidential Information to third parties without the Company’s prior written permission, (iv)
exercise reasonable care to prevent dissemination of Confidential Information to third persons, (v)
not make copies of documents, including, without limitation, biographies, archives, drawings,
notebooks, reports, and video and audio recordings, computer records or files (in whatever medium
they exist), which embody any Confidential Information, unless necessary for the performance of
Employee’s duties as assigned by the Company, (vi) return to the Company any documents, including
without limitation, archives, drawings, notebooks, reports, video or audio recordings, that contain
Confidential Information and are in Employee’s possession whenever Employee may leave the Company’s
employment, and (vii) not disclose or use Confidential Information in any way that might injure or
jeopardize the operations of the Company or any of its clients.

(b) “Confidential Information” shall include any information regarding the operations of the
Company or any of its clients or customers, which information is of a special, unique, or nonpublic
nature, including, but not limited to any information relating to the business or affairs of the
Company and/or the Business, as defined in Section 4. Such information shall include, but is not
limited to, information relating to financial statements, client or customer identities, potential
clients or customers, employees, suppliers, servicing methods, equipment, programs, strategies and
information, analyses, profit margins, marketing plans, operating policies and procedures, pricing
information, and other business and financial information, client or customer lists, and contracts
or other proprietary information used by the Company in connection with the Business; provided,
however, that Confidential Information shall not include any information that is in the public
domain or becomes known in the industry through no wrongful act on the part of Employee.

 

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	2.	 	Proprietary Property. Employee discloses and assigns to Company Employee’s interest
in any and all copyrightable works, client information, inventions, designs, trade secrets,
processes, discoveries, concepts, or improvements (hereinafter collectively called
“Developments”), including all rights to obtain, register, perfect or enforce the Company’s
proprietary interest in such Developments, that Employee has to date, or may in the future,
discover, conceive, and/or develop, either individually or jointly with others during the
course of Employee’s employment with the Company (including any and all Developments based
wholly or in part upon ideas conceived during Employee’s employment with the Company), or
while using the Company’s data, facilities and/or materials, provided the subject matter is
one within the Company’s field of interest. “Subject matter within the Company’s field of
interest” includes any subject which the Company considers relevant to any past, current, or
future projects or operations. Employee’s obligations under this Section apply without regard
to whether any idea for a Development occurs to Employee on or off the job. Employee further
agrees that all Developments as described herein are the Company’s proprietary property in
which the Company has the exclusive legal right, whether or not patent applications are filed
thereon.

	3.	 	Ownership of Ideas and Documents. All ideas, inventions, and other Developments or
improvements conceived or reduced to practice by Employee, alone or with others, whether or
not during working hours, that are within the scope of the Company’s business operations or
that relate to any of the Company’s work or projects, shall be the exclusive property of the
Company. Employee agrees to assist the Company, at its expense, to obtain copyrights or
trademarks on any such copyrightable or trademarkable developments, and agrees to execute all
documents necessary to obtain such copyrights or trademarks in the name of the Company.
Employee shall assist the Company in the preparation of patents, including the execution and
delivery of any disclosures, patent applications or papers related to any development within
the Company’s field of interest as described in Section 2 above. If such assistance takes
place when Employee is no longer employed with the Company, the Company will compensate
Employee at a reasonable rate for Employee’s assistance.

 

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	4.	 	Covenant Not to Compete. The Company has spent a significant amount of time, effort,
and money developing the information, products, services, methods, systems, techniques,
procedures, know-how and client and customer information used by the Company and the processes
for identifying and marketing to the Company’s clients and customers and potential clients and
customers and handling the needs of the Company’s clients and customers. This unique
compilation of information has resulted in unique products and forms, management and control
systems, and generally a style, system, technique and method of business operation that gives
the Company an advantage over competitors that do not know of or utilize such information. As
a result, such information is proprietary to the Company, confidential, and constitutes trade
secrets. Accordingly:

	 	(a)	 	Employee’s Acknowledgment. Employee agrees and acknowledges that in
order to assure the Company that it will retain its value as a going concern, it is
necessary that Employee undertake not to use Employee’s special knowledge of the Company
and Employee’s relationships with customers and suppliers and other parties to compete
with the Company. Employee further acknowledges that:

	 	(1)	 	Employee occupies an executive and management position within the
Company;

	 
	 	(2)	 	During Employee’s employment under this Agreement, Employee will
occupy a position of trust and confidence with the Company and Employee has,
and/or will, become familiar with the Company’s trade secrets and with other
proprietary and confidential information concerning the Company;

	 
	 	(3)	 	The agreements and covenants contained in this Section 4 are
essential to protect the Company and its goodwill;

	 
	 	(4)	 	Employee is a founder of the Company, has been its Chief Executive
Officer since inception, and Employee’s employment with the Company has special,
unique and extraordinary value to the Company and the Company would be
irreparably damaged if Employee were to provide services to any person or entity
in violation of the provisions of this Agreement;

	 
	 	(5)	 	Employee has means to support Employee and Employee’s dependents
other than by engaging in a business similar to the business of the Company, and
the provisions of this Section will not impair such ability; and

	 
	 	(6)	 	For the foregoing reasons, in consideration of the payments to be
made to Employee under this Agreement and the New Employment Agreement, the
Restricted Period as defined in Section 4(b) below is the minimum period of time
that the conduct prohibited is reasonably limited, and that the Territory defined
in Section 4(b), below, is reasonable and necessary to protect the Company,
consistent with the provisions of Colo. Rev. Stat. § 8-2-113 and Colorado’s
Uniform Trade Secrets Act, Colo. Rev. Stat. §§ 7-74-101 to 110.

 

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	 	(b)	 	Non-Compete. Employee hereby agrees that during Employee’s employment
with the Company and for a period of three (3) years following the termination of
Employee’s employment with the Company for any reason (the “Restricted Period”),
Employee will not, directly or indirectly, as employee, agent, consultant, stockholder,
director, co-partner or in any other individual or representative capacity, own,
operate, manage, control, engage in, invest in or participate in any manner in, act as a
consultant or advisor to, render services for (alone or in association with any person,
firm, corporation or entity), or otherwise assist any person or entity (other than the
Company) that engages in or owns, invests in, operates, manages or controls any venture
or enterprise that directly or indirectly engages or proposes to engage in developing,
designing, producing, marketing, selling or rendering of products or services that are
substantially similar to those produced, marketed, sold or rendered (or in the process
of being produced, marketed, sold or rendered) by the Company during the Restricted
Period (the “Business”) anywhere in the United States of America (the “Territory”).
With respect to the Territory, Employee specifically acknowledges that the Company has
conducted the Business throughout the Territory and the Company intends to continue to
expand the Business throughout the Territory. Notwithstanding the foregoing, Employee
may own (without any more extensive relationship) not more than a 1% interest in any
publicly-held corporation or other business entity.

	 
	 	(c)	 	Non-Hire. For the period commencing on the date of Employee’s
termination and ending two (2) years later, Employee shall not, directly or indirectly,
hire or solicit any employee of the Company or encourage any employee to leave such
employment for any business whether or not a competitor of the Company.

	5.	 	Consideration. In consideration of the covenants and agreements of Employee
contained in this Agreement, the Company agrees to compensate Employee as set forth in this
Section 5. Capitalized terms used in this Section 5 without definition shall have the meanings
ascribed to them in the New Employment Agreement.

(a) Upon a Voluntary Termination by Employee or if Employee suffers a Termination With Cause, the
Company shall issue to Employee, on the date that is six (6) months from the date of Employee’s
Separation from Service, 340,000 shares of Common Stock of the Company; provided that if a Change
in Control (as defined below) occurs prior to such date that results in payments to holders of the
Common Stock of the Company, the Company or the Company’s successor in interest shall pay or issue
to Employee on such date cash or other consideration equal to the cash or other consideration that
a holder of 340,000 shares of Common Stock of the Company would have received as a result of such
Change in Control.

(b) Upon a Change in Control (as defined below) as a result of which a Separation from Service
occurs, either (i) the Company shall issue to Employee six (6) months from the date of Employee’s
Separation from Service 1,020,000 shares of Common Stock of the Company or (ii), if the Change in
Control results in payments to holders of the Common Stock of the Company, the Company or the
Company’s successor in interest shall pay or issue to Employee, six (6) months from the date of
Employee’s Separation from Service, cash or other consideration equal to the cash or other
consideration that a holder of 1,020,000 shares of Common Stock of the Company would have received
as a result of such Change in Control.

 

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(c) If a Change in Control (as defined below) occurs and as a result of which Employee remains
employed by the Company or the Company’s successor in interest, Employee shall be entitled to
receive, (i) 1,700,000 shares of Common Stock of the Company or (ii), if the Change in Control
results in payments to holders of the Common Stock of the Company, cash or other consideration
equal to the cash or other consideration that a holder of 1,700,000 shares of Common Stock of the
Company would have received as a result of such Change in Control, payable as soon as practicable,
but in no event more than 15 days, following the date of such Change in Control.

(d) For purposes of this Agreement, a “Change in Control” occurs on the date that either (i) or
(ii) below occurs:

(i) any one person, or more than one person acting as a group, acquires ownership of Common
Stock of the Company that, together with Common Stock held by such person or group, constitutes
more than 50% of the total fair market value or total voting power of the Common Stock of the
Company. However, if any one person or more than one person acting as a group, is considered to own
more than 50% of the total fair market value or total voting power of the Common Stock of the
Company, the acquisition of additional Common Stock by the same person or persons is not considered
to cause a change in the ownership of the Company. An increase in the percentage of Common Stock
owned by any one person, or persons acting as a group, as a result of a transaction in which the
Company acquires its Common Stock in exchange for property will be treated as an acquisition of
Common Stock for purposes of this Section.

(ii) there is a change in the effective control of the Company. A change in the effective
control of the Company occurs on the date that any one person, or more than one person acting as a
group, acquires ownership of assets of the Company that have a gross fair market value equal to or
more than 50% of the total gross fair market value of all of the assets of the Company immediately
prior to such acquisitions. For this purpose, gross fair market value means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associates with the assets.

(e) For purposes of this Section 5, persons will not be considered to be acting as a group solely
because they purchase or own Common Stock of the Company at the same time, or as a result of the
same public offering. However, persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of Common
Stock, or similar business transaction with the Company. If a person, including an entity, owns
stock in both corporations that enter into a merger, consolidation, purchase or acquisition of
stock, or similar transaction, such shareholder is considered to be acting as a group with other
shareholders in a corporation prior to the transaction giving rise to the change and not with
respect to the ownership interest in the other corporation.

(f) This Section 5 shall be interpreted in accordance with Treasury guidance for the definition of
Change in Control under § 409A of the Internal Revenue Code of 1986, as amended.

	6.	 	Employee Representations. Employee hereby represents to the Company and covenants
that the execution and delivery of this Agreement by Employee and the Company and the
performance by Employee of Employee’s duties hereunder for the Company shall not constitute a
breach of, or otherwise contravene, the terms of any employment agreement or other agreement
or policy to which Employee is a party or otherwise bound and/or otherwise infringe or violate
the rights of any former employer or other third party. Employee further represents that
Employee has not and will not in the future use any confidential materials or trade secrets of
Employee’s prior employers at any location of the Company or on Employee’s home computer.

	7.	 	Employment at Will. This Agreement shall not be construed as creating an employment
term for a definite time, and in no way impairs the right of either Employee or the Company to
terminate Employee’s employment for any reason, or no reason, at any time, with or without
notice.

 

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	8.	 	Remedies. Employee acknowledges and agrees that the covenants set forth in Sections
1-5 of this Agreement (collectively, the “Restrictive Covenants”) are reasonable and
necessary for the protection of the Company’s business interests, that the Company will be
irreparably injured if Employee breaches any of the terms of the Restrictive Covenants, and
that in the event of an actual or threatened breach of any such Restrictive Covenants, the
Company will have no adequate remedy at law. Employee accordingly agrees that in the event a
court of competent jurisdiction finds any actual or threatened breach by Employee of any of
the Restrictive Covenants, the Company shall be entitled to immediate temporary injunctive
and other equitable relief, without the necessity of showing actual monetary damages and
without the need to post a bond or any other type of security, subject to hearing as soon
thereafter as possible. Nothing contained herein shall be construed as prohibiting the
Company from pursuing any other remedies available to it for such breach or threatened
breach, including the recovery of any damages which it is able to prove.

	9.	 	Severability. Should any of the provisions of this Agreement to any extent be held
to be invalid or unenforceable, the remainder of the Agreement shall continue in full force
and effect. In the event a court of competent jurisdiction finds any portion of any
Restrictive Covenant to be unenforceable, the court shall modify the relevant Restrictive
Covenant to reflect the maximum restriction allowed by law and shall then enforce the
Restrictive Covenant as so modified.

	10.	 	Applicable Law. This Agreement has been made and executed in, and shall be construed
and enforced according to, the laws of the State of Colorado.

	11.	 	Waiver. No provision of this Agreement may be waived, except by an agreement in
writing signed by all of the parties hereto. A waiver of any term or provision shall not be
construed as a waiver of any other term or provision.

	12.	 	Headings. The subject headings used in this Agreement are included for purposes of
reference only, and shall not affect the construction or interpretation of any of its
provisions.

	13.	 	Counterparts. This Agreement may be executed in any number of counterparts with the
same effect as if all parties had signed the same document. All counterparts shall be
construed together and shall constitute one agreement.

	14.	 	Entire Agreement. This Agreement, together with the New Employment Agreement,
contain the entire understanding between the Company and the Executive with respect to the
subject matter and supersede any prior employment, severance or noncompetition agreements
between the Company and its affiliates, and the Executive, including without limitation the
Prior Noncompete Agreement and the Prior Employment Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement intending it to be effective as
of the Effective Date, notwithstanding actual signature at a different date.

	 	 	 	 	 	 	 
	 	 	Health Grades, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Allen Dodge
 

Allen Dodge, Executive Vice President

and Chief Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Kerry R. Hicks	 	 
	 	 	 	 	 
	 	 	Kerry R. Hicks	 	 

 

7Filed by Bowne Pure Compliance

Exhibit 10.1

AMENDED & RESTATED

LOAN AGREEMENT

Wachovia Bank, National Association

190 River Road

Summit, New Jersey 07901

(Hereinafter referred to as the “Bank”)

A.C. Moore Arts & Crafts, Inc.

130 A.C. Moore Drive

Berlin, NJ 08009

A.C. Moore Incorporated

130 A.C. Moore Drive

Berlin, NJ 08009

Moorestown Finance, Inc.

103 Foulk Road, Suite 200

Wilmington DE 19803

Blackwood Assets, Inc.

103 Foulk Road, Suite 200

Wilmington DE 19803

A.C. Moore Urban Renewal, LLC

130 A.C. Moore Drive

Berlin, NJ 08009

(Individually and collectively, “Borrower”)

This Loan Agreement (“Agreement”) is entered into as of May 31, 2008, by and between Bank and
Borrower.

This Agreement amends and restates in its entirety that certain Loan Agreement dated as of October
28, 2003, as subsequently amended by a Promissory Note and Loan Modification Agreement, dated
February 22, 2006, a Promissory Note and Loan Modification Agreement, dated May 1, 2006, a
Promissory Note and Loan Modification Agreement, dated March 12, 2007, and a Promissory Note and
Loan Modification Agreement dated January 24, 2008, and applies to the loan or loans (individually
and collectively, the “Loan”) evidenced by one or more promissory notes, of even date, or other
notes subject hereto, as modified from time to time (whether one or more, the “Note”), the
commercial letters of credit and standby letters of credit issued hereunder (each, a “Letter of
Credit” and collectively, the “Letters of Credit”) and all Loan Documents.

Relying upon the covenants, agreements, representations and warranties contained in this Agreement,
Bank is willing to extend credit to Borrower upon the terms and subject to the conditions set forth
herein, and Bank and Borrower agree as follows:

DEFINITIONS. Loan Documents. The term “Loan Documents”, as used in this Agreement and the other
Loan Documents, refers to all documents executed in connection with the loans evidenced by (i) a
$30,000,000 Amended & Restated Promissory Note of even date, (ii) a $7,500,000 Promissory Note
dated as of October 28, 2003, as amended from time to time, and (iii) a $22,500,000 Promissory
Note, dated as of October 28, 2003, as amended from time to time, and any letters of credit issued
pursuant to this Agreement, any applications for such letters of credit and any other documents
executed in connection therewith, and may include, without limitation, a commitment letter that
survives closing, this
Agreement, the Note, guaranty agreements, security agreements, security instruments, financing
statements, mortgage instruments, any renewals or modifications, whenever any of the foregoing are
executed, but does not include swap agreements (as defined in 11 U.S.C. § 101). Obligations. The
term “Obligations”, as used in this Agreement and the other Loan Documents, refers to any and all
indebtedness and other obligations under the Note, and any additional or replacement notes, all
other obligations under any other Loan Document(s), and all obligations under any swap agreements
(as defined in 11 U.S.C. § 101) between Borrower and Bank whenever executed. Certain Other Terms.
All terms that are used but not otherwise defined in any of the Loan Documents shall have the
definitions provided in the Uniform Commercial Code.

 

 

 

LETTERS OF CREDIT. Upon the request of Borrower, Bank shall issue commercial letters of credit and
standby letters of credit, provided, the aggregate amount available to be drawn under all
commercial Letters of Credit and standby Letters of Credit plus the aggregate amount of
unreimbursed drawings under all commercial Letters of Credit and standby Letters of Credit at any
one time does not exceed $12,500,000.00, and further provided, no commercial letter of credit shall
expire more than 180 days after the date it is issued and no standby letter of credit shall expire
more than 365 days after the date it is issued, except that upon Borrower’s request, Bank shall
issue letters of credit with auto-renewal clauses. Notwithstanding anything to the contrary
contained herein, the aggregate outstanding principal balance of Advances (as defined in the line
of credit Amended & Restated Promissory Note in the amount of $30,000,000.00, of even date), plus
the aggregate amount available to be drawn under all Letters of Credit plus the aggregate amount of
unreimbursed drawings under all Letters of Credit plus the aggregate face amount of all outstanding
banker’s acceptances created by Bank in its sole discretion at the request of Borrower at any one
time shall not exceed $30,000,000.00. Bank’s obligation to issue Letters of Credit shall terminate
if Borrower is in default (however denominated) under the Note or the other Loan Documents, or in
any case, if not sooner terminated, on May 30, 2009.

LETTER OF CREDIT FEES. Borrower shall pay to Bank, at such times as Bank shall require, Bank’s
standard fees in connection with Letters of Credit, as in effect from time to time, and with
respect to standby Letters of Credit, an additional fee equal to 1.00% per annum on the face amount
of each standby Letter of Credit, payable annually, in advance, for so long as such Letter of
Credit is outstanding.

REPRESENTATIONS. Borrower represents that from the date of this Agreement and until final payment
in full of the Obligations: Accurate Information. All information now and hereafter furnished to
Bank is and will be true, correct and complete in all material respects. Any such information
relating to Borrower’s financial condition will accurately reflect in all material respects,
Borrower’s financial condition as of the date(s) thereof subject to year end audit adjustment,
(including all contingent liabilities of every type (to the extent that such liability would
otherwise be required to be reflected in such financial statements under GAAP)), and Borrower
further represents that its financial condition has not changed materially or adversely since the
date(s) of such documents. Authorization; Non-Contravention. The execution, delivery and
performance by Borrower and any guarantor, as applicable, of this Agreement and other Loan
Documents to which it is a party are within its power, have been duly authorized as may be required
and, if necessary, by making appropriate filings with any governmental agency or unit and are the
legal, binding, valid and enforceable obligations of Borrower and any guarantors, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium or similar laws relating to or
limiting creditors’ rights generally or by equitable principles related thereto; and do not (i)
contravene, or constitute (with or without the giving of notice or lapse of time or both) a
material violation of any provision of applicable law, a violation of the organizational documents
of Borrower or any guarantor, or a default under any material agreement, judgment, injunction,
order, decree or other instrument binding upon or affecting Borrower or any guarantor, (ii) result
in the creation or imposition of any lien (other than the lien(s) created by the Loan Documents) on
any of Borrower’s or any guarantor’s assets, or (iii) give cause for the acceleration of any
material obligations of Borrower or any guarantor to any other creditor. Asset Ownership.
Borrower has good and marketable title to all of the properties and assets reflected on the balance
sheets and financial statements supplied Bank by Borrower, and all such properties and assets are
free and clear of mortgages, security deeds, pledges, liens, charges, and all other encumbrances,
except as otherwise described on Exhibit A, attached hereto and made a part hereof and otherwise
permitted pursuant to the

 

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“Negative Covenants, Encumbrances” section hereof (the “Permitted
Liens”). To Borrower’s knowledge,
no default has occurred under any Permitted Liens and no claims or interests adverse to Borrower’s
present rights in its properties and assets have arisen. Discharge of Liens and Taxes. Borrower
has duly filed, paid and/or discharged all taxes or other claims that may become a lien on any of
its property or assets, except those not yet due and payable and except to the extent that such
items are being appropriately contested in good faith and an adequate reserve for the payment
thereof is being maintained. Sufficiency of Capital. Borrower is not, and after consummation of
this Agreement and after giving effect to all indebtedness incurred and liens created by Borrower
in connection with the Note and any other Loan Documents, will not be, insolvent within the meaning
of 11 U.S.C. § 101(32). Compliance with Laws. Borrower is in compliance in all material respects
with all federal, state and local laws, rules and regulations applicable to its properties,
operations, business, and finances, including, without limitation, any federal or state laws
relating to liquor (including 18 U.S.C. § 3617, et seq.) or narcotics (including 21 U.S.C. § 801,
et seq.) and/or any commercial crimes; all applicable federal, state and local laws and regulations
intended to protect the environment; and the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), if applicable. Organization and Authority. Each corporation, partnership or
limited liability company Borrower and/or guarantor, as applicable, is duly created, validly
existing and in good standing under the laws of the state of its organization, and has all powers,
governmental licenses, authorizations, consents and approvals required to operate its business as
now conducted, except where the failure to do so would not have a material adverse effect on the
business, operations or properties of Borrower or any guarantor Each corporation, partnership or
limited liability company Borrower and/or guarantor, as applicable, is duly qualified, licensed and
in good standing in each jurisdiction where qualification or licensing is required by the nature of
its business or the character and location of its property, business or customers, and in which the
failure to so qualify or be licensed, as the case may be, in the aggregate, could have a material
adverse effect on the business, financial position, results of operations, or properties of
Borrower or any such guarantor. No Litigation. As of the date hereof and as of the date of each
Advance under the Loan Documents, there are no pending or threatened suits, claims or demands
against Borrower or any guarantor in excess of $250,000 in the aggregate and not covered by
insurance that have not been disclosed to Bank by Borrower in writing, and approved by Bank.
Regulation U. None of the proceeds of the credit extended pursuant to this Agreement shall be used
directly or indirectly for the purpose of purchasing or carrying any margin stock in violation of
any of the provisions of Regulation U of the Board of Governors of the Federal Reserve System
(“Regulation U”), or for the purpose of reducing or retiring any indebtedness which was originally
incurred to purchase or carry margin stock or for any other purchase which might render the Loan a
"Purpose Credit” within the meaning of Regulation U. ERISA. Each employee pension benefit plan,
as defined in ERISA, maintained by Borrower meets, as of the date hereof, the minimum funding
standards of ERISA and all applicable regulations thereto and requirements thereof, and of the
Internal Revenue Code of 1986, as amended. No “Prohibited Transaction” or “Reportable Event” (as
both terms are defined by ERISA) has occurred with respect to any such plan.

AFFIRMATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full
of the Obligations, unless Bank shall otherwise consent in writing, Borrower will: Access to Books
and Records. Allow Bank, or its agents, upon reasonable prior notice and during normal business
hours, access to the books, records and such other documents of Borrower as Bank shall reasonably
require, and allow Bank, at Bank’s expense, to inspect, audit and examine the same and to make
extracts therefrom and to make copies thereof, provided that upon the occurrence and during the
continuation of any Default, as defined in the Loan Documents, such inspection, audit, examination,
extracts and copies shall be at Borrower’s expense. Business Continuity. Conduct its business in
substantially the same manner as such business is now and has previously been conducted.
Compliance with Other Agreements. Comply with all terms and conditions contained in this
Agreement, and any other Loan Documents, and swap agreements, if applicable, as defined in the 11
U.S.C. § 101. Estoppel Certificate. Furnish, within 15 days after written request by Bank, a
written statement duly acknowledged of the amount due under the Loans and identifying each
outstanding Letter of Credit, if any, and whether offsets or defenses exist against the
Obligations. Insurance. Maintain adequate insurance coverage with respect to its properties and
business against loss or damage of the kinds and in the amounts customarily insured against by
companies of established reputation engaged in the same or similar businesses including, without
limitation, commercial general liability insurance,

 

Page 3 

 

workers compensation insurance, and business
interruption insurance; all acquired in such amounts and from such companies
as Bank may reasonably require. Management Letter. Borrower shall deliver to Bank within 90 days
after the close of each fiscal year, its Management Letter, if any, in the same form and substance
as is provided to Borrower and prepared by Borrower’s independent certified public accountant.
Maintain Properties. Maintain, preserve and keep its property in good repair, working order and
condition, making all needed replacements, additions and improvements thereto, to the extent
allowed by this Agreement. Non-Default Certificate From Borrower. Deliver to Bank, with the
Financial Statements required below, a certificate signed by Borrower, in the form attached hereto
as Exhibit B, if Borrower is an individual, or by a principal financial officer of Borrower
warranting that no “Default” as specified in the Loan Documents nor any event which, upon the
giving of notice or lapse of time or both, would constitute such a Default, has occurred and
demonstrating Borrower’s compliance with the financial covenants contained herein. Notice of
Default and Other Notices. (a) Notice of Default. Furnish to Bank immediately upon becoming aware
of the existence of any condition or event which constitutes a Default (as defined in the Loan
Documents) or any event which, upon the giving of notice or lapse of time or both, may become a
Default, written notice specifying the nature and period of existence thereof and the action which
Borrower is taking or proposes to take with respect thereto. (b) Other Notices. Promptly notify
Bank in writing of (i) any material adverse change in its financial condition or its business; (ii)
any default under any material agreement, contract or other instrument to which it is a party or by
which any of its properties are bound, or any acceleration of the maturity of any material
indebtedness owing by Borrower; (iii) any material adverse claim against or affecting Borrower or
any part of its properties; (iv) the commencement of, and any material determination in, any
litigation with any third party or any proceeding before any governmental agency or unit affecting
Borrower or the Project (as defined in the Construction Loan Agreement, of even date), which could
result in an uninsured liability in excess of $250,000; and (v) at least 30 days prior thereto, any
change in Borrower’s name or address as shown above, and/or any change in Borrower’s legal
structure other than changes in share ownership of any Borrower that is publicly traded. Other
Financial Information. Deliver promptly such other information regarding the operation, business
affairs, and financial condition of Borrower which Bank may reasonably request. Payment of Debts.
Pay and discharge when due, and before subject to penalty or further charge, and otherwise satisfy
before maturity or delinquency, all obligations, debts, taxes, and liabilities of whatever nature
or amount, except those which Borrower in good faith disputes. Reports and Proxies. Deliver to
Bank, promptly, a copy of all financial statements, reports, notices, and proxy statements, sent by
Borrower to stockholders, and all regular or periodic reports required to be filed by Borrower with
any governmental agency or authority.

NEGATIVE COVENANTS. Borrower agrees that from the date of this Agreement and until final payment
in full of the Obligations, unless Bank shall otherwise consent in writing, Borrower will not:
Change in Fiscal Year. Change its fiscal year without the written consent of Bank, not to be
unreasonable withheld. Change of Control. Make or suffer a change in the ownership of any
publicly traded Borrower in excess of 50% of the outstanding stock or voting power of or in any
such entity in a single transaction or a series of transactions. Encumbrances. Create, assume, or
permit to exist any mortgage, security deed, deed of trust, pledge, lien, charge or other
encumbrance on any of its assets, whether now owned or hereafter acquired, other than: (i) security
interests required by the Loan Documents; (ii) liens for taxes contested in good faith or not yet
due and payable; (iii) liens accruing by law for employee benefits, workers’ compensation or other
similar laws; (iv) Permitted Liens (v) liens relating to capitalized lease obligations or purchase
money financing not to exceed $2,000,000 in the aggregate; (vi) cash deposits or pledges to secure
bids, tenders, contracts, stay, customs and appeal bonds, performance bonds and other obligations
of a like nature incurred in the ordinary course of business for which deposits are customary;
(vii) carriers’, warehouse men’s, mechanics, materialmen’s, repairmen’s or other like liens arising
by operation of law for which the obligations are not delinquent; or (viii) judgment liens not
constituting a Default. Guarantees. Guarantee or otherwise become responsible for obligations of
any other person or persons, other than the endorsement of checks and drafts for collection in the
ordinary course of business. Investments. Purchase any stock, securities, or evidence of
indebtedness of any other person or entity except investments in (i) direct obligations of the
United States Government and certificates of deposit of United States commercial banks having a
tier 1 capital ratio of not less than 6% and then in an amount not exceeding 10% of the issuing
bank’s unimpaired capital and surplus and (ii) investment grade securities with a rating,

 

Page 4 

 

or
effective rating, of at least A1 or P1. Default on Other Contracts or Obligations. Default on any
contract with or obligation when due to a third party or default
in the performance of any obligation to a third party incurred for borrowed money, the default of
which could result in an uninsured liability in excess of $500,000. Government Intervention.
Permit the assertion or making of any seizure, vesting or intervention by or under authority of any
governmental entity, as a result of which the management of Borrower or any guarantor is displaced
of its authority in the conduct of its respective business or such business is materially curtailed
or materially impaired. Judgment Entered. Permit the entry of any monetary judgment or the
assessment against, the filing of any tax lien against, or the issuance of any writ of garnishment
or attachment against any property of or debts due Borrower in an amount in excess of
$1,000,000.00, in the aggregate, which is not discharged or execution is not stayed within 30 days
of entry. Prepayment of Other Debt. Retire any long-term debt entered into prior to the date of
this Agreement at a date in advance of its legal obligation to do so; provided that Borrower may
repay such long-term debt if such repayment shall not cause any condition or event which
constitutes a Default (as defined in the Loan Documents executed by the Borrower) or any event
which, upon the giving of notice or lapse of time or both, may become a Default. Retire or
Repurchase Capital Stock. Retire or otherwise acquire any of its capital stock; provided that
Borrower may retire or repurchase capital stock if such retirement or repurchase shall not cause
any condition or event which constitutes a Default (as defined in the Loan Documents executed by
the Borrower) or any event which, upon the giving of notice or lapse of time or both, may become a
Default.

FINANCIAL REPORTING REQUIREMENTS. Borrower shall deliver to the Bank within 90 days after the
close of each fiscal year a copy of its 10K report as required to be filed under the Securities and
Exchange Act of 1934 (“Act”) (and any amendments and modifications to the Act thereto). The 10K
shall contain the audited annual consolidated financial statement for the fiscal year, including
all notes and schedules, prepared in accordance with generally accepted accounting principles
(“GAAP”).

Borrower shall deliver to the Bank within 45 days after the close of each fiscal quarter a copy of
its 10Q report as required to be filed under the Securities and Exchange Act of 1934 (and any
amendments and modifications to the Act thereto). The 10Q shall contain the consolidated financial
statement for the fiscal quarter, including all notes and schedules as required by the 10Q report.

Borrower shall provide to Bank copies of all other reports required to be filed by the Borrower
under the Securities and Exchange Act of 1934 (and any amendments and modifications to the Act
thereto).

Borrower shall deliver promptly such other information regarding the operation, business affairs,
and financial condition of Borrower which Bank may reasonably request.

FINANCIAL COVENANTS. Borrower agrees to the following provisions from the date hereof until final
payment in full of the Obligations, unless Bank shall otherwise consent in writing, and the Debt
Service Coverage Ratio, Leverage Ratio, and Current Ratio covenants shall be calculated on a
consolidated basis, using the financial information for Borrower, its subsidiaries, affiliates and
its holding or parent company, as applicable:

Debt Service Coverage Ratio. Borrower shall maintain a Debt Service Coverage Ratio of not less
than 1.25 to 1.00, to be calculated quarterly, on a rolling four quarters basis. “Debt Service
Coverage Ratio” means the ratio of (i) the sum of net profit plus depreciation plus amortization
plus interest expense plus operating lease (rent) expenses minus all cash dividends, withdrawals
and/or other equity disbursements divided by (ii) the sum of the current portion of long term debt
and capital lease obligations plus interest expenses plus operating lease (rent) expenses.

Leverage Ratio. Borrower shall maintain a Leverage Ratio not greater than .40 to 1.00, to be
calculated quarterly. “Leverage Ratio” means the ratio of (i) Funded Debt divided by (ii) the sum
of Funded Debt plus Tangible Net Worth. “Funded Debt” shall mean, as applied to any person or
entity, the sum of, (a) all indebtedness for borrowed money, including, without limitation, capital
lease obligations, subordinated debt (including debt subordinated to the Bank), and unreimbursed
drawings under letters of credit, or any other monetary obligation evidenced by a note, bond,
debenture or other agreement of that person or entity, (b) letters of credit issued on behalf of
the Borrower,

 

Page 5 

 

(c) Synthetic Lease obligations of Borrower and that portion of any  obligation of
Borrower, as lessee, which in accordance with generally accepted
accounting principles is required to be capitalized on the balance sheet of Borrower, and (d) any
contingent obligations of Borrower of indebtedness of others. “Tangible Net Worth” shall mean
total assets minus Total Liabilities. For purposes of this computation, the aggregate amount of
any intangible assets of Borrower including, without limitation, goodwill, franchises, licenses,
patents, trademarks, trade names, copyrights, service marks, and brand names, shall be subtracted
from total assets. “Total Liabilities” shall mean all liabilities of Borrower, including
capitalized leases and all reserves for deferred taxes, debt fully subordinated to Bank on terms
and conditions acceptable to Bank, and other deferred sums appearing on the liabilities side of a
balance sheet and all obligations as lessee under off-balance sheet synthetic leases of Borrower,
all in accordance with generally accepted accounting principles applied on a consistent basis.

Current Ratio. Borrower shall maintain a Current Ratio at each fiscal quarter and each fiscal year
end of not less than 2.00 to 1.00, to be calculated quarterly. “Current Ratio” shall mean Current
Assets divided by Current Liabilities. “Current Assets” shall mean all assets which are so
classified in accordance with generally accepted accounting principles (“GAAP”) and shall also
include Marketable Securities classified as non-current according to GAAP for purposes of this
ratio calculation. “Current Liabilities” shall mean all liabilities which are so classified in
accordance with GAAP.

Deposit Relationship. Borrower shall maintain its primary depository account with Bank.

Loans and Advances. Borrower shall not, during any fiscal year, make loans or advances to any
person or entity, which total more than $1,000,000 in the aggregate, excepting (i) ordinary course
of business travel and expense advances, (ii) payments made on a split-dollar life insurance policy
in the amount of $514,000 and (iii) loans to any other Borrower.

Material Acquisitions. Borrower shall not acquire substantially all of the business or assets or
more than 50% of the outstanding stock or voting power of any other entity or entities requiring a
cash expenditure of more than $20,000,000 in the aggregate and providing that such acquisition
shall not cause any condition or event which constitutes a Default (as defined in the Loan
Documents executed by the Borrower) or any event which, upon the giving of notice or lapse of time
or both, may become a Default.

Limitation on Debt. Borrower shall not, directly or indirectly, create, incur, assume or become
liable for any additional indebtedness, whether contingent or direct, if, giving effect to such
additional debt on a pro forma basis causes the aggregate amount of Borrower’s debt, excluding
obligations to Bank, to exceed $18,000,000. Notwithstanding this limitation on debt, Borrower
shall be allowed to incur debt subordinated to Bank on terms and conditions satisfactory to Bank,
providing that the repayment of such debt shall not cause any condition or event which constitutes
a Default (as defined in the Loan Documents executed by the Borrower) or any event which, upon the
giving of notice or lapse of time or both, may become a Default. Debt in this paragraph shall mean
indebtedness for borrowed money including capital leases and purchase money financing.

Notwithstanding anything in this Financial Covenant section to the contrary, for purposes of
calculating the Debt Service Coverage Ratio, Leverage Ratio, Current Ratio and Limitation on Debt
covenants, the Bank shall calculate the Borrower’s income notwithstanding the provisions of EITF
Issue No. 02-16 “Accounting by a Customer (Including a Reseller) for Certain Consideration Received
from a Vendor” and Financial Accounting Standards No. 123 (revised 2004) “Share-Based Payment”.

CONDITIONS PRECEDENT. The obligations of Bank to make the loan and any advances and to issue any
Letters of Credit pursuant to this Agreement are subject to the following conditions precedent:
Letter of Credit Documents. Receipt by Bank of all documents required by Bank in connection with
Letters of Credit, including without limitation, applications therefor, all in form satisfactory to
Bank. Additional Documents. Receipt by Bank of such additional supporting documents as Bank or
its counsel may reasonably request.

 

Page 6 

 

CURE PERIOD. Except as provided below, a Default based upon Nonpayment, as defined herein, may be
cured within 5 days of the date such payment is due and any other Default may be cured within 30
days (or such longer period not to exceed 90 days if the default is incapable of cure within 30
days and provided that Borrower diligently pursues such cure) after written notice thereof is
mailed to the Borrower by Bank. The Borrower’s right to cure shall be applicable only to curable
defaults and shall not apply, without limitation, to Defaults based upon False Warranty, Cessation
or Bankruptcy. After three (3) defaults requiring mailing of notice during any 12 month period,
Borrower shall no longer have the right to cure such subsequent Default. Bank shall not exercise
its remedies to collect the Obligations except as Bank reasonably deems necessary to protect its
interest in collateral securing the Obligations during a cure period.

DEFAULT. If any of the following occurs and is not cured within the applicable Cure Period, a
default (“Default”) under Loan Documents shall exist: Nonpayment; Nonperformance. The failure of
timely payment or performance of the Obligations or Default, however denominated, under this
Agreement or any other Loan Documents. False Warranty. A warranty or representation made or
deemed made in the Loan Documents or furnished Bank in connection with the loan evidenced by this
Agreement proves materially false, or if of a continuing nature, becomes materially false. Cross
Default. At Bank’s option, (i) any default in payment or performance of any obligation under any
other loans, contracts or agreements of Borrower, any Subsidiary of Borrower, any general partner
of or the holder(s) of the majority ownership interests of Borrower (except holder(s) of the common
stock of the Borrower) with Bank or its affiliates (“Affiliate” shall have the meaning as defined
in 11 U.S.C. § 101, except that the term “Borrower” shall be substituted for the term “Debtor”
therein; “Subsidiary” shall mean any business in which Borrower holds, directly or indirectly, a
controlling interest), or (ii) any default in payment or performance of any obligation under any
other loans aggregating more than $2,500,000 of Borrower, any Subsidiary of Borrower. Cessation;
Bankruptcy. The death of, appointment of a guardian for, dissolution of, termination of existence
of, appointment of a receiver for, assignment for the benefit of creditors of, or commencement of
any bankruptcy or insolvency proceeding by or against Borrower or its Subsidiaries, or any party to
the Loan Documents. Material Business Alteration. Without prior written consent of Bank, a
material alteration in the kind or type of Borrower’s business or that of Borrower’s Subsidiaries,
if any. Material Capital Structure or Business Alteration. Without prior written consent of Bank,
(ii) the sale of substantially all of the business or assets of Borrower, any of Borrower’s
Subsidiaries or any guarantor, or a material portion (10% or more) of such business or assets if
such a sale is outside the ordinary course of business of Borrower, or any of Borrower’s
Subsidiaries or any guarantor, or more than 50% of the outstanding stock or voting power of or in
any such entity in a single transaction or a series of transactions; (ii) the acquisition of
substantially all of the business or assets of any entity, which acquisition has a total cost,
singly or in the aggregate, in excess of $20,000,000; or (iii) should any Borrower or any of
Borrower’s Subsidiaries or any guarantor enter into any merger or consolidation if Borrower, such
subsidiary or guarantor is not the surviving entity; or (iv) should Borrower be delisted from the
NASDAQ, unless Borrower is being listed on another recognized United States stock exchange. ERISA
Liabilities. Borrower incurs unpaid ERISA liabilities in excess of $1,000,000.

REMEDIES UPON DEFAULT. If a Default occurs under the Loan Documents, upon notice to Borrower
(provided that, if Default is due to bankruptcy, no notice to Borrower shall be required), Bank
may, simultaneously with such notice or at any time thereafter, take the following actions: Bank
Lien. Foreclose its security interest or lien against Borrower’s accounts without notice.
Acceleration Upon Default. Accelerate the maturity of any Note and, at Bank’s option, any or all
other Obligations, other than Obligations under any swap agreements (as defined in 11 U.S.C. § 101)
between Borrower and Bank, which shall be governed by the default and termination provisions of
said swap agreements; whereupon such Note and the accelerated Obligations shall be immediately due
and payable; provided, however, if the Default is based upon a bankruptcy or insolvency proceeding
commenced by or against Borrower or any guarantor or endorser of any Note, all Obligations (other
than Obligations under any swap agreement as referenced above) shall automatically and immediately
be due and payable. Cumulative. Exercise any rights and remedies as provided under the Note and
other Loan Documents, or as provided by law or equity.

 

Page 7 

 

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of any Loan Documents shall be
valid unless in writing and signed by an officer of Bank. No waiver by Bank of any Default shall
operate as a waiver of any other Default or the same Default on a future occasion. Neither the
failure nor any delay on the part of Bank in exercising any right, power, or remedy under the Loan
Documents shall operate as a waiver thereof, nor shall a single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

Each Borrower or any person liable under the Notes waives presentment, protest, notice of dishonor,
demand for payment, notice of intention to accelerate maturity, notice of acceleration of maturity,
notice of sale and all other notices of any kind. Further, each agrees that Bank may extend,
modify or renew any Note or make a novation of the loan evidenced by any Note for any period, and
grant any releases, compromises or indulgences with respect to any collateral securing any Note, or
with respect to any other Borrower or any other person liable under the Loan Documents, all without
notice to or consent of each Borrower or each person who may be liable under any Loan Document and
without affecting the liability of Borrower or any person who may be liable under the Loan
Documents.

MISCELLANEOUS PROVISIONS. Assignment. The Loan Documents shall inure to the benefit of and be
binding upon the parties and their respective heirs, legal representatives, successors and assigns.
Bank’s interests in and rights under this Agreement and the other Loan Documents are freely
assignable, in whole or in part, by Bank. In addition, nothing in the Loan Documents shall
prohibit Bank from pledging or assigning any Loan Document or any interest therein to any Federal
Reserve Bank. Borrower shall not assign its rights and interest hereunder without the prior
written consent of Bank, and any attempt by Borrower to assign without Bank’s prior written consent
is null and void. Any assignment shall not release Borrower from the Obligations. Applicable Law;
Conflict Between Documents. Unless otherwise provided in any other Loan Document, the Loan
Documents shall be governed by and construed under the laws of the state named in Bank’s address on
the first page hereof without regard to that state’s conflict of laws principles. If the terms of
any Note should conflict with the terms of any loan agreement or any commitment letter that
survives closing, the terms of such Note shall control. Borrower’s Accounts. Except as prohibited
by law, Borrower grants Bank a security interest in all of Borrower’s accounts with Bank and any of
its affiliates. Jurisdiction. Borrower irrevocably agrees to non-exclusive personal jurisdiction
in the state named in Bank’s address on the first page hereof. Severability. If any provision of
the Loan Documents shall be prohibited or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of such document. Notices. Any notices to
Borrower shall be sufficiently given, if in writing and mailed or delivered to the Borrower’s
address shown above or such other address as provided hereunder, and to Bank, if in writing and
mailed or delivered to Wachovia Bank, National Association, Mail Code VA7391, P. O. Box 13327,
Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code VA7391, 10 South Jefferson
Street, Roanoke, VA 24011 or such other address as Bank may specify in writing from time to time.
Notices to Bank must include the mail code. In the event that Borrower changes Borrower’s address
at any time prior to the date the Obligations are paid in full, Borrower agrees to promptly give
written notice of said change of address by registered or certified mail, return receipt requested,
all charges prepaid. Plural; Captions. All references in the Loan Documents to Borrower,
guarantor, person, document or other nouns of reference mean both the singular and plural form, as
the case may be, and the term “person” shall mean any individual, person or entity. The captions
contained in the Loan Documents are inserted for convenience only and shall not affect the meaning
or interpretation of the Loan Documents. Advances. Bank may, in its sole discretion, make other
advances which shall be deemed to be advances under the Loan Documents, even though the stated
principal amount of any Note may be exceeded as a result thereof. Posting of Payments. All
payments received during normal banking hours after 2:00 p.m. local time at the office of Bank
first shown above shall be deemed received at the opening of the next banking day. Fees and Taxes.
Borrower shall promptly pay all documentary, intangible recordation and/or similar taxes on this
transaction whether assessed at closing or arising from time to time.

[Signature Page to Follow Immediately Hereafter]

 

Page 8 

 

IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above, have caused this
Agreement to be executed under seal.

	 	 	 	 	 
	 	A.C. MOORE ARTS & CRAFTS, INC.,

a Pennsylvania corporation

Taxpayer Identification Number: 22-3527763

 	 
	 	By:  	 	 
	 	 	Marc Katz 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 
	 	A.C. MOORE INCORPORATED,

a Virginia corporation

Taxpayer Identification Number: 22-2546111

 	 
	 	By:  	/s/ Marc Katz
 	 
	 	 	Marc Katz 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 
	 	MOORESTOWN FINANCE, INC.

a Delaware corporation

Taxpayer Identification Number: 52-2066272

 	 
	 	By:  	/s/ Marc Katz
 	 
	 	 	Marc Katz 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 
	 	BLACKWOOD ASSETS, INC.,

a Delaware corporation

Taxpayer Identification Number: 52-2066271

 	 
	 	By:  	/s/ Marc Katz
 	 
	 	 	Marc Katz 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 

 

Page 9 

 

	 	 	 	 	 

	 	 	 	 	 
	 	A.C. MOORE URBAN RENEWAL, LLC,

a New Jersey limited liability company

Taxpayer Identification Number: 56-2388590

 	 
	 	By:  	/s/ Marc Katz
 	 
	 	 	Marc Katz 	 
	 	 	Authorized Person 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 
	 	By:  	/s/ Dante Bucci
 	 
	 	 	Dante Bucci, Senior Vice President 	 

 

Page 10

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