Document:

f1012ga1ex10iii_ctm.htm

    

    Exhibit
10.3

     

     

    THIS IS
THE FORM OF TAX SEPARATION AGREEMENT THAT IS INTENDED TO BE ENTERED INTO BETWEEN
CTM MEDIA HOLDINGS, INC. AND IDT CORPORATION,

    EFFECTIVE
AS OF THE CONSUMMATION OF THE SPIN-OFF

    

    

    TAX
SEPARATION AGREEMENT

    

    This TAX
SEPARATION AGREEMENT (this “Agreement”) is dated
as of [____], 2009, by and between IDT Corporation, a Delaware corporation
(“IDT”), and
CTM Media Holdings, Inc., a Delaware corporation (“CTM”).

    

    WHEREAS,
as of the date hereof, IDT is the common parent of an affiliated group of
domestic corporations within the meaning of Section 1504(a) of the Code, and the
members of the affiliated group have heretofore joined in filing consolidated
federal income Tax returns (the “Affiliated
Group”);

    

    WHEREAS,
on or prior to the Distribution Date and effective as of the Effective Time, IDT
will contribute to CTM (the “Contribution”) all of
the outstanding stock of (i) CTM Media Group, Inc., a New York corporation, (ii)
Beltway Acquisition Corporation d/b/a WMET, a Delaware corporation, (iii) IDT
Local Media, Inc., a Delaware corporation and (iv) IDT Internet Mobile Group,
Inc., a Delaware corporation, which holds all of IDT’s interests in Idea and
Design Works LLC.

    

    WHEREAS,
following the Contribution, IDT intends to effect a spinoff of CTM (and the
business units held thereby) whereby IDT will distribute to the holders of IDT
Common Stock all of the outstanding shares of CTM Common Stock at the rate of
(i) one (1) share of CTM Class A common stock for every three (3) shares of IDT
common stock, (ii) one (1) share of CTM Class C common stock for every three (3)
shares of IDT Class A common stock, and (iii) one (1) share of CTM Class B
common stock for every three (3) shares of IDT Class B common stock, each
outstanding as of the Record Date (the “Distribution”, and
together with the Contribution, the “Spinoff”).

    

    WHEREAS,
for United States federal income tax purposes, it is intended that the
Contribution will qualify as tax-free under Section 351 of the Code and that the
Spinoff will qualify as tax-free under Section 355 of the Code;

    

    WHEREAS,
as a result of the Spinoff, the Parties desire to enter into this Tax Separation
Agreement to provide for certain Tax matters, including the assignment of
responsibility for the preparation and filing of Tax Returns, the payment of and
indemnification for Taxes, entitlement to refunds of Taxes, and the prosecution
and defense of any Tax controversies;

    

    NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants
contained in this Agreement, the Parties hereby agree as follows:

    

    ARTICLE
I. DEFINITIONS

    

    SECTION
1.1. General.
Capitalized terms used in this Agreement and not defined herein shall have the
meanings that such terms have in the Separation Agreement. As used in this
Agreement, the following terms shall have the following meanings:

    

    “Affiliated Group”
shall have the meaning specified in the preamble.

    

    “Agreement” shall have
the meaning specified in the preamble.

     

     

     

    
      
         

      

      
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    “Business Day” shall
mean a day which is not a Saturday, Sunday or a day on which banks in New York
City are authorized or required by law to close.

    

    “Closing of the Books
Method” shall mean the apportionment of items between portions of a
taxable period based on a closing of the books and records on the Distribution
Date (as if the Distribution Date was the end of the taxable period), provided
that any items not susceptible to such apportionment (such as real or personal
property taxes imposed on a periodic basis) shall be apportioned on the basis of
elapsed days during the relevant portion of the taxable period.

    

    “Code” shall mean the
Internal Revenue Code of 1986, as amended.

    

    “Confidentiality
Agreement” shall mean any agreement pursuant to which the parties named
therein have agreed to terms under which they were permitted to review certain
financial information relating to CTM or the CTM Business.

    

    “Combined Group” shall
mean a combined, unitary, or consolidated tax group that includes IDT or any of
its subsidiaries, not including CTM or any of its subsidiaries, on the one hand,
and CTM or any of its subsidiaries.

    

    “Consolidated Return”
shall mean any Tax Return relating to Income Taxes filed pursuant to Section
1502 of the Code, or any comparable combined, consolidated, or unitary group Tax
Return relating to Income Taxes filed under state or local tax law which, in
each case, includes IDT and at least one subsidiary.

    

    “Contribution” shall
have the meaning set forth in the preamble.

    

    “CTM” shall have the
meaning set forth in the preamble.

    

    “CTM Common Stock”
shall mean CTM’s (i) Class A common stock, (ii)  Class B common stock,
and (iii) Class C common stock, each par value $0.01 per share.

    

    “Distribution” shall
have the meaning set forth in the preamble.

    

    “Final Determination”
shall mean the final resolution of liability for any Tax for any taxable period,
including any related interest or penalties, by or as a result of: (i) a final
and unappealable decision, judgment, decree or other order by any court of
competent jurisdiction; (ii) a closing agreement or accepted offer in compromise
under Section 7121 or 7122 of the Code, or comparable agreement under the laws
of other jurisdictions which resolves the entire Tax liability for any taxable
period; or (iii) any allowance of a refund or credit in respect of an
overpayment of Tax, but only after the expiration of all periods during which
such refund may be recovered by the jurisdiction imposing the Tax.

    

    “IDT” shall have the
meaning specified in the preamble.

    

    “IDT Common Stock”
shall mean IDT’s (i) common stock, (ii) Class A common stock, and (iii) Class B
common stock, each par value $0.01 per share.

    

    “Income Tax” shall
mean any income, franchise or similar Taxes imposed on (or measured by) net
income or net profits.

    

    “Income Tax Returns”
shall mean all Tax Returns relating to Income Taxes.

     

     

    
      
         

      

      
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    “Indemnification Tax
Benefit” shall have the meaning specified in Section
2.4(b).

    

    “Indemnified Tax”
shall have the meaning specified in Section
2.4(b).

    

            
        “IRS” shall mean the
Internal Revenue Service.

    

    “Other Tax” shall mean
any Tax other than an Income Tax.

    

    “Party” shall mean
either IDT or CTM, as the case maybe.

    

    “Payment Period” shall
have the meaning specified in Section
2.4(c).

    

    “Proceeding” shall
mean any audit, examination or other proceeding brought by a Taxing Authority
with respect to Taxes.

    

    “Refund” shall have
the meaning specified in Section
2.2.

    

    “Retained Liabilities”
shall have the meaning specified in the Separation Agreement.

    

    “Retained Liability
Payment” shall have the meaning specified in Section
2.5.

    

    “Retained Liability Tax
Benefit” shall have the meaning specified in Section
2.5.

    

    “Separation Agreement”
shall have the meaning specified in the preamble.

    

               “Straddle Period”
shall mean any taxable period commencing prior to, and ending after, the
Distribution Date.

    

    “Tax” or “Taxes” shall mean any
federal, state, local or foreign income, gross receipts, property, sales, use,
license, excise, franchise, employment, payroll, withholding, alternative or add
on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty,
governmental fee or other like assessment or charge of any kind whatsoever,
together with any interest or penalty, imposed by any Taxing
Authority.

    

    “Taxing Authority”
shall mean any governmental authority (whether United States or non-United
States, and including, any state, municipality, political subdivision or
governmental agency) responsible for the imposition of any Tax.

    

    “Tax Returns” shall
mean all reports or returns (including information returns and amended returns)
required to be filed or that may be filed for any period with any Taxing
Authority in connection with any Tax or Taxes (whether domestic or
foreign).

    

    SECTION
1.2. References;
Interpretation. References in this Agreement to any gender include
references to all genders, and references to the singular include references to
the plural and vice versa. The words “include,” “includes” and “including” when
used in this Agreement shall be deemed to be followed by the phrase “without
limitation.” Unless the context otherwise requires, references in this Agreement
to Articles, Sections, Exhibits and Schedules shall be deemed references to
Articles and Sections of, and Exhibits and Schedules to, such Agreement. Unless
the context otherwise requires, the words “hereof,” “hereby” and “herein” and
words of similar meaning when used in this Agreement refer to this Agreement in
its entirety and not to any particular Article, Section or provision of this
Agreement.

     

     

     

    
      
         

      

      
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    ARTICLE
II. ALLOCATION OF TAX LIABILITIES

    

    SECTION
2.1. Indemnity.

    

    (a)           Without
duplication, IDT shall indemnify CTM from all liability for (i) Taxes of CTM or
any of its subsidiaries or relating to the CTM Business with respect to taxable
periods ending on or before the Distribution Date, (ii) Taxes of CTM or any of
its subsidiaries or relating to the CTM Business for any Straddle Period, but
only to the extent attributable to the portion of the Straddle Period ending on
or before the Distribution Date, and (iii) Taxes of any member of the Affiliated
Group or any Combined Group, other than CTM or any of its subsidiaries, for any
taxable period. Taxes for a Straddle Period shall be apportioned in accordance
with the Closing of the Books Method.

    

    (b)           CTM
shall indemnify IDT from all liability for Taxes of CTM or its subsidiaries or
relating to the CTM Business accruing after the Distribution Date under the
Closing of the Books Method, including the portion of any Straddle Period
beginning on the Distribution Date.

    

    SECTION
2.2. Refunds.

    

    (a)           Subject
to Section 3.5,
if a Party receives a refund, offset, credit, or other benefit (including
interest received thereon) (a “Refund”) of Tax which
the other Party would have been obligated to indemnify had the Refund been a
payment, then the Party receiving the Refund shall promptly pay the amount of
the Refund to the other Party, less reasonable costs and expenses incurred in
connection with such Refund, including any Taxes on such Refund or interest
thereon (net of any tax benefit actually realized for paying over such
Refund).

    

    (b)           Each
Party shall, if reasonably requested by the other Party, cause the relevant
entity to file for and use its reasonable best efforts to obtain and expedite
the receipt of any Refund to which such requesting Party is entitled under this
Section
2.2.

    

    SECTION
2.3. Contests.

    

    (a)           In
the case of any Proceeding that relates to Taxes for which IDT is responsible
under Section
2.1, IDT shall have the right to control, in its sole discretion, the
conduct of such Proceeding. Subject to the foregoing, CTM shall have the right
to participate jointly in any Proceeding if the consequences of the resolution
of such Proceeding could reasonably be expected to affect the tax liability of
CTM for any tax period to the extent such tax liability of CTM is not subject to
an indemnification by IDT hereunder.

    

    (b)           In
the case of any Proceeding that relates to Taxes for which CTM is responsible
under Section
2.1, CTM shall have the sole right to control the conduct of such
Proceeding. Subject to the foregoing, IDT shall have the right to participate
jointly in any Proceeding if the consequences of the resolution of such
Proceeding could reasonably be expected to affect the tax liability of IDT for
any tax period to the extent such tax liability of IDT is not subject to an
indemnification by CTM hereunder.

    

    (c)           In
the case of any Proceeding that relates to a Straddle Period of CTM or the CTM
Business, the parties shall use reasonable efforts to cause such Proceeding to
be bifurcated between the period ending on the Distribution Date and the period
beginning after the Distribution Date. If the parties are able to cause the
audit to be so bifurcated, then Sections 2.3(a) and
(b) shall
govern the control of such Proceedings. To the extent that the parties are
unable to cause such bifurcation, IDT and CTM shall jointly control such
Proceeding.

     

     

    
      
         

      

      
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    (d)           After
the Distribution Date, each Party shall promptly notify the other Party in
writing upon receipt of written notice of the commencement of any Proceeding or
of any demand or claim upon it, which, if determined adversely, would be grounds
for indemnification from such other Party pursuant to Section 2.1 or could
reasonably be expected to have an adverse Tax effect on the other Party. The
failure of one Party to promptly forward such notification in accordance with
the immediately preceding sentence shall not relieve the other Party of any
obligation under this Agreement, except to the extent that the failure to
promptly forward such notification actually prejudices the ability of the other
Party to contest such Proceeding. Each Party shall, on a timely basis, keep the
other Party informed of all developments in the Proceeding and provide such
other Party with copies of all pleadings, briefs, orders, and other
correspondence pertaining thereto.

    

    SECTION
2.4. Treatment of
Payments; After Tax Basis.

    

    (a)           IDT
and CTM agree to treat any indemnification payments (other than payments of
interest pursuant to Section 2.4(c))
pursuant to this Agreement, including any payments made pursuant to Section 2.5, as
either a capital contribution or a distribution, as the case may be, between IDT
and CTM occurring immediately prior to the Distribution, and to challenge in
good faith any other characterization of such payments by any Taxing Authority.
If, notwithstanding such good faith efforts, the receipt or accrual of any such
payment (other than payments of interest pursuant to Section 2.4(c))
results in taxable income to the indemnified Party, such payment shall be
increased so that, after the payment of any Taxes with respect to the payment,
the indemnified Party shall have realized the same net amount it would have
realized had the payment not resulted in taxable income.

    

    (b)           To
the extent that any liability for Taxes that is subject to indemnification under
Section 2.1 (an
“Indemnified
Tax”) gives rise to an Indemnification Tax Benefit to the indemnified
Party in any taxable period, the indemnified Party will promptly remit to the
indemnifying Party the amount of any such Indemnification Tax Benefit actually
realized. For purposes of this Agreement, “Indemnification Tax
Benefit” means a reduction in the amount of Taxes that are required to be
paid or increase in refund due, whether resulting from a deduction, from reduced
gain or increased loss from disposition of an asset, or otherwise. For purposes
of this Agreement, an indemnified Party will be deemed to have actually realized
an Indemnification Tax Benefit at the time the amount of Taxes such indemnified
Party is required to pay is reduced or the amount of any refund due is
increased. The amount of any Indemnification Tax Benefit in this Section 2.4(b) shall
be calculated by comparing (i) the indemnified Party’s actual Tax liability
taking into account any Indemnified Tax with (ii) what the indemnified Party’s
Tax liability would have been without taking into account any Indemnified Tax.
If, pursuant to this Agreement, the indemnified Party makes a remittance to the
indemnifying Party of any Indemnification Tax Benefit and all or part of
such

    Indemnification
Tax Benefit is subsequently disallowed, the indemnifying Party will promptly pay
to the indemnified Party that portion of such remittance equal to the portion of
the Indemnification Tax Benefit that is disallowed.

    

    (c)           Payments
made pursuant to this Agreement that are not made within the period prescribed
in this Agreement or, if no period is prescribed, within thirty (30) days after
demand for payment is made (the “Payment Period”)
shall bear interest for the period from and including the date immediately
following the last date of the Payment Period through and including the date of
payment at a rate equal to the monthly average of the “prime rate” as published
in the Wall Street Journal, compounded semi-annually. Such interest will be
payable at the same time as the payment to which it relates and shall be
calculated on the basis of a year of 365 days and the actual number of days for
which due; provided, however, that this
provision for interest shall not be construed to give the Party responsible for
such payment the right to defer payment beyond the due date
hereunder.

     

     

    
      
         

      

      
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    SECTION
2.5. Retained
Liabilities. To the extent that any payments made by IDT in respect of
the Retained Liabilities (a “Retained Liability
Payment”) gives rise to a Retained Liability Tax Benefit to CTM in any
taxable period, CTM will promptly remit to IDT the amount of any such Retained
Liability Tax Benefit actually realized. For purposes of this Agreement, “Retained Liability Tax
Benefit” means a reduction in the amount of Taxes that are required to be
paid or increase in refund due, whether resulting from a deduction, credit,
increased basis, or otherwise. For purposes of this Agreement, CTM will be
deemed to have actually realized a Retained Liability Tax Benefit at the time
the amount of Taxes CTM is required to pay is reduced or the amount of any
refund due is increased. The amount of any Retained Liability Tax Benefit in
this Section
2.5 shall be calculated by comparing (i) CTM’s actual Tax liability
taking into account any Retained Liability Payment with (ii) what CTM’s Tax
liability would have been without taking into account any Retained Liability
Payment. If, pursuant to this Agreement, CTM makes a remittance to IDT of any
Retained Liability Tax Benefit and all or part of such Retained Liability Tax
Benefit is subsequently disallowed, IDT will promptly pay to CTM that portion of
such remittance equal to the portion of the Retained Liability Tax Benefit that
is disallowed.

    

    SECTION
2.6. Transfer
Taxes. Notwithstanding anything to the contrary herein, IDT shall bear
any and all stamp, duty, transfer, sales and use or similar Taxes incurred in
connection with the Spinoff.

    

    ARTICLE
III. RETURNS AND TAXES ATTRIBUTABLE TO CTM

    

    SECTION
3.1. IDT’s
Responsibility for the Preparation of Tax Returns and for the Payment of
Taxes.

    

    (a)           IDT
shall prepare and file or cause to be prepared and filed all Tax Returns of CTM
or any of its subsidiaries or relating to the CTM Business that are due on or
before the Distribution Date (taking into account any valid extensions thereof),
all Income Tax Returns relating to taxable periods ending on or before the
Distribution Date and all Income Tax Returns of the Affiliated Group or any
Combined Group.

    

    (b)           To
the extent that CTM or any of its subsidiaries or the CTM Business is included
in any Consolidated Return for a taxable period that includes the Distribution
Date, IDT shall include in such Consolidated Return the results of CTM and the
CTM Business on the basis of the Closing of the Books Method. To the extent
permitted by law or administrative practice with respect to other Income Tax
Returns, the taxable period relating to CTM or the CTM Business shall be treated
as ending on the Distribution Date, and if the taxable period does not, in fact,
end on the Distribution Date, the Parties shall apportion all tax items between
the portions of the taxable period before and after the Distribution Date on the
Closing of the Books Method.

    

    SECTION
3.2. CTM’s
Responsibility for the Preparation of Tax Returns and for the Payment of
Taxes. CTM shall prepare and file or cause to be prepared and filed all
Tax Returns relating to Other Taxes of CTM or any of its subsidiaries or the CTM
Business that have not been filed before the Distribution Date. CTM shall
prepare and file or cause to be prepared and filed all Income Tax Returns
relating to taxable periods of CTM and its subsidiaries after the Distribution
Date, except for Income Tax Returns of the Affiliated Group or any Combined
Group and Income Tax Returns of CTM for any Straddle Period as described in
Sections 3.1
and 3.3.

    

    SECTION
3.3. Responsibility
for the Preparation of Straddle Period Income Tax Returns and for the Payment of
Straddle Period Income Taxes. IDT shall prepare and file or cause to be
prepared and filed all Income Tax Returns of CTM for any Straddle Period. All
such Income Tax Returns that are to be prepared and filed by IDT pursuant to
this paragraph shall be submitted to CTM not later than thirty (30) days prior
to the due date for filing of such Tax Returns (or if such due date is within
forty-five (45) days following the Distribution Date, as promptly as practicable
following the Distribution Date). CTM shall have the right to review such Tax
Returns and to review all work papers and procedures used to prepare any such
Tax Return. If CTM, within ten (10) Business Days after delivery of any such Tax
Return, notifies IDT in writing that it objects to any of the items in such Tax
Return, IDT and CTM shall attempt in good faith to resolve the dispute and, if
they are unable to do so, the disputed items shall be resolved (within a
reasonable time, taking into account the deadline for filing such Tax Return) by
an internationally recognized independent accounting firm chosen by both IDT and
CTM. Upon resolution of all such items, the relevant Straddle Period Tax Return
shall be filed on that basis. The costs, fees and expenses of such accounting
firm shall be borne equally by IDT and CTM.

     

     

    
      
         

      

      
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    SECTION
3.4. Manner of
Preparation. All Income Tax Returns filed on or after the Distribution
Date shall be prepared and filed on a timely basis (including pursuant to
extensions) by the Party responsible for such filing under this Agreement. In
the absence of a Final Determination to the contrary, a controlling change in
law or circumstances, or accounting method changes pursuant to applications that
are approved by the Internal Revenue Service, all Income Tax Returns of CTM for
tax periods commencing prior to the Distribution Date shall be prepared on a
basis consistent with the elections, accounting methods, conventions,
assumptions and principles of taxation used with respect to the CTM Business for
the most recent taxable periods for which Tax Returns of the Affiliated Group
have been filed.

    

    SECTION
3.5. Carrybacks. CTM
agrees and will cause its subsidiaries not to carry back any net operating
losses, capital losses or credits for any taxable period ending after the
Distribution Date to a taxable period, or portion thereof, ending on or before
the Distribution Date. To the extent that CTM or any of its subsidiaries is
required by applicable law to carry back any such net operating losses, capital
losses or credits, any refund of Taxes attributable to such carryback shall be
for IDT’s account.

    

    SECTION
3.6. Retention of
Records; Cooperation; Access.

    

    (a)           IDT
and CTM shall, and shall cause each of their subsidiaries to retain adequate
records, documents, accounting data and other information (including computer
data) necessary for the preparation and filing of all Tax Returns required to be
filed by IDT or CTM and for any Tax matter covered by this Agreement, including
any Proceeding relating to such Tax Returns or to any Taxes payable by IDT or
CTM or any of their subsidiaries.

    

    (b)           Subject
to the provisions of Section 3.8, IDT and
CTM shall reasonably cooperate with one another in a timely manner with respect
to any Tax matter covered by this Agreement, including any Proceeding described
in Section 2.3.
IDT and CTM shall, and shall cause each of their subsidiaries to, cooperate and
provide reasonable access to (i) all records, documents, accounting data and
other information (including computer data) necessary for the preparation and
filing of all Tax Returns required to be filed by IDT or CTM and for any
Proceeding relating to such Tax Returns or to any Taxes payable by IDT or CTM
and (ii) its personnel and premises, for the purpose of the preparation, review
or audit of such Tax Returns, or in connection with any Tax matter covered by
this Agreement, including any Proceeding described in Section 2.3 as
reasonably requested by either IDT or CTM. The Party requesting or otherwise
entitled to any books, records, information, officers or employees pursuant to
this Section
3.6(b) shall bear all reasonable out-of-pocket costs and expenses (except
reimbursement of salaries, employee benefits and general overhead) incurred in
connection with providing such books, records, information, officers or
employees; provided, however, that any
costs (including but not limited to attorneys’ fees and expenses) arising from
the requested Party’s failure to cooperate under this Section 3.6(b) shall be
payable by such Party.

    

    (c)           The
obligations set forth above in Sections 3.6(a) and
3.6(b) shall
continue until the longer of (i) the time of a Final Determination or (ii)
expiration of all applicable statutes of limitations, to which the records and
information relate. For purposes of the preceding sentence, each Party shall
assume that no applicable statute of limitations has expired unless such Party
has received notification or otherwise has actual knowledge that such statute of
limitations has expired.

     

     

    
      
         

      

      
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    SECTION
3.7. Tax
Treatment. The Parties intend that:

    

    (A)           the
Contribution will be qualified as a transaction in which IDT and CTM recognize
no income or gain for U.S. Federal income tax purposes pursuant to Sections 351
and 1032 of the Code; and

    

    (B)           the
Distribution, and the Spinoff as a whole, will be qualified as a (i)
reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code and
(ii) transaction in which the stock distributed thereby is “qualified property”
for purposes of Sections 355(d), 355(e) and 361(c) of the Code as a transaction
in which IDT, CTM and the stockholders of IDT recognize no income or gain for
U.S. Federal income tax purposes pursuant to Sections 355, 361 and 1032 of the
Code. For the avoidance of doubt, recognition of income or gain by IDT or CTM as
a result of taking into account intercompany items or excess loss accounts
pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the
Code shall not mean that the Spinoff does not have tax-free status.

    

    SECTION
3.8. Confidentiality;
Ownership of Information; Privileged Information. The provisions of
Article X of the Separation Agreement relating to confidentiality of
information, ownership of information, privileged information and related
matters shall apply with equal force to any records and information prepared
and/or shared by and among the Parties in carrying out the intent of this
Agreement.

    

    ARTICLE
IV. MISCELLANEOUS

    

    SECTION
4.1. Complete
Agreement; Construction. This Agreement shall constitute the entire
agreement between the Parties with respect to the subject matter hereof and
shall supersede all previous negotiations, commitments and writings with respect
to such subject matter, including, without limitation, any tax sharing agreement
previously entered into by the Parties.

    

    SECTION
4.2. Counterparts. This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement, and shall become effective when one or
more such counterparts have been signed by both Parties.

    

    SECTION
4.3. Survival of
Agreements. Except as otherwise contemplated by this Agreement, all
covenants and agreements of the Parties contained in this Agreement shall
survive the Distribution Date.

    

    SECTION
4.4. Notices.
All notices and other communications hereunder shall be in writing and hand
delivered or mailed by registered or certified mail (return receipt requested)
or sent by any means of electronic message transmission with delivery confirmed
(by voice or otherwise) to the Parties at the following addresses (or at such
other addresses for a Party as shall be specified by like notice) and will be
deemed given on the date on which such notice is received:

    

    To
IDT:

    

    IDT Corporation

    550 Broad Street

    Newark
New Jersey 07102

    Fax:
973-438-1010

    Attention:
Bill Pereira

    

                   With
copies to:

    

    IDT Corporation

    550 Broad
Street

    Newark
New Jersey 07102

    Fax:
973-438-1456

    Attention:
Legal Department

     

     

    
      
         

      

      
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                   To
CTM:

    

    CTM Media Group, Inc.

    11 Largo
Drive

    South
Stamford, CT 06907

    Fax:
203-724-2397

    Attention:
Marc E. Knoller

    

    SECTION
4.5. Waivers.
The failure of any Party to require strict performance by the other Party of any
provision in this Agreement will not waive or diminish that Party’s right to
demand strict performance thereafter of that or any other provision
hereof.

    

    SECTION
4.6. Amendments. This
Agreement may not be modified or amended except by an agreement in writing
signed by the Parties hereto.

    

    SECTION
4.7. Assignment. This
Agreement shall not be assignable, in whole or in part, directly or indirectly,
by any Party hereto without the prior written consent of the other Party hereto,
and any attempt to assign any rights or obligations arising under this Agreement
without such consent shall be void.

    

    SECTION
4.8. Successors and
Assigns. The provisions to this Agreement shall be binding upon, inure to
the benefit of and be enforceable by the Parties and their respective successors
and permitted assigns.

    

    SECTION
4.9. Additional
Members. Any new members of the Affiliated Group shall automatically
become a Party to this Agreement upon becoming members.

    

    SECTION
4.10. Third Party
Beneficiaries. This Agreement is solely for the benefit of the Parties
hereto and should not be deemed to confer upon third parties any remedy, claim,
liability, reimbursement, claim of action or other right in excess of those
existing without reference to this Agreement.

    

    SECTION
4.11. Title and
Headings. Titles and headings to sections herein are inserted for the
convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

    

    SECTION
4.12. Exhibits.
The Exhibits to this Agreement shall be construed with and as an integral part
of this Agreement to the same extent as if the same had been set forth verbatim
herein.

    

    SECTION
4.13. Governing Law;
Jurisdiction. This Agreement shall be construed in accordance with, and
governed by, the laws of the State of New Jersey, without regard to the
conflicts of law rules of such state. Each of the Parties (a) consents to submit
itself to the personal jurisdiction of the courts of the State of New Jersey or
any federal court with subject matter jurisdiction located in the District of
New Jersey (and any appeals court therefrom) in the event any dispute arises out
of this Agreement or any Ancillary Agreement or any transaction contemplated
hereby or thereby, (b) agrees that it will not attempt to deny or defeat such
personal jurisdiction by motion or other request for leave from any such court,
and (c) agrees that it will not bring any action relating to this Agreement or
any Ancillary Agreement or any transaction contemplated hereby or thereby in any
court other than such courts.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
 

    SECTION
4.14. Severability. In the
event any one or more of the provisions contained in this Agreement should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The Parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions, the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable
provisions.

    

    [Remainder
of page intentionally left blank]

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

     

    IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
as of the day and year first above written.

    

    
      
        	 
      	 
      	 
      	 
      	 
      
	
                CTM
      MEDIA HOLDINGS, INC.

              
	 
      	 
      
	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	 
      	
                Marc
      E. Knoller

              
	 
      	 
      	
                Title:

              	 
      	
                CEO

              
	 
      
	
                IDT
      CORPORATION

              
	 
      	 
      
	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	 
      	
                Bill
      Pereira

              
	 
      	 
      	
                Title:

              	 
      	
                CFO

              

      

    

     

     

     

    11EX-10.1

CREDIT AGREEMENT

by and among

SKECHERS U.S.A., INC.

and

EACH OF ITS SUBSIDIARIES THAT ARE SIGNATORIES HERETO

as Borrowers,

THE LENDERS THAT ARE SIGNATORIES HERETO

as the Lenders,

WELLS FARGO FOOTHILL, LLC

as a Joint Lead Arranger and Administrative Agent,

BANK OF AMERICA, N.A.

as Syndication Agent,

and

BANC OF AMERICA SECURITIES LLC

as a Joint Lead Arranger

Dated as of June 30, 2009

CREDIT AGREEMENT

THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of June 30, 2009, by and
among the lenders identified on the signature pages hereof (such lenders, together with their
respective successors and permitted assigns, are referred to hereinafter each individually as a
“Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, LLC, a Delaware
limited liability company, as a joint lead arranger and as administrative agent for the Lenders (in
such capacity, together with its successors and assigns in such capacity, “Agent”),
SKECHERS U.S.A., INC., a Delaware corporation (“Parent”), each of Parent’s Subsidiaries
identified on the signature pages hereof (such Subsidiaries, together with Parent and each other
Subsidiary that becomes a party hereto after the date hereof in accordance with the terms hereof,
are referred to hereinafter each individually as a “Borrower”, and individually and
collectively, jointly and severally, as the “Borrowers”), BANK OF AMERICA, N.A.
(“BOA”), as syndication agent, and BANC OF AMERICA SECURITIES LLC (“BOAS”), as a
joint lead arranger.

The parties agree as follows:

1. DEFINITIONS AND CONSTRUCTION.

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

1.2 Accounting Terms. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP; provided, however, that if
Administrative Borrower notifies Agent that Borrowers request an amendment to any provision hereof
to eliminate the effect of any Accounting Change occurring after the Closing Date or in the
application thereof on the operation of such provision (or if Agent notifies Borrowers that the
Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such Accounting Change or in the application
thereof, then Agent and Borrowers agree that they will negotiate in good faith amendments to the
provisions of this Agreement that are directly affected by such Accounting Change with the intent
of having the respective positions of the Lenders and Borrowers after such Accounting Change
conform as nearly as possible to their respective positions as of the date of this Agreement and,
until any such amendments have been agreed upon, the provisions in this Agreement shall be
calculated as if no such Accounting Change had occurred. When used herein, the term “financial
statements” shall include the notes and schedules thereto. Whenever the term “Parent” or
“Borrowers” is used in respect of a financial covenant or a related definition, it shall be
understood to mean Parent and its Subsidiaries on a consolidated basis, unless the context clearly
requires otherwise.

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

1.4 Construction. Unless the context of this Agreement or any other Loan
Document clearly requires otherwise, references to the plural include the singular, references to
the singular include the plural, the terms “includes” and “including” are not limiting, and the
term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be,
as a whole and not to any particular provision of this Agreement or such other Loan Document, as
the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan
Document to any agreement, instrument, or document shall include all alterations, amendments,
changes, extensions, modifications, renewals, replacements, substitutions, joinders, and
supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders,
and supplements set forth herein). The words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts, and contract rights. Any reference herein or in any other
Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment
in full in cash (or, in the case of Letters of Credit or Acceptances, providing Letter of Credit
Collateralization, or, in the case of Bank Products, providing Bank Product Collateralization) of
all Obligations other than unasserted contingent indemnification Obligations and other than any
Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to
remain outstanding and that are not required by the provisions of this Agreement to be repaid or
cash collateralized. Any reference herein to any Person shall be construed to include such
Person’s successors and assigns. Any requirement of a writing contained herein or in any other
Loan Document shall be satisfied by the transmission of a Record.

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

1.6 Exchange Rates; Currency Equivalents; Payment in Dollars. For purposes of
determining Adjusted Letter of Credit Usage, Letter of Credit Usage, or the outstanding amount of
any Letter of Credit, in each case, at any time that a Letter of Credit or an Acceptance is
outstanding in any Alternative Currency, the outstanding amount of a Letter of Credit or Acceptance
issued in an Alternative Currency shall be deemed to equal the Dollar Equivalent thereof (rounded
upward to the nearest $0.01), as determined by Agent, based on the Exchange Rate for such
Alternative Currency at such time of determination. In connection with the issuance, amendment or
extension of a Letter of Credit or the acceptance of an Acceptance denominated in an Alternative
Currency, for purposes of determining compliance with the borrowing limitations contained with in
Section 2.1 or Section 2.11 of the Credit Agreement, the amount of such Letter of
Credit or Acceptance that is proposed to be accepted, issued, amended, or extended, in each case,
shall be deemed to equal the Dollar Equivalent thereof (rounded upward to the nearest $0.01), as
determined by Agent, based on the Exchange Rate for such Alternative Currency at such time of
determination. The specification under this Agreement of payment in Dollars is of the essence.
Borrowers’ obligations hereunder and under the other Loan Documents to make payments in Dollars
shall not be discharged or satisfied by any tender or recovery (whether pursuant to any judgment,
award or otherwise) expressed in or converted into any currency other than Dollars, until such time
when Agent either receives or obtains, in accordance with normal banking procedures, the full
amount of Dollars expressed to be payable to Agent or any member of the Lender Group under this
Agreement or the other Loan Documents. All costs, fees, expenses or losses of Agent or any other
member of the Lender Group associated with any currency exchange transaction consummated in
connection with a Letter of Credit that is issued in any Alternative Currency and any Acceptance
accepted in any Alternative Currency shall constitute Obligations and shall be immediately payable
by the Borrowers on demand.

2. LOAN AND TERMS OF PAYMENT.

2.1 Revolver Advances.

(a) Subject to the terms and conditions of this Agreement, and during the term of
this Agreement, each Lender with a Commitment agrees (severally, not jointly or jointly and
severally) to make advances (“Advances”) to Borrowers in an amount at any one time
outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the
Maximum Revolver Amount less the Letter of Credit Usage at such time, and (ii) the Borrowing Base
at such time less the Adjusted Letter of Credit Usage at such time.

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

(c) Anything to the contrary in this Section 2.1 notwithstanding, Agent
shall have the right to establish reserves against the Borrowing Base in such amounts, and with
respect to such matters, as Agent in its Permitted Discretion shall deem necessary or appropriate,
including reserves with respect to (i) sums that Parent or its Subsidiaries are required to pay
under any Section of this Agreement or any other Loan Document (such as taxes, assessments,
insurance premiums, royalty payments, or, in the case of leased assets, rents or other amounts
payable under such leases) and has failed to pay, (ii) amounts owing by Parent or its Subsidiaries
to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than
a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have a
priority superior to Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen,
carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem,
excise, sales, or other taxes where given priority under applicable law) in and to such item of the
Collateral, (iii) reserves (determined from time to time by Agent in its Permitted Discretion) for
(y) the estimated costs relating to unpaid freight charges, warehousing or storage charges, taxes,
duties, and other similar unpaid costs associated with the acquisition of Eligible In-Transit
Inventory by any Borrower, plus (z) the estimated reclamation claims of unpaid sellers of Inventory
sold to any Borrower, and (iv) outstanding gift certificates and gift cards of the Borrowers and
their Subsidiaries entitling the holder thereof to use all or a portion of the certificate or card
to pay all or a portion of the purchase price for any Inventory.

2.2 Increase in Commitments.

(a) From time to time (but not more than on 2 occasions) during the period from and
after the Closing Date through the earlier of (x) the date that is 24 months after the Closing
Date, and (y) the date (if any) on which the Commitments are reduced by Borrowers pursuant to the
terms hereof, the Maximum Revolver Amount may be increased (each increase that satisfies the terms
and conditions of this Section, an “Approved Increase”) by an amount not in excess of the
Available Increase Amount at the option of Borrowers by delivery of a written notice from
Administrative Borrower of a proposed increase to Agent if and only if (i) each of the conditions
precedent set forth in Section 3.2 are satisfied as of the Increase Effective Date, (ii)
Borrowers have delivered to Agent updated pro forma Projections (after giving effect to the
proposed increase) for Parent and its Subsidiaries reflecting compliance on a pro forma basis with
the financial covenant (but only if such financial covenant was required to be satisfied during
such period as a result of the commencement or existence of a Financial Covenant Period) in
Section 7 for the 4 fiscal quarter period (on a quarter-by-quarter basis) following the
Increase Effective Date, in form and content reasonably acceptable to Agent, (iii) Borrowers and
Agent shall have reached agreement on the amount of the supplemental closing fee to be paid by
Borrowers to Agent on the Increase Effective Date, (iv) Borrowers shall have paid to Agent all
supplemental closing fees due and payable as of the Increase Effective Date, and (v) Agent or
Borrowers have obtained the commitment of one or more Lenders (or other prospective lenders)
reasonably satisfactory to Agent and Borrowers to provide the proposed increase. Each such notice
shall specify the date on which the proposed increase is to be effective (the “Increase
Effective Date”), which date shall not be less than 10 Business Days after the date of such
notice. Each proposed increase shall be in an amount of at least $10,000,000 and integral
multiples of $5,000,000 in excess thereof.

(b) So long as each of the requirements set forth in Section 2.2(a) are
satisfied, the increased Commitments with respect to an Approved Increase shall become effective,
as of such Increase Effective Date.

(c) Agent shall invite each Lender to increase its Commitment (it being understood
that no Lender shall be obligated to increase its Commitment) and, if sufficient Lenders do not
agree to increases in their Commitments in an aggregate amount equal to the Approved Increase, may
invite any other Person who is reasonably satisfactory to Agent and Borrowers to become a Lender in
connection with an Approved Increase by executing a joinder agreement, in form and substance
reasonably satisfactory to Agent, to which such Person, Borrowers, and Agent are party (the
“Increase Joinder”). Such Increase Joinder may, with the consent of Borrowers and Agent
(with the consent of the applicable Lenders required by Section 14.1, but without the
consent of any Lender to the extent such amendment satisfies the requirements of Section
14.1(f)), effect such amendments to this Agreement and the other Loan Documents as may be
necessary or appropriate, in the opinion of Agent, to effectuate the provisions of this Section
2.2.

(d) Unless otherwise specifically provided herein, all references in this
Agreement and any other Loan Document to Advances shall be deemed, unless the context otherwise
requires, to include Advances made pursuant to the increased Commitments and Maximum Revolver
Amount pursuant to this Section 2.2.

(e) To the extent any Advances, Acceptances, or Letters of Credit are outstanding
on the Increase Effective Date, each of the Lenders having a Commitment prior to the Increase
Effective Date (the “Pre-Increase Revolver Lenders”) shall assign to any Lender which is
acquiring a new or additional Commitment on the Increase Effective Date (the “Post-Increase
Revolver Lenders”), and such Post-Increase Revolver Lenders shall purchase from each
Pre-Increase Revolver Lender, at the principal amount thereof, such interests in the Advances and
participation interests in the Acceptances and Letters of Credit on such Increase Effective Date as
shall be necessary in order that, after giving effect to all such assignments and purchases, such
Advances and participation interests in Acceptances and Letters of Credit will be held by
Pre-Increase Revolver Lenders and Post-Increase Revolver Lenders ratably in accordance with their
Pro Rata Share after giving effect to such increased Commitments.

(f) The Advances, Commitments, and Maximum Revolver Amount established pursuant to
this Section 2.2 shall constitute Advances, Commitments, and Maximum Revolver Amount under,
and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents,
and shall, without limiting the foregoing, benefit equally and ratably from any guarantees and the
security interests created by the Loan Documents. Borrowers shall take any actions reasonably
required by Agent to ensure and demonstrate that the Liens granted by the Loan Documents continue
to be perfected under the Code or otherwise after giving effect to the establishment of any such
new Commitments and Maximum Revolver Amount.

2.3 Borrowing Procedures and Settlements.

(a) Procedure for Borrowing. Each Borrowing shall be made by a written request by an
Authorized Person delivered to Agent. Unless Swing Lender is not obligated to make a Swing Loan
pursuant to Section 2.3(b) below, such notice must be received by Agent no later than 10:00
a.m. (California time) on the Business Day that is the requested Funding Date specifying (i) the
amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day;
provided, however, that if Swing Lender is not obligated to make a Swing Loan as to
a requested Borrowing, such notice must be received by Agent no later than 10:00 a.m. (California
time) on the Business Day prior to the date that is the requested Funding Date. At Agent’s
election, in lieu of delivering the above-described written request, any Authorized Person may give
Agent telephonic notice of such request by the required time. In such circumstances, Borrowers
agree that any such telephonic notice will be confirmed in writing within 24 hours of the giving of
such telephonic notice, but the failure to provide such written confirmation shall not affect the
validity of the request.

(b) Making of Swing Loans. In the case of a request for an Advance and so long as
either (i) the aggregate amount of Swing Loans made since the last Settlement Date, minus the
amount of Collections or payments applied to Swing Loans since the last Settlement Date, plus the
amount of the requested Advance does not exceed $25,000,000, or (ii) Swing Lender, in its sole
discretion, shall agree to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender
shall make an Advance in the amount of such Borrowing (any such Advance made solely by Swing Lender
pursuant to this Section 2.3(b) being referred to as a “Swing Loan” and such
Advances being referred to collectively as “Swing Loans”) available to Borrowers on the
Funding Date applicable thereto by transferring immediately available funds to the Designated
Account. Each Swing Loan shall be deemed to be an Advance hereunder and shall be subject to all
the terms and conditions applicable to other Advances, except that all payments on any Swing Loan
shall be payable to Swing Lender solely for its own account. Subject to the provisions of
Section 2.3(d)(ii), Swing Lender shall not make and shall not be obligated to make any
Swing Loan if Swing Lender has actual knowledge that (i) one or more of the applicable conditions
precedent set forth in Section 3 will not be satisfied on the requested Funding Date for
the applicable Borrowing, or (ii) the requested Borrowing would exceed the Availability on such
Funding Date. Swing Lender shall not otherwise be required to determine whether the applicable
conditions precedent set forth in Section 3 have been satisfied on the Funding Date
applicable thereto prior to making any Swing Loan. The Swing Loans shall be secured by Agent’s
Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time
to Advances that are Base Rate Loans.

(c) Making of Loans.

(i) In the event that Swing Lender is not obligated to make a Swing Loan, then
promptly after receipt of a request for a Borrowing pursuant to Section 2.3(a), Agent shall
notify the Lenders, not later than 1:00 p.m. (California time) on the Business Day immediately
preceding the Funding Date applicable thereto, by telecopy, telephone, or other similar form of
transmission, of the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro
Rata Share of the requested Borrowing available to Agent in immediately available funds, to Agent’s
Account, not later than 10:00 a.m. (California time) on the Funding Date applicable thereto. After
Agent’s receipt of the proceeds of such Advances, Agent shall make the proceeds thereof available
to Borrowers on the applicable Funding Date by transferring immediately available funds equal to
such proceeds received by Agent to the Designated Account; provided, however, that,
subject to the provisions of Section 2.3(d)(ii), Agent shall not request any Lender to
make, and no Lender shall have the obligation to make, any Advance if (1) one or more of the
applicable conditions precedent set forth in Section 3 will not be satisfied on the
requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2)
the requested Borrowing would exceed the Availability on such Funding Date.

(ii) Unless Agent receives notice from a Lender prior to 9:00 a.m. (California
time) on the date of a Borrowing, that such Lender will not make available as and when required
hereunder to Agent for the account of Borrowers the amount of that Lender’s Pro Rata Share of the
Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent
in immediately available funds on the Funding Date and Agent may (but shall not be so required), in
reliance upon such assumption, make available to Borrowers on such date a corresponding amount. If
any Lender shall not have made its full amount available to Agent in immediately available funds
and if Agent in such circumstances has made available to Borrowers such amount, that Lender shall
on the Business Day following such Funding Date make such amount available to Agent, together with
interest at the Defaulting Lender Rate for each day during such period. A notice submitted by
Agent to any Lender with respect to amounts owing under this Section 2.3(c)(ii) shall be
conclusive, absent manifest error. If such amount is so made available, such payment to Agent
shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement.
If such amount is not made available to Agent on the Business Day following the Funding Date,
Agent will notify Administrative Borrower of such failure to fund and, upon demand by Agent,
Borrowers shall pay such amount to Agent for Agent’s account, together with interest thereon for
each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate
applicable at the time to the Advances composing such Borrowing. The failure of any Lender to make
any Advance on any Funding Date shall not relieve any other Lender of any obligation hereunder to
make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any
other Lender to make the Advance to be made by such other Lender on any Funding Date.

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

(d) Protective Advances and Optional Overadvances.

(i) Any contrary provision of this Agreement notwithstanding, Agent hereby is
authorized by Borrowers and the Lenders, from time to time in Agent’s sole discretion, (A) after
the occurrence and during the continuance of a Default or an Event of Default, or (B) at any time
that any of the other applicable conditions precedent set forth in Section 3 are not
satisfied, to make Advances to, or for the benefit of, Borrowers on behalf of the Lenders (in an
aggregate amount for all such Advances taken together not exceeding $15,000,000 outstanding at any
one time) that Agent, in its Permitted Discretion deems necessary or desirable (1) to preserve or
protect the Collateral, or any portion thereof, or (2) to enhance the likelihood of repayment of
the Obligations (other than the Bank Product Obligations) (any of the Advances described in this
Section 2.3(d)(i) shall be referred to as “Protective Advances”).

(ii) Any contrary provision of this Agreement notwithstanding, the Lenders hereby
authorize Agent or Swing Lender, as applicable, and either Agent or Swing Lender, as applicable,
may, but is not obligated to, knowingly and intentionally, continue to make Advances (including
Swing Loans) to Borrowers notwithstanding that an Overadvance exists or thereby would be created,
so long as (A) after giving effect to such Advances, the outstanding Adjusted Revolver Usage does
not exceed the Borrowing Base by more than $15,000,000, and (B) after giving effect to such
Advances, the outstanding Revolver Usage (except for and excluding amounts charged to the Loan
Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount.
In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted
by the immediately foregoing provisions, regardless of the amount of, or reason for, such excess,
Agent shall notify the Lenders as soon as practicable (and prior to making any (or any additional)
intentional Overadvances (except for and excluding amounts charged to the Loan Account for
interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in
imminent harm to the Collateral or its value), and the Lenders with Commitments thereupon shall,
together with Agent, jointly determine the terms of arrangements that shall be implemented with
Borrowers intended to reduce, within a reasonable time, the outstanding principal amount of the
Advances to Borrowers to an amount permitted by the preceding sentence. In such circumstances, if
any Lender with a Commitment objects to the proposed terms of reduction or repayment of any
Overadvance, the terms of reduction or repayment thereof shall be implemented according to the
determination of the Required Lenders. The foregoing provisions are meant for the benefit of
the Lenders and Agent and are not meant for the benefit of the Borrowers, which shall continue to
be bound by the provisions of Section 2.5.  Each Lender with a Commitment shall be
obligated to settle with Agent as provided in Section 2.3(e) for the amount of such
Lender’s Pro Rata Share of any unintentional Overadvances by Agent reported to such Lender, any
intentional Overadvances made as permitted under this Section 2.3(d)(ii), and any
Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group
Expenses.

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

(iv) Notwithstanding anything contained in this Agreement or any other Loan
Document to the contrary: (A) no Overadvance or Protective Advance may be made by Agent if such
Advance would cause the aggregate principal amount of Overadvances and Protective Advances
outstanding to exceed an amount equal to ten percent (10%) of the Maximum Revolver Amount; and (B)
to the extent any Protective Advance causes the aggregate Revolver Usage to exceed the Maximum
Revolver Amount, each such Protective Advance shall be for Agent’s sole and separate account and
not for the account of any Lender.

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

(i) Agent shall request settlement (“Settlement”) with the Lenders on a
weekly basis, or on a more frequent basis if so determined by Agent (1) on behalf of Swing Lender,
with respect to the outstanding Swing Loans, (2) for itself, with respect to the outstanding
Protective Advances, and (3) with respect to Borrowers’ or their Subsidiaries’ Collections or
payments received, as to each by notifying the Lenders by telecopy, telephone, or other similar
form of transmission, of such requested Settlement, no later than 2:00 p.m. (California time) on
the Business Day immediately prior to the date of such requested Settlement (the date of such
requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall
include a summary statement of the amount of outstanding Advances, Swing Loans, and Protective
Advances for the period since the prior Settlement Date. Subject to the terms and conditions
contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s balance of the
Advances (including Swing Loans and Protective Advances) exceeds such Lender’s Pro Rata Share of
the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, then Agent
shall, by no later than 12:00 p.m. (California time) on the Settlement Date, transfer in
immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an
amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement
Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances), and (z)
if a Lender’s balance of the Advances (including Swing Loans and Protective Advances) is less than
such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective Advances) as of
a Settlement Date, such Lender shall no later than 12:00 p.m. (California time) on the Settlement
Date transfer in immediately available funds to Agent’s Account, an amount such that each such
Lender shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of
the Advances (including Swing Loans and Protective Advances). Such amounts made available to Agent
under clause (z) of the immediately preceding sentence shall be applied against the amounts of the
applicable Swing Loans or Protective Advances and, together with the portion of such Swing Loans or
Protective Advances representing Swing Lender’s Pro Rata Share thereof, shall constitute Advances
of such Lenders. If any such amount is not made available to Agent by any Lender on the Settlement
Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to
recover for its account such amount on demand from such Lender together with interest thereon at
the Defaulting Lender Rate.

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

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

(f) Notation. Agent, as a non-fiduciary agent for Borrowers, shall maintain a
register showing the principal amount of the Advances, owing to each Lender, including the Swing
Loans owing to Swing Lender, and Protective Advances owing to Agent, and the interests therein of
each Lender, from time to time and such register shall, absent manifest error, conclusively be
presumed to be correct and accurate.

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

2.4 Payments; Reductions of Commitments; Prepayments.

(a) Payments by Borrowers.

(i) Except as otherwise expressly provided herein, all payments by Borrowers shall
be made to Agent’s Account for the account of the Lender Group and shall be made in immediately
available funds, no later than 11:00 a.m. (California time) on the date specified herein. Any
payment received by Agent later than 11:00 a.m. (California time) shall be deemed to have been
received on the following Business Day and any applicable interest or fee shall continue to accrue
until such following Business Day.

(ii) Unless Agent receives notice from Administrative Borrower prior to the date
on which any payment is due to the Lenders that Borrowers will not make such payment in full as and
when required, Agent may assume that Borrowers have made (or will make) such payment in full to
Agent on such date in immediately available funds and Agent may (but shall not be so required), in
reliance upon such assumption, distribute to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent Borrowers do not make such payment in full to
Agent on the date when due, each Lender severally shall repay to Agent on demand such amount
distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each
day from the date such amount is distributed to such Lender until the date repaid.

(b) Apportionment and Application.

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

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

(A) first, to pay any Lender Group Expenses (including cost or expense
reimbursements) or indemnities then due to Agent (solely in its capacity as Agent and not in any
other capacity) under the Loan Documents, until paid in full,

(B) second, to pay any fees or premiums then due to Agent (solely in its
capacity as Agent and not in any other capacity) under the Loan Documents until paid in full,

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

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

(E) fifth, ratably to pay any Lender Group Expenses (including cost or
expense reimbursements) or indemnities then due to any of the Lenders under the Loan Documents
(other than any amounts due to any Lender solely in its capacity as a Bank Product Provider), until
paid in full,

(F) sixth, ratably to pay any fees or premiums then due to any of the
Lenders under the Loan Documents (other than any amounts due to any Lender solely in its capacity
as a Bank Product Provider) until paid in full,

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

(H) eighth, ratably (i) to pay the principal of all Swing Loans until paid
in full, (ii) to pay the principal of all Advances until paid in full, and (iii) to Agent, to be
held by Agent, for the benefit of any applicable Issuing Lender (and for the ratable benefit of
each of the Lenders that have an obligation to pay to Agent, for the account of any Issuing Lender,
a share of each Letter of Credit Disbursement and each Acceptance Disbursement), as cash collateral
in an amount equal to the sum of (y) 105% of the Letter of Credit Usage composed of Letters of
Credit or Acceptances denominated in Dollars and (z) 115% of the balance of the Letter of Credit
Usage (and, upon the expiration of a Letter of Credit that is undrawn, the cash collateral held by
Agent in respect of such Letter of Credit shall be reapplied pursuant to this Section
2.4(b)(ii), beginning with tier (A) hereof),

(I) ninth, up to the amount of the Bank Product Reserve established prior
to the occurrence of, and not in contemplation of, the subject Application Event, ratably, to the
Bank Product Providers on account of all amounts then due and payable in respect of Bank Products
that qualify as Bank Product Obligations pursuant to the requirements of the proviso set forth in
the definition of Bank Product Obligations, with any balance to be paid to Agent, to be held by
Agent, for the benefit of the Bank Product Providers, as cash collateral,

(J) tenth, to pay any other Obligations (including those being paid,
ratably, to the Bank Product Providers on account of all amounts then due and payable in respect of
Bank Products that qualify as Bank Product Obligations pursuant to the requirements of the proviso
set forth in the definition of Bank Product Obligations, with any balance to be paid to Agent, to
be held by Agent, for the ratable benefit of the Bank Product Providers, as cash collateral), and

(K) eleventh, to Borrowers (to be wired to the Designated Account) or such
other Person entitled thereto under applicable law.

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

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

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

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

(c) Reduction of Commitments. The Commitments shall terminate on the Maturity Date.
Borrowers may reduce the Commitments to an amount (which may be zero) not less than the sum of (A)
the Revolver Usage as of such date, plus (B) the principal amount of all Advances not yet made as
to which a request has been given by Borrowers under Section 2.3(a), plus (C) the amount of
all Letters of Credit not yet issued as to which a request has been given by Borrowers pursuant to
Section 2.11(a). Each such reduction shall be in an amount which is not less than
$25,000,000 (unless the Commitments are being reduced to zero and the amount of the Commitments in
effect immediately prior to such reduction are less than $25,000,000) and integral multiples of
$5,000,000 in excess thereof, shall be made by providing not less than 10 Business Days prior
written notice to Agent and shall be irrevocable. Once reduced, the Commitments may not be
increased. Each such reduction of the Commitments shall reduce the Commitments of each Lender
proportionately in accordance with its Pro Rata Share thereof.

(d) Optional Prepayments.

(i) Advances. Borrowers may prepay the principal of any Advance at any time in
whole or in part.

(ii) [intentionally omitted]

(e) Mandatory Prepayments.

(i) Borrowing Base. If, at any time, (A) the Adjusted Revolver Usage on such date
exceeds (B) the Borrowing Base (such excess being referred to as the “Borrowing Base
Excess”), then Borrowers shall prepay the Obligations in accordance with Section 2.4(f)
in an aggregate amount equal to the Borrowing Base Excess (1) so long as a Borrowing Base Excess
has not occurred more than two times in the immediately preceding twelve month period, within 3
Business Days and (2) otherwise, immediately.

(ii) Dispositions. Within 1 Business Day of the date of receipt by Parent or any
of its Subsidiaries of the Net Cash Proceeds of any voluntary or involuntary sale or disposition by
Parent or any of its Subsidiaries of assets (including casualty losses or condemnations but
excluding sales or dispositions which qualify as Permitted Dispositions under clauses (a), (b),
(c), (d), (e), (k), (m)(i), (n) or (o) of the definition of Permitted Dispositions), Borrowers
shall prepay the outstanding principal amount of the Obligations in accordance with Section
2.4(f) in an amount equal to 100% of such Net Cash Proceeds (including condemnation awards and
payments in lieu thereof) received by such Person in connection with such sales or dispositions;
provided that, so long as (A) no Default or Event of Default shall have occurred and is
continuing or would result therefrom, (B) Administrative Borrower shall have given Agent prior
written notice of Borrowers’ intention to apply such monies to the costs of replacement of the
properties or assets that are the subject of such sale or disposition or the cost of purchase or
construction of other assets useful in the business of Parent or its Subsidiaries, (C) the monies
are held in a Deposit Account in which Agent has a perfected first-priority security interest, and
(D) Parent or its Subsidiaries, as applicable, complete such replacement, purchase, or construction
within (1) 365 days after the date of the initial receipt of such monies if such monies relate to
the replacement of, or construction in connection with, Real Property and (2) in all other cases,
180 days after the date of the initial receipt of such monies, then the Loan Party whose assets
were the subject of such disposition shall have the option to apply such monies to the costs of
replacement of the assets that are the subject of such sale or disposition or the costs of purchase
or construction of other assets useful in the business of Parent or such Subsidiary unless and to
the extent that such applicable period shall have expired without such replacement, purchase, or
construction being made or completed, in which case, any amounts remaining in the cash collateral
account shall be paid to Agent and applied in accordance with Section 2.4(f);
provided, however, that the provisions of this Section 2.4(e)(ii) shall not
apply to the voluntary or involuntary sale or disposition by Parent or any of its Subsidiaries of
assets where the aggregate Net Cash Proceeds of all such sales or dispositions in any fiscal year
are less than or equal to $5,000,000. Nothing contained in this Section 2.4(e)(ii) shall
permit Parent or any of its Subsidiaries to sell or otherwise dispose of any assets other than in
accordance with Section 6.4.

(f) Application of Payments. Each prepayment pursuant to
Section 2.4(e)(i) or Section 2.4(e)(ii) shall, (i) so long as no Application Event
shall have occurred and be continuing, be applied, first, to the outstanding principal amount of
the Advances until paid in full, and second, to Agent, to be held by Agent, for the benefit of any
applicable Issuing Lender (and for the ratable benefit of each of the Lenders that have an
obligation to pay to Agent, for the account of any Issuing Lender, a share of each Letter of Credit
Disbursement), as cash collateral in an amount equal to the sum of (y) 105% of the Letter of
Credit Usage composed of Letters of Credit or Acceptances denominated in Dollars and (z) 115% of
the balance of the Letter of Credit Usage (and, upon the expiration of a Letter of Credit that is
undrawn, the cash collateral held by Agent in respect of such Letter of Credit shall be reapplied
pursuant to this Section 2.4(f), beginning with cause (i) of this Section 2.4(f)
hereof), and (ii) if an Application Event shall have occurred and be continuing, be
applied in the manner set forth in Section 2.4(b)(ii).

2.5 Overadvances. If, at any time or for any reason, the amount of
Obligations owed by Borrowers to the Lender Group pursuant to Section 2.1 or Section
2.11 is greater than any of the limitations set forth in Section 2.1 or Section
2.11, as applicable (an “Overadvance”), Borrowers shall immediately pay to Agent, in
cash, the amount of such excess, which amount shall be used by Agent to reduce the Obligations in
accordance with the priorities set forth in Section 2.4(b). Borrowers jointly and
severally promise to pay the Obligations (including principal, interest, fees, costs, and expenses)
in Dollars in full on the Maturity Date or, if earlier, on the date on which the Obligations are
declared due and payable pursuant to the terms of this Agreement.

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

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

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

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

(b) Letter of Credit and Acceptance Fee. Borrowers shall pay Agent (for
the ratable benefit of the Lenders, subject to any agreements between Agent and individual
Lenders), a Letter of Credit and Acceptance fee (in addition to the charges, commissions, fees, and
costs set forth in Section 2.11(e)) which shall accrue at a per annum rate equal to the
LIBOR Rate Margin times the Daily Balance of all outstanding Acceptances and the undrawn amount of
all outstanding Letters of Credit.

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

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

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

(d) Payment. Except to the extent provided to the contrary in Section
2.10 or Section 2.12(a), interest, Letter of Credit and Acceptance fees, all other fees
payable hereunder or under any of the other Loan Documents, and all costs, expenses, and Lender
Group Expenses payable hereunder or under any of the other Loan Documents shall be due and payable,
in arrears, on the first day of each month at any time that Obligations or Commitments are
outstanding. Borrowers hereby authorize Agent, from time to time without prior notice to
Borrowers, to charge all interest, Letter of Credit and Acceptance fees, and all other fees payable
hereunder or under any of the other Loan Documents (in each case, as and when due and payable),
all costs, expenses, and Lender Group Expenses payable hereunder or under any of the other Loan
Documents (in each case, as and when incurred), all charges, commissions, fees, and costs provided
for in Section 2.11(e) (as and when accrued or incurred), all fees and costs provided for
in Section 2.10 (as and when accrued or incurred), and all other payments as and when due
and payable under any Loan Document (including any amounts due and payable to the Bank Product
Providers in respect of Bank Products up to the amount of the Bank Product Reserve) to the Loan
Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at
the rate then applicable to Advances that are Base Rate Loans. Any interest, fees, costs,
expenses, Lender Group Expenses, or other amounts payable hereunder or under any other Loan
Document not paid when due shall be compounded by being charged to the Loan Account and shall
thereafter constitute Advances hereunder and shall accrue interest at the rate then applicable to
Advances that are Base Rate Loans.

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

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

2.7 Crediting Payments. The receipt of any payment item by Agent shall not be
considered a payment on account unless such payment item is a wire transfer of immediately
available federal funds made to Agent’s Account or unless and until such payment item is honored
when presented for payment. Should any payment item not be honored when presented for payment,
then Borrowers shall be deemed not to have made such payment and interest shall be calculated
accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be
deemed received by Agent only if it is received into Agent’s Account on a Business Day on or before
11:00 a.m. (California time). If any payment item is received into Agent’s Account on a
non-Business Day or after 11:00 a.m. (California time) on a Business Day, it shall be deemed to
have been received by Agent as of the opening of business on the immediately following Business
Day.

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

2.9 Maintenance of Loan Account; Statements of Obligations. Agent shall
maintain an account on its books in the name of Borrowers (the “Loan Account”) on which
Borrowers will be charged with all Advances (including Protective Advances and Swing Loans) made by
Agent, Swing Lender, or the Lenders to Borrowers or for Borrowers’ account, the Letters of Credit
issued or made by any Issuing Lender for Borrowers’ account, the Acceptances accepted by any
Issuing Lender or any Underlying Issuer for Borrowers’ account, and with all other payment
Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations),
including, accrued interest, fees and expenses, and Lender Group Expenses. In accordance with
Section 2.7, the Loan Account will be credited with all payments received by Agent from
Borrowers or for Borrowers’ account. Agent shall render monthly statements regarding the Loan
Account to Borrowers, including principal, interest, fees, and including an itemization of all
charges and expenses constituting Lender Group Expenses owing, and such statements, absent manifest
error, shall be conclusively presumed to be correct and accurate and constitute an account stated
between Borrowers and the Lender Group unless, within 45 days after receipt thereof by Borrowers,
Administrative Borrower shall deliver to Agent written objection thereto describing the error or
errors contained in any such statements.

2.10 Fees. Borrowers shall pay to Agent,

(a) for the account of Agent, as and when due and payable under the terms of the
Fee Letter, the fees set forth in the Fee Letter.

(b) for the ratable account of those Lenders with Commitments, on the first day of
each month from and after the Closing Date up to the first day of the month prior to the Payoff
Date and on the Payoff Date, an unused line fee in an amount equal to the Applicable Unused Line
Fee per annum times the result of (i) the Maximum Revolver Amount, less (ii) the average Daily
Balance of the Revolver Usage during the immediately preceding month (or portion thereof).

2.11 Letters of Credit.

(a) Subject to the terms and conditions of this Agreement, upon the request of
Borrowers (or Administrative Borrower on behalf thereof) made in accordance herewith, each Issuing
Lender agrees to issue or to cause an Underlying Issuer, as such Issuing Lender’s agent, to issue a
requested Letter of Credit. If an Issuing Lender, at its option, elects to cause an Underlying
Issuer to issue a requested Letter of Credit, then such Issuing Lender agrees that it will obligate
itself to reimburse such Underlying Issuer (which may include, among other means, by becoming an
applicant with respect to such Letter of Credit or entering into undertakings which provide for
reimbursements of such Underlying Issuer with respect to such Letter of Credit, including
Acceptances related thereto; each such obligation or undertaking, irrespective of whether in
writing, a “Reimbursement Undertaking”) with respect to Letters of Credit or Acceptances,
as applicable, issued or accepted by such Underlying Issuer. By submitting a request to an Issuing
Lender for the issuance of a Letter of Credit, Borrowers shall be deemed to have requested that an
Issuing Lender issue or that an Underlying Issuer issue the requested Letter of Credit and to have
requested the applicable Issuing Lender to issue a Reimbursement Undertaking with respect to such
requested Letter of Credit or Acceptance, as applicable, if it is to be issued by an Underlying
Issuer (it being expressly acknowledged and agreed by the Borrowers that Borrowers are and shall be
deemed to be applicants (within the meaning of Section 5-102(a)(2) of the Code) with respect to
each Underlying Letter of Credit). Each request for the issuance of a Letter of Credit, or the
amendment, renewal, or extension of any outstanding Letter of Credit, shall be made in writing by
an Authorized Person and delivered to Agent and the applicable Issuing Lender via hand delivery,
telefacsimile, or other electronic method of transmission reasonably in advance of the requested
date of issuance, amendment, renewal, or extension. Each such request shall be in form and
substance reasonably satisfactory to the applicable Issuing Lender and shall specify (i) the amount
of such Letter of Credit, (ii) the date of issuance, amendment, renewal, or extension of such
Letter of Credit, (iii) the expiration date of such Letter of Credit, (iv) the name and address of
the beneficiary of the Letter of Credit, and (v) such other information (including, in the case of
an amendment, renewal, or extension, identification of the Letter of Credit to be so amended,
renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such Letter of
Credit. Anything contained herein to the contrary notwithstanding, an Issuing Lender may (with the
consent of Agent), but shall not be obligated to, issue or cause the issuance of a Letter of Credit
or to issue a Reimbursement Undertaking in respect of an Underlying Letter of Credit, in either
case, that supports the obligations of Parent or its Subsidiaries in respect of (1) a lease of real
property, or (2) an employment contract. Borrowers agree that this Agreement (along with the terms
of the applicable application) will govern each Letter of Credit and its issuance and each
Acceptance and its acceptance. No Issuing Lender shall have any obligation to issue a Letter of
Credit or a Reimbursement Undertaking in respect of an Underlying Letter of Credit, in either case,
if any of the following would result after giving effect to the requested issuance:

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

(ii) the Letter of Credit Usage would exceed $50,000,000, or

(iii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the
sum of (A) the Bank Product Reserve, and (B) the outstanding amount of Advances.

Borrowers and the Lender Group acknowledge and agree that certain Letters of Credit and
Acceptances may be outstanding as of the Closing Date. Borrowers and the Lender Group hereby
acknowledge and agree that all Existing Letters of Credit which are outstanding on the Closing Date
shall constitute Letters of Credit under this Agreement from and after the Closing Date with the
same effect as though such Existing Letters of Credit were issued by an Issuing Lender at the
request of the Borrowers on the Closing Date. Borrowers and the Lender Group hereby acknowledge and
agree that all Existing Acceptances which are outstanding on the Closing Date shall constitute
Acceptances under this Agreement from and after the Closing Date with the same effect as though
such Existing Acceptances were accepted by an Issuing Lender at the request of the Borrowers on the
Closing Date. Each Letter of Credit shall be in form and substance reasonably acceptable to the
applicable Issuing Lender, including the requirement that the amounts payable thereunder must be
payable in Dollars or an Alternative Currency. Each Acceptance shall be in form and substance
reasonably acceptable to the applicable Issuing Lender, including the requirement that the amounts
payable thereunder must be payable in Dollars or an Alternative Currency. If an Issuing Lender
makes a payment under a Letter of Credit or an Acceptance or an Underlying Issuer makes a payment
under an Underlying Letter of Credit or an Underlying Acceptance, Borrowers shall pay to Agent an
amount equal to the applicable Letter of Credit Disbursement or applicable Acceptance Disbursement,
as applicable, not later than 11:00 a.m., California time, on the date that Administrative Borrower
receives written or telephonic notice of such Letter of Credit Disbursement or Acceptance
Disbursement, as applicable, if such notice is received prior to 10:00 a.m., California time, or
not later than 11:00 a.m., California time, on the following Business Day, if such notice is
received after 10:00 a.m., California time or if it cannot be sent, and, in the absence of such
payment, the amount of the Letter of Credit Disbursement or Acceptance Disbursement, as applicable,
immediately and automatically shall be deemed to be an Advance hereunder (and the failure to make
such payment shall not be considered to be an Event of Default) and, initially, shall bear interest
at the rate then applicable to Advances that are Base Rate Loans. If a Letter of Credit
Disbursement or an Acceptance Disbursement in an Alternative Currency is made, then the amount that
Borrowers shall be required to pay to Agent in respect of such Letter of Credit Disbursement or
Acceptance Disbursement, as applicable, shall be an amount equal to the Dollar Equivalent (rounded
upward to the nearest $0.01) of the Letter of Credit Disbursement or Acceptance Disbursement, as
applicable,, as determined by Agent, based on the Exchange Rate for such Alternative Currency at
the time the Letter of Credit Disbursement or applicable Acceptance Disbursement was made. If a
Letter of Credit Disbursement or Acceptance Disbursement in an Alternative Currency is deemed to be
an Advance hereunder, the Advance shall be in an amount equal to the Dollar Equivalent (rounded
upward to the nearest $0.01) of the Letter of Credit Disbursement or applicable Acceptance
Disbursement) based on the Exchange Rate for such Alternative Currency at the time the Letter of
Credit Disbursement or Acceptance Disbursement, as applicable, was made. If a Letter of Credit
Disbursement is deemed to be an Advance hereunder, Borrowers’ obligation to pay the amount of such
Letter of Credit Disbursement to the applicable Issuing Lender shall be discharged and replaced by
the resulting Advance. If an Acceptance Disbursement is deemed to be an Advance hereunder,
Borrowers’ obligation to pay the amount of such Acceptance Disbursement to the applicable Issuing
Lender shall be discharged and replaced by the resulting Advance. Promptly following receipt by
Agent of any payment from Borrowers pursuant to this paragraph, Agent shall distribute such payment
to the applicable Issuing Lender or, to the extent that Lenders have made payments pursuant to
Section 2.11(b) to reimburse the applicable Issuing Lender, then to such Lenders and the
applicable Issuing Lender as their interests may appear.

(b) Promptly following receipt of a notice of a Letter of Credit Disbursement or
Acceptance Disbursement, as applicable, pursuant to Section 2.11(a), each Lender with a
Commitment agrees to fund its Pro Rata Share of any Advance deemed made pursuant to Section
2.11(a) on the same terms and conditions as if Borrowers had requested the amount thereof as an
Advance and Agent shall promptly pay to the applicable Issuing Lender the amounts so received by it
from the Lenders. By the issuance of a Letter of Credit or a Reimbursement Undertaking in respect
of a Letter of Credit (or an amendment to a Letter of Credit or a Reimbursement Undertaking
increasing the amount thereof) or the acceptance of an Acceptance or the issuance of Reimbursement
Undertaking in respect of an Acceptance (or an amendment to an Acceptance or a Reimbursement
Undertaking in respect of an Acceptance increasing the amount thereof) and without any further
action on the part of the applicable Issuing Lender or the Lenders with Commitments, the applicable
Issuing Lender shall be deemed to have granted to each Lender with a Commitment, and each Lender
with a Commitment shall be deemed to have purchased, a participation in each Letter of Credit or
Acceptance, as applicable, issued by such Issuing Lender and each Reimbursement Undertaking, as
applicable, in an amount equal to its Pro Rata Share of such Letter of Credit, Acceptance, or
Reimbursement Undertaking, and each such Lender agrees to pay to Agent, for the account of the
applicable Issuing Lender, such Lender’s Pro Rata Share of any Letter of Credit Disbursement or
Acceptance Disbursement, as applicable, made by an Issuing Lender or an Underlying Issuer under the
applicable Underlying Letter of Credit or an Underlying Acceptance. In consideration and in
furtherance of the foregoing, each Lender with a Commitment hereby absolutely and unconditionally
agrees to pay to Agent, for the account of the applicable Issuing Lender, such Lender’s Pro Rata
Share of each Letter of Credit Disbursement and each Acceptance Disbursement made by an Issuing
Lender or an Underlying Issuer and not reimbursed by Borrowers on the date due as provided in
Section 2.11(a), or of any reimbursement payment required to be refunded to Borrowers for
any reason. Each Lender with a Commitment acknowledges and agrees that its obligation to deliver
to Agent, for the account of the applicable Issuing Lender, an amount equal to its respective Pro
Rata Share of each Letter of Credit Disbursement or each Acceptance Disbursement pursuant to this
Section 2.11(b) shall be absolute and unconditional and such remittance shall be made
notwithstanding the occurrence or continuation of an Event of Default or Default or the failure to
satisfy any condition set forth in Section 3. If any such Lender fails to make available
to Agent the amount of such Lender’s Pro Rata Share of a Letter of Credit Disbursement or an
Acceptance Disbursement as provided in this Section, such Lender shall be deemed to be a Defaulting
Lender and Agent (for the account of the Issuing Lender) shall be entitled to recover such amount
on demand from such Lender together with interest thereon at the Defaulting Lender Rate until paid
in full.

(c) Borrowers hereby agree to indemnify, save, defend, and hold the Lender Group
and each Underlying Issuer harmless from any loss, cost, expense, or liability, and reasonable
attorneys fees incurred by any Issuing Lender, any other member of the Lender Group, or any
Underlying Issuer arising out of or in connection with any Reimbursement Undertaking, any
Acceptance, or any Letter of Credit; provided, however, that Borrowers shall not be
obligated hereunder to indemnify for any loss, cost, expense, or liability that a court of
competent jurisdiction finally determines to have resulted from the gross negligence or willful
misconduct of any Issuing Lender, any other member of the Lender Group, or any Underlying Issuer.
Each Borrower agrees to be bound by the applicable Issuing Lender’s or Underlying Issuer’s, as
applicable, regulations and interpretations of any Letter of Credit or Acceptance or by the
applicable Issuing Lender’s interpretations of any Reimbursement Undertaking, even though this
interpretation may be different from such Borrower’s own, and each Borrower understands and agrees
that none of any Issuing Lender, the Lender Group, or any Underlying Issuer shall be liable for
any error, negligence, or mistake, whether of omission or commission, in following any Borrower’s
instructions or those contained in the Letter of Credit or any modifications, amendments, or
supplements thereto or any Acceptance or any modifications, amendments, or supplements thereto.
Each Borrower understands that the Reimbursement Undertakings may require an Issuing Lender to
indemnify an Underlying Issuer for certain costs or liabilities arising out of claims by Borrowers
against such Underlying Issuer. Borrowers hereby agree to indemnify, save, defend, and hold each
Issuing Lender and the other members of the Lender Group harmless with respect to any loss, cost,
expense (including reasonable attorneys fees), or liability incurred by them as a result of an
Issuing Lender’s indemnification of an Underlying Issuer; provided, however, that
Borrowers shall not be obligated hereunder to indemnify for any such loss, cost, expense, or
liability to the extent that it is caused by the gross negligence or willful misconduct of any
Issuing Lender or any other member of the Lender Group. Borrowers hereby acknowledge and agree
that none of any Issuing Lender, any member of the Lender Group, or any Underlying Issuer shall be
responsible for delays, errors, or omissions resulting from the malfunction of equipment in
connection with any Letter of Credit or Acceptance.

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

(e) Any and all usage charges, issuance charges, commissions, fees, and costs
incurred by an Issuing Lender relating to Underlying Letters of Credit or Underlying Acceptances,
or charged by an Issuing Lender relating to Letters of Credit or Acceptances issued or accepted, as
applicable, by such Issuing Lender, shall be Lender Group Expenses for purposes of this Agreement
and shall be reimbursable immediately by Borrowers to Agent for the account of the applicable
Issuing Lender. The usage charge for Letters of Credit issued by WFF in its capacity as an Issuing
Lender (or that WFF, in its capacity as Issuing Lender causes to be issued by an Underlying Issuer)
are set forth in the Fee Letter. Any usage charges for Letters of Credit issued by any other
Issuing Lender (or that any other Issuing Lender causes to be issued by an Underlying Issuer) are
as set forth in a separate fee letter. Borrowers acknowledge and agree that any and all usage
charges may be changed from time to time, and that Underlying Issuers and Issuing Lenders that
issue Letters of Credit or accept Acceptances also impose a schedule of charges for amendments,
extensions, drawings, and renewals.

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

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

(ii) there shall be imposed on any Issuing Lender, any other member of the Lender
Group, or any Underlying Issuer any other condition regarding any Letter of Credit, Acceptance, or
Reimbursement Undertaking,

and the result of the foregoing is to increase, directly or indirectly, the cost to any Issuing
Lender, any other member of the Lender Group, or any Underlying Issuer of issuing, accepting,
making, guaranteeing, or maintaining any Reimbursement Undertaking or any Letter of Credit or any
Acceptance or to reduce the amount receivable in respect thereof, then, and in any such case, Agent
may, at any time within a reasonable period after the additional cost is incurred or the amount
received is reduced, notify Borrowers, and Borrowers shall pay within 30 days after demand
therefor, such amounts as Agent may specify to be necessary to compensate any Issuing Lender, any
other member of the Lender Group, or any Underlying Issuer for such additional cost or reduced
receipt, together with interest on such amount from the date of such demand until payment in full
thereof at the rate then applicable to Base Rate Loans hereunder; provided,
however, that Borrowers shall not be required to provide any compensation pursuant to this
Section for any such amounts incurred more than 180 days prior to the date on which demand
for payment is first made to Borrowers; provided further that if an event or
circumstance giving rise to such amounts is retroactive, then the 180-day period referred to above
shall be extended to include the period of retroactive effect thereof. The determination by Agent
of any amount due pursuant to this Section, as set forth in a certificate setting forth the
calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error,
be final and conclusive and binding on all of the parties hereto.

(g) Each Borrower acknowledges and agrees that certain of the Qualified Import Letters of
Credit may provide for the presentation of time drafts to the applicable Issuing Bank or Underlying
Issuer. If an Issuing Bank or an Underlying Issuer accepts such a time draft that is presented
under a Qualified Import Letter of Credit, it is acknowledged and agreed that (i) such time draft
shall constitute an Acceptance hereunder and (ii) the pricing provisions hereof with respect to
Acceptances (including Sections 2.6(b) and 2.12(e)) shall apply thereto.

2.12 LIBOR Option.

(a) Interest and Interest Payment Dates. In lieu of having interest charged at
the rate based upon the Base Rate, Borrowers shall have the option (the “LIBOR Option”) to
have interest on all or a portion of the Advances be charged (whether at the time when made (unless
otherwise provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or upon
continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR
Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the
Interest Period applicable thereto; (ii) the date on which all or any portion of the Obligations
are accelerated pursuant to the terms hereof, or (iii) the date on which this Agreement is
terminated pursuant to the terms hereof. On the last day of each applicable Interest Period,
unless Borrowers properly have exercised the LIBOR Option with respect thereto, the interest rate
applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then
applicable to Base Rate Loans of the same type hereunder. At any time that an Event of Default has
occurred and is continuing, Borrowers no longer shall have the option to request that Advances bear
interest at a rate based upon the LIBOR Rate.

(b) LIBOR Election.

(i) Borrowers may, at any time and from time to time, so long as no Event of
Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior
to 11:00 a.m. (California time) at least 3 Business Days prior to the commencement of the proposed
Interest Period (the “LIBOR Deadline”). Notice of Borrowers’ election of the LIBOR Option
for a permitted portion of the Advances and an Interest Period pursuant to this Section shall be
made by delivery to Agent of a LIBOR Notice received by Agent before the LIBOR Deadline, or by
telephonic notice received by Agent before the LIBOR Deadline (to be confirmed by delivery to Agent
of a LIBOR Notice received by Agent prior to 5:00 p.m. (California time) on the same day).
Promptly upon its receipt of each such LIBOR Notice, Agent shall provide a copy thereof to each of
the affected Lenders.

(ii) Each LIBOR Notice shall be irrevocable and binding on Borrowers. In
connection with each LIBOR Rate Loan, Borrowers shall indemnify, defend, and hold Agent and the
Lenders harmless against any loss, cost, or expense actually incurred by Agent or any Lender as a
result of (A) the payment of any principal of any LIBOR Rate Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of Default), (B) the
conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable
thereto, or (C) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date
specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, or expenses,
“Funding Losses”). A certificate of Agent or a Lender delivered to Borrowers setting forth
in reasonable detail any amount or amounts that Agent or such Lender is entitled to receive
pursuant to this Section 2.12 shall be conclusive absent manifest error. Borrowers shall
pay such amount to Agent or the Lender, as applicable, within 30 days of the date of its receipt of
such certificate. If a payment of a LIBOR Rate Loan on a day other than the last day of the
applicable Interest Period would result in a Funding Loss, Agent may, in its sole discretion at the
request of Borrowers, hold the amount of such payment as cash collateral in support of the
Obligations until the last day of such Interest Period and apply such amounts to the payment of the
applicable LIBOR Rate Loan on such last day, it being agreed that Agent has no obligation to so
defer the application of payments to any LIBOR Rate Loan and that, in the event that Agent does not
defer such application, Borrowers shall be obligated to pay any resulting Funding Losses.

(iii) Borrowers shall have not more than 5 LIBOR Rate Loans in effect at any given
time. Borrowers only may exercise the LIBOR Option for proposed LIBOR Rate Loans of at
least $1,000,000.

(c) Conversion. Borrowers may convert LIBOR Rate Loans to Base Rate Loans at any
time; provided, however, that in the event that LIBOR Rate Loans are converted or
prepaid on any date that is not the last day of the Interest Period applicable thereto, including
as a result of any automatic prepayment through the required application by Agent of proceeds of
Parent’s and its Subsidiaries’ Collections in accordance with Section 2.4(b) or for any
other reason, including early termination of the term of this Agreement or acceleration of all or
any portion of the Obligations pursuant to the terms hereof, Borrowers shall indemnify, defend, and
hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in
accordance with Section 2.12 (b)(ii).

(d) Special Provisions Applicable to LIBOR Rate.

(i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a
prospective basis to take into account any additional or increased costs to such Lender of
maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes
in applicable law occurring subsequent to the commencement of the then applicable Interest Period,
including changes in tax laws (except changes of general applicability in corporate income tax
laws) and changes in the reserve requirements imposed by the Board of Governors of the Federal
Reserve System (or any successor), excluding the Reserve Percentage, which additional or increased
costs would increase the cost of funding or maintaining loans bearing interest at the LIBOR Rate.
In any such event, the affected Lender shall give Borrowers and Agent notice of such a
determination and adjustment and Agent promptly shall transmit the notice to each other Lender and,
upon its receipt of the notice from the affected Lender, Borrowers may, by notice to such affected
Lender (y) require such Lender to furnish to Borrowers a statement setting forth the basis for
adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z)
repay the LIBOR Rate Loans with respect to which such adjustment is made (together with any amounts
due under Section 2.12(b)(ii)).

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

(iii) If any Lender (any such Lender, a “Non-LIBOR Lender”) delivers a notice to Agent
pursuant to Section 2.12(d)(ii) stating that a change in market conditions or any law,
regulation, treaty, or directive, or any change therein or in the interpretation or application
thereof, shall at any time after the date hereof, in the reasonable opinion of such Lender, make it
unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such
funding or maintaining, or to determine or charge interest rates at the LIBOR Rate (any such
situation, a “LIBOR Event”), then such Non-LIBOR Lender shall use reasonable efforts to
promptly, and in any event within 30 days, designate a different one of its lending offices or to
assign its rights and obligations hereunder to another of its offices or branches, if (i) in the
reasonable judgment of such Non-LIBOR Lender, such designation or assignment would eliminate impact
of the LIBOR Event, and (ii) in the reasonable judgment of such Non-LIBOR Lender, such designation
or assignment would not subject it to any material unreimbursed cost or expense and would not
otherwise be materially disadvantageous to it. Borrowers agree to pay all reasonable out-of-pocket
costs and expenses incurred by such Non-LIBOR Lender in connection with any such designation or
assignment. If, after such reasonable efforts or the expiration of such 30 day period, such
Non-LIBOR Lender does not so designate a different one of its lending offices or assign its rights
to another of its offices or branches so as to eliminate the impact of the LIBOR Event, as
applicable, then Borrowers (without prejudice to any amounts then due to such Non-LIBOR Lender
under this Agreement) may, unless prior to the effective date of any such assignment the Non-LIBOR
Lender withdraws its notice of the occurrence of the LIBOR Event, seek a substitute Lender
reasonably acceptable to Agent to purchase the Obligations owed to such Non-LIBOR Lender and such
Non-LIBOR Lender’s Commitments hereunder (a “LIBOR Replacement Lender”), and if such LIBOR
Replacement Lender agrees to such purchase, such Non-LIBOR Lender shall assign to the LIBOR
Replacement Lender its Obligations and Commitments, pursuant to an Assignment and Acceptance
Agreement, and upon such purchase by the LIBOR Replacement Lender, such LIBOR Replacement Lender
shall be deemed to be a “Lender” for purposes of this Agreement and such Non-LIBOR Lender shall
cease to be a “Lender” for purposes of this Agreement.

(e) No Requirement of Matched Funding. Anything to the contrary contained herein
notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually
to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest
accrues at the LIBOR Rate.

2.13 Capital Requirements.

(a) If, after the date hereof, any Lender determines that (i) the adoption of or
change in any law, rule, regulation or guideline regarding capital requirements for banks or bank
holding companies, or any change in the interpretation or application thereof by any Governmental
Authority charged with the administration thereof, or (ii) compliance by such Lender or its parent
bank holding company with any guideline, request or directive of any such entity regarding capital
adequacy (whether or not having the force of law), has the effect of reducing the return on such
Lender’s or such holding company’s capital as a consequence of such Lender’s Commitments hereunder
to a level below that which such Lender or such holding company could have achieved but for such
adoption, change, or compliance (taking into consideration such Lender’s or such holding company’s
then existing policies with respect to capital adequacy and assuming the full utilization of such
entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify
Borrowers and Agent thereof. Following receipt of such notice, Borrowers agree to pay such Lender
on demand the amount of such reduction of return of capital as and when such reduction is
determined, payable within 30 days after presentation by such Lender of a statement in the amount
and setting forth in reasonable detail such Lender’s calculation thereof and the assumptions upon
which such calculation was based (which statement shall be deemed true and correct absent manifest
error). In determining such amount, such Lender may use any reasonable averaging and attribution
methods. Failure or delay on the part of any Lender to demand compensation pursuant to this
Section shall not constitute a waiver of such Lender’s right to demand such compensation;
provided that Borrowers shall not be required to compensate a Lender pursuant to this
Section for any reductions in return incurred more than 180 days prior to the date that such Lender
notifies Borrowers of such law, rule, regulation or guideline giving rise to such reductions and of
such Lender’s intention to claim compensation therefor; provided further that if
such claim arises by reason of the adoption of or change in any law, rule, regulation or guideline
that is retroactive, then the 180-day period referred to above shall be extended to include the
period of retroactive effect thereof.

(b) If any Lender requests additional or increased costs referred to in
Section 2.12(d)(i), Section 2.11(d)(ii), or amounts under Section 2.13(a)
(any such Lender, an “Affected Lender”), then such Affected Lender shall use reasonable
efforts to promptly, and in any event within 30 days, designate a different one of its lending
offices or to assign its rights and obligations hereunder to another of its offices or branches, if
(i) in the reasonable judgment of such Affected Lender, such designation or assignment would
eliminate or reduce amounts payable pursuant to Section 2.12(d)(i) or Section
2.13(a), as applicable, and (ii) in the reasonable judgment of such Affected Lender, such
designation or assignment would not subject it to any material unreimbursed cost or expense and
would not otherwise be materially disadvantageous to it. Borrowers agree to pay all reasonable
out-of-pocket costs and expenses incurred by such Affected Lender in connection with any such
designation or assignment. If, after such reasonable efforts or the expiration of such 30 day
period, such Affected Lender does not so designate a different one of its lending offices or assign
its rights to another of its offices or branches so as to eliminate Borrowers’ obligation to pay
any future amounts to such Affected Lender pursuant to Section 2.12(d)(i), Section
2.12(d)(ii) or Section 2.13(a), as applicable, then Borrowers (without prejudice to any
amounts then due to such Affected Lender under Section 2.12(d)(i), Section
2.12(d)(ii) or Section 2.13(a), as applicable) may, unless prior to the effective date
of any such assignment the Affected Lender withdraws its request for such additional amounts under
Section 2.12(d)(i), Section 2.12(d)(ii) or Section 2.13(a), as applicable,
seek a substitute Lender reasonably acceptable to Agent to purchase the Obligations owed to such
Affected Lender and such Affected Lender’s Commitments hereunder (a “Replacement Lender”),
and if such Replacement Lender agrees to such purchase, such Affected Lender shall assign to the
Replacement Lender its Obligations and Commitments, pursuant to an Assignment and Acceptance
Agreement, and upon such purchase by the Replacement Lender, such Replacement Lender shall be
deemed to be a “Lender” for purposes of this Agreement and such Affected Lender shall cease to be a
“Lender” for purposes of this Agreement.

2.14 Joint and Several Liability of Borrowers.

(a) Each Borrower is accepting joint and several liability hereunder and under the
other Loan Documents in consideration of the financial accommodations to be provided by the Lender
Group under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and
in consideration of the undertakings of the other Borrowers to accept joint and several liability
for the Obligations.

(b) Each Borrower, jointly and severally, hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other
Borrowers, with respect to the payment and performance of all of the Obligations (including any
Obligations arising under this Section 2.14), it being the intention of the parties hereto
that all the Obligations shall be the joint and several obligations of each Borrower without
preferences or distinction among them.

(c) If and to the extent that any Borrower shall fail to make any payment with
respect to any of the Obligations as and when due or to perform any of the Obligations in
accordance with the terms thereof, then in each such event the other Borrowers will make such
payment with respect to, or perform, such Obligation.

(d) The Obligations of each Borrower under the provisions of this Section
2.14 constitute the absolute and unconditional, full recourse Obligations of each Borrower
enforceable against each Borrower to the full extent of its properties and assets, irrespective of
the validity, regularity or enforceability of the provisions of this Agreement (other than this
Section 2.14(d)) or any other circumstances whatsoever.

(e) Except as otherwise expressly provided in this Agreement, each Borrower hereby
waives notice of acceptance of its joint and several liability, notice of any Advances or Letters
of Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default,
Event of Default, or of any demand for any payment under this Agreement, notice of any action at
any time taken or omitted by Agent or Lenders under or in respect of any of the Obligations, any
requirement of diligence or to mitigate damages and, generally, to the extent permitted by
applicable law, all demands, notices and other formalities of every kind in connection with this
Agreement (except as otherwise provided in this Agreement). Each Borrower hereby assents to, and
waives notice of, any extension or postponement of the time for the payment of any of the
Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial
payment thereon, any waiver, consent or other action or acquiescence by Agent or Lenders at any
time or times in respect of any default by any Borrower in the performance or satisfaction of any
term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever
by Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution or
release, in whole or in part, at any time or times, of any security for any of the Obligations or
the addition, substitution or release, in whole or in part, of any Borrower. Without limiting the
generality of the foregoing, each Borrower assents to any other action or delay in acting or
failure to act on the part of any Agent or Lender with respect to the failure by any Borrower to
comply with any of its respective Obligations, including, without limitation, any failure strictly
or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws
or regulations thereunder, which might, but for the provisions of this Section 2.14 afford
grounds for terminating, discharging or relieving any Borrower, in whole or in part, from any of
its Obligations under this Section 2.14, it being the intention of each Borrower that, so
long as any of the Obligations hereunder remain unsatisfied, the Obligations of each Borrower under
this Section 2.14 shall not be discharged except by performance and then only to the extent
of such performance. The Obligations of each Borrower under this Section 2.14 shall not be
diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation,
reconstruction or similar proceeding with respect to any other Borrower or any Agent or Lender.

(f) Each Borrower represents and warrants to Agent and Lenders that such Borrower
is currently informed of the financial condition of Borrowers and of all other circumstances which
a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations.
Each Borrower further represents and warrants to Agent and Lenders that such Borrower has read and
understands the terms and conditions of the Loan Documents. Each Borrower hereby covenants that
such Borrower will continue to keep informed of Borrowers’ financial condition, the financial
condition of other guarantors, if any, and of all other circumstances which bear upon the risk of
nonpayment or nonperformance of the Obligations.

(g) Each Borrower waives all rights and defenses arising out of an election of remedies
by Agent or any Lender, even though that election of remedies, such as a nonjudicial foreclosure
with respect to security for a guaranteed obligation, has destroyed Agent’s or such Lender’s rights
of subrogation and reimbursement against such Borrower by the operation of Section 580(d) of the
California Code of Civil Procedure or otherwise.

(h) [intentionally omitted].

(i) The provisions of this Section 2.14 are made for the benefit of Agent, each
member of the Lender Group, and their respective successors and assigns, and may be enforced by it
or them from time to time against any or all Borrowers as often as occasion therefor may arise and
without requirement on the part of Agent, any member of the Lender Group, or any of their
successors or assigns first to marshal any of its or their claims or to exercise any of its or
their rights against any Borrower or to exhaust any remedies available to it or them against any
Borrower or to resort to any other source or means of obtaining payment of any of the Obligations
hereunder or to elect any other remedy. The provisions of this Section 2.14 shall remain
in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied.
If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is
rescinded or must otherwise be restored or returned by Agent or any Lender upon the insolvency,
bankruptcy or reorganization of any Borrower, or otherwise, the provisions of this Section
2.14 will forthwith be reinstated in effect, as though such payment had not been made.

(j) Each Borrower hereby agrees that it will not enforce any of its rights of
contribution or subrogation against any other Borrower with respect to any liability incurred by it
hereunder or under any of the other Loan Documents, any payments made by it to Agent or Lenders
with respect to any of the Obligations or any collateral security therefor until such time as all
of the Obligations have been paid in full in cash. Any claim which any Borrower may have against
any other Borrower with respect to any payments to any Agent or any member of the Lender Group
hereunder or under any other Loan Documents are hereby expressly made subordinate and junior in
right of payment, without limitation as to any increases in the Obligations arising hereunder or
thereunder, to the prior payment in full in cash of the Obligations and, in the event of any
insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under
the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary
or involuntary, all such Obligations shall be paid in full in cash before any payment or
distribution of any character, whether in cash, securities or other property, shall be made to any
other Borrower therefor. Notwithstanding anything to the contrary contained in this
Section 2.14, no Borrower shall exercise any rights of subrogation, contribution,
indemnity, reimbursement or other similar rights against, and shall not proceed or seek recourse
against or with respect to any property or asset of, any other Borrower (the “Foreclosed
Borrower”), including after payment in full of the Obligations, if all or any portion of the
Obligations have been satisfied in connection with an exercise of remedies in respect of the
capital Stock of such Foreclosed Borrower whether pursuant to the Security Agreement or otherwise.

(k) Each Borrower hereby agrees that, after the occurrence and during the
continuance of any Default or Event of Default, the payment of any amounts due with respect to the
indebtedness owing by any Borrower to any other Borrower is hereby subordinated to the prior
payment in full in cash of the Obligations. Each Borrower hereby agrees that after the occurrence
and during the continuance of any Default or Event of Default, such Borrower will not demand, sue
for or otherwise attempt to collect any indebtedness of any other Borrower owing to such Borrower
until the Obligations shall have been paid in full in cash. If, notwithstanding the foregoing
sentence, such Borrower shall collect, enforce or receive any amounts in respect of such
indebtedness, such amounts shall be collected, enforced and received by such Borrower as trustee
for Agent, and such Borrower shall deliver any such amounts to Agent for application to the
Obligations in accordance with Section 2.4(b).

3. CONDITIONS; TERM OF AGREEMENT.

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

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

(a) the representations and warranties of Parent or its Subsidiaries contained in
this Agreement or in the other Loan Documents shall be true and correct in all material respects
(except that such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text thereof) on and as of
the date of such extension of credit, as though made on and as of such date (except to the extent
that such representations and warranties relate solely to an earlier date); and

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

3.3 Maturity. This Agreement shall continue in full force and effect for
a term ending on June 30, 2013 (the “Maturity Date”). The foregoing notwithstanding, the
Lender Group, upon the election of the Required Lenders, shall have the right to terminate its
obligations under this Agreement immediately and without notice upon the occurrence and during the
continuation of an Event of Default.

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

3.5 Early Termination by Borrowers. Borrowers have the option, at any
time upon 10 Business Days prior written notice to Agent, to terminate this Agreement and terminate
the Commitments hereunder by paying to Agent the Obligations (including (a) providing Letter of
Credit Collateralization with respect to the then existing Letter of Credit Usage, and (b)
providing Bank Product Collateralization with respect to the then existing Bank Products), in full.

3.6 Conditions Subsequent. The obligation of the Lender Group (or any
member thereof) to continue to make Advances (or otherwise extend credit hereunder) is subject to
the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth
on Schedule 3.6 (the failure by Borrowers to so perform or cause to be performed such
conditions subsequent as and when required by the terms thereof, shall constitute an immediate
Event of Default).

4. REPRESENTATIONS AND WARRANTIES.

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

4.1 Due Organization and Qualification; Subsidiaries.

(a) Each Loan Party (i) is duly organized and existing and in good standing under
the laws of the jurisdiction of its organization, (ii) qualified to do business in any state where
the failure to be so qualified reasonably could be expected to result in a Material Adverse Change,
and (iii) has all requisite power and authority to own and operate its properties, to carry on its
business in all material respects as now conducted and as proposed to be conducted, to enter into
the Loan Documents to which it is a party and to carry out the transactions contemplated thereby.

(b) Except as described on Schedule 4.1(b), Parent is not subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its
capital Stock or any security convertible into or exchangeable for any of its capital Stock.

(c) Set forth on Schedule 4.1(c) (as such Schedule may be updated from
time to time to reflect changes permitted to be made under Section 5.11), is a complete and
accurate list of the Loan Parties’ direct and indirect Subsidiaries, showing: (i) the number of
shares of each class of common and preferred Stock authorized for each of such Subsidiaries, and
(ii) the number and the percentage of the outstanding shares of each such class owned directly or
indirectly by Parent. All of the outstanding capital Stock of each such Subsidiary has been
validly issued and is fully paid and non-assessable.

(d) Except as set forth on Schedule 4.1(c), there are no subscriptions,
options, warrants, or calls relating to any shares of Parent’s Subsidiaries’ capital Stock,
including any right of conversion or exchange under any outstanding security or other instrument.
Neither Parent nor any of its Subsidiaries is subject to any obligation (contingent or otherwise)
to repurchase or otherwise acquire or retire any shares of Parent’s Subsidiaries’ capital Stock or
any security convertible into or exchangeable for any such capital Stock.

4.2 Due Authorization; No Conflict.

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

(b) As to each Loan Party, the execution, delivery, and performance by such Loan
Party of the Loan Documents to which it is a party do not and will not (i) violate any material
provision of federal, state, or local law or regulation applicable to any Loan Party or its
Subsidiaries, the Governing Documents of any Loan Party or its Subsidiaries, or any order,
judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its
Subsidiaries, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of
time or both) a default under any Material Contract of any Loan Party or its Subsidiaries except to
the extent that any such conflict, breach or default could not individually or in the aggregate
reasonably be expected to have a Material Adverse Change, (iii) result in or require the creation
or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than
Permitted Liens, or (iv) require any approval of any Loan Party’s interestholders or any approval
or consent of any Person under any Material Contract of any Loan Party, other than consents or
approvals that have been obtained and that are still in force and effect and except, in the case of
Material Contracts, for consents or approvals, the failure to obtain could not individually or in
the aggregate reasonably be expected to cause a Material Adverse Change.

4.3 Governmental Consents. The execution, delivery, and performance by
each Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of
the transactions contemplated by the Loan Documents do not and will not require any registration
with, consent, or approval of, or notice to, or other action with or by, any Governmental
Authority, other than registrations, consents, approvals, notices, or other actions that have been
obtained and that are still in force and effect and except for filings and recordings with respect
to the Collateral to be made, or otherwise delivered to Agent for filing or recordation, as of the
Closing Date.

4.4 Binding Obligations; Perfected Liens.

(a) Each Loan Document has been duly executed and delivered by each Loan Party
that is a party thereto and is the legally valid and binding obligation of such Loan Party,
enforceable against such Loan Party in accordance with its respective terms, except as enforcement
may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or
similar laws relating to or limiting creditors’ rights generally.

(b) Agent’s Liens are validly created, perfected (other than (i) in respect of
motor vehicles and (ii) any Deposit Accounts and Securities Accounts not subject to a Control
Agreement as permitted by Section 6.11, and subject only to the filing of financing
statements and the recordation of the Copyright Security Agreement, in each case, in the
appropriate filing offices), and first priority Liens, subject only to Permitted Liens.

4.5 Title to Assets; No Encumbrances. Each of the Loan Parties and its
Subsidiaries has (i) good, sufficient and legal title to (in the case of fee interests in Real
Property), (ii) valid leasehold interests in (in the case of leasehold interests in real or
personal property), and (iii) good and marketable title to (in the case of all other personal
property), all of their respective assets reflected in their most recent financial statements
delivered pursuant to Section 5.1, in each case except for (y) those assets that are not
necessary for the conduct of the business of the Loan Parties and their Subsidiaries, taken as a
whole, or (z) assets disposed of since the date of such financial statements to the extent such
disposition is permitted hereby. All of such assets are free and clear of Liens except for
Permitted Liens.

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

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

(b) The chief executive office of each Loan Party and each of its Subsidiaries is
located at the address indicated on Schedule 4.6(b) (as such Schedule may be updated from
time to time to reflect changes permitted to be made under Section 5.15).

(c) Each Loan Party’s and each of its Subsidiaries’ tax identification numbers and
organizational identification numbers, if any, are identified on Schedule 4.6(c) (as such
Schedule may be updated from time to time to reflect changes permitted to be made under Section
6.5).

(d) As of the Closing Date, no Loan Party and no Subsidiary of a Loan Party holds
any commercial tort claims that exceed $1,000,000 in amount, except as set forth on Schedule
4.6(d).

4.7 Litigation.

(a) There are no actions, suits, or proceedings pending or, to the Knowledge of
Parent, threatened in writing against a Loan Party or any of its Subsidiaries that either
individually or in the aggregate could reasonably be expected to result in a Material Adverse
Change.

(b) Schedule 4.7(b) sets forth a complete and accurate description, with
respect to each of the actions, suits, or proceedings with asserted liabilities in excess of, or
that, if determined adversely, could reasonably be expected to result in liabilities in excess of,
$5,000,000 that, as of the Closing Date, is pending or, to the Knowledge of Parent, threatened
against a Loan Party or any of its Subsidiaries, of (i) the parties to such actions, suits, or
proceedings, (ii) the nature of the dispute that is the subject of such actions, suits, or
proceedings, (iii) the status, as of the Closing Date, with respect to such actions, suits, or
proceedings, and (iv) whether any liability of the Loan Parties’ and their Subsidiaries in
connection with such actions, suits, or proceedings is covered by insurance.

4.8 Compliance with Laws. No Loan Party nor any of its Subsidiaries
(a) is in violation of any applicable laws, rules, regulations, executive orders, or codes
(including Environmental Laws) that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Change, or (b) is subject to or in default with respect to any
final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal,
state, municipal or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Change.

4.9 No Material Adverse Change. All historical financial statements
relating to the Loan Parties and their Subsidiaries that have been delivered by Borrowers to Agent
have been prepared in accordance with GAAP (except, in the case of unaudited financial statements,
for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in
all material respects, the Loan Parties’ and their Subsidiaries’ consolidated financial condition
as of the date thereof and results of operations for the period then ended. Since March 31, 2009,
no event, circumstance, or change has occurred that has or could reasonably be expected to result
in a Material Adverse Change with respect to the Loan Parties and their Subsidiaries.

4.10 Fraudulent Transfer.

(a) Each Loan Party is Solvent.

(b) No transfer of property is being made by any Loan Party and no obligation is
being incurred by any Loan Party in connection with the transactions contemplated by this Agreement
or the other Loan Documents with the intent to hinder, delay, or defraud either present or future
creditors of such Loan Party.

4.11 Employee Benefits. No Loan Party, none of their Subsidiaries, nor
any of their ERISA Affiliates maintains or contributes to any Benefit Plan.

4.12 Environmental Condition. Except as set forth on Schedule
4.12, (a) to Parent’s Knowledge, no Loan Party’s or its Subsidiaries’ properties or assets has
ever been used by a Loan Party, its Subsidiaries, or by previous owners or operators in the
disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials,
where such disposal, production, storage, handling, treatment, release or transport was in
violation, in any material respect, of any applicable Environmental Law, (b) to Parent’s Knowledge,
no Loan Party’s or its Subsidiaries’ properties or assets has ever been designated or identified in
any manner pursuant to any environmental protection statute as a Hazardous Materials disposal site,
(c) no Loan Party nor any of its Subsidiaries has received notice that a Lien arising under any
Environmental Law has attached to any revenues or to any Real Property owned or operated by a Loan
Party or its Subsidiaries, and (d) no Loan Party nor any of its Subsidiaries nor any of their
respective facilities or operations is subject to any outstanding written order, consent decree, or
settlement agreement with any Person relating to any Environmental Law or Environmental Liability
that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Change.

4.13 Intellectual Property. Each Loan Party and its Subsidiaries own, or
hold licenses in, all trademarks, trade names, copyrights, patents, and licenses that are necessary
to the conduct of its business as currently conducted, taken as a whole. Attached hereto as
Schedule 4.13 (as updated from time to time) is a true, correct, and complete listing of
all material registered trademarks, registered trade names, registered copyrights, registered
patents, and licenses as to which Parent or one of its Subsidiaries is the owner or is an exclusive
licensee; provided, however, that Borrowers may amend Schedule 4.13 to add
or remove intellectual property on Schedule 4.13 by written notice to Agent on a quarterly
basis as required in Schedule 5.2.

4.14 Leases. Each Loan Party and its Subsidiaries enjoy peaceful and
undisturbed possession under all leases material to their business and to which they are parties or
under which they are operating, and, subject to Permitted Protests, all of such material leases are
valid and subsisting and no material default by the applicable Loan Party or its Subsidiaries
exists under any of them.

4.15 Deposit Accounts and Securities Accounts. Set forth on Schedule
4.15 (as updated pursuant to the provisions of the Security Agreement from time to time) is a
listing of all of the Loan Parties’ Deposit Accounts and Securities Accounts, including, with
respect to each bank or securities intermediary (a) the name and address of such Person, and (b)
the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person.

4.16 Complete Disclosure. All factual information (taken as a whole)
furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any Lender
(including all information contained in the Schedules hereto or in the other Loan Documents) for
purposes of or in connection with this Agreement, the other Loan Documents, or any transaction
contemplated herein or therein is, and all other such factual information (taken as a whole)
hereafter furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any
Lender will be, true and accurate, in all material respects, on the date as of which such
information is dated or certified and not incomplete by omitting to state any fact necessary to
make such information (taken as a whole) not misleading in any material respect at such time in
light of the circumstances under which such information was provided. On the Closing Date, the
Projections that were most recently delivered to Agent (and were accepted by Agent) represent, and
as of the date on which any other Projections are delivered to Agent, such additional Projections
represent Borrowers’ good faith estimate of the Loan Parties’ and their Subsidiaries future
performance for the periods covered thereby based upon assumptions believed by Borrowers to be
reasonable at the time of the delivery thereof to Agent (it being understood that such Projections
are subject to uncertainties and contingencies, many of which are beyond the control of the Loan
Parties and their Subsidiaries and no assurances can be given that such Projections will be
realized and actual results may differ in a material manner from such Projections).

4.17 Material Contracts. Set forth on Schedule 4.17 (as updated
from time to time) is a list of the Material Contracts of each Loan Party and its Subsidiaries;
provided, however, that Borrowers may amend Schedule 4.17 to add additional
Material Contracts not included on Schedule 4.17 by written notice to Agent (which notice
shall specify the additions to such schedule and provide a copy of such new Material Contracts) on
a quarterly basis as required in Schedule 5.2. Except for matters which, either
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Change, each Material Contract (other than those that have expired at the end of their normal
terms) (a) is in full force and effect and is binding upon and enforceable against the applicable
Loan Party or its Subsidiary and, to Parent’s Knowledge, each other Person that is a party thereto
in accordance with its terms, (b) has not been otherwise amended or modified (other than amendments
or modifications permitted by Section 6.7(b)), and (c) is not in default due to the action
or inaction of the applicable Loan Party or its Subsidiary.

4.18 Patriot Act. To the extent applicable, each Loan Party is in
compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each
of the foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot Act”). No part of
the proceeds of the loans made hereunder will be used, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

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

4.20 Payment of Taxes. Except as otherwise permitted under Section
5.5, all tax returns and reports of each Loan Party and its Subsidiaries required to be filed
by any of them have been timely filed, and all taxes shown on such tax returns to be due and
payable and all assessments, fees and other governmental charges upon a Loan Party and its
Subsidiaries and upon their respective assets, income, businesses and franchises that are due and
payable have been paid when due and payable. Each Loan Party and each of its Subsidiaries have
made adequate provision in accordance with GAAP for all taxes not yet due and payable. No Borrower
knows of any proposed tax assessment against a Loan Party or any of its Subsidiaries that is not
being actively contested by such Loan Party or such Subsidiary diligently, in good faith, and by
appropriate proceedings; provided such reserves or other appropriate provisions, if any, as
shall be required in conformity with GAAP shall have been made or provided therefor. No Loan Party
nor any of its Subsidiaries has ever been a party to any understanding or arrangement constituting
a “tax shelter” within the meaning of Section 6662(d)(2)(C)(ii) of the IRC, or has ever
“participated” in a “reportable transaction” or “listed transaction” within the meaning of Section
6707A(c) of the IRC, except as would not be reasonably expected to, individually or in the
aggregate, result in a Material Adverse Change.

4.21 Margin Stock. No Loan Party nor any of its Subsidiaries 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 part of the proceeds of the loans made to
Borrowers will be used to purchase or carry any such Margin Stock or to extend credit to others for
the purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is
inconsistent with, the provisions of Regulation T, U or X of said Board of Governors.

4.22 Governmental Regulation. No Loan Party nor any of its Subsidiaries
is subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or under
any other federal or state statute or regulation which may limit its ability to incur Indebtedness
or which may otherwise render all or any portion of the Obligations unenforceable. No Loan Party
nor any of its Subsidiaries is a “registered investment company” or a company “controlled” by a
“registered investment company” or a “principal underwriter” of a “registered investment company”
as such terms are defined in the Investment Company Act of 1940.

4.23 OFAC. No Loan Party nor any of its Subsidiaries is in violation of
any of the country or list based economic and trade sanctions administered and enforced by OFAC.
No Loan Party nor any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b)
has more than 10% of its assets located in Sanctioned Entities, or (c) derives more than 10% of its
revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The
proceeds of any Advance will not be used to fund any operations in, finance any investments or
activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity.

4.24 Employee and Labor Matters. There is (i) no unfair labor practice
complaint pending or, to the Knowledge of Parent, threatened against Parent or any of its
Subsidiaries before any Governmental Authority and no grievance or arbitration proceeding pending
or threatened against any Parent or any of its Subsidiaries which arises out of or under any
collective bargaining agreement, (ii) no strike, labor dispute, slowdown, stoppage or similar
action or grievance pending or threatened against Parent or any of its Subsidiaries, or (iii) to
the Knowledge of Parent, no union representation question existing with respect to the employees of
Parent or any of its Subsidiaries and no union organizing activity taking place with respect to any
of the employees of Parent or any of its Subsidiaries. None of Parent or any of its Subsidiaries
has incurred any liability or obligation under the Worker Adjustment and Retraining Notification
Act or similar state law, which remains unpaid or unsatisfied. The hours worked and payments made
to employees of Parent or its Subsidiaries have not been in violation of the Fair Labor Standards
Act or any other applicable legal requirements, except to the extent such violations could not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.
All material payments due from Parent or any of its Subsidiaries on account of wages and employee
health and welfare insurance and other benefits have been paid or accrued as a liability on the
books of Borrower, except where the failure to do so could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Change.

	 	 	 	 	 
	4.25	 	[Intentionally Omitted]
	4.26	 	[Intentionally Omitted]
	 	4.27	 	 	[Intentionally Omitted]

	 	 	 	 	 

4.28 Eligible Accounts. As to each Account that is identified by Borrowers as
an Eligible Account in a Borrowing Base Certificate submitted to Agent, such Account is (a) a bona
fide existing payment obligation of the applicable Account Debtor created by the sale and delivery
of Inventory or the rendition of services to such Account Debtor in the ordinary course of
Borrowers’ business, (b) owed to a Borrower without any known defenses, disputes, offsets,
counterclaims, or rights of return or cancellation, and (c) not excluded as ineligible by virtue of
one or more of the excluding criteria set forth in the definition of Eligible Accounts.

4.29 Eligible Inventory. As to each item of Inventory that is identified
by Borrowers as Eligible Inventory in a Borrowing Base Certificate submitted to Agent, such
Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as
ineligible by virtue of one or more of the excluding criteria set forth in the definition of
Eligible Inventory.

4.30 Locations of Inventory and Equipment. Except as described on
Schedule 4.30(a), the Inventory and Equipment (other than vehicles or Equipment out for
repair) of the Loan Parties are not stored with a bailee, warehouseman, or similar party and are
located only at, or in-transit between, the locations identified on Schedule 4.30(b) (as
such Schedule may be updated pursuant to Section 5.15).

4.31 Inventory Records. Each Loan Party keeps correct and accurate
records itemizing and describing the type, quality, and quantity of its and its Subsidiaries’
Inventory and the book value thereof.

5. AFFIRMATIVE COVENANTS.

Each Borrower covenants and agrees that, until termination of all of the Commitments and
payment in full of the Obligations, the Borrowers shall and shall cause each of their Subsidiaries
to comply with each of the following:

5.1 Financial Statements, Reports, Certificates. Deliver to Agent, with
sufficient copies for the Lenders, each of the financial statements, reports, and other items set
forth on Schedule 5.1 at the times specified therein. In addition, each Borrower agrees
that no Subsidiary of a Loan Party will have a fiscal year different from that of Parent. In
addition, Parent agrees to maintain a system of accounting that enables Parent to produce financial
statements in accordance with GAAP. Each Loan Party shall also (a) keep a reporting system that
shows all additions, sales, claims, returns, and allowances with respect to its and its
Subsidiaries’ sales, and (b) maintain its billing systems/practices as approved by Agent prior to
the Closing Date and shall only make material modifications thereto with notice to, and with the
consent of, Agent.

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

5.3 Existence. Except as otherwise permitted under Section 6.3, at all
times maintain and preserve in full force and effect its existence (including being in good
standing in its jurisdiction of organization) and all rights and franchises, licenses and permits
material to its business; provided, however, that no Loan Party or any of its
Subsidiaries shall be required to preserve any such right or franchise, licenses or permits if such
Person’s board of directors (or similar governing body) shall determine that the preservation
thereof is no longer desirable in the conduct of the business of such Person, and that the loss
thereof is not disadvantageous in any material respect to such Person or to the Lenders.

5.4 Maintenance of Properties. Maintain and preserve all of its assets that are
necessary in the proper conduct of the business of Parent and its Subsidiaries, taken as a whole,
in good working order and condition, ordinary wear, tear, and casualty excepted and Permitted
Dispositions excepted, and comply with the material provisions of all material leases to which it
is a party as lessee, so as to prevent the loss or forfeiture thereof, unless such provisions are
the subject of a Permitted Protest.

5.5 Taxes. Cause all assessments and taxes imposed, levied, or assessed
against any Loan Party or its Subsidiaries, or any of their respective assets or in respect of any
of its income, businesses, or franchises to be paid in full, before delinquency or before the
expiration of any extension period, except to the extent that the validity of such assessment or
tax shall be the subject of a Permitted Protest and so long as, in the case of an assessment or tax
that has or may become a Lien against any of the Collateral, such contest proceedings conclusively
operate to stay the sale of any portion of the Collateral to satisfy such assessment or tax.
Parent will and will cause each of its Subsidiaries to make timely payment or deposit of all tax
payments and withholding taxes required of it and them by applicable laws, including those laws
concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and
will, upon request, furnish Agent with proof reasonably satisfactory to Agent indicating that
Parent and its Subsidiaries have made such payments or deposits.

5.6 Insurance. At Borrowers’ expense, maintain insurance respecting each
of the Loan Parties’ and their Subsidiaries’ assets wherever located, covering loss or damage by
fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other
Persons engaged in the same or similar businesses. Borrowers also shall maintain (with respect to
each of the Loan Parties and their Subsidiaries) business interruption, general liability, and
product liability insurance, as well as insurance against larceny, embezzlement, and criminal
misappropriation. All such policies of insurance shall be with responsible and reputable insurance
companies and in such amounts as is carried generally in accordance with sound business practice by
companies in similar businesses similarly situated and located and in any event in amount, adequacy
and scope reasonably satisfactory to Agent. All property insurance policies covering the Collateral
are to be made payable to Agent for the benefit of Agent and the Lenders, as their interests may
appear, in case of loss, pursuant to a standard loss payable endorsement with a standard non
contributory “lender” or “secured party” clause and are to contain such other provisions as Agent
may reasonably require to fully protect the Lenders’ interest in the Collateral and to any payments
to be made under such policies. All certificates of property and general liability insurance are
to be delivered to Agent, with the loss payable (but only in respect of Collateral) and additional
insured endorsements in favor of Agent and shall provide for not less than 30 days (10 days in the
case of non-payment) prior written notice to Agent of the exercise of any right of cancellation.
If Borrowers fail to maintain such insurance, Agent may arrange for such insurance, but at
Borrowers’ expense and without any responsibility on Agent’s part for obtaining the insurance, the
solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.
Borrowers shall give Agent prompt notice of any loss exceeding $1,000,000 covered by its casualty
or business interruption insurance. Upon the occurrence and during the continuance of an Event of
Default, Agent shall have the sole right to file claims under any property and general liability
insurance policies in respect of the Collateral, to receive, receipt and give acquittance for any
payments that may be payable thereunder, and to execute any and all endorsements, receipts,
releases, assignments, reassignments or other documents that may be necessary to effect the
collection, compromise or settlement of any claims under any such insurance policies.

5.7 Inspection. Permit Agent and each of its duly authorized
representatives or agents to visit any of its properties and inspect any of its assets or books and
records, to conduct appraisals and valuations, to examine and make copies of its books and records,
and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its
officers and employees at such reasonable times and intervals as Agent may designate and, so long
as no Default or Event of Default exists, with reasonable prior notice to Borrowers
provided, however, that so long as no Event of Default shall have occurred and be
continuing, the Borrowers shall not be obligated to reimburse Agent for (a) more than 4 audits or
field exams during any calendar year or (b) more than 2 appraisals of the Collateral during any
calendar year.

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

5.9 Environmental.

(a) Keep any property either owned or operated by Parent or its Subsidiaries free
of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the
obligations or liability evidenced by such Environmental Liens,

(b) comply, in all material respects, with Environmental Laws and provide to Agent
documentation of such compliance which Agent reasonably requests,

(c) promptly notify Agent of any release of which Parent has Knowledge of a
Hazardous Material in any reportable quantity from or onto property owned or operated by Parent or
its Subsidiaries and take any Remedial Actions required to abate said release or otherwise to come
into compliance, in all material respects, with applicable Environmental Law, and

(d) promptly, but in any event within 5 Business Days of its receipt thereof,
provide Agent with written notice of any of the following: (i) notice that an Environmental Lien
has been filed against any of the real or personal property of Parent or its Subsidiaries, (ii)
commencement of any Environmental Action or notice that an Environmental Action will be filed
against Parent or its Subsidiaries, and (iii) notice of a violation, citation, or other
administrative order under Environmental Laws which could reasonably be expected to result in a
Material Adverse Change.

5.10 Disclosure Updates. Promptly and in no event later than 5 Business
Days after obtaining Knowledge thereof, notify Agent if any written information, exhibit, or report
furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a
material fact or omitted to state any material fact necessary to make the statements contained
therein not misleading in light of the circumstances in which made. The foregoing to the contrary
notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the
effect of the prior untrue statement of a material fact or omission of any material fact nor shall
any such notification have the effect of amending or modifying this Agreement or any of the
Schedules hereto.

5.11 Formation of Subsidiaries; Yale as a Guarantor.

(a) At the time that any Loan Party forms any direct or indirect Subsidiary or acquires
any direct or indirect Subsidiary after the Closing Date other than an Immaterial Subsidiary, such
Loan Party shall (a) within 10 days of such formation or acquisition cause any such new Subsidiary
to provide to Agent a joinder to the Guaranty (or, at the election of Parent and so long as
Agent receives a field examination of such Subsidiary and appraisal of the assets of such
Subsidiary, in each case, in form and substance satisfactory to Agent, a joinder to this
Agreement) and the Security Agreement, together with such other security documents, as well as
appropriate financing statements, all in form and substance reasonably satisfactory to Agent
(including being sufficient to grant Agent a first priority Lien (subject to Permitted Liens) in
and to the assets (other than Real Property and Equipment) of such newly formed or acquired
Subsidiary); provided that the Guaranty, the Security Agreement, and such other security
documents shall not be required to be provided to Agent with respect to any Subsidiary of Parent
that is a CFC, (b) within 10 days of such formation or acquisition (or such later date as permitted
by Agent in its sole discretion) provide to Agent a pledge agreement and appropriate certificates
and powers or financing statements, hypothecating all of the direct or beneficial ownership
interest in such new Subsidiary reasonably satisfactory to Agent; provided that only 65% of
the total outstanding voting Stock of any first tier Subsidiary of any Loan Party that is a CFC and
none of the total outstanding voting Stock of any other Subsidiary of such CFC shall be required to
be pledged (which pledge, if reasonably requested by Agent, shall be governed by the laws of the
jurisdiction of such Subsidiary), and (c) within 10 days of such formation or acquisition (or such
later date as permitted by Agent in its sole discretion) provide to Agent all other documentation,
including one or more opinions of counsel reasonably satisfactory to Agent, which in its opinion is
appropriate with respect to the execution and delivery of the applicable documentation referred to
above. Any document, agreement, or instrument executed or issued pursuant to this Section
5.11 shall be a Loan Document.

(b) Within 10 Business Days following the date that the Indebtedness of Yale owing pursuant to
the Yale Loan Documents has been repaid in full, Parent agrees to cause Yale (a) to provide to
Agent a joinder to the Guaranty and the Security Agreement, as well as appropriate financing
statements, all in form and substance reasonably satisfactory to Agent (including being sufficient
to grant Agent a first priority Lien (subject to Permitted Liens) in and to the assets (other than
Real Property and Equipment) of Yale, and (b) to provide to Agent all other documentation,
including one or more opinions of counsel reasonably satisfactory to Agent, which in its opinion is
appropriate with respect to the execution and delivery of the applicable documentation referred to
above. Any document, agreement, or instrument executed or issued pursuant to this Section
5.11 shall be a Loan Document.

5.12 Further Assurances. At any time upon the reasonable request of Agent,
execute or deliver to Agent any and all financing statements, fixture filings, security agreements,
pledges, assignments, endorsements of certificates of title, mortgages, deeds of trust, opinions of
counsel, and all other documents (collectively, the “Additional Documents”) that Agent may
reasonably request in form and substance reasonably satisfactory to Agent, to create, perfect, and
continue perfected or to better perfect Agent’s Liens in all of the assets (other than Real
Property and Equipment) of Parent and its Subsidiaries (whether now owned or hereafter arising or
acquired, tangible or intangible, real or personal), and in order to fully consummate all of the
transactions contemplated hereby and under the other Loan Documents; provided that the
foregoing shall not apply to any Subsidiary of any Loan Party that is a CFC. To the maximum extent
permitted by applicable law, each of Borrowers authorize Agent to execute any such Additional
Documents in the applicable Loan Party’s or its Subsidiary’s name, as applicable, and authorizes
Agent to file such executed Additional Documents in any appropriate filing office. In furtherance
and not in limitation of the foregoing, each Loan Party shall take such actions as Agent may
reasonably request from time to time to ensure that the Obligations are guarantied by the
Guarantors and are secured by substantially all of the assets (other than Real Property and
Equipment) of Parent and its Subsidiaries and all of the outstanding capital Stock of Parent’s
Subsidiaries (subject to limitations contained in the Loan Documents with respect to CFCs).

5.13 Lender Meetings. Within 90 days after the close of each fiscal year
of Parent, at the request of Agent or of the Required Lenders and upon reasonable prior notice,
hold a meeting (at a mutually agreeable location and time or, at the option of Agent, by conference
call) with all Lenders who choose to attend such meeting at which meeting shall be reviewed the
financial results of the previous fiscal year and the financial condition of Parent and its
Subsidiaries and the projections presented for the current fiscal year of Parent.

5.14 Material Contracts. Contemporaneously with the delivery of each
Compliance Certificate pursuant hereto, provide Agent with copies of (a) each Material Contract
entered into since the delivery of the previous Compliance Certificate, and (b) each material
amendment or modification of any Material Contract entered into since the delivery of the previous
Compliance Certificate.

5.15 Location of Inventory and Equipment. Keep each Loan Parties’
Inventory and Equipment (other than vehicles and Equipment out for repair) only at the locations
identified on Schedule 4.30(a) or Schedule 4.30(b) and their chief executive
offices only at the locations identified on Schedule 4.6(b); provided,
however, that Borrowers may amend Schedule 4.30(a), Schedule 4.30(b) or
Schedule 4.6(b) so long as such amendment occurs by written notice to Agent not less than
10 days prior to the date on which such Inventory or Equipment is moved to such new location or
such chief executive office is relocated and so long as such new location is within the continental
United States, and so long as, at the time of such written notification, Borrowers provide Agent a
Collateral Access Agreement with respect thereto.

5.16 Assignable Material Contracts. Use commercially reasonable efforts
to ensure that any Material Contract entered into after the Closing Date by Parent or one of its
Subsidiaries that generates or, by its terms, will generate revenue, permits the assignment of such
agreement (and all rights of Parent or such Subsidiary, as applicable, thereunder) to Parent’s or
such Subsidiary’s lenders or an agent for any lenders (and any transferees of such lenders or such
agent, as applicable).

6. NEGATIVE COVENANTS.

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

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

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

6.3 Restrictions on Fundamental Changes.

(a) Other than in order to consummate a Permitted Acquisition, enter into any
merger, consolidation, reorganization, or recapitalization, or reclassify its Stock, except for (i)
any merger between Loan Parties, provided that a Borrower must be the surviving entity of
any such merger to which a Borrower is a party, (ii) any merger between Loan Parties and
Subsidiaries of Parent that are not Loan Parties so long as such Loan Party is the surviving entity
of any such merger, and (iii) any merger between Subsidiaries of Parent that are not Loan Parties,

(b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or
dissolution), except for (i) the liquidation or dissolution of non-operating Subsidiaries of Parent
with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party
(other than any Borrower) or any of its wholly-owned Subsidiaries so long as all of the assets
(including any interest in any Stock) of such liquidating or dissolving Loan Party or Subsidiary
are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or
dissolution of a Subsidiary of a Borrower that is not a Loan Party (other than any such Subsidiary
the Stock of which (or any portion thereof) is subject to a Lien in favor of Agent) so long as all
of the assets of such liquidating or dissolving Subsidiary are transferred to a Subsidiary of a
Borrower that is not liquidating or dissolving, or

(c) Suspend or go out of a substantial portion of its or their business, except as
permitted pursuant to clauses (a) or (b) above or in connection with the transactions permitted
pursuant to Section 6.4.

6.4 Disposal of Assets. Other than Permitted Dispositions, Permitted
Investments, or transactions permitted by Sections 6.3 and 6.11, convey, sell,
lease, license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey,
sell, lease, license, assign, transfer, or otherwise dispose of) any of Parent’s or its
Subsidiaries assets.

6.5 Change Name. Change Parent’s or any of its Subsidiaries’ name,
organizational identification number, state of organization or organizational identity;
provided, however, that Parent or any of its Subsidiaries may change their names
upon at least 10 days prior written notice to Agent of such change.

6.6 Nature of Business. Make any change in the nature of its or their
business as described in Schedule 6.6 or acquire any properties or assets that are not
reasonably related to the conduct of such business activities; provided that Parent and its
Subsidiaries may engage in any business that is reasonably related or ancillary to its or their
business.

6.7 Prepayments and Amendments.

(a) Except in connection with Refinancing Indebtedness permitted by Section
6.1,

(i) optionally prepay, redeem, defease, purchase, or otherwise acquire any
Indebtedness of Parent or its Subsidiaries, other than (A) the Obligations in accordance with this
Agreement, and (B) Permitted Intercompany Advances,

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

(b) Directly or indirectly, amend, modify, or change any of the terms or
provisions of

(i) any agreement, instrument, document, indenture, or other writing evidencing
or concerning Permitted Indebtedness, unless such amendment, modification, or change would satisfy
the restrictions set forth in the definition of Refinancing Indebtedness if, instead of being
amended, modified, or changed the subject Indebtedness was being refinanced, renewed, or extended
(without regard to whether such amendment, modification or change would actually constitute a
refinancing, renewal or extension of such Indebtedness),

(ii) any Material Contract except to the extent that such amendment, modification,
or change could not, individually or in the aggregate, reasonably be expected to be materially
adverse to the interests of the Lenders, or

(iii) the Governing Documents of any Loan Party or any of its Subsidiaries if the
effect thereof, either individually or in the aggregate, could reasonably be expected to be
materially adverse to the interests of the Lenders.

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

6.9 Restricted Junior Payments. Make any Restricted Junior Payment;
provided, however, that, so long as it is permitted by law,

(a) so long as (i) no Default or Event of Default has occurred and is continuing
or would result therefrom, (ii) the proposed redemption of Parent’s Stock is in full compliance
with applicable law (including the Delaware General Corporation Law and the California Corporations
Code, to the extent applicable) and the constituent documents of Parent, (iii) Excess Availability
plus Qualified Cash of Parent and its Subsidiaries before and immediately after giving effect to
the proposed redemption of Parent’s Stock is greater than $100,000,000, (iv) on a pro forma basis
after giving effect to any such proposed redemption, Excess Availability plus Qualified Cash of
Parent and its Subsidiaries is projected to be in excess of $100,000,000 at all times during the 12
month period ended one year after the proposed date of such proposed redemption, (v) Parent
was in compliance with the financial covenant (but only if such financial covenant was
required to be satisfied during such period as a result of the commencement or existence of a
Financial Covenant Period) set forth in Section 7.1 of the Agreement (calculated after
giving pro forma effect to any such proposed redemption as though such proposed redemption were
consummated on the last day of such period and calculated based upon Parent’s most recently ended
four fiscal quarter period for which internal financial statements are available) for the four
fiscal quarter period immediately preceding the date on which such proposed redemption is proposed
to be made, (vi) Borrowers shall have delivered to Agent updated projections and
calculations evidencing the satisfaction of the conditions precedent set forth in clauses (iii),
(iv), and (v) of this Section 6.9(a), in each case, in form and substance satisfactory to
Agent, and (vii) if the aggregate amount of redemptions made pursuant to this Section
6.9(a), together with the amount of dividends declared, paid, or made pursuant to Section
6.9(b), in each case, since the Closing Date, would exceed $50,000,000 after giving effect to
such proposed redemption, if requested or required by Agent in its discretion, Agent shall have
received an appraisal of Borrowers’ Inventory by an appraiser selected by Agent and conducted a
field exam with respect to Borrowers’ Accounts, in each case, within the ninety day period
immediately preceding the date of any such proposed redemption, Parent may make redemptions of its
Stock, and

(b) so long as (i) no Default or Event of Default has occurred and is continuing
or would result therefrom, (ii) the proposed declaration and payment of dividends on account of
Parent’s Stock is in full compliance with applicable law (including the Delaware General
Corporation Law and the California Corporations Code, to the extent applicable) and the constituent
documents of Parent, (iii) Excess Availability plus Qualified Cash of Parent and its Subsidiaries
both before and immediately after giving effect to the proposed declaration and payment of
dividends on account of Parent’s Stock is greater than $100,000,000, (iv) on a pro forma basis
after giving effect to any such proposed declaration or payment of dividends on account of Parent’s
Stock, Excess Availability plus Qualified Cash of Parent and its Subsidiaries is projected to be in
excess of $100,000,000 at all times during the 3 month period ended immediately after the proposed
date of such declaration or payment, (v) Parent’s pro forma Fixed Charge Coverage Ratio
(calculated after giving pro forma effect to any such proposed declaration or payment as though
such proposed declaration or payment were consummated on the last day of such period and calculated
based upon Parent’s most recently ended four fiscal quarter period for which internal financial
statements are available) for the four fiscal quarter period immediately preceding the date on
which such dividend is proposed to be made was not less than 1.10 to 1.00, (vi) on a pro
forma basis after giving effect to any such proposed declaration or payment, Parent is
projected to have a Fixed Charge Coverage Ratio (calculated after giving effect to any such
proposed declaration or payment and measured on a four fiscal quarter period basis) of not less
than 1.10 to 1.00 for each of the four fiscal quarters ended immediately after the proposed
date of such declaration or payment, (vii) Borrowers shall have delivered to Agent updated
projections and calculations evidencing the satisfaction of the conditions precedent set forth in
clauses (iii), (iv), (v), and (vi) of this Section 6.9(b), in each case, in form and
substance satisfactory to Agent, and (viii) if the aggregate amount of dividends declared, paid, or
made pursuant to this Section 6.9(b), together with the amount of redemptions of Stock of
Parent made pursuant to Section 6.9(a), in each case, since the Closing Date, would exceed
$50,000,000 after giving effect to such proposed declaration or payment, if requested or required
by Agent in its discretion, Agent shall have received an appraisal of Borrowers’ Inventory by an
appraiser selected by Agent and conducted a field exam with respect to Borrowers’ Accounts, in each
case, within the ninety day period immediately preceding the date of any such declaration or
payment, Parent may declare and pay dividends on account of Parent’s Stock in an aggregate amount
not to exceed $10,000,000 during any fiscal year.

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

6.11 Investments. Except for Permitted Investments, directly or
indirectly, make or acquire any Investment or incur any liabilities (including contingent
obligations) for or in connection with any Investment; provided, however, that
(other than (a) an aggregate amount of not more than $250,000 at any one time, in the case of
Parent and its Subsidiaries (other than those Subsidiaries that are CFCs), and (b) amounts
deposited into Deposit Accounts specially and exclusively used for payroll, payroll taxes and other
employee wage and benefit payments to or for Parent’s or its Subsidiaries’ employees, Parent and
its Domestic Subsidiaries shall not have Permitted Investments consisting of cash, Cash
Equivalents, or amounts credited to Deposit Accounts or Securities Accounts unless Parent or its
Domestic Subsidiary, as applicable, and the applicable bank or securities intermediary have entered
into Control Agreements with Agent governing such Permitted Investments in order to perfect (and
further establish) Agent’s Liens in such Permitted Investments. Subject to the foregoing proviso,
Parent shall not and shall not permit its Domestic Subsidiaries to establish or maintain any
Deposit Account or Securities Account unless Agent shall have received a Control Agreement in
respect of such Deposit Account or Securities Account.

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

(a) transactions described on Schedule 6.12,

(b) transactions between or among any Loan Parties,

(c) transactions (other than the payment of management, consulting, monitoring, or
advisory fees) between Parent or its Subsidiaries, on the one hand, and any Affiliate of Parent or
its Subsidiaries, on the other hand, so long as such transactions (i) are fully disclosed to Agent
prior to the consummation thereof, if they involve one or more payments by Parent or its
Subsidiaries in excess of $1,000,000 for any single transaction or series of related transactions,
and (ii) are no less favorable, taken as a whole, to Parent or its Subsidiaries, as applicable,
than would be obtained in an arm’s length transaction with a non-Affiliate,

(d) so long as it has been approved by Parent’s Board of Directors or a
Subsidiary’s board of directors, as applicable, in accordance with applicable law, any indemnity
provided for the benefit of directors and officers of Parent or any Subsidiaries, as applicable,

(e) so long as it has been approved by Parent’s Board of Directors, the payment of
reasonable fees, compensation, or employee benefit arrangements to employees, officers, and outside
directors of Parent in the ordinary course of business and in accordance with past practices, and

(f) transactions permitted by Section 6.3 or Section 6.9, any
Permitted Intercompany Advance or Permitted Indebtedness (solely to the extent it consist of a
Permitted Intercompany Advance).

6.13 Use of Proceeds. Use the proceeds of the Advances for any purpose
other than (a) on the Closing Date, (i) to repay, in full, the outstanding principal, accrued
interest, and accrued fees and expenses owing under or in connection with the Existing Credit
Facility, and (ii) to pay transactional fees, costs, and expenses incurred in connection with this
Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and (b)
thereafter, to finance the ongoing general corporate needs of Borrowers and consummate any
transaction permitted by Section 6.9.

6.14 Inventory and Equipment with Bailees. Except as described on
Schedule 4.30(a), store the Inventory or Equipment of Parent or its Subsidiaries at any
time now or hereafter with a bailee, warehouseman, or similar party.

7. FINANCIAL COVENANT.

7.1 Fixed Charge Coverage Ratio. Each Borrower covenants and agrees that,
until termination of all of the Commitments and payment in full of the Obligations, Parent will
have a Fixed Charge Coverage Ratio, measured on a four fiscal quarter basis, (a) as of the
end of the fiscal quarter ended immediately preceding the date on which any Financial Covenant
Period commences, (b) as of the end of each fiscal quarter ended during such Financial Covenant
Period, and (c) as of the end of each fiscal quarter during which any Financial Covenant Period was
in effect, in each case, of at least 1.1:1.0.

8. EVENTS OF DEFAULT.

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

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

8.2 If any Loan Party or any of its Subsidiaries:

(a) fails to perform or observe any covenant or other agreement contained in any
of (i) Sections 3.6, 5.1, 5.2 (other than with respect to any of clauses
(a) through (r) of Schedule 5.2), 5.3 (solely if any Borrower is not in good
standing in its jurisdiction of organization), 5.6, 5.7 (solely if Borrowers refuse
to allow Agent or its representatives or agents to visit Borrowers’ properties, inspect its assets
or books or records, examine and make copies of its books and records, or discuss Borrowers’
affairs, finances, and accounts with officers and employees of Borrowers), 5.10,
5.11, or 5.14 of this Agreement, (ii) Sections 6.1 through 6.16 of
this Agreement, (iii) Section 7 of this Agreement, or (iv) Section 6 of the Security Agreement;

(b) fails to perform or observe any covenant or other agreement contained in
Section 5.2 (solely with respect to any of clauses (a) through (r) of Schedule 5.2)
of this Agreement and such failure continues for a period of 5 days;

(c) fails to perform or observe any covenant or other agreement contained in any
of Sections 5.3 (other than if any Borrower is not in good standing in its jurisdiction of
organization), 5.5, 5.8, and 5.15 of this Agreement and such failure
continues for a period of 10 days after the earlier of (i) the date on which Parent shall first
have Knowledge of any such failure or (ii) the date on which written notice thereof is given to
Borrowers by Agent; or

(d) fails to perform or observe any covenant or other agreement contained in this
Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or
agreement that is the subject of another provision of this Section 8 (in which event such
other provision of this Section 8 shall govern), and such failure continues for a period of
30 days after the earlier of (i) the date on which Parent shall first have Knowledge of any such
failure or (ii) the date on which written notice thereof is given to Borrowers by Agent;

8.3 If one or more judgments, orders, or awards for the payment of money involving
an aggregate amount of $5,000,000, or more (except to the extent fully covered by insurance) is
entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any of their
respective assets, and either (a) there is a period of 30 consecutive days at any time after the
entry of any such judgment, order, or award during which (i) the same is not discharged or
satisfied, or (ii) a stay of enforcement thereof is not in effect, or (b) enforcement proceedings
are commenced upon such judgment, order, or award;

8.4 If an Insolvency Proceeding is commenced by a Loan Party or any of its
Subsidiaries;

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

8.6 If the Loan Parties and their Subsidiaries, taken as a whole, are (a)
enjoined, restrained, or in any way prevented by court order from continuing to conduct all or
substantially all of their business affairs, or (b) are enjoined, restrained, or in any way
prevented by court order from conducting the business of designing, manufacturing, distributing or
selling footwear under the Skechers brand name;

8.7 If there is a default in one or more agreements to which a Loan Party or any
of its Subsidiaries is a party with one or more third Persons relative to a Loan Party’s or any of
its Subsidiaries’ Indebtedness involving an aggregate amount of $5,000,000 or more, and such
default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right
by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan
Party’s or its Subsidiary’s obligations thereunder;

8.8 If any warranty, representation, statement, or Record made herein or in any
other Loan Document or delivered in writing to Agent or any Lender in connection with this
Agreement or any other Loan Document proves to be untrue in any material respect (except that such
materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof) as of the date of issuance or making
or deemed making thereof;

8.9 If the obligation of any Guarantor under the Guaranty is limited or terminated
by operation of law or by such Guarantor;

8.10 If the Security Agreement or any other Loan Document that purports to create
a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the
extent permitted by the terms hereof or thereof, first priority Lien on the Collateral covered
thereby, except (a) as a result of a disposition of the applicable Collateral in a transaction
permitted under this Agreement or (b) as the result of an action or failure to act on the part of
Agent; or

8.11 The validity or enforceability of any Loan Document (other than any Bank
Product Agreement) shall at any time for any reason (other than solely as the result of an action
or failure to act on the part of Agent) be declared to be null and void (other than any provision
of any Loan Document that if declared to be null and void would not (a) if such Loan Document is a
Security Agreement or other Loan Document pursuant to which Agent is granted a Lien, interfere with
the practical realization of the Liens afforded thereby or (b) result in the failure of any member
of the Lender Group or any Bank Product Provider to derive the principal benefits of such Loan
Document), or a proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any
Governmental Authority having jurisdiction over a Loan Party or its Subsidiaries, seeking to
establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall
deny that such Loan Party or its Subsidiaries has any liability or obligation purported to be
created under any Loan Document.

9. RIGHTS AND REMEDIES.

9.1 Rights and Remedies. Upon the occurrence and during the continuation
of an Event of Default, Agent may, and, at the instruction of the Required Lenders, shall, in each
case by written notice to Borrowers and in addition to any other rights or remedies provided for
hereunder or under any other Loan Document or by applicable law, do any one or more of the
following on behalf of the Lender Group:

(a) declare the Obligations, whether evidenced by this Agreement or by any of the
other Loan Documents immediately due and payable, whereupon the same shall become and be
immediately due and payable, without presentment, demand, protest, or further notice or other
requirements of any kind, all of which are hereby expressly waived by Borrowers; and

(b) declare the Commitments terminated, whereupon the Commitments shall
immediately be terminated together with any obligation of any Lender hereunder to make Advances and
the obligation of any Issuing Lender to issue Letters of Credit.

The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default
described in Section 8.4 or Section 8.5, in addition to the remedies set forth
above, without any notice to Borrowers or any other Person or any act by the Lender Group, the
Commitments shall automatically terminate and the Obligations then outstanding, together with all
accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and
the other Loan Documents, shall automatically and immediately become due and payable, without
presentment, demand, protest, or notice of any kind, all of which are expressly waived by each
Borrower.

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

10. WAIVERS; INDEMNIFICATION.

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

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

10.3 Indemnification. Borrowers shall pay, indemnify, defend, and hold
the Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an
“Indemnified Person”) harmless (to the fullest extent permitted by law) from and against
any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines,
costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or
consultants and all other costs and expenses actually incurred in connection therewith or in
connection with the enforcement of this indemnification (as and when they are incurred and
irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred
by any of them (a) in connection with or as a result of or related to the execution and delivery
(provided that Borrowers shall not be liable for costs and expenses (including attorneys fees) of
any Lender (other than WFF) incurred in advising, structuring, drafting, reviewing, administering
or syndicating the Loan Documents), enforcement, performance, or administration (including any
restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents,
or the transactions contemplated hereby or thereby or the monitoring of Parent’s and its
Subsidiaries’ compliance with the terms of the Loan Documents (other than disputes solely between
the Lenders), (b) with respect to any investigation, litigation, or proceeding related to this
Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder
(irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event,
or circumstance in any manner related thereto, and (c) in connection with or arising out of any
presence or release of Hazardous Materials at, on, under, to or from any assets or properties
owned, leased or operated by any Borrower or any of its Subsidiaries or any Environmental Actions,
Environmental Liabilities or Remedial Actions related in any way to any such assets or properties
of any Borrower or any of its Subsidiaries (each and all of the foregoing, the “Indemnified
Liabilities”). The foregoing to the contrary notwithstanding, Borrowers shall have no
obligation to any Indemnified Person under this Section 10.3 with respect to any
Indemnified Liability that a court of competent jurisdiction finally determines to have resulted
from the gross negligence or willful misconduct of such Indemnified Person or its officers,
directors, employees, attorneys, or agents. This provision shall survive the termination of this
Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any
other Indemnified Person with respect to an Indemnified Liability as to which Borrowers were
required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making
such payment is entitled to be indemnified and reimbursed by Borrowers with respect thereto.
WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO
INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT
OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.

11. NOTICES.

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

	 	 	 
	If to Administrative	 	SKECHERS U.S.A., INC.
	Borrower or any other

Borrower:
	 	

	 	 	228 Manhattan Beach Blvd.

	 	 	Manhattan Beach, CA 90266

	 	 	Attn: Philip Paccione

	 	 	Fax No.: 310-406-0160

	with copies to:
	 	IRELL & MANELLA

	 	 	1880 Avenue of the Stars, Suite 900

	 	 	Los Angeles, CA 90067

	 	 	Attn: Ede Ibekwe, Esq.

	 	 	Fax No.: (310) 556-5350

	If to Agent:
	 	WELLS FARGO FOOTHILL, LLC

	 	 	2450 Colorado Avenue

	 	 	Suite 3000 West

	 	 	Santa Monica, California 90404

	 	 	Attn: Business Finance Division Manager

Fax No.: 310-453-7413

	with copies to:
	 	PAUL, HASTINGS, JANOFSKY & WALKER LLP

	 	 	515 S. Flower Street

	 	 	Twenty-fifth Floor

	 	 	Los Angeles, CA 90071

	 	 	Attn: John Francis Hilson, Esq.

	 	 	Fax No.: 213-996-6300

Any party hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other party. All notices or demands sent in
accordance with this Section 11, shall be deemed received on the earlier of the date of
actual receipt or 3 Business Days after the deposit thereof in the mail; provided, that (a)
notices sent by overnight courier service shall be deemed to have been given when received, (b)
notices by facsimile shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient) and (c) notices by electronic mail shall be
deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as
by the “return receipt requested” function, as available, return email or other written
acknowledgment).

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

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

(b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF
NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
EACH BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS
OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION
12(b).

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

13. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.

13.1 Assignments and Participations.

(a) With the prior written consent of Administrative Borrower, which consent of
Administrative Borrower shall not be unreasonably withheld, delayed or conditioned, and shall not
be required (1) if an Event of Default has occurred and is continuing, and (2) in connection with
an assignment to a Person that is a Lender or an Affiliate (other than individuals) of a Lender and
with the prior written consent of Agent, which consent of Agent shall not be unreasonably withheld,
delayed or conditioned, and shall not be required in connection with an assignment to a Person that
is a Lender or an Affiliate (other than individuals) of a Lender, any Lender may assign and
delegate to one or more assignees (each, an “Assignee”; provided, however,
that no Loan Party, Affiliate of a Loan Party, Equity Sponsor, or Affiliate of Equity Sponsor shall
be permitted to become an Assignee) all or any portion of the Obligations, the Commitments and the
other rights and obligations of such Lender hereunder and under the other Loan Documents, in a
minimum amount (unless waived by Agent) of $10,000,000 (except such minimum amount shall not apply
to (x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any Lender
or (y) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of
such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is
at least $10,000,000); provided, however, that Borrowers and Agent may continue to
deal solely and directly with such Lender in connection with the interest so assigned to an
Assignee until (i) written notice of such assignment, together with payment instructions,
addresses, and related information with respect to the Assignee, have been given to Borrowers and
Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have delivered to
Administrative Borrower and Agent an Assignment and Acceptance and Agent has notified the assigning
Lender of its receipt thereof in accordance with Section 13.1(b), and (iii) unless waived
by Agent, the assigning Lender or Assignee has paid to Agent for Agent’s separate account a
processing fee in the amount of $3,500.

(b) From and after the date that Agent notifies the assigning Lender (with a copy
to Administrative Borrower) that it has received an executed Assignment and Acceptance and, if
applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan
Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder
and under the other Loan Documents have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights (except with respect to Section 10.3) and be released
from any future obligations under this Agreement (and in the case of an Assignment and Acceptance
covering all or the remaining portion of an assigning Lender’s rights and obligations under this
Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto);
provided, however, that nothing contained herein shall release any assigning Lender
from obligations that survive the termination of this Agreement, including such assigning Lender’s
obligations under Section 15 and Section 17.9(a).

(c) By executing and delivering an Assignment and Acceptance, the assigning Lender
thereunder and the Assignee thereunder confirm to and agree with each other and the other parties
hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
Borrowers or the performance or observance by Borrowers of any of its obligations under this
Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that
it has received a copy of this Agreement, together with such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into such Assignment
and Acceptance, (iv) such Assignee will, independently and without reliance upon Agent, such
assigning Lender or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to
exercise such powers under this Agreement and the other Loan Documents as are delegated to Agent,
by the terms hereof and thereof, together with such powers as are reasonably incidental thereto,
and (vi) such Assignee agrees that it will perform all of the obligations which by the terms of
this Agreement are required to be performed by it as a Lender.

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

(e) Any Lender may at any time sell to one or more commercial banks, financial
institutions, or other Persons (a “Participant”) participating interests in all or any
portion of its Obligations, its Commitment, and the other rights and interests of that Lender (the
“Originating Lender”) hereunder and under the other Loan Documents; provided,
however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this
Agreement and the other Loan Documents and the Participant receiving the participating interest in
the Obligations, the Commitments, and the other rights and interests of the Originating Lender
hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the
Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the Originating
Lender shall remain solely responsible for the performance of such obligations, (iii) Borrowers,
Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender in
connection with the Originating Lender’s rights and obligations under this Agreement and the other
Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the
Participant has the right to approve any amendment to, or any consent or waiver with respect to,
this Agreement or any other Loan Document, except to the extent such amendment to, or consent or
waiver with respect to this Agreement or of any other Loan Document would (A) extend the final
maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce
the interest rate applicable to the Obligations hereunder in which such Participant is
participating, (C) release all or substantially all of the Collateral or guaranties (except to the
extent expressly provided herein or in any of the Loan Documents) supporting the Obligations
hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the
amount of, the interest or fees payable to such Participant through such Lender, or (E) change the
amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all
amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold such
participation, except that, if amounts outstanding under this Agreement are due and unpaid, or
shall have been declared or shall have become due and payable upon the occurrence of an Event of
Default, each Participant shall be deemed to have the right of set off in respect of its
participating interest in amounts owing under this Agreement to the same extent as if the amount of
its participating interest were owing directly to it as a Lender under this Agreement. The rights
of any Participant only shall be derivative through the Originating Lender with whom such
Participant participates and no Participant shall have any rights under this Agreement or the other
Loan Documents or any direct rights as to the other Lenders, Agent, Borrowers, the Collections of
any Borrower or its Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No
Participant shall have the right to participate directly in the making of decisions by the Lenders
among themselves.

(f) In connection with any such assignment or participation or proposed assignment
or participation or any grant of a security interest in, or pledge of, its rights under and
interest in this Agreement, a Lender may, subject to the provisions of Section 17.9,
disclose all documents and information which it now or hereafter may have relating to Parent and
its Subsidiaries and their respective businesses.

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

(h) Agent (as a non-fiduciary agent on behalf of Borrowers) shall maintain, or
cause to be maintained, a register (the “Register”) on which it enters the name and address
of each Lender as the registered owner of the Advances (and the principal amount thereof and stated
interest thereon) held by such Lender (each, a “Registered Loan”). Other than in
connection with an assignment by a Lender of all or any portion of its portion of the Advances to
an Affiliate of such Lender or a Related Fund of such Lender (i) a Registered Loan (and the
registered note, if any, evidencing the same) may be assigned or sold in whole or in part only by
registration of such assignment or sale on the Register (and each registered note shall expressly
so provide) and (ii) any assignment or sale of all or part of such Registered Loan (and the
registered note, if any, evidencing the same) may be effected only by registration of such
assignment or sale on the Register, together with the surrender of the registered note, if any,
evidencing the same duly endorsed by (or accompanied by a written instrument of assignment or sale
duly executed by) the holder of such registered note, whereupon, at the request of the designated
assignee(s) or transferee(s), one or more new registered notes in the same aggregate principal
amount shall be issued to the designated assignee(s) or transferee(s). Prior to the registration
of assignment or sale of any Registered Loan (and the registered note, if any evidencing the same),
Borrowers shall treat the Person in whose name such Registered Loan (and the registered note, if
any, evidencing the same) is registered as the owner thereof for the purpose of receiving all
payments thereon and for all other purposes, notwithstanding notice to the contrary. In the case
of any assignment by a Lender of all or any portion of the Advances to an Affiliate of such Lender
or a Related Fund of such Lender, and which assignment is not recorded in the Register, the
assigning Lender, on behalf of Borrowers, shall maintain a register comparable to the Register.

(i) In the event that a Lender sells participations in the Registered Loan, such
Lender, as a non-fiduciary agent on behalf of Borrowers, shall maintain a register on which it
enters the name of all participants in the Registered Loans held by it (the “Participant
Register”). A Registered Loan (and the Registered Note, if any, evidencing the same) may be
participated in whole or in part only by registration of such participation on the Participant
Register (and each registered note shall expressly so provide). Any participation of such
Registered Loan (and the registered note, if any, evidencing the same) may be effected only by the
registration of such participation on the Participant Register.

(j) Agent shall make a copy of the Register (and each Lender shall make a copy of
its Participant Register in the extent it has one) available for review by Borrowers from time to
time as Borrowers may reasonably request.

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

14. AMENDMENTS; WAIVERS.

14.1 Amendments and Waivers.

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

(i) increase the amount of or extend the expiration date of any Commitment of any
Lender,

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

(iii) reduce the principal of, or the rate of interest on, any loan or other
extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any
other Loan Document (except (y) in connection with the waiver of applicability of Section
2.6(c) (which waiver shall be effective with the written consent of the Required Lenders), and
(z) that any amendment or modification of defined terms used in the financial covenant in this
Agreement shall not constitute a reduction in the rate of interest or a reduction of fees for
purposes of this clause (iii)),

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

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

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

(vii) except as provided in the last sentence of Section 15.11(a),
contractually subordinate any of Agent’s Liens,

(viii) other than in connection with a merger, liquidation, dissolution or sale of
such Person expressly permitted by the terms hereof or the other Loan Documents, release any
Borrower or any Guarantor from any obligation for the payment of money or consent to the assignment
or transfer by any Borrower or any Guarantor of any of its rights or duties under this Agreement or
the other Loan Documents,

(ix) amend any of the provisions of Section 2.3(d), Section
2.4(b)(i) or (ii), or Section 2.4(e) or (f),

(x) amend Section 13.1(a) to permit a Loan Party, an Affiliate of a Loan
Party, Equity Sponsor, or an Affiliate of Equity Sponsor to be permitted to become an Assignee, or

(xi) change the definition of Borrowing Base or any of the defined terms
(including the definitions of Dilution Reserve, Eligible Accounts, Eligible In-Transit Inventory,
Eligible Landed Inventory, Net Liquidation Percentage, and Seasonal Inventory Limitation) that are
used in such definition to the extent that any such change results in more credit being made
available to Borrowers based upon the Borrowing Base, but not otherwise, or the definition of
Maximum Revolver Amount, or change Section 2.1(c).

(b) No amendment, waiver, modification, or consent shall amend, modify, or waive
(i) the definition of, or any of the terms or provisions of, the Fee Letter, without the written
consent of Agent and Borrowers (and shall not require the written consent of any of the Lenders),
and (ii) any provision of Section 15 pertaining to Agent, or any other rights or duties of Agent
under this Agreement or the other Loan Documents, without the written consent of Agent, Borrowers,
and the Required Lenders,

(c) No amendment, waiver, modification, or consent shall amend, modify, or waive
any provision of this Agreement or the other Loan Documents pertaining to any Issuing Lender, or
any other rights or duties of Issuing Lender under this Agreement or the other Loan Documents,
without the written consent of such Issuing Lender, Agent, Borrowers, and the Required Lenders,

(d) No amendment, waiver, modification, or consent shall amend, modify, or waive
any provision of this Agreement or the other Loan Documents pertaining to Swing Lender, or any
other rights or duties of Swing Lender under this Agreement or the other Loan Documents, without
the written consent of Swing Lender, Agent, Borrowers, and the Required Lenders,

(e) Anything in this Section 14.1 to the contrary notwithstanding, any amendment,
modification, waiver, consent, termination, or release of, or with respect to, any provision of
this Agreement or any other Loan Document that relates only to the relationship of the Lender Group
among themselves, and that does not affect the rights or obligations of Parent and its
Subsidiaries, shall not require consent by or the agreement of any Borrower.

(f) Anything in this Section 14.1 to the contrary notwithstanding, Agent and the
Borrowers may (without the consent of any Lender) amend or supplement this Agreement to cure any
ambiguity, defect or inconsistency or to make a modification of a minor, consistency or technical
nature or to correct a manifest error.

14.2 Replacement of Certain Lenders.

(a) If (i) any action to be taken by the Lender Group or Agent hereunder requires
the unanimous consent, authorization, or agreement of all Lenders and if such action has received
the consent, authorization, or agreement of the Required Lenders but not all of the Lenders or (ii)
any Lender makes a claim for compensation under Section 16, then Borrowers or Agent, upon
at least 5 Business Days prior irrevocable notice, may permanently replace any Lender (a
“Holdout Lender”) that failed to give its consent, authorization, or agreement or made a
claim for compensation (a “Tax Lender”) with one or more Replacement Lenders, and the
Holdout Lender or Tax Lender, as applicable, shall have no right to refuse to be replaced
hereunder. Such notice to replace the Holdout Lender or Tax Lender, as applicable, shall specify
an effective date for such replacement, which date shall not be later than 15 Business Days after
the date such notice is given.

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

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

15. AGENT; THE LENDER GROUP.

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

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

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

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

15.5 Notice of Default or Event of Default. Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default, except with respect
to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent
for the account of the Lenders and, except with respect to Events of Default of which Agent has
actual knowledge, unless Agent shall have received written notice from a Lender or Borrowers
referring to this Agreement, describing such Default or Event of Default, and stating that such
notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such
notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains
actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and
Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to
its Participants, if any. Subject to Section 15.4, Agent shall take such action with
respect to such Default or Event of Default as may be requested by the Required Lenders in
accordance with Section 9; provided, however, that unless and until Agent
has received any such request, Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable.

15.6 Credit Decision. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no act by Agent
hereinafter taken, including any review of the affairs of Parent and its Subsidiaries or
Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related
Person to any Lender. Each Lender represents to Agent that it has, independently and without
reliance upon any Agent-Related Person and based on such due diligence, documents and information
as it has deemed appropriate, made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition and creditworthiness of Borrowers or
any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the
transactions contemplated hereby, and made its own decision to enter into this Agreement and to
extend credit to Borrowers. Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrowers or any other Person party
to a Loan Document. Except for notices, reports, and other documents expressly herein required to
be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of Borrowers or any other Person party
to a Loan Document that may come into the possession of any of the Agent-Related Persons. Each
Lender acknowledges that Agent does not have any duty or responsibility, either initially or on a
continuing basis (except to the extent, if any, that is expressly specified herein) to provide such
Lender with any credit or other information with respect to Borrowers, its Affiliates or any of
their respective business, legal, financial or other affairs, and irrespective of whether such
information came into Agent’s or its Affiliates’ or representatives’ possession before or after the
date on which such Lender became a party to this Agreement.

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

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

15.9 Successor Agent. Agent may resign as Agent upon 30 days prior
written notice to the Lenders (unless such notice is waived by the Required Lenders) and Borrowers
(unless such notice is waived by Borrowers). If Agent resigns under this Agreement, the Required
Lenders shall be entitled to, with (so long as no Event of Default has occurred and is continuing)
the consent of Borrowers (such consent not to be unreasonably withheld, delayed, or conditioned),
appoint a successor Agent for the Lenders. If, at the time that Agent’s resignation is effective,
it is acting as an Issuing Lender or the Swing Lender, such resignation shall also operate to
effectuate its resignation as an Issuing Lender or the Swing Lender, as applicable, and it shall
automatically be relieved of any further obligation to issue Letters of Credit or make Swing Loans.
If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent
may appoint, after consulting with the Lenders and Borrowers, a successor Agent. If Agent has
materially breached or failed to perform any material provision of this Agreement or of applicable
law, the Required Lenders may agree in writing to remove and replace Agent with a successor Agent
from among the Lenders with (so long as no Event of Default has occurred and is continuing) the
consent of Borrowers (such consent not to be unreasonably withheld, delayed, or conditioned). In
any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor
Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term
“Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as
Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the
provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted
appointment as Agent by the date which is 30 days following a retiring Agent’s notice of
resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders
appoint a successor Agent as provided for above.

15.10 Lender in Individual Capacity; Joint Lead Arrangers.

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

(b) WFF and BOAS, in their respective capacities as “joint lead arrangers” shall not have any
right, power, obligation, liability, responsibility or duty under this Agreement other than, with
respect to WFF only, those applicable to WFF in its capacities as a Lender, Agent, Swing Lender, or
an Issuing Lender. Without limiting the foregoing, WFF and BOAS, in their respective capacities as
“joint lead arrangers” shall not have or be deemed to have any fiduciary relationship with any Loan
Party or with any Lender. BOA, in its capacity as “syndication agent” shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement other than those
applicable to it in its capacity as a Lender or as an Issuing Lender. Without limiting the
foregoing, BOA, in its capacity as “syndication agent” shall not have or be deemed to have any
fiduciary relationship with any Loan Party or with any Lender. Each Lender acknowledges that it
has not relied upon, and will not rely upon, WFF, BOAS, or BOA in deciding to enter into this
Agreement or in taking or not taking action hereunder.

15.11 Collateral Matters.

(a) The Lenders hereby irrevocably authorize Agent to release any Lien on any
Collateral or otherwise consent to the disposition thereof free of the Lien created by the Loan
Documents (i) upon the termination of the Commitments and payment and satisfaction in full by
Borrowers of all Obligations, (ii) constituting property being sold or disposed of if a release is
required or desirable in connection therewith and if Borrowers certify to Agent that the sale or
disposition is permitted under Section 6.4 or the other Loan Documents (and Agent may rely
conclusively on any such certificate, without further inquiry), (iii) constituting property in
which Parent or its Subsidiaries owned no interest at the time Agent’s Lien was granted nor at any
time thereafter, or (iv) constituting property leased to Parent or its Subsidiaries under a lease
that has expired or is terminated in a transaction permitted under this Agreement. The Lenders
hereby irrevocably authorize 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 by Agent under the provisions of the
Code, including pursuant to Sections 9-610 or 9-620 of the Code, any sale thereof conducted
under the provisions of the Bankruptcy Code, including Section 363 of the Bankruptcy Code, or at
any other sale or foreclosure conducted by Agent (whether by judicial action or otherwise) in
accordance with applicable law. Except as provided above, Agent will not execute and deliver
a release of any Lien on any Collateral without the prior written authorization of (y) if the
release is of Collateral having an aggregate book value in excess of $75,000,000 during any
calendar year, all of the Lenders, or (z) otherwise, the Required Lenders; provided,
however, that nothing in  clause (y) of  this sentence shall  be deemed to restrict or
limit the  enforcement  rights or remedies of Agent with respect to the Collateral under this
Agreement or any other Loan Document that arise as a result of an Event of Default. Upon
request by Agent or Borrowers at any time, the Lenders will confirm in writing Agent’s authority to
release any such Liens on particular types or items of Collateral pursuant to this Section
15.11; provided, however, that (1) Agent shall not be required to execute any
document necessary to evidence such release on terms that, in Agent’s opinion, would expose Agent
to liability or create any obligation or entail any consequence other than the release of such Lien
without recourse, representation, or warranty, and (2) such release shall not in any manner
discharge, affect, or impair the Obligations or any Liens (other than those expressly being
released) upon (or obligations of Borrowers in respect of) all interests retained by Borrowers,
including, the proceeds of any sale, all of which shall continue to constitute part of the
Collateral. The Lenders further hereby irrevocably authorize Agent to subordinate any Lien granted
to or held by Agent under any Loan Document to the holder of any Permitted Lien on such property if
such Permitted Lien secures Permitted Purchase Money Indebtedness.

(b) Agent shall have no obligation whatsoever to any of the Lenders to assure that
the Collateral exists or is owned by Parent or its Subsidiaries or is cared for, protected, or
insured or has been encumbered, or that Agent’s Liens have been properly or sufficiently or
lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or
to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity,
or to continue exercising, any of the rights, authorities and powers granted or available to Agent
pursuant to any of the Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission, or event related thereto, subject to the terms and conditions
contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given
Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Agent shall
have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as
otherwise provided herein.

15.12 Restrictions on Actions by Lenders; Sharing of Payments.

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

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

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

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

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

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

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

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

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

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

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

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

15.17 Several Obligations; No Liability. Notwithstanding that certain of
the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent
in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part
of Agent (if any) to make any credit available hereunder shall constitute the several (and not
joint) obligations of the respective Lenders on a ratable basis, according to their respective
Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time
outstanding, the amount of their respective Commitments. Nothing contained herein shall confer
upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the
business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely
responsible for notifying its Participants of any matters relating to the Loan Documents to the
extent any such notice may be required, and no Lender shall have any obligation, duty, or liability
to any Participant of any other Lender. Except as provided in Section 15.7, no member of
the Lender Group shall have any liability for the acts of any other member of the Lender Group. No
Lender shall be responsible to Borrowers or any other Person for any failure by any other Lender to
fulfill its obligations to make credit available hereunder, nor to advance for it or on its behalf
in connection with its Commitment, nor to take any other action on its behalf hereunder or in
connection with the financing contemplated herein.

16. WITHHOLDING TAXES.

(a) All payments made by Borrowers hereunder or under any note or other Loan
Document will be made without setoff, counterclaim, or other defense. In addition, all such
payments will be made free and clear of, and without deduction or withholding for, any present or
future Taxes, and in the event any deduction or withholding of Taxes is required, Borrowers shall
comply with the next sentence of this Section 16(a). If any Taxes are so levied or
imposed, Borrowers agree to pay the full amount of such Taxes and such additional amounts as may be
necessary so that every payment of all amounts due under this Agreement, any note, or Loan
Document, including any amount paid pursuant to this Section 16(a) after withholding or
deduction for or on account of any Taxes, will not be less than the amount provided for herein;
provided, however, that Borrowers shall not be required to increase any such amounts if the
increase in such amount payable results from Agent’s or such Lender’s own willful misconduct or
gross negligence (as finally determined by a court of competent jurisdiction). Borrowers will
furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to
applicable law, certified copies of tax receipts evidencing such payment by Borrowers.

(b) Borrowers agree to pay any present or future stamp, value added or documentary
taxes or any other excise or property taxes, charges, or similar levies that arise from any payment
made hereunder or from the execution, delivery, performance, recordation, or filing of, or
otherwise with respect to this Agreement or any other Loan Document, if any.

(c) If a Lender or Participant is entitled to claim an exemption or reduction from
United States withholding tax, such Lender or Participant agrees with and in favor of Agent, to
deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only)
one of the following before receiving its first payment under this Agreement:

(i) if such Lender or Participant is entitled to claim an exemption from United
States withholding tax pursuant to the portfolio interest exception, (A) a statement of the Lender
or Participant, signed under penalty of perjury, that it is not a (I) a “bank” as described in
Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of any Borrower (within the meaning of
Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign corporation related to any Borrower
within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS
Form W-8BEN or Form W-8IMY (with proper attachments);

(ii) if such Lender or Participant is entitled to claim an exemption from, or a
reduction of, withholding tax under a United States tax treaty, a properly completed and executed
copy of IRS Form W-8BEN;

(iii) if such Lender or Participant is entitled to claim that interest paid under
this Agreement is exempt from United States withholding tax because it is effectively connected
with a United States trade or business of such Lender, a properly completed and executed copy of
IRS Form W-8ECI;

(iv) if such Lender or Participant is entitled to claim that interest paid under
this Agreement is exempt from United States withholding tax because such Lender or Participant
serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (with proper
attachments); or

(v) a properly completed and executed copy of any other form or forms, including
IRS Form W-9, as may be required under the IRC or other laws of the United States as a condition to
exemption from, or reduction of, United States withholding or backup withholding tax.

Each Lender or Participant shall provide new forms (or successor forms) upon the expiration or
obsolescence of any previously delivered forms and to promptly notify Agent (or, in the case of a
Participant, to the Lender granting the participation only) of any change in circumstances which
would modify or render invalid any claimed exemption or reduction.

(d) If a Lender or Participant claims an exemption from withholding tax in a
jurisdiction other than the United States, such Lender or such Participant agrees with and in favor
of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the
participation only) any such form or forms, as may be required under the laws of such jurisdiction
as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax
before receiving its first payment under this Agreement, but only if such Lender or such
Participant is legally able to deliver such forms, provided, however, that nothing
in this Section 16(d) shall require a Lender or Participant to disclose any information that it
deems to be confidential (including without limitation, its tax returns). Each Lender and each
Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any
previously delivered forms and to promptly notify Agent (or, in the case of a Participant, to the
Lender granting the participation only) of any change in circumstances which would modify or render
invalid any claimed exemption or reduction.

(e) If a Lender or Participant claims exemption from, or reduction of, withholding
tax and such Lender or Participant sells, assigns, grants a participation in, or otherwise
transfers all or part of the Obligations of Borrowers to such Lender or Participant, such Lender or
Participant agrees to notify Agent (or, in the case of a sale of a participation interest, to the
Lender granting the participation only) of the percentage amount in which it is no longer the
beneficial owner of Obligations of Borrowers to such Lender or Participant. To the extent of such
percentage amount, Agent will treat such Lender’s or such Participant’s documentation provided
pursuant to Section 16(c) or 16(d) as no longer valid. With respect to such
percentage amount, such Participant or Assignee will provide new documentation, pursuant to
Section 16(c) or 16(d), if applicable. Borrowers agree that each Participant shall
be entitled to the benefits of this Section 16 with respect to its participation in any
portion of the Commitments and the Obligations so long as such Participant complies with the
obligations set forth in this Section 16 with respect thereto.

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

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

(h) If Agent or a Lender determines, in its sole discretion, that it has received
a refund of any Taxes as to which it has been indemnified by Borrowers or with respect to which
Borrowers have paid additional amounts pursuant to this Section 16, so long as no Default or Event
of Default has occurred and is continuing, it shall pay over such refund to Borrowers (but only to
the extent of payments made, or additional amounts paid, by Borrowers under this Section 16 with
respect to Taxes giving rise to such a refund), net of all out-of-pocket expenses of Agent or such
Lender and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such a refund); provided, that Borrowers, upon the request of Agent or such Lender,
agree to repay the amount paid over to Borrowers (plus any penalties, interest or other charges,
imposed by the relevant Governmental Authority, other than such penalties, interest or other
charges imposed as a result of the willful misconduct or gross negligence of Agent hereunder) to
Agent or such Lender in the event Agent or such Lender is required to repay such refund to such
Governmental Authority. Notwithstanding anything in this Agreement to the contrary, this Section
16 shall not be construed to require Agent or any Lender to make available its tax returns (or any
other information which it deems confidential) to Borrowers or any other Person.

17. GENERAL PROVISIONS.

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

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

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

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

17.5 Bank Product Providers. Each Bank Product Provider shall be deemed a
third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of
any reference in a Loan Document to the parties for whom Agent is acting. Agent hereby agrees to
act as a non-fiduciary agent for such Bank Product Providers and, by virtue of providing a Bank
Product that qualifies as Bank Product Obligations pursuant to the requirements of the proviso set
forth in the definition of Bank Product Obligations, each Bank Product Provider shall be
automatically deemed to have appointed Agent as its non-fiduciary agent; it being understood and
agreed that the rights and benefits of each Bank Product Provider under the Loan Documents consist
exclusively of such Bank Product Provider’s being a beneficiary of the Liens and security interests
(and, if applicable, guarantees) granted to Agent and the right to share in payments and
collections out of the Collateral as more fully set forth herein and in any Bank Product Provider
Letter Agreement. In connection with any such distribution of payments and collections, Agent shall
be entitled to assume no amounts are due and payable to any Bank Product Provider unless such Bank
Product Provider has notified Agent in writing of the amount of any such liability owed to it prior
to such distribution.

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

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

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

17.9 Confidentiality.

(a) Agent and Lenders each individually (and not jointly or jointly and severally)
agree that material, non-public information regarding Parent and its Subsidiaries, their
operations, assets, and existing and contemplated business plans (“Confidential
Information”) shall be treated by Agent and the Lenders in a confidential manner, and
shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement,
except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to any
member of the Lender Group (“Lender Group Representatives”), (ii) to
Subsidiaries and Affiliates of any member of the Lender Group (including the Bank Product
Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such
information hereunder subject to the terms of this Section 17.9, (iii) as may be required
by regulatory authorities so long as such authorities are informed of the confidential
nature of such information, (iv) as may be required by statute, decision, or judicial or
administrative order, rule, or regulation; provided that (x) prior to any disclosure under this
clause (iv), the disclosing party agrees to provide Borrowers with prior notice thereof, to the
extent that it is practicable to do so and to the extent that the disclosing party is permitted to
provide such prior notice to Borrowers pursuant to the terms of the applicable statute, decision,
or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause
(iv) shall be limited to the portion of the Confidential Information as may be required by
such statute, decision, or judicial or administrative order, rule, or regulation,
(v) as may be agreed to in advance by Borrowers or as requested or required by any
Governmental Authority pursuant to any subpoena or other legal process, provided, that, (x)
prior to any disclosure under this clause (v) the disclosing party agrees to provide Borrowers with
prior notice thereof, to the extent that it is practicable to do so and to the extent that the
disclosing party is permitted to provide such prior notice to Borrowers pursuant to the terms of
the subpoena or other legal process and (y) any disclosure under this clause (v) shall be limited
to the portion of the Confidential Information as may be required by such governmental authority
pursuant to such subpoena or other legal process, (vi) as to any such information that is or
becomes generally available to the public (other than as a result of prohibited disclosure by Agent
or the Lenders or the Lender Group Representatives), (vii) in connection
with any assignment, participation or pledge of any Lender’s interest under this Agreement,
provided that any such assignee, participant, or pledgee shall have agreed in writing to receive
such information hereunder subject to the terms of this Section, (viii) in connection
with any litigation or other adversary proceeding involving parties hereto which such litigation or
adversary proceeding involves claims related to the rights or duties of such parties under this
Agreement or the other Loan Documents; provided, that, prior to any disclosure to any Person
(other than any Loan Party, Agent, any Lender, any of their respective Affiliates, or their
respective counsel) under this clause (viii) with respect to litigation involving any Person (other
than Borrowers, Agent, any Lender, any of their respective Affiliates, or their respective
counsel), the disclosing party agrees to provide Borrowers with prior notice thereof, and (ix) in
connection with, and to the extent reasonably necessary for, the exercise of any secured creditor
remedy under this Agreement or under any other Loan Document.

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

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

17.11 USA PATRIOT Act. Each Lender that is subject to the requirements of
the Patriot Act hereby notifies Borrowers that pursuant to the requirements of the Act, it is
required to obtain, verify and record information that identifies Borrowers, which information
includes the name and address of Borrowers and other information that will allow such Lender to
identify Borrowers in accordance with the Patriot Act.

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

17.13 Parent as Agent for Borrowers. Each Borrower hereby irrevocably appoints
Parent as the borrowing agent and attorney-in-fact for all Borrowers (the “Administrative
Borrower”) which appointment shall remain in full force and effect unless and until Agent shall
have received prior written notice signed by each Borrower that such appointment has been revoked
and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby
irrevocably appoints and authorizes the Administrative Borrower (i) to provide Agent with all
notices with respect to Advances and Letters of Credit obtained for the benefit of any Borrower and
all other notices and instructions under this Agreement and (ii) to take such action as the
Administrative Borrower deems appropriate on its behalf to obtain Advances and Letters of Credit
and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of
this Agreement. It is understood that the handling of the Loan Account and Collateral in a
combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers
in order to utilize the collective borrowing powers of Borrowers in the most efficient and
economical manner and at their request, and that Lender Group shall not incur liability to any
Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from
the handling of the Loan Account and the Collateral in a combined fashion since the successful
operation of each Borrower is dependent on the continued successful performance of the integrated
group. To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby
jointly and severally agrees to indemnify each member of the Lender Group and hold each member of
the Lender Group harmless against any and all liability, expense, loss or claim of damage or
injury, made against the Lender Group by any Borrower or by any third party whosoever, arising from
or incurred by reason of (a) the handling of the Loan Account and Collateral of Borrowers as herein
provided, (b) the Lender Group’s relying on any instructions of the Administrative Borrower, or (c)
any other action taken by the Lender Group hereunder or under the other Loan Documents, except that
Borrowers will have no liability to the relevant Agent-Related Person or Lender-Related Person
under this Section 17.13 with respect to any liability that has been finally determined by
a court of competent jurisdiction to have resulted solely from the gross negligence or willful
misconduct of such Agent-Related Person or Lender-Related Person, as the case may be.

17.14 Tendered Currency. If for any reason it is necessary to convert any
funds tendered to Agent into or from any currency other than Dollars (such other currency being
hereinafter referred to as the “Tendered Currency”), the rate of exchange used shall be the
Exchange Rate on the Business Day preceding that on which such other currency is tendered to the
Agent. The obligation of each Borrower in respect of any such sum due from it to any Agent or any
member of the Lender Group hereunder shall, notwithstanding any tender or any judgment in such
Tendered Currency, be discharged only to the extent that Agent, in accordance with its customary or
other reasonable procedures, purchases Dollars with the Tendered Currency so received. If the
amount of Dollars so purchased is less than the sum originally due to Agent or any other member of
the Lender Group, as applicable, in Dollars, each Borrower agrees, as a separate obligation and
notwithstanding any judgment, to indemnify the Agents and the Lender Group against such loss, and
if the Dollars so purchased exceed the sum originally due to Agent or any member of the Lender
Group in Dollars, such Agent or such member of the Lender Group, as applicable, agrees to remit to
such Borrower such excess.

[Signature pages to follow.]

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

	 	 	 
	SKECHERS U.S.A., INC.,

	a Delaware corporation, as a Borrower

	By:

	 	/s/ Frederick Schneider
	
 
	 	 
	Name:

	 	Frederick Schneider
	
 
	 	 
	Title:

	 	Chief Financial Officer
	
 
	 	 
	SKECHERS U.S.A., INC. II,

	a Delaware corporation, as a Borrower

	By:

	 	/s/ David Weinberg
	
 
	 	 
	Name:

	 	David Weinberg
	
 
	 	 
	Title:

	 	Chief Financial Officer
	
 
	 	 
	SKECHERS BY MAIL, INC.,

	a Delaware corporation, as a Borrower

	By:

	 	/s/ David Weinberg
	
 
	 	 
	Name:

	 	David Weinberg
	
 
	 	 
	Title:

	 	Chief Financial Officer
	
 
	 	 
	310 GLOBAL BRANDS, INC.,

	a Delaware corporation, as a Borrower

	By:

	 	/s/ David Weinberg
	
 
	 	 
	Name:

	 	David Weinberg
	
 
	 	 
	Title:

	 	Chief Executive Officer
	
 
	 	 

1

2

	 	 	 
	WELLS FARGO FOOTHILL, LLC,
	a Delaware limited liability
	company, as Agent and as a Lender
	By: /s/ Todd Nakamoto
	Name: Todd Nakamoto
	Title: Senior Vice President

3

	 	 	 
	BANK OF AMERICA, N.A.,
	as a Lender
	By: /s/ Stephen King
	Name: Stephen King
	Title: SVP

4

	 	 	 
	PNC BANK, N.A.,
	as a Lender
	By: /s/ Mark Tito
	Name: Mark Tito
	Title: Vice President

5

	 	 	 
	UNION BANK, N.A.,
	as a Lender
	By: /s/ Peter Ehlinger
	Name: Peter Ehlinger
	Title: VP

6

	 	 	 
	HSBC BUSINESS CREDIT (USA) INC.,
	as a Lender
	By: /s/ Kysha A. Pierre-Louis
	Name: Kysha A. Pierre-Louis
	Title: Vice President

7

	 	 	 
	CIT BANK,
	as a Lender
	By: /s/ Daniel Burnett
	Name: Daniel Burnett
	Title: Authorized Signatory

8

	 	 	 
	CAPITAL ONE, N.A.,
	as a Lender
	By: /s/ Ari Kaplan
	Name: Ari Kaplan
	Title: SVP

	 	 	 

U.S. BANK NATIONAL ASSOCIATION,        }
as a Lender                            }
By:                /s/ Wayne Glen Eliott

Name:              Wayne Glen Eliott

Title:             Vice President

U.S. BANK NATIONAL ASSOCIATION,

	as a Lender
	By: /s/ Wayne Glen Eliott
	Name: Wayne Glen Eliott
	Title: Vice President
	

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]