Document:

EX-10.02 CHATHAM CREDIT FACILITY

Exhibit 10.02

 

CREDIT AGREEMENT

DATED AS OF September 23, 2008

by and among

BROOKSIDE TECHNOLOGY HOLDINGS CORP.,

as Parent Company and Guarantor

BROOKSIDE TECHNOLOGY PARTNERS, INC.,

U.S. VOICE & DATA, LLC,

STANDARD TEL ACQUISITIONS, LLC,

TRANS-WEST NETWORK SOLUTIONS, INC., d/b/a STANDARD TEL,

and

STANDARD TEL NETWORKS, LLC,

as Borrowers

ANY OTHER PERSONS PARTY HERETO THAT

ARE DESIGNATED AS CREDIT PARTIES,

and

CHATHAM CREDIT MANAGEMENT III, LLC,

as Agent

and

CHATHAM INVESTMENT FUND III, LLC, CHATHAM INVESTMENT FUND III QP, LLC,
 AND ANY

OTHER FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1. AMOUNTS AND TERMS OF LOANS	 	2
	 
	1.1
	 	Loans	 	2
	1.2
	 	Interest and Applicable Margins	 	3
	1.3
	 	Fees	 	6
	1.4
	 	Payments	 	7
	1.5
	 	Prepayments	 	7
	1.6
	 	Maturity	 	9
	1.7
	 	Loan Accounts	 	9
	1.8
	 	Capital Adequacy and Other Adjustments	 	10
	1.9
	 	Taxes	 	10
	1.10
	 	Borrower Representative	 	12
	1.11
	 	Use of Loan Proceeds	 	12
	1.12
	 	Application and Allocation of Payments	 	12
	 
	 	 	 	 
	SECTION 2. AFFIRMATIVE COVENANTS	 	13
	 
	2.1
	 	Compliance With Laws and Contractual Obligations	 	13
	2.2
	 	Insurance	 	13
	2.3
	 	Inspection; Lender Meeting; Board Meetings	 	15
	2.4
	 	Organizational Existence	 	15
	2.5
	 	Environmental Matters	 	15
	2.6
	 	Landlords’ Agreements, Mortgagee Agreements and Real Estate Purchases	 	16
	2.7
	 	Further Assurances	 	17
	2.8
	 	Cash Management Systems	 	18
	2.9
	 	ERISA	 	18
	 
	 	 	 	 
	SECTION 3. NEGATIVE COVENANTS	 	18
	 
	3.1
	 	Indebtedness	 	19
	3.2
	 	Liens and Related Matters	 	19
	3.3
	 	Investments	 	20
	3.4
	 	Contingent Obligations	 	21
	3.5
	 	Restricted Payments	 	21
	3.6
	 	Restriction on Fundamental Changes	 	23
	3.7
	 	Disposal of Assets or Subsidiary Stock	 	23
	3.8
	 	Transactions with Affiliates	 	23
	3.9
	 	Conduct of Business	 	24
	3.10
	 	Changes Relating to Indebtedness	 	24
	3.11
	 	Fiscal Year	 	24
	3.12
	 	Press Release; Public Offering Materials	 	24
	3.13
	 	Subsidiaries	 	24
	3.14
	 	Bank Accounts; Lockboxes	 	24
	3.15
	 	Hazardous Materials	 	25
	3.16
	 	ERISA	 	25

i

 

	 	 	 	 	 
	 	 	 	 	Page
	3.17
	 	Sale Leasebacks	 	25
	3.18
	 	Changes to Material Contracts	 	25
	3.19
	 	Prepayments of Other Indebtedness	 	25
	3.20
	 	Accounting Changes	 	25
	3.21
	 	Subordinated Debt	 	26
	3.22
	 	Executive Compensation	 	26
	3.23
	 	Hedging Agreements	 	26
	 
	 	 	 	 
	SECTION 4. FINANCIAL COVENANTS/REPORTING	 	26
	 
	4.1
	 	Capital Expenditure Limits	 	26
	4.2
	 	[Intentionally Omitted]	 	26
	4.3
	 	Minimum Fixed Charge Coverage Ratio	 	27
	4.4
	 	Maximum Leverage Ratio	 	27
	4.5
	 	Financial Statements and Other Reports	 	27
	4.6
	 	Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement	 	30
	 
	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES	 	31
	 
	5.1
	 	Disclosure	 	31
	5.2
	 	No Material Adverse Effect	 	31
	5.3
	 	No Conflict	 	31
	5.4
	 	Organization, Powers, Capitalization and Good Standing, Organization and Powers	 	32
	5.5
	 	Financial Statements and Projections	 	32
	5.6
	 	Intellectual Property	 	33
	5.7
	 	Investigations, Audits, Etc	 	33
	5.8
	 	Employee Matters	 	33
	5.9
	 	Solvency	 	33
	5.10
	 	Litigation; Adverse Facts	 	33
	5.11
	 	Use of Proceeds; Margin Regulations	 	34
	5.12
	 	Ownership of Property; Liens	 	34
	5.13
	 	Environmental Matters	 	35
	5.14
	 	ERISA	 	36
	5.15
	 	Brokers	 	36
	5.16
	 	Deposit and Disbursement Accounts	 	37
	5.17
	 	STN Acquisition Agreement	 	37
	5.18
	 	Insurance	 	37
	5.19
	 	Anti-Terrorism Law	 	38
	5.20
	 	Compliance with Laws	 	38
	5.21
	 	Taxes and Tax Returns	 	38
	 
	 	 	 	 
	SECTION 6. DEFAULT, RIGHTS AND REMEDIES	 	39
	 
	6.1
	 	Event of Default	 	39
	6.2
	 	Suspension or Termination of Commitments	 	42
	6.3
	 	Acceleration and other Remedies	 	42
	6.4
	 	Application of Payments	 	42

ii

 

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 7. CONDITIONS TO LOANS	 	43
	 
	7.1
	 	Conditions to Initial Loans	 	43
	7.2
	 	Conditions to All Loans	 	47
	 
	 	 	 	 
	SECTION 8. ASSIGNMENT AND PARTICIPATION	 	48
	 
	8.1
	 	Assignment and Participations	 	48
	8.2
	 	Agent	 	50
	8.3
	 	Set Off and Sharing of Payments	 	55
	8.4
	 	Disbursement of Funds	 	56
	8.5
	 	Disbursements of Advances; Payment Advances; Payments	 	56
	 
	 	 	 	 
	SECTION 9. MISCELLANEOUS	 	58
	 
	9.1
	 	Indemnities	 	58
	9.2
	 	Amendments and Waivers	 	58
	9.3
	 	Notices; Effectiveness	 	59
	9.4
	 	Failure or Indulgence Not Waiver; Remedies Cumulative	 	60
	9.5
	 	Marshaling; Payments Set Aside	 	61
	9.6
	 	Severability	 	61
	9.7
	 	Lenders’ Obligations Several; Independent Nature of Lenders’ Rights	 	61
	9.8
	 	Headings	 	61
	9.9
	 	Applicable Law	 	61
	9.10
	 	Successors and Assigns	 	61
	9.11
	 	No Fiduciary Relationship; Limited Liability	 	61
	9.12
	 	Construction	 	62
	9.13
	 	Confidentiality	 	62
	9.14
	 	CONSENT TO JURISDICTION	 	62
	9.15
	 	WAIVER OF JURY TRIAL	 	63
	9.16
	 	Survival of Warranties and Certain Agreements	 	63
	9.17
	 	Entire Agreement	 	63
	9.18
	 	Counterparts; Effectiveness	 	63
	9.19
	 	Replacement of Lenders	 	63
	9.20
	 	Delivery of Termination Statements and Mortgage Releases	 	65
	9.21
	 	Right to Cure	 	65
	9.22
	 	Injunctive Relief	 	66
	9.23
	 	Consequential Damages	 	66
	9.24
	 	Captions	 	66
	9.25
	 	Permitted Deliveries	 	66
	9.26
	 	Seals	 	66
	9.27
	 	Publicity	 	66
	9.28
	 	Survival of Representations and Warranties	 	66
	9.29
	 	Destruction of Invoices	 	67
	9.30
	 	Time	 	67
	9.31
	 	Patriot Act	 	67
	9.32
	 	No Tax Advice	 	67
	9.33
	 	Completion of Blanks	 	67
	9.34
	 	Exculpation of Agent and Lender Parties	 	68

iii

 

	 	 	 	 	 
	 	 	 	 	Page
	9.35
	 	Electronic Transmissions	 	68
	9.36
	 	Credit Inquiries	 	68
	9.37
	 	Rules of Construction	 	68
	 
	 	 	 	 
	SECTION 10. CROSS-GUARANTY	 	69
	 
	10.1
	 	Cross-Guaranty	 	69
	10.2
	 	Waivers by Credit Parties	 	70
	10.3
	 	Benefit of Guaranty	 	71
	10.4
	 	Waiver of Subrogation, Etc	 	71
	10.5
	 	Election of Remedies	 	71
	10.6
	 	Limitation	 	72
	10.7
	 	Contribution with Respect to Guaranty Obligations	 	72
	10.8
	 	Liability Cumulative	 	73

iv

 

INDEX OF APPENDICES

ANNEXES

	 	 	 	 	 
	Annex A

	 	–
	 	Definitions
	Annex B

	 	–
	 	Pro Rata Shares and Commitment Amounts
	Annex C

	 	–
	 	Closing Checklist
	Annex D

	 	–
	 	Pro Forma
	Annex E

	 	–
	 	Lenders’ Bank Accounts
	Annex F

	 	–
	 	Compliance Certificate

EXHIBITS

	 	 	 	 	 
	Exhibit 1.1(a)

	 	–
	 	Term Note
	Exhibit 1.1(b)(i)

	 	–
	 	Revolving Note
	Exhibit 1.1(b)(ii)

	 	–
	 	Notice of Revolving Credit Advance
	Exhibit 3.1(b)

	 	–
	 	Subordinated Intercompany Note
	Exhibit 4.5(d)

	 	–
	 	Borrowing Base Certificate
	Exhibit 8.1(a)

	 	–
	 	Assignment Agreement

SCHEDULES

	 	 	 	 	 
	Schedule 3.1

	 	–
	 	Indebtedness
	Schedule 3.2

	 	–
	 	Liens
	Schedule 3.3

	 	–
	 	Investments
	Schedule 3.4

	 	–
	 	Contingent Obligations
	Schedule 3.8(a)

	 	–
	 	Affiliate Transactions
	Schedule 3.9

	 	–
	 	Business Description
	Schedule 3.18

	 	–
	 	Material Contracts
	Schedule 5.4(a)

	 	–
	 	Jurisdictions of Organization and Qualifications
	Schedule 5.4(b)

	 	–
	 	Capitalization
	Schedule 5.6

	 	–
	 	Intellectual Property
	Schedule 5.7

	 	–
	 	Investigations and Audits
	Schedule 5.8

	 	–
	 	Employee Matters
	Schedule 5.10

	 	–
	 	Litigation
	Schedule 5.11

	 	–
	 	Use of Proceeds
	Schedule 5.12

	 	–
	 	Real Estate
	Schedule 5.13

	 	–
	 	Environmental Matters
	Schedule 5.14

	 	–
	 	ERISA
	Schedule 5.15

	 	–
	 	Brokerage Fees
	Schedule 5.16

	 	–
	 	Deposit and Disbursement Accounts
	Schedule 5.18

	 	–
	 	Insurance

v

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT is dated as of September ___, 2008 and is entered into by and among: (i)
BROOKSIDE TECHNOLOGY HOLDINGS CORP., a Florida corporation (“Parent Company”); (ii)
BROOKSIDE TECHNOLOGY PARTNERS, INC., a Texas corporation (“BTP”); U.S. VOICE & DATA, LLC,
an Indiana limited liability company (“USVD”); STANDARD TEL ACQUISITIONS, LLC, a Florida
limited liability company (“STN Acquisition Sub”); TRANS-WEST NETWORK SOLUTIONS, INC. d/b/a
STANDARD TEL, a California corporation (“Trans-West”); and STANDARD TEL NETWORKS, LLC, a
California limited liability company (“STN”) (STN, Trans-West, STN Acquisition Sub, USVD
and BTP hereinafter collectively called “Borrowers” and individually called a “Borrower”);
(iii) any other persons designated as “Credit Parties” on the signature pages hereof or
which from time to time hereafter become “Credit Parties” hereto; (iv) CHATHAM INVESTMENT
FUND III, LLC, a Georgia limited liability company (“Chatham Fund III”), and CHATHAM
INVESTMENT FUND III QP, LLC, a Georgia limited liability company (“Chatham Fund III QP”;
Chatham Fund III QP and Chatham Fund III herein called, individually and collectively, “Chatham
Lender”), together with any other financial institutions which are or hereafter become parties
to this Agreement as Lenders; and (v) CHATHAM CREDIT MANAGEMENT III, LLC, a Georgia limited
liability company (in its individual capacity, “Chatham Agent”), as Agent.

R E C I T A L S:

     WHEREAS, the Parent Company owns all Stock of BTP, USVD and STN Acquisition Sub; and

     WHEREAS, effective this date, the Parent Company, acting through the STN Acquisition Sub, has
acquired all Stock of Trans-West from the Trans-West Shareholders and all Stock of STN owned by
ProLogic from ProLogic; and

     WHEREAS, Parent Company intends to operate STN Acquisition Sub, Trans-West, STN, BTP and USVD
as a common business enterprise to enjoy certain economies of scale, including for the borrowing of
money; and

     WHEREAS, the Parent Company desires that Lenders extend a certain term credit facility and a
revolving credit facility to Borrowers to fund a portion of the cost of the STN Acquisition, to
fund the repayment of certain indebtedness of Borrowers assumed as part of the STN Acquisition, to
refinance certain existing indebtedness of STN, BTP and USVD, to provide working capital financing
for Borrowers and their Subsidiaries and to provide funds for other general corporate purposes of
Borrowers and their Subsidiaries; and

     WHEREAS, the Parent Company intends to secure all Obligations of Borrowers arising in regard
thereto by causing the Borrowers to grant to Agent, for the benefit of Agent and Lenders, a
security interest in and lien upon substantially all of their personal and real property; and

 

 

     WHEREAS, the Parent Company desires to guarantee all of the Borrowers’ obligations and to
secure its liabilities in regard thereto by pledging to Agent, for the benefit of Agent and
Lenders, all Stock of Borrowers and the other Credit Parties owned by it; and

     WHEREAS, all capitalized terms used herein (including in this preamble) shall have the
meanings ascribed thereto in Annex A hereto which is incorporated herein by reference.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the Parent Company, the Borrowers, any other Credit Parties, Lenders and Agent
agree as follows:

SECTION 1.

AMOUNTS AND TERMS OF LOANS

	1.1	 	Loans. Subject to the terms and conditions of this Agreement and in reliance upon
the representations and warranties of Borrowers and the other Credit Parties contained herein:
	 
	(a)	 	Term Loan. Each Term Loan Lender agrees, severally and not jointly, to lend to
Borrowers in one draw, on the Closing Date, its Pro Rata Share of such Term Loan Lender’s
applicable Term Loan Commitment of the “Term Loan” in a principal amount equal to
Seven Million Dollars ($7,000,000). Borrowers shall jointly and severally repay the Term Loan
through periodic payments of principal (“Scheduled Installments”) equal to (a)
Eighty-Three Thousand Three Hundred Thirty-Three Dollars ($83,333) each on the first Business
Day of each month commencing with the first such Business Day following six (6) months after
the Closing Date, and with a final payment of the entire remaining principal balance thereof
on the Commitment Termination Date. The principal balance of the Term Loan shall be due and
payable in its entirety on the Commitment Termination Date. Amounts borrowed under this
Section 1.1(a) and repaid may not be reborrowed. Payments of principal of each of the
Term Loan shall reduce the Term Loan Commitment applicable to the Term Loan in the amount of
any such payment.
	 
	 	 	The Term Loan shall be evidenced by promissory notes substantially in the form of
Exhibit 1.1(a) (as amended, modified, extended, substituted or replaced from time to
time, each a “Term Note” and, collectively, the “Term Notes”), and, except
as provided in Section 1.7, all of the Borrowers shall jointly execute and deliver
each Term Note to the applicable Term Loan Lender. Each Term Note shall represent the joint
and several obligation of each Borrower to pay the amount of the applicable Term Loan
Lender’s portion of the Term Loan, together with interest thereon.
	 
	(b)	 	Revolving Loans. Each Revolving Lender agrees, severally and not jointly, to make
available to Borrowers from time to time until the Commitment Termination Date its Pro Rata
Share of advances (each a “Revolving Credit Advance”) requested by Borrower
Representative on behalf of the Borrowers hereunder in up to an aggregate principal amount
outstanding at any time, initially, of Two Million Dollars ($2,000,000), representing the
aggregate Revolving Loan Commitment on the Closing Date. The Pro Rata Share of the Revolving
Loan of any Revolving Lender shall not at any time exceed

2

 

	 	 	its separate Revolving Loan
Commitment. Revolving Credit Advances may be repaid and reborrowed; provided, that
Borrowers shall not be entitled to request more than one (1) Revolving Credit Advance in any
calendar week without the consent of Agent; provided, further, that Revolving
Credit Advances shall only be permitted hereunder so long as (i) the amount of such requested
Revolving Credit Advance does not exceed Borrowing Availability and (ii) each of the other
conditions precedent in Section 7.2 hereof are satisfied. All Revolving Loans shall
be repaid in full on the Commitment Termination Date, but may be borrowed, repaid and
re-borrowed prior thereto. Except as provided in Section 1.7, each Borrower shall
execute and deliver to each Revolving Lender a promissory note to evidence the Revolving Loan
Commitment of that Revolving Lender. Each promissory note shall be in the principal amount of
the Revolving Loan Commitment of the applicable Revolving Lender, dated the Closing Date and
substantially in the form of Exhibit 1.1(b)(i) (as amended, modified, extended,
substituted or replaced from time to time, each a “Revolving Note” and, collectively,
the “Revolving Notes”). If at any time the aggregate outstanding Revolving Loans
exceed the Borrowing Base (any such excess Revolving Loans are herein referred to collectively
as “Overadvances”), Lenders shall not be obligated to make Revolving Credit Advances
and the full amount of such Overadvance must be repaid as soon as practicable but in any event
within five (5) Business Days after such Overadvance occurs (otherwise, an Event of Default
shall exist after such five (5) Business Days’ grace period shall have elapsed). Unless
otherwise approved by Agent, Revolving Credit Advances may be requested only with two (2)
Business Days prior written notice to Agent prior to 11:00 a.m. (New York time) and must be
made in writing. Written notices for funding requests shall be in the form attached as
Exhibit 1.1(b)(ii) (“Notice of Revolving Credit Advance”) and shall be
delivered to the Agent prior to 11:00 a.m. (New York time).
	 
	(c)	 	Funding Authorization. The proceeds of all Loans made pursuant to this Agreement on
the Closing Date are to be funded by Agent in accordance with a disbursement instructions
letter issued by Borrower Representative and approved by Agent consistent with, and attaching,
Schedule 5.11. The proceeds of all Loans made pursuant to this Agreement subsequent
to the Closing Date are to be funded by Agent by wire transfer to an account designated by
Borrower Representative on or prior to the Closing Date subject to change as provided in the
following sentence (the “Disbursement Account”). Borrower Representative shall
provide Agent with written notice of any change in the foregoing instructions at least three
(3) Business Days before the desired effective date of such change.
	 
	1.2	 	Interest and Applicable Margins. 
	 
	(a)	 	Borrowers shall pay interest to Agent, for the ratable benefit of Lenders, in accordance with
the various Loans being made by each Lender, monthly in arrears on each applicable Interest
Payment Date, at the following rates: (i) with respect to the Revolving Credit Advances, the
LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum and (ii) with respect
to the Term Loan, the LIBOR Rate plus the Applicable Term Loan LIBOR Margin per annum;
(iii) with respect to all other Obligations, to the extent no interest rate is otherwise
prescribed herein or in any Loan Document in regard thereto, at

3

 

	 	 	the highest among the interest
rates then being charged on the Revolving Credit Advances and the Term Loan.
	 
	 	 	The Applicable Margins are as follows:

	 	 	 	 	 
	Applicable Revolver LIBOR Margin
	 	 	4.00	%
	Applicable Term Loan LIBOR Margin
	 	 	9.00	%
	Applicable Unused Line Fee Margin
	 	 	0.50	%

	(b)	 	In addition to the foregoing, the Term Loan shall also bear interest at a rate per annum
equal, initially, to two percent (2.00%), but subject to change as provided in the following
sentence that shall be payable-in-kind on (and added to) the outstanding principal amount of
the Term Loan (“PIK Interest”), and be payable monthly in arrears on each applicable
Interest Payment Date as an increase to the principal amount of the Term Loan on such date
without any further action on part of Agent, any Lender or any Borrower, and all such PIK
Interest shall be paid in full at maturity of the Term Loan. Notwithstanding the foregoing,
however, the rate per annum chargeable as PIK Interest shall be subject to change from time to
time commencing on the later of (i) one (1) year from the Closing Date or (ii) that
date on which Agent and Lenders receive the audited financial statements of Parent Company and
its Consolidated Subsidiaries for their 2008 Fiscal Year in accordance with Section
4.5(b), based on the Leverage Ratio, as measured at the end of each Fiscal Quarter
thereafter; that is, if the Leverage Ratio, determined in accordance with Section 4.4
as of the end of any Fiscal Quarter ending after the applicable commencement date prescribed
above is: (x) greater than or equal to 2.00:1, but less than or equal to 2.25:1, the rate of
PIK Interest shall be one percent (1%) per annum, or (y) less than 2.00:1, the rate of PIK
Interest shall be zero i.e., no PIK Interest shall be charged during the applicable
effective period described below; or (z) greater than 2.25:1, the rate of PIK Interest shall
be two percent (2.0%); with the change, in each case, becoming effective on the first Business
Day of the first calendar month following the date in which Agent and Lenders receive
financial statements of Parent Company and its Consolidated Subsidiaries in accordance with
Section 4.5(a) for an applicable Fiscal Quarter reflecting a Leverage Ratio as of the
end of such Fiscal Quarter sufficient to cause a change in the rate of PIK Interest as
provided hereinabove, and shall continue until such time as any financial statement of Parent
and its Consolidated Subsidiaries for an applicable Fiscal Quarter reflect a Leverage Ratio
sufficient to cause a subsequent change in the rate of PIK Interest; provided,
however, that (i) no downward adjustment in the rate of PIK Interest shall be
implemented if, at such time, there exists any Default or Event of Default unless and until
such time as, respectively, such Default is cured or such Event of Default is waived, at which
time such adjustment shall be effective prospectively; (ii) should Agent and Lenders not
receive financial statements of Parent Company and its Consolidated Subsidiaries for any
applicable Fiscal Quarter on a timely basis in accordance with Section 4.5(a), then,
without limiting the rights and remedies of Agent and Lenders results from such Default, the
rate of PIK Interest shall remain, or be increased to, the highest amount described above
pending delivery of such compliant financial statements; and (iii) if, subsequent to making
any reduction in the rate of PIK

4

 

	 	 	Interest, Agent and Lenders shall determine that the
financial statements on which such reduction was predicated were false or misleading in any
material respect, the amount of PIK Interest that would have been charged had such financial
statements not been false or misleading shall be added to the principal amount of the Term
Loan retroactive to the date when such reduction was implemented.

	(c)	 	If any payment on any Loan becomes due and payable on a day other than a Business Day, the
maturity thereof will be extended to the next succeeding Business Day and, with respect to
payments of principal, interest thereon shall be payable at the then applicable rate during
such extension.
	 
	(d)	 	All computations of Fees calculated on a per annum basis and interest shall be made by Agent
on the basis of a 360-day year, in each case for the actual number of days occurring in the
period for which such Fees and interest are payable. Each determination by Agent of an
interest rate and Fees hereunder shall be final, binding and conclusive on Borrowers, absent
manifest error.
	 
	(e)	 	So long as an Event of Default has occurred and is continuing, the interest rates applicable
to the Loans shall be increased by four percent (4.00%) per annum above the rates of interest
otherwise applicable hereunder (“Default Rate”), and all outstanding Obligations shall
bear interest at the Default Rate applicable to such Obligations. Interest at the Default
Rate shall accrue from the initial date of such Event of Default until that Event of Default
is waived in writing by Lenders and shall be payable upon demand, but in any event, shall be
payable on the next regularly scheduled payment date set forth herein for such Obligation.
	 
	(f)	 	Notwithstanding anything to the contrary set forth in this Section 1.2, if the rate
of interest payable hereunder exceeds the highest rate of interest permissible under law (the
“Maximum Lawful Rate”), then, so long as the Maximum Lawful Rate would be so exceeded,
the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate;
provided, however, that if at any time thereafter the rate of interest payable
hereunder is less than the Maximum Lawful Rate, Borrowers shall continue to pay interest
hereunder at the Maximum Lawful Rate until such time as the total interest received by Agent,
on behalf of Lenders, is equal to the total interest that would have been received had the
interest rate payable hereunder been (but for the operation of this paragraph) the interest
rate payable since the Closing Date as otherwise provided in this Agreement. Thereafter,
interest hereunder shall be paid at the rate(s) of interest and in the manner provided in
Sections 1.2(a) through (e), unless and until the rate of interest again exceeds the
Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the
total interest received by any Lender pursuant to the terms hereof exceed the amount that such
Lender could lawfully have received had the interest due hereunder been calculated for the
full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated
pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the
Maximum Lawful Rate divided by the number of days in the year in which such calculation is
made. If, notwithstanding the provisions of this Section 1.2(f), a court of competent
jurisdiction shall determine by a final, non-appealable order that a Lender has received
interest hereunder in excess of the Maximum

5

 

	 	 	Lawful Rate, Agent shall, to the extent permitted
by applicable law, promptly apply such excess as a voluntary prepayment in the manner
specified in Section 1.5(d) and thereafter shall refund any excess to Borrowers or as
such court of competent jurisdiction may otherwise order.
	 
	1.3	 	Fees.
	 
	(a)	 	Fee Letter. Borrowers shall pay to Chatham, individually, the Fees specified in that
certain fee and syndication letter dated on or about the date hereof among Parent Company,
Chatham, and Borrowers (the “Chatham Fee Letter”), at the time(s) specified for
payment therein.
	 
	(b)	 	Unused Line Fee. As additional compensation for the Revolving Lenders, Borrowers
shall pay to Agent, for the ratable benefit of such Lenders, in arrears, on the first Business
Day of each month prior to the Commitment Termination Date and on the Commitment Termination
Date, a fee for Borrowers’ non use of available funds (the “Unused Line Fee”) in an
amount equal to the Applicable Unused Line Fee Margin per annum multiplied by the difference
between (x) the Maximum Amount (as it may be increased or reduced from time to time) and (y)
the average for the period of the daily closing balances of the Revolving Loan outstanding
during the period for which such Fee is due.
	 
	(c)	 	Prepayment Fee. If Borrowers pay after acceleration or voluntarily prepay (to the
extent permitted to do so pursuant hereto) all or any portion of the Term Loan or prepay in
full the Revolving Loan in connection with any termination of the Revolving Loan Commitment,
whether voluntarily or involuntarily and whether before or after acceleration of the
Obligations or if any of the Commitments are otherwise terminated, Borrowers shall pay to
Agent, for the benefit of Lenders as liquidated damages and compensation for the costs of
being prepared to make funds available hereunder a fee (the “Prepayment Fee”) in an
amount equal to the Applicable Percentage (as defined below) multiplied by the sum of (i) the
principal amount of the Term Loan paid after acceleration or, as applicable, prepaid and (ii)
the amount of the Revolving Loan Commitment. As used herein, the term “Applicable
Percentage” shall mean (A) three percent (3.00%), in the case of a prepayment on or prior
to the second anniversary of the Closing Date, and (B) two percent (2.00%), in the case of a
prepayment after the second anniversary of the Closing Date but on or prior to the third
anniversary thereof. The Credit Parties agree that the Applicable Percentage is a reasonable
calculation of Lenders’ lost profits in view of the difficulties and impracticality of
determining actual damages resulting from an early termination of the Commitments.
Notwithstanding the foregoing, no Prepayment Fee shall be payable by Borrowers upon any
optional prepayment of the Revolving Loan not made at or after the Revolving Loan Commitment
is terminated or upon a mandatory prepayment of the Loans made pursuant to Sections
1.5(b) and 1.5(c); provided that Borrowers do not reduce or terminate the
Revolving Loan Commitment upon any such prepayment and, in the case of prepayments made
pursuant to Section 1.5(c), the transaction giving rise to the applicable prepayment
is expressly permitted under Section 3.

6

 

	(d)	 	Expenses and Attorneys’ Fees. Borrowers agree to promptly pay all reasonable fees,
charges, costs and expenses (including reasonable attorneys’ fees and expenses and the
allocated cost of internal legal staff) incurred by Agent in connection with any matters
contemplated by, arising out of, or related to the Loan Documents, whether in connection with
the examination, appraisal, review, due diligence investigation, documentation, negotiation,
closing and syndication of the transactions contemplated herein and in connection with the
continued administration and monitoring of the Loan Documents including any amendments,
modifications, consents and waivers, or otherwise. Borrowers agree to promptly pay reasonable
documentation charges assessed by Agent for amendments, waivers, consents and any of the
documentation prepared by Agent’s internal legal staff. Borrowers agree to promptly pay all
reasonable fees, charges, costs and expenses (including fees, charges, costs and expenses of
attorneys, auditors (whether internal or external), appraisers, consultants and advisors and
the allocated cost of internal legal staff) incurred by Agent in connection with any
amendment, waiver, consent with respect to the Loan Documents, Event of Default, work-out or
action to enforce any Loan Document or to collect any payments due from Borrowers or any other
Credit Party. In addition, in connection with any work-out or action to enforce any Loan
Document or to collect any payments due from Borrowers or any other Credit Party, Borrowers
agree to promptly pay all reasonable fees, charges, costs and expenses incurred by Lenders for
one (1) legal counsel acting for all Lenders other than Agent. All fees, charges, costs and
expenses for which Borrowers are responsible under this Section 1.3(d) shall be deemed
part of the Obligations when incurred, payable in accordance with the final sentence of
Section 1.4 and secured by the Collateral.
	 
	1.4	 	Payments. All payments by Borrowers of the Obligations shall be without deduction,
defense, setoff or counterclaim and shall be made in same day funds and delivered to Agent for
the benefit of Agent and Lenders, as applicable, by wire transfer to the applicable account
designated by Agent or such other place as Agent may from time to time designate in writing.
Borrowers shall receive credit on the day of receipt for funds received by Agent by 2:00 p.m.
(New York time). In the absence of timely receipt, such funds shall be deemed to have been
paid on the next Business Day. Whenever any payment to be made hereunder shall be stated to
be due on a day that is not a Business Day, the payment may be made on the next succeeding
Business Day and such extension of time shall be included in the computation of the amount of
interest and Fees due hereunder. Borrowers hereby authorize Revolving Lenders to make
Revolving Credit Advances for the payment of Scheduled Installments, interest, Fees and
expenses.
	 
	1.5	 	Prepayments.
	 
	(a)	 	Voluntary Prepayments of Loans. At any time, Borrowers may prepay the Loans, in
whole or in part, subject to the payment of the Fees specified in Section 1.3(c), if
applicable, provided, however, that, notwithstanding the foregoing,
(i) no voluntary prepayment of the Term Loan may be made by Borrowers prior to the first
anniversary of the Closing Date, and (ii) prepayments of the Term Loan shall be applied in
accordance with Section 1.5(d) or as otherwise may be agreed by Requisite Lenders.

7

 

	(b)	 	Prepayments from Asset Dispositions; Casualty Events.

	 	(i)	 	Immediately upon receipt of any Net Proceeds from an Asset Disposition (except
the Asset Dispositions described in 
Sections 3.7(b) and 3.7(c)) in
excess of One Hundred Thousand Dollars ($100,000) (the “Threshold Amount”), in
the aggregate, for all such transactions during any Fiscal Year, Borrowers shall first
prepay the Revolving Credit Advances (without reduction of the Revolving Loan
Commitment) by an amount equal to the amount of any reduction in the Borrowing Base
attributable to any Asset Disposition giving rise to such Net Proceeds to the extent
that any such reduction would result in the outstanding principal balance of the
Revolving Loan exceeding the maximum amount of Revolving Loan permitted to be
outstanding, except, so long as no Event of Default has occurred and is continuing,
that Borrowers may reinvest all such Net Proceeds of any such Asset Disposition within
ninety (90) days, in fixed assets. If Borrowers do not intend to so reinvest such Net
Proceeds or if the period set forth in the immediately preceding sentence expires
without Borrowers having reinvested the full amount of the Net Proceeds of any such
Asset Disposition or if such Net Proceeds are attributable to a working capital,
earnings, balance sheet or similar adjustment under the STN Acquisition Agreement,
including any pursuant to the STN Acquisition Escrow Agreement, in excess of the
Threshold Amount then, Borrowers shall apply all such remaining Net Proceeds of such
Asset Disposition in excess of the Threshold Amount to payment of the Loans in
accordance with Section 1.5(d).
	 
	 	(ii)	 	Subject to the terms of Section 2.2, immediately following the receipt
of any Net Proceeds from a Casualty Event, the Borrowers shall first prepay the
Revolving Loans (without reduction of the Revolving Loan Commitment) by an amount equal
to the amount of any reduction in the Borrowing Base attributable to the Casualty Event
giving rise to such Net Proceeds to the extent that any such reduction would result in
the outstanding principal balance of the Revolving Loans exceeding the maximum amount
of Revolving Loans permitted to be outstanding, to the extent not otherwise permitted
by Section 2.2 to be used to replace, repair, restore or rebuild the
Collateral. If Borrowers do not intend to replace, repair, restore or rebuild the
Collateral, as permitted by Section 2.2, then Borrowers shall apply all such
remaining Net Proceeds of such Casualty Event to the payment of the Loans in accordance
with Section 1.5(d).

	(c)	 	Prepayments from Issuance of Securities. Immediately upon the receipt by any
Borrower or any of its Subsidiaries of the proceeds of the issuance of Stock (other than
proceeds of the issuance of Stock to any Borrower or any Subsidiary of any Borrower by any
Subsidiary thereof), to the extent that such proceeds exceed, individually or in aggregate
amount, in any period of twelve (12) consecutive Fiscal Months, beginning with the Closing
Date, the sum of Five Hundred Thousand Dollars ($500,000) (herein, the “Threshold
Amount”), Borrowers shall prepay the Loans in an amount equal to such proceeds in excess
of the Threshold Amount, net of underwriting discounts and commissions and other reasonable
costs associated therewith. The payments shall be applied in accordance with Section
1.5(d).

8

 

	(d)	 	Application of Proceeds.

	 	(i)	 	With respect to any prepayments made by any Borrower made in accordance with
Section 1.5(a), except as provided in clause (iii), unless otherwise
designated by Borrowers, such prepayments shall be applied as follows: first,
to the Term Loan in the inverse order of maturity of the Scheduled Installments of the
Term Loan until the Term Loan shall have been prepaid in full; and second, to
the Revolving Credit Advances outstanding until the same has been repaid in full but
not as a permanent reduction of the Revolving Loan Commitment.
	 
	 	(ii)	 	With respect to any prepayments made by any Borrower pursuant to Sections
1.5(b) or 1.5(c), except as provided in clause (iii), such
prepayments shall be applied as follows: first, to the Term Loan in the inverse
order of maturity of the Scheduled Installments of the Term Loan until the Term Loan
shall have been prepaid in full; and, second, to the Revolving Credit Advances
outstanding until the same has been repaid in full but not as a permanent reduction of
the Revolving Loan Commitment.
	 
	 	(iii)	 	With respect to any prepayments made pursuant to any of Sections 1.5
(a), 1.5(b), 1.5(c) when any Event of Default has occurred and
while it is continuing shall be in effect, such prepayments shall be applied in
accordance with Section 6.4 hereof.
	 
	 	(iv)	 	Notwithstanding any other term of this Section 1.5 to the contrary, the
Requisite Lenders may elect to waive any requirement for mandatory prepayments by
instructing Agent to give written notice to Borrower Representative to such effect at
any time on or prior to such prepayment becoming due and payable.

	1.6	 	Maturity. All of the Obligations shall become due and payable as otherwise set forth
herein, but in any event all of the remaining Obligations shall become due and payable upon
the Commitment Termination Date. Until all Obligations have been fully paid and satisfied
(other than contingent indemnification obligations to the extent no unsatisfied claim has been
asserted) and the Revolving Loan Commitment has been terminated, Agent shall be entitled to
retain the security interests in the Collateral granted under the Collateral Documents and the
ability to exercise all rights and remedies available to Agent under the Loan Documents and
applicable laws. Notwithstanding anything contained in this Agreement to the contrary, upon
any termination of the Revolving Loan Commitment, all of the Obligations shall be due and
payable.
	 
	1.7	 	Loan Accounts. Agent shall maintain a loan account (the “Loan Account”) on
its books to record: the Loans, all payments made by Borrowers with respect to the Loans, and
all other debits and credits as provided in this Agreement with respect to the Loans and any
other Obligations. All entries in the Loan Account shall be made in accordance with the
customary accounting practices of Agent as in effect from time to time. The balance in the
Loan Account, as recorded on the most recent printout or other written statement of Agent
shall, absent manifest error, be presumptive evidence of the amounts due and owing to Agent
and Lenders by Borrowers; provided that any failure to so record or any

9

 

	 	 	error in so
recording shall not limit or otherwise affect Borrowers’ duty to pay the Obligations. Agent
shall render to Borrower Representative a monthly accounting of transactions with respect to
the Loans and any other Obligations setting forth the balance of the Loan Account for the
immediately preceding month. Unless Borrower Representative notifies Agent in writing of any
objection to any such accounting (specifically describing the basis for such objection),
within thirty (30) days after the date thereof, each and every such accounting shall, absent
manifest error, be deemed final, binding and conclusive on Borrowers in all respects as to all
matters reflected therein. Only those items expressly objected to in such notice shall be
deemed to be disputed by Borrowers. Notwithstanding any provision herein contained to the
contrary, any Lender may elect (which election may be revoked) to dispense with the issuance
of Notes to that Lender and may rely on the Loan Account as evidence of the amount of
Obligations from time to time owing to it.
	 
	1.8	 	Capital Adequacy and Other Adjustments. Subject at all times to Section
9.19, in the event that any Lender shall have determined that the adoption after the date
hereof of any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or
order regarding capital adequacy, reserve requirements or similar requirements or compliance
by any Lender or any corporation controlling such Lender with any request or directive
regarding capital adequacy, reserve requirements or similar requirements (whether or not
having the force of law and whether or not failure to comply therewith would be unlawful) from
any central bank or governmental agency or body having jurisdiction does or shall have the
effect of increasing materially the amount of capital, reserves or other funds required to be
maintained by such Lender or any corporation controlling such Lender and thereby reducing the
rate of return on such Lender’s or such corporation’s capital as a consequence of its
obligations hereunder, then Borrowers shall from time to time within five (5) Business Days
after notice and demand from such Lender (together with the certificate referred to in the
next sentence and with a copy to Agent) pay to Agent, for the account of such Lender,
additional amounts sufficient to compensate such Lender for such reduction. A certificate as
to the amount of such cost and showing the basis of the computation of such cost submitted by
such Lender to Borrower Representative and Agent shall, absent manifest error, be final,
conclusive and binding for all purposes.
	 
	1.9	 	Taxes. Subject at all times to Section 9.19:
	 
	(a)	 	No Deductions. Any and all payments or reimbursements made hereunder (including any
payments made pursuant to Section 10) or under the Notes or any other Loan Documents
shall be made free and clear of and without deduction for any and all Charges, taxes, levies,
imposts, deductions or withholdings, and all liabilities with respect thereto of any nature
whatsoever imposed by any taxing authority, excluding such taxes to the extent imposed on
Agent’s or a Lender’s net income by the jurisdiction in which Agent or such Lender is
organized. If any Borrower shall be required by law to deduct any such amounts from or in
respect of any sum payable hereunder to any Lender or Agent, then the sum payable hereunder
shall be increased as may be necessary so that, after making all required deductions, such
Lender or Agent receives an amount equal to the sum it would have received had no such
deductions been made.

10

 

	(b)	 	Changes in Tax Laws. In the event that, subsequent to the Closing Date, (1) any
changes in any existing law, regulation, treaty or directive or in the interpretation or
application thereof, (2) any new law, regulation, treaty or directive enacted or any
interpretation or application thereof, or (3) compliance by Agent or any Lender with any
request or directive (whether or not having the force of law) from any Governmental Authority:

	 	(i)	 	does or shall subject Agent or any Lender to any tax of any kind whatsoever
with respect to this Agreement, any Note or any other Loan Documents or any Loans made
hereunder, or change the basis of taxation of payments to Agent or such Lender of
principal, fees, interest or any other amount payable hereunder (except for net income
taxes, or franchise taxes imposed in lieu of net income taxes, imposed generally by
federal, state or local taxing authorities with respect to interest or commitment Fees
or other Fees payable hereunder or changes in the rate of tax on the overall net income
of Agent or such Lender); or
	 
	 	(ii)	 	does or shall impose on Agent or any Lender any other condition or increased
cost in connection with the transactions contemplated hereby or participations herein;

	 	 	and the result of any of the foregoing is to increase materially the cost to Agent or any
such Lender of making or continuing any Loan hereunder, as the case may be, or to reduce
materially any amount receivable hereunder under any Note or under any other Loan Document,
then, in any such case, Borrowers shall promptly pay to Agent or such Lender, upon its
demand, any additional amounts necessary to compensate Agent or such Lender, on an after-tax
basis, for such additional cost or reduced amount receivable, as determined by Agent or such
Lender with respect to this Agreement, the Notes or the other Loan Documents. If Agent or
such Lender becomes entitled to claim any additional amounts pursuant to this Section
1.9(b), it shall promptly notify Borrower Representative of the event by reason of which
Agent or such Lender has become so entitled. A certificate as to any additional amounts
payable pursuant to the foregoing sentence submitted by Agent or such Lender to Borrower
Representative (with a copy to Agent) shall, absent manifest error, be final, conclusive and
binding for all purposes.
	 
	(c)	 	Foreign Lenders. Each Lender organized under the laws of a jurisdiction outside the
United States (a “Foreign Lender”) shall provide to Borrower Representative and Agent
a properly completed and executed IRS Form W-8BEN or Form W-8ECI or other applicable form,
certificate or document prescribed by the IRS of the United States certifying as to such
Foreign Lender’s entitlement to such exemption with respect to payments to be made to such
Foreign Lender under this Agreement and under the Notes (a “Certificate of
Exemption”). Prior to becoming a Lender under this Agreement and within fifteen (15) days
after a reasonable written request of Borrower Representative or Agent from time to time
thereafter, each Foreign Lender that becomes a Lender under this Agreement shall provide a
Certificate of Exemption to Borrower Representative and Agent. If a Foreign Lender is
entitled to an exemption with respect to payments to be made to such Foreign Lender under this
Agreement and does not provide a Certificate of Exemption to Borrower Representative and Agent
within the time periods set forth in the preceding sentence, Borrowers shall withhold taxes
from payments to such Foreign Lender at the applicable statutory rates and Borrowers shall not
be required to pay any

11

 

	 	 	additional amounts as a result of such withholding, provided that all
such withholding shall cease upon delivery by such Foreign Lender of a Certificate of
Exemption to Borrower Representative and Agent.
	 
	1.10	 	Borrower Representative. Each Borrower hereby designates Parent Company as its
representative (Parent Company, acting in such capacity, herein, “Borrower
Representative”) and agent on its behalf for the purposes of issuing Notice of Revolving
Credit Advances, giving instructions with respect to the disbursement of the proceeds of the
Loans, selecting interest rate options, giving and receiving all other notices and consents
hereunder or under any of the other Loan Documents and taking all other actions (including in
respect of compliance with covenants) on behalf of any Borrower or Borrowers under the Loan
Documents. Borrower Representative hereby accepts such appointment. Agent and each Lender
may regard any notice or other communication pursuant to any Loan Document from Borrower
Representative as a notice or communication from all Borrowers. Each warranty, covenant,
agreement and undertaking made on its behalf by Borrower Representative shall be deemed for
all purposes to have been made by such Borrower and shall be binding upon and enforceable
against such Borrower to the same extent as it if the same had been made directly by such
Borrower.
	 
	1.11	 	Use of Loan Proceeds. The proceeds of the Term Loan shall be used for refinancing
the Borrowers’ existing Indebtedness, funding the payment of the purchase price for the STN
Acquisition (and any other Related Transaction expenses), funding the initial portion of the
Cash Collateral required to be deposited pursuant to the Cash Collateral Agreement, funding
the payment of fees and expenses hereunder and for general business purposes in a manner not
in conflict with any of the Borrowers’ covenants in this Agreement. The proceeds of the
Revolving Credit Advances shall be used for refinancing the Borrower’s existing Indebtedness,
funding the payment of fees and expenses hereunder and general business purposes in a manner
not in conflict with any of the Borrowers’ covenants in this Agreement.
	 
	1.12	 	Application and Allocation of Payments. So long as no Event of Default has occurred
and is continuing, (i) payments matching specific scheduled payments then due shall be applied
to those scheduled payments; (ii) voluntary prepayments shall be applied in accordance with
the provisions of Section 1.5(a) and 1.5(d); and (iii) mandatory prepayments shall be
applied as set forth in Section 1.5(b), 1.5(c) and 1.5(d). All
payments and prepayments applied to a particular Loan shall be applied ratably to the portion
thereof held by each Lender as determined by its Pro Rata Share. As to any other payment, and
as to all payments made when an Event of Default has occurred and is continuing or following
the Commitment Termination Date, Borrowers hereby irrevocably waive the right to direct the
application of any and all payments received from or on behalf of any Borrower, and Borrowers
hereby irrevocably agree that Agent shall have the continuing exclusive right to apply any and
all such payments against the Obligations as Agent may deem advisable notwithstanding any
previous entry by Agent in the Loan Account or any other books and records.

12

 

SECTION 2.

AFFIRMATIVE COVENANTS

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

	2.1	 	Compliance With Laws and Contractual Obligations. Each Credit Party will (a) comply
with and shall cause each of its Subsidiaries to comply with (i) the requirements of all
applicable material laws, rules, regulations and orders of any Governmental Authority
(including, without limitation, laws, rules, regulations and orders relating to taxes,
employer and employee contributions, securities, employee retirement and welfare benefits,
environmental protection matters and employee health and safety) as now in effect and which
may be imposed in the future in all jurisdictions in which any Credit Party or any of its
Subsidiaries is now doing business or may hereafter be doing business and (ii) the
obligations, covenants and conditions contained in all Contractual Obligations of such Credit
Party or any of its Subsidiaries other than those laws, rules, regulations and orders and
those provisions of such Contractual Obligations the noncompliance with which could not be
reasonably expected to have, either individually or in the aggregate, a Material Adverse
Effect, and (b) maintain or obtain and shall cause each of its Subsidiaries to maintain or
obtain all licenses, qualifications and permits now held or hereafter required to be held by
such Credit Party or any of its Subsidiaries, for which the loss, suspension, revocation or
failure to obtain or renew, could reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect. This Section 2.1 shall not preclude any
Credit Party or its Subsidiaries from contesting any taxes or other payments, if they are
being diligently contested in good faith in a manner which stays enforcement thereof and if
appropriate expense provisions have been recorded in conformity with GAAP, subject to
Section 3.2 and no Lien (other than a Permitted Encumbrance) in respect thereof has
been created.
	 
	2.2	 	Insurance. 
	 
	(a)	 	Each Credit Party will maintain or cause to be maintained, with financially sound and
reputable insurers, public liability and property damage insurance with respect to its
business and properties and the business and properties of its Subsidiaries against loss or
damage of the kinds customarily carried or maintained by corporations of established
reputation engaged in similar businesses and in amounts acceptable to Agent and will deliver
evidence thereof to Agent. Each Credit Party will maintain business interruption insurance
providing coverage for a period and in an amount satisfactory to Agent, in its Permitted
Discretion. Each Credit Party shall, pursuant to endorsements and/or assignments in form and
substance satisfactory to Agent, in its Permitted Discretion, (i) cause Agent to be named as
lender’s loss payee in the case of casualty insurance, and assignee in the case of all
business interruption insurance, in each case for the benefit of Agent and Lenders and (ii)
cause Agent and each Lender to be named as additional insureds in the case of all liability
insurance. Each Credit Party represents and warrants that it and each of its Subsidiaries
currently maintains all material properties as set forth above and maintains all insurance
described above. In the event any Credit Party fails to provide Agent with evidence of the
insurance coverage required by this Agreement,

13

 

	 	 	Agent may purchase insurance at such Credit
Party’s expense to protect Agent’s and Lenders’ interests in the Collateral. This insurance
may, but need not, protect such Credit Party’s interests. The coverage purchased by Agent may
not pay any claim made by such Credit Party or any claim that is made against such Credit
Party in connection with the Collateral. Such Credit Party may later cancel any insurance
purchased by Agent, but only after providing Agent with evidence that such Credit Party has
obtained insurance as required by this Agreement. If Agent purchases insurance for the
Collateral, such Credit Party will be responsible for the costs of that insurance, including
interest and other Charges imposed by Agent in connection with the placement of the insurance,
until the effective date of the cancellation or expiration of the insurance. The costs of the
insurance may be added to the Obligations. The costs of the insurance may be more than the
cost of insurance such Credit Party is able to obtain on its own.
	 
	(b)	 	Credit Parties shall notify Agent in writing immediately upon the occurrence of any Casualty
Event. Notwithstanding anything to the contrary contained in any insurance policies, all Net
Proceeds arising from a Casualty Event paid to any Credit Party or any of its Subsidiaries
shall immediately be delivered to Agent. So long as (i) no Event of Default shall have
occurred and be continuing or result from the release of funds or the making of any Revolving
Credit Advance to Borrowers in accordance with the following, and (ii) in Agent’s reasonable
judgment, appropriate arrangements have been made to ensure that the Collateral will not be
materially impaired, the Agent shall permit the Credit Parties to use Net Proceeds arising
from a Casualty Event to replace, repair, restore or rebuild the Collateral and/or other
assets of the Credit Parties in accordance with the terms of this Section 2.2;
provided that such Credit Party commences and diligently pursues such replacement,
repair, restoration or rebuilding of Collateral and/or other assets of the Credit Parties
within ninety (90) days of the occurrence of such Casualty Event. All Net Proceeds that are
to be made available to any Credit Party to replace, repair, restore or rebuild the Collateral
and/or other assets of the Credit Parties shall be applied by Agent to reduce the outstanding
principal balance of the Revolving Loan (which application shall not result in a permanent
reduction of the Revolving Credit Commitment) and upon such application, Agent shall establish
an Availability Reserve against the Borrowing Base in an amount equal to the amount of such
Net Proceeds so applied. Thereafter, such Net Proceeds shall be made available to Credit
Parties to provide funds to replace, repair, restore or rebuild the Collateral and/or other
assets of the Credit Parties as follows: (i) Borrowers shall request a Revolving Credit
Advance be made to Borrowers in the amount requested to be released; (ii) so long as the
conditions set forth in Section 7.2 have been met, Agent shall make such Revolving
Credit Advance; and (iii) in the case of Net Proceeds applied against the Revolving Loan, the
Availability Reserve established with respect to such insurance proceeds shall be reduced by
the amount of such Revolving Credit Advance. To the extent not used to replace, repair,
restore or rebuild the Collateral and/or other assets of the Credit Parties in accordance with
this Section 2.2(b), such Net Proceeds shall be applied in accordance with Section
1.5(d)(ii). Notwithstanding the foregoing, if the aggregate amount of the Net Proceeds
arising from any such Casualty Event that are to be made available to any Credit Party to
replace, repair, restore or rebuild the Collateral and/or other assets of the Credit Parties
exceeds the outstanding principal balance of the Revolving Loans (any such excess amount, the
“Excess Net Proceeds”), Agent shall first make available to

14

 

	 	 	Credit Parties the Excess
Net Proceeds to replace, repair, restore or rebuild the Collateral and/or other assets of the
Credit Parties as and when such Credit Parties request disbursement of such funds to be used
solely for such purposes prior to making any Revolving Credit Advances for such purposes as
described above in this Section 2.2. To the extent not used to replace, repair,
restore or rebuild the Collateral and/or other assets of the Credit Parties in accordance with
this Section 2.2(b), such Excess Net Proceeds shall be applied in accordance with
Section 1.5(d)(ii).
	 
	2.3	 	Inspection; Lender Meeting; Board Meetings. Each Credit Party shall permit any
authorized representatives of Agent to visit, audit and inspect any of the properties of such
Credit Party and its Subsidiaries, including its and their financial and accounting records,
and to make copies and take extracts therefrom, and to discuss its and their affairs, finances
and business with its and their officers and certified public accountants, at such reasonable
times during normal business hours and as often as may be reasonably requested. Borrowers
shall pay all normal audit and field examination fees and reasonable out-of-pocket expenses of
Agent related to any such audit and/or field examination. Representatives of each Lender will
be permitted to accompany representatives of Agent during each visit, inspection and
discussion referred to in the immediately preceding sentence. Without in any way limiting the
foregoing, each Credit Party will participate and will cause key management personnel of each
Credit Party and its Subsidiaries to participate in a meeting with Agent and Lenders at least
once during each year, which meeting shall be held at such time and such place as may be
reasonably requested by Agent. In addition, Borrowers shall provide Agent with not less than
five (5) Business Days prior written notice of all meetings of the Board of Directors of any
Credit Party (except in the case of emergency meetings, in which case such written notice
shall be given to Agent at the same time as that given to the relevant directors (or
equivalent)). Agent and each Lender shall have the right to appoint up to two (2) observers
to the Board of Directors, who shall be entitled to attend (or at the option of such observer,
monitor by telephone) all meetings of such Board of Directors and each committee of such Board
of Directors (including any executive committee), but shall not be entitled to vote, or to
influence any vote, and who shall receive all reports, meeting materials, notices, written
consents and other materials as and when provided to the members of such Board of Directors.
The Credit Parties shall reimburse Agent and such Lenders for the reasonable travel expenses
incurred by each such observer (limited to two (2) such Persons, in the case of Agent, and one
(1) such Person, in the case of each Lender) in connection with attendance at or participation
in meetings of such Credit Party’s Board of Directors to the extent consistent with such
Credit Party’s policies of reimbursing directors generally for such expenses.
	 
	2.4	 	Organizational Existence. Except as otherwise permitted by Section 3.6, each
Credit Party will and will cause its material Subsidiaries to at all times preserve and keep
in full force and effect its organizational existence and all rights and franchises material
to its business.
	 
	2.5	 	Environmental Matters. Each Credit Party shall and shall cause each Person within
its control to: (a) conduct its operations and keep and maintain its Real Estate in compliance
with all Environmental Laws and Environmental Permits other than noncompliance that

15

 

	 	 	could not
reasonably be expected to have a Material Adverse Effect; (b) implement any and all
investigation, remediation, removal and response actions that are appropriate or necessary to
maintain, in all material respects, the value and marketability of the Real Estate or to
otherwise comply with Environmental Laws and Environmental Permits pertaining to the presence,
generation, treatment, storage, use, disposal, transportation or Release of any Hazardous
Material on, at, in, under, above, to, from or about any of its Real Estate; (c) notify Agent
promptly after such Credit Party or any Person within its control becomes aware of any
violation of Environmental Laws or Environmental Permits or any Release on, at, in, under,
above, to, from or about any Real Estate that is reasonably likely to result in Environmental
Liabilities to a Credit Party or its Subsidiaries in excess of One Hundred Thousand Dollars
($100,000); and (d) promptly forward to Agent a copy of any order, notice, request for
information or any communication or report received by such Credit Party or any Person within
its control in connection with any such violation or Release or any other matter relating to
any Environmental Laws or Environmental Permits that could reasonably be expected to result in
Environmental Liabilities in excess of One Hundred Thousand Dollars ($100,000), in each case
whether or not the Environmental Protection Agency or any Governmental Authority has taken or
threatened any action in connection with any such violation, Release or other matter. If
Agent at any time has a reasonable basis to believe that there may be a violation of any
Environmental Laws or Environmental Permits by any Credit Party or any Person under its
control or any Environmental Liability arising thereunder, or a Release of Hazardous Materials
on, at, in, under, above, to, from or about any of its Real Estate, that, in each case, could
reasonably be expected to have a Material Adverse Effect, then each Credit Party and its
Subsidiaries shall, upon Agent’s written request (i) cause the performance of such
environmental audits including subsurface sampling of soil and groundwater, and preparation of
such environmental reports, at Borrowers’ expense, as Agent may from time to time reasonably
request, which shall be conducted by reputable environmental consulting firms reasonably
acceptable to Agent and shall be in form and substance reasonably acceptable to Agent, and
(ii) if the Credit Parties fail to perform (or cause performance) of any environmental audits
under Section 2.5(d)(i) above within a reasonable time after receiving a written
request from Agent, Credit Parties shall permit Agent or its representatives to have
reasonable access to all Real Estate for the purpose of conducting such environmental audits
and testing as Agent deems appropriate, including subsurface sampling of soil and groundwater.
Borrowers shall reimburse Agent for the costs of such audits and tests and the same will
constitute a part of the Obligations secured hereunder.
	 
	2.6	 	Landlords’ Agreements, Mortgagee Agreements and Real Estate Purchases. After the
Closing Date, each Credit Party shall use its best efforts to obtain a landlord’s agreement or
mortgagee agreement, as applicable, from the lessor of any Real Estate leased by any Credit
Party or mortgagee of any Real Estate owned by any Credit Party, as applicable, which
agreement shall contain a waiver or subordination of all Liens or claims that the landlord or
mortgagee may assert against the Collateral at that location, shall permit Agent access to the
related premises and shall otherwise be reasonably satisfactory in form and substance to
Agent. If such landlord’s agreement is not obtained within thirty (30) days after the Closing
Date or upon entering into a lease in connection with new Real Estate, Agent may, in its sole
discretion, establish an Availability Reserve in an

16

 

	 	 	amount equal to three (3) month’s rent
related to each such leased property. Each Credit Party shall and shall cause its
Subsidiaries to timely and fully pay and perform their obligations under all leases and other
agreements with respect to each leased location or public warehouse where any Collateral is or
may be located.
	 
	2.7	 	Further Assurances. 
	 
	(a)	 	Each Credit Party shall, from time to time, execute such guaranties, financing statements,
documents, security agreements and reports as Agent or Requisite Lenders at any time may
reasonably request to evidence, perfect or otherwise implement the guaranties and security for
repayment of the Obligations contemplated by the Loan Documents.
	 
	(b)	 	In the event any Credit Party acquires a fee ownership interest in real property after the
Closing Date, such Credit Party shall deliver to Agent a fully executed mortgage or deed of
trust over such real property in form and substance satisfactory to Agent, together with such
title insurance policies, surveys, appraisals, evidence of insurance, legal opinions,
environmental assessments and other documents and certificates as shall be required by Agent.
	 
	(c)	 	Each Credit Party shall (i) cause each Person, upon its becoming a Subsidiary of such Credit
Party (provided that this shall not be construed to constitute consent by any of the Lenders
to any transaction not expressly permitted by the terms of this Agreement), promptly to
guaranty the Obligations and to grant to Agent, for the benefit of Agent and Lenders, a
security interest in the real, personal and mixed property of such Person to secure the
Obligations and (ii) pledge, or cause to be pledged, to Agent, for the benefit of Agent and
Lenders, all of the Stock of such Subsidiary to secure the Obligations. The documentation for
such guaranty, security and pledge shall be substantially similar to the Loan Documents
executed concurrently herewith with such modifications as are reasonably requested by Agent.
	 
	(d)	 	Each Credit Party shall promptly correct any defect or error that may be discovered in any
Loan Document by it, or if when discovered by the Agent, by the Agent or in the execution,
acknowledgment or recordation thereof. Promptly upon request by the Agent, each Credit Party
also shall, and shall cause each Subsidiary to do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register, any and all deeds, conveyances, mortgages,
deeds of trust, trust deeds, assignments, estoppel certificates, financing statements and
continuations thereof, notices of assignment, transfers, certificates, assurances and other
instruments as the Agent may require from time to time in order: (a) to carry out more
effectively the purposes of the Loan Documents; (b) to perfect and maintain the validity,
effectiveness and priority of any security interests intended to be created by the Loan
Documents including, without limitation, the delivery of a landlord waiver from any landlord
required by the Agent; and (c) to better assure, convey, grant, assign, transfer, preserve,
protect and confirm unto the Agent and Lenders the rights granted now or hereafter intended to
be granted to the Agent and Lenders under any Loan Document or under any other instrument
executed in connection with any Loan Document or that any Credit Party may be or become bound
to convey, mortgage or assign to the Agent in order to carry out the intention or facilitate
the performance of the

17

 

	 	 	provisions of any Loan Document. The Borrower Representative shall
furnish to the Agent evidence satisfactory to the Agent of every such recording, filing or
registration.
	 
	2.8	 	Cash Management Systems. Borrowers shall, and shall cause each other Credit Party
to, enter into Control Agreements with respect to each lockbox and deposit account maintained
by each Credit Party (other than any payroll account so long as such payroll account is a zero
balance account) after the Closing Date, if requested to do so by Agent, to become effective
from and after any Control Event. Each such Control Agreement shall be in form and substance
satisfactory to Agent in its Permitted Discretion and provide Agent exclusive dominion and
control of such lockboxes and deposit accounts from and after the occurrence of any Control
Event. In connection therewith, Borrowers shall, and shall cause each other Credit Party to,
remit, and direct all Account Debtors to remit, all remittances on Accounts and all other
proceeds of Collateral directly to such lockboxes from which, on a daily basis, all such
remittances shall be concentrated into one or more deposit accounts under the exclusive
dominion and control of Agent from and after the occurrence of any Control Event used
exclusively for that purpose. Funds so deposited into such concentration accounts shall,
unless otherwise required by Agent to be deposited directly with Agent for application to
Obligations then outstanding during any time that a Control Event exists, which Agent may
elect to do at any time and from time to time, be deposited into one or more operating
accounts of Borrowers, also under the exclusive dominion and control of Agent, but from which,
unless Agent determines otherwise at any time that a Control Event exists, Borrowers shall
have the right to make transfers and withdrawals and write checks against amounts on deposit
therein from time to time.
	 
	2.9	 	ERISA. Each Credit Party will (a) maintain, and cause each Subsidiary to maintain,
each Plan in compliance with all material applicable requirements of ERISA and of the IRC and
with all material applicable rulings and regulations issued under the provisions of ERISA and
of the IRC; and (b) will not permit any of the ERISA Affiliates to (i) engage in any
transaction in connection with which such Credit Party or any of the ERISA Affiliates would be
subject to either a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax
imposed by Section 4975 of the Code, in either case in an amount exceeding Fifty Thousand
Dollars ($50,000), (ii) fail to make full payment when due of all amounts which, under the
provisions of any Plan, such Borrower or any ERISA Affiliate is required to pay as
contributions thereto, or permit to exist any accumulated funding deficiency (as such term is
defined in Section 302 of ERISA and Section 412 of the Code), whether or not waived, with
respect to any Plan in an aggregate amount exceeding Fifty Thousand Dollars ($50,000) or (iii)
fail to make any payments in an aggregate amount exceeding Fifty Thousand Dollars ($50,000) to
any Multiemployer Plan that such Borrower or any of the ERISA Affiliates may be required to
make under any agreement relating to such Multiemployer Plan or any law pertaining thereto.

SECTION 3.

NEGATIVE COVENANTS

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

18

 

	3.1	 	Indebtedness. The Credit Parties shall not and shall not cause or permit their
Subsidiaries directly or indirectly to create, incur, assume, or otherwise become or remain
directly or indirectly liable with respect to any Indebtedness (other than pursuant to a
Contingent Obligation permitted under Section 3.4), except:
	 
	(a)	 	the Obligations;
	 
	(b)	 	intercompany Indebtedness arising from loans made by any Borrower (i) to any other Borrower
or to the Parent Company, in each case, without limitation as to Dollar amount, or (ii) to any
other Credit Party which is not a Borrower or the Parent Company in an aggregate amount not to
exceed One Hundred Thousand Dollars ($100,000), in the aggregate, for all such Credit Parties
taken as a whole at any time outstanding, provided, however, that (1) such
Indebtedness shall be evidenced by one or more subordinated promissory notes substantially in
the form of Exhibit 3.1(b) or otherwise having terms satisfactory to Agent, in its
Permitted Discretion the sole originally executed counterparts of which shall be pledged and
delivered to Agent, for the benefit of Agent and Lenders, as security for the Obligations and
(2) at the time any such intercompany loan is made by any Borrower and immediately after
giving effect thereto, the Borrower extending such intercompany loan or advance shall be
Solvent; provided that for purposes of determining such Solvency, such Borrower making
such intercompany loan shall assume that the right to be repaid any loans, advances or other
intercompany extensions of credit owing from any Credit Party which is not Solvent shall have
no value;
	 
	(c)	 	Indebtedness secured by purchase money Liens on Equipment or incurred with respect to Capital
Leases of Equipment, to the extent not in excess of the amount specified in Section
4.1;
	 
	(d)	 	Indebtedness consisting of Subordinated Debt;
	 
	(e)	 	Indebtedness outstanding on the Closing Date but being satisfied on the Closing Date pursuant
to the Recapitalization;
	 
	(f)	 	other Indebtedness outstanding on the Closing Date and described on Schedule 3.1; and
	 
	(g)	 	Permitted Refinancing Indebtedness.
	 
	3.2	 	Liens and Related Matters. 
	 
	(a)	 	No Liens. The Credit Parties shall not and shall not cause or permit their
Subsidiaries to directly or indirectly create, incur, assume or permit to exist any Lien on or
with respect to any property or asset of such Credit Party or any such Subsidiary, whether now
owned or hereafter acquired, or any income or profits therefrom, except Permitted
Encumbrances, including, without limitation, those Liens constituting Permitted Encumbrances
existing on the date hereof and renewals and extensions thereof, as set forth on Schedule
3.2.
	 
	(b)	 	No Negative Pledges. The Credit Parties shall not and shall not cause or permit
their Subsidiaries to directly or indirectly enter into or assume any agreement (other than
the

19

 

	 	 	Loan Documents) prohibiting the creation or assumption of any Lien upon its properties or
assets, whether now owned or hereafter acquired, except (i) provisions restricting
subletting or assignment of any lease governing a leasehold interest of any Borrower or a
Subsidiary of any Borrower entered into in the ordinary course of business and consistent with
past practices and (ii) provisions of customary documentation of any Indebtedness secured by
purchase money security interests or Capital Leases of any Credit Party or their respective
Subsidiaries restricting the transfer and/or encumbrance of any assets of Credit Parties or
their respective Subsidiaries acquired with the proceeds of such Indebtedness secured by
purchase money security interests or pursuant to such Capital Leases.
	 
	(c)	 	No Restrictions on Subsidiary Distributions to Borrowers. Except as provided herein
or in any of the other Loan Documents, the Credit Parties shall not and shall not cause or
permit their Subsidiaries to directly or indirectly create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or restriction of any kind on the ability
of any such Subsidiary to: (1) pay dividends or make any other distribution on any of such
Subsidiary’s Stock owned by any Borrower or any other Subsidiary; (2) pay any Indebtedness
owed to any Borrower or any other Subsidiary; (3) make loans or advances to any Borrower or
any other Subsidiary; or (4) transfer any of its property or assets to any Borrower or any
other Subsidiary.
	 
	3.3	 	Investments. The Credit Parties shall not and shall not cause or permit their
Subsidiaries to directly or indirectly make or own any Investment in any Person
except:
	 
	(a)	 	Credit Parties may make intercompany loans to other Credit Parties to the extent permitted
under Section 3.1;
	 
	(b)	 	Credit Parties may make loans and advances to employees for moving, entertainment, travel and
other similar expenses in the ordinary course of business not to exceed Fifty Thousand Dollars
($50,000), in the aggregate, at any time outstanding (inclusive of any such loans and advances
outstanding on the Closing Date);
	 
	(c)	 	Credit Parties may hold Investments representing non-cash consideration received in
accordance with Section 3.7;
	 
	(d)	 	Credit Parties may make Investments in Cash Equivalents subject to Control Agreements in
favor of Agent; provided that such Investments are not subject to setoff rights,
except as provided in such Control Agreements;
	 
	(e)	 	Credit Parties may hold Investments existing on the Closing Date as set forth on Schedule
3.3 and any renewals, amendments and replacements thereof that do not increase the amount
thereof; and
	 
	(f)	 	each Credit Party may hold investments comprised of notes payable, or stock or other
securities issued by financially troubled Account Debtors (excluding Affiliates) to such
Credit Party pursuant to agreements with respect to settlement of such Account Debtor’s
Accounts with such Credit Party negotiated in the ordinary course of business.

20

 

	3.4	 	Contingent Obligations. The Credit Parties shall not and shall not cause or permit their
Subsidiaries to directly or indirectly create or become or be liable with respect to any
Contingent Obligation, except:
	 
	(a)	 	those resulting from endorsement of negotiable instruments for collection in the ordinary
course of business;
	 
	(b)	 	those existing on the Closing Date and described in Schedule 3.4;
	 
	(c)	 	those arising under indemnity agreements to title insurers to cause such title insurers to
issue to Agent mortgagee title insurance policies;
	 
	(d)	 	those arising with respect to customary indemnification obligations incurred in connection
with Asset Dispositions permitted hereunder;
	 
	(e)	 	those incurred in the ordinary course of business with respect to surety and appeal bonds,
performance and return-of-money bonds and other similar obligations not exceeding at any time
outstanding One Hundred Thousand Dollars ($100,000), in aggregate liability; and
	 
	(f)	 	those incurred with respect to Indebtedness permitted by Section 3.1 provided that
any such Contingent Obligation is subordinated to the Obligations to the same extent as the
Indebtedness to which it relates is subordinated to the Obligations.
	 
	3.5	 	Restricted Payments. The Credit Parties shall not and shall not cause or permit
their Subsidiaries to directly or indirectly declare, order, pay, make or set apart any sum
for any Restricted Payment, except that:
	 
	(a)	 	Each Credit Party may make payments and distributions to Parent Company (whether directly or
through sequential upstream Restricted Payments) that are used by Parent Company to pay
federal and state income taxes then due and owing, franchise taxes and other similar licensing
expenses incurred in the ordinary course of business; provided that each Credit
Party’s aggregate contribution to taxes as a result of the filing of a consolidated or
combined return by Parent Company shall not be greater, nor the aggregate receipt of tax
benefits less, than they would have been had such Credit Party not filed a consolidated or
combined return with Parent Company;
	 
	(b)	 	Wholly-owned direct and indirect Subsidiaries of a Borrower may make Restricted Payments to
the entity (if a Borrower) which is the direct owner of the equity of such wholly-owned
Subsidiary;
	 
	(c)	 	Parent Company may make regularly scheduled payments of (but no prepayments of) principal and
interest under the Existing Subordinated Notes, as in effect on the Closing Date, so long as
(i) before and after giving effect thereto, no Default or Event of Default exists, (ii)
without limitation of the preceding clause (i), on a pro forma basis,
giving effect to such payment as if made in the last Fiscal Month for which financial
statements have been reported to Agent and Lenders, Borrowers remain in compliance with all
Financial Covenants, (iii) giving effect to such payment as made, Borrowers are in

21

 

	 	 	compliance
with the Restricted Payment Test; and (iv) such payment is otherwise then permitted to be paid
pursuant to the applicable Existing Notes Subordination Agreement;
	 
	(d)	 	Parent Company may make regularly scheduled payments of (but no prepayments of) the USVD
Seller Debt, pursuant to the USVD Documents applicable thereto as in effect on the Closing
Date, so long as such payment is otherwise then permitted to be made pursuant to the USVD
Seller Subordination Agreement;
	 
	(e)	 	Parent Company may pay cash dividends on the Preferred A Stock (but for avoidance of doubt,
no other Stock) at a coupon rate not to exceed eight percent (8%) per annum, being the rate in
effect under the Parent Company’s Organizational Documents as in effect on the Closing Date
(without giving affect to any permission thereof authorizing or permitted any subsequent
increase therein) so long as (i) before and after giving effect thereto, no Default or Event
of Default exists, (ii) without limitation of the preceding clause (i), on a
pro forma basis, giving effect to such payment as if made in the last Fiscal
Month for which financial statements have been reported to Agent and Lenders, Borrowers remain
in compliance with all Financial Covenants, (iii) giving effect to such payment as made,
Borrowers are in compliance with the Restricted Payment Test; and (iv) such payment is
otherwise then permitted to be made under the Parent Company’s Organizational Documents;
	 
	(f)	 	any Credit Party may declare and pay dividends and other distributions to holders of its
Stock, payable solely in its Stock, to the extent that such Stock is pledged to Agent as
collateral security for the Obligations in accordance with the terms and provisions of the
respective Collateral Documents; and
	 
	(g)	 	Parent Company may pay (on or after April 15, 2010) the scheduled principal payment due on
April 15, 2010 under the Equity Investor Note (together with accrued interest at the rate
provided in the Equity Investor Note as in effect on the date hereof), so long as (i) before
and after giving effect thereto, no Default or Event of Default exists, (ii) Borrower
Representative has delivered to Agent and each Lender the audited year-end financial
statements of Parent Company and its Subsidiaries for the Fiscal Year ending December 31, 2009
required to be delivered pursuant to Section 4.5(b) and the monthly financial
statements of Parent Company and its Subsidiaries for the Fiscal Month ending March 31, 2010
required to be delivered pursuant to Section 4.5(a), in each case prepared in
compliance with all requirements of Section 4.5, (iii) without limitation of the
preceding clause (i), (A) on a pro forma basis, giving effect to such
payment as if made in the Fiscal Year ending December 31, 2009, Borrowers remain in compliance
with all Financial Covenants and (B) on a pro forma basis, giving effect to
such payment as if made in the Fiscal Month ending March 31, 2010, Borrowers remain in
compliance with all Financial Covenants, (iv) giving effect to such payment as made,
Borrowers are in compliance with the Restricted Payment Test; (v) no Material Adverse Effect
has occurred since the Closing Date; (vi) such payment is otherwise then permitted to be paid
pursuant to the Equity Investor Note Subordination Agreement; and (vii) the chief executive
officer or chief financial officer of Borrower Representative shall have certified as to
satisfaction of each of the foregoing conditions in a certificate attaching calculations.

22

 

	3.6	 	Restriction on Fundamental Changes. The Credit Parties shall not and shall not cause
or permit their Subsidiaries to directly or indirectly: (a) amend, modify or waive any term
or provision of its Organizational Documents in any manner materially adverse to themselves or
to the Agent or Lenders, unless required by law; (b) enter into any transaction of merger or
consolidation except, upon not less than five (5) Business Days prior written notice
to Agent, any wholly-owned Subsidiary of any Borrower may be merged with or into such Borrower
(provided that such Borrower is the surviving entity) or any other wholly-owned Subsidiary of
such Borrower; (c) liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution); or (d) except as the result of (i) the closing of the STN Acquisition or (ii)
the consummation of a transaction permitted under clause (b) herein, acquire by
purchase or otherwise all or any substantial part of the business, Stock or assets of any
other Person.
	 
	3.7	 	Disposal of Assets or Subsidiary Stock. The Credit Parties shall not and shall not
cause or permit their Subsidiaries to directly or indirectly convey, sell, lease, sublease,
transfer or otherwise dispose of, or grant any Person an option to acquire, in one transaction
or a series of related transactions, any of its property, business or assets, whether now
owned or hereafter acquired, except for (a) sales of inventory in good faith to customers for
fair value in the ordinary course of business and dispositions of obsolete equipment not used
or useful in the business and (b) the Notes and the Warrants, (c) dispositions pursuant to the
Warrantholders Rights Agreement and (d) Asset Dispositions not otherwise permitted under this
Section 3.7 by any Credit Party if all of the following conditions are met: (i) the
aggregate market value of assets sold or otherwise disposed of in any Fiscal Year does not
exceed One Hundred Thousand Dollars ($100,000); (ii) the consideration received is at least
equal to the fair market value of such assets; (iii) the Net Proceeds of such Asset
Disposition are applied as required by Section 1.5(d); and (iv) no Default or Event of
Default then exists or would result from such Asset Disposition.
	 
	3.8	 	Transactions with Affiliates. The Credit Parties shall not and shall not cause or
permit their Subsidiaries to directly or indirectly enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or the rendering
of any management, consulting, investment banking, advisory or other similar services) with
any Affiliate or with any director, officer or employee of any Credit Party, except (a) as set
forth on Schedule 3.8(a), (b) transactions in the ordinary course of and pursuant to
the reasonable requirements of the business of any such Credit Party or any of its
Subsidiaries and upon fair and reasonable terms which are fully disclosed to Agent and are no
less favorable to any such Credit Party or any of its Subsidiaries than would be obtained in a
comparable arm’s length transaction with a Person that is not an Affiliate, (c) payment of
reasonable compensation to officers and employees for services actually rendered to any such
Credit Party or any of its Subsidiaries; (d) payment of director’s (or similar) fees not to
exceed Fifty Thousand Dollars ($50,000) in the aggregate as to all such fees, for any Fiscal
Year of Borrowers; (e) loans to employees permitted in Section 3.3, (f) Restricted
Payments permitted in Section 3.5 and the agreements pursuant to which such Restricted
Payments are required to be made, (g) reimbursement of employee travel and lodging costs
incurred in the ordinary course of business and (h) employment agreements, equity incentive
agreements and other employee and arrangements in the

23

 

	 	 	ordinary course of business which are
fully disclosed to the Agent, including the USVD Employment Agreements and the USVD
Non-Compete Agreements.
	 
	3.9	 	Conduct of Business. The Credit Parties shall not and shall not cause or permit
their Subsidiaries to directly or indirectly engage in any business other than businesses of
the type described on Schedule 3.9.
	 
	3.10	 	Changes Relating to Indebtedness. The Credit Parties shall not and shall not cause
or permit their Subsidiaries to directly or indirectly change or amend the terms of any of its
Indebtedness permitted by Section 3.1, except as permitted by Section 3.1(g)
and except as contemplated by, and in accordance with, the STN Acquisition Agreement.
	 
	3.11	 	Fiscal Year. No Credit Party shall change its Fiscal Year or permit any of its
Subsidiaries to change their respective fiscal years, provided, however, that
STN may change its Fiscal Year to December 31 to make it consistent with Parent Company’s
Fiscal Year.
	 
	3.12	 	Press Release; Public Offering Materials. Each Credit Party executing this Agreement
agrees that neither it nor its Affiliates will in the future issue any press releases or other
public disclosure, including any prospectus, proxy statement or other materials filed with any
Governmental Authority relating to a public offering of the Stock of any Credit Party, using
the name of Agent, any Lender or its Affiliates or referring to this Agreement, the other Loan
Documents or the Related Transactions Documents without at least two (2) Business Days’ prior
notice to Agent and Lenders and without the prior written consent of Agent and Lenders unless
(and only to the extent that) such Credit Party or Affiliate is required to do so under law
and then, in any event, such Credit Party or Affiliate will consult with Chatham before
issuing such press release or other public disclosure. Each Credit Party consents to the
publication by Agent or any Lender of a tombstone or similar advertising material relating to
the financing transactions contemplated by this Agreement. Agent or such Lender shall provide
a draft of any such tombstone or similar advertising material to each Credit Party for review
and comment prior to the publication thereof. Agent reserves the right to provide to industry
trade organizations information necessary and customary for inclusion in league table
measurements.
	 
	3.13	 	Subsidiaries. The Credit Parties shall not and shall not cause or permit their
Subsidiaries to directly or indirectly establish, create or acquire any Subsidiary subsequent
to the Closing Date.
	 
	3.14	 	Bank Accounts; Lockboxes. The Credit Parties shall not and shall not cause or permit
their Subsidiaries to establish any new bank accounts or lockboxes without prior written
notice to Agent and, if such bank account is a deposit account, unless Agent and the bank at
which such deposit account is to be opened or lockbox is to be administered (other than any
payroll account so long as such payroll account is a zero balance account and other than any
client account administered by any Credit Party) enter into a Control Agreement regarding such
deposit account and/or lockbox, as applicable (after any Control Event), pursuant to which
such bank acknowledges the security interest of Agent in such deposit account and/or lockbox,
as applicable, agrees to comply with instructions originated by

24

 

	 	 	Agent directing disposition of
the funds in the deposit account and/or lockbox, as applicable, without further consent from
such Credit Party or Subsidiary, and agrees to subordinate and limit any security interest the
bank may have in the deposit account and/or lockbox, as applicable, and waive all rights of
set-off with respect thereto (other than for customary fees and expenses) on terms
satisfactory to Agent and permitting Agent to assume exclusive dominion and control over such
deposit account and/or lockbox, as applicable.
	 
	3.15	 	Hazardous Materials. The Credit Parties shall not and shall not cause or permit
their Subsidiaries to cause or permit a Release of any Hazardous Material on, at, in, under,
above, to, from or about any of the Real Estate where such Release would (a) violate in any
respect, or form the basis for any Environmental Liabilities by the Credit Parties or any of
their Subsidiaries under, any Environmental Laws or Environmental Permits or (b) otherwise
adversely impact the value or marketability of any of the Real Estate or any of the
Collateral, other than such violations or Environmental Liabilities that could not reasonably
be expected to have a Material Adverse Effect.
	 
	3.16	 	ERISA. The Credit Parties shall not and shall not cause or permit any ERISA
Affiliate to, cause or permit to occur an ERISA Event to the extent such ERISA Event could
reasonably be expected to have a Material Adverse Effect.
	 
	3.17	 	Sale Leasebacks. The Credit Parties shall not and shall not cause or permit any of
their Subsidiaries to engage in any sale leaseback, synthetic lease or similar transaction
involving any of its assets.
	 
	3.18	 	Changes to Material Contracts. The Credit Parties shall not and shall not cause or
permit any of their Subsidiaries to change or amend the terms of their Material Contracts,
including, particularly, any set forth on Schedule 3.18, in a manner materially
adverse to the rights or interests of any Credit Party which is a party thereto or materially
adverse to the rights or interests of the Agent and the Lenders, other than (i) the Related
Transaction Documents, which may not be changed or amended in any manner without the prior
written consent of Agent, and (ii) the Subordinated Debt Documents, which may not be changed
or amended in any manner except in accordance with the Subordination Documents corresponding
thereto.
	 
	3.19	 	Prepayments of Other Indebtedness. The Credit Parties shall not, directly or
indirectly, voluntarily purchase, redeem, defease or prepay any principal of, premium, if any,
interest or other amount payable in respect of any Indebtedness, including, particularly, but
without limitation in this regard, the USVD Seller Debt, except (i) the Obligations,
subject to the terms and conditions thereon set forth herein; (ii) Indebtedness secured by a
Permitted Encumbrance if the asset securing such Indebtedness has been sold or otherwise
disposed of in accordance with Section 3.7(a), and (iii) intercompany Indebtedness
reflecting amounts owing to Borrowers and permitted under Section 3.1.
	 
	3.20	 	Accounting Changes. No Credit Party will, and shall not cause or permit any
Subsidiary to, make any significant change in accounting treatment or reporting practices,
except as required by GAAP.

25

 

	3.21	 	Subordinated Debt. No Credit Party will, nor permit any Subsidiary to, (a) make any
scheduled payment of the principal of or interest on any Subordinated Debt which would be
prohibited by the terms of such Subordinated Debt and any related Subordination Agreement; (b)
directly or indirectly make any prepayment on or purchase, redeem or defease any Subordinated
Debt or offer to do so (whether such prepayment, purchase or redemption, or offer with respect
thereto, is voluntary or mandatory, unless expressly permitted pursuant to the applicable
Subordination Agreement); (c) amend or cancel the subordination provisions applicable to any
Subordinated Debt; (d) take or omit to take any action if as a result of such action or
omission the subordination of such Subordinated Debt, or any part thereof, to the Obligations
might be terminated, impaired or adversely affected; or (e) omit to give the Agent prompt
notice of any notice received from any holder of Subordinated Debt, or any trustee therefor,
or of any default under any agreement or instrument relating to any Subordinated Debt by
reason whereof such Subordinated Debt might become or be declared to be due or payable.
	 
	3.22	 	Executive Compensation. No Credit Party will, nor permit any Subsidiary to, make any
payments of management, consulting or other fees for management or similar services, or any
payment on account of any Indebtedness owing to any officer, employee, shareholder, director
or other Affiliate of such Credit Party, except reasonable compensation to officers, employees
and directors of such Credit Party for services rendered to such Borrower in the ordinary
course of business. Without limiting the foregoing, (i) no Credit Party shall pay or commit
to pay cash compensation to any member of such Credit Party’s senior management in an amount
in any Fiscal Year in excess of one hundred ten percent (110%) of the aggregate cash
compensation paid during the prior Fiscal Year plus such additional amounts of incentive
compensation as the Credit Parties may elect to pay from time to time after prior review with,
and prior approval by, Agent and (ii) no Credit Party may make any change in the amount,
method of calculation or frequency of payment of the USVD Compensation in any event.
	 
	3.23	 	Hedging Agreements. No Credit Party will, nor permit any Subsidiary to, enter into
any hedging arrangements, other than any Rate Protection Agreements that are issued or
approved by the Agent.

SECTION 4.

FINANCIAL COVENANTS/REPORTING

Borrowers covenant and agree that from and after the date hereof until the Commitment Termination
Date, Borrowers shall perform and comply with, and shall cause each of the other Credit Parties to
perform and comply with, all covenants in this Section 4 applicable to such Person.

	4.1	 	Capital Expenditure Limits. Parent Company and its Subsidiaries on a consolidated
basis shall not make Capital Expenditures that exceed in the aggregate $250,000 in any Fiscal
Year beginning with the 2008 Fiscal Year.
	 
	4.2	 	[Intentionally Omitted].

26

 

	4.3	 	Minimum Fixed Charge Coverage Ratio. Parent Company and its Subsidiaries shall have
on a consolidated basis at the end of each Fiscal Month, beginning with the Fiscal Month
ending August 31, 2008, a Fixed Charge Coverage Ratio for the twelve (12) Fiscal Months then
ended of at least 1.75:1; provided, however, that, notwithstanding the
foregoing, in computing the Fixed Charges component of the foregoing ratio for the period
between August 31, 2008 and July 31, 2009, the Fixed Charges shall be computed on an
“annualized” basis and not on a trailing twelve (12) Fiscal Months’ basis, with the Fiscal
Month ended August 31, 2008, being the “base” month; that is, for the foregoing purposes,
“Fixed Charges” as of August 31, 2008 shall be equal to Fixed Charges for such Fiscal Month
multiplied by twelve (12), “Fixed Charges” as of September 30, 2008 shall be equal to Fiscal
Charges for the two (2) Fiscal Months then ended (counting from August 1, 2008) multiplied by
six (6), and so forth month-by-month.
	 
	4.4	 	Maximum Leverage Ratio. Parent Company and its Subsidiaries on a consolidated basis
shall have, at the end of each Fiscal Month, beginning with the Fiscal Month ending August 31,
2008, a Leverage Ratio as of the last day of such Fiscal Month and for the twelve (12) Fiscal
Months then ended (using for all applicable Fiscal Months ending prior to the Closing Date the
stipulated amounts of EBITDA set forth at Annex F-12), of not more than 3.0:1.
	 
	4.5	 	Financial Statements and Other Reports. Parent Company will maintain, and cause each
of its Subsidiaries to maintain, a system of accounting established and administered in
accordance with sound business practices to permit preparation of Financial Statements in
conformity with GAAP (it being understood that monthly Financial Statements are not required
to have footnote disclosures and may be subject to normal year-end adjustments). Borrower
Representative will deliver each of the Financial Statements and other reports described below
to Agent (and each Lender in the case of the Financial Statements and other reports described
in Sections 4.5(a), (b), (c), (d), (e), (f), (g), (h), (i),
(j), and (n)).
	 
	(a)	 	Interim Financials. As soon as available and in any event within thirty (30) days
after the end of each Fiscal Month (including the last Fiscal Month of Parent Company’s Fiscal
Year), Borrower Representative will deliver (1) the consolidated and consolidating balance
sheets of Parent Company and its Subsidiaries, as at the end of such Fiscal Month, and the
related consolidated and consolidating statements of income and stockholders’ equity and a
schedule of Capital Expenditures for such Fiscal Month and for the period from the beginning
of the then current Fiscal Year of Parent Company to the end of such month, together with, on
a quarterly basis only, a cash flow statement, (2) a report setting forth in comparative form
the corresponding figures for the corresponding periods of the previous Fiscal Year and the
corresponding figures from the most recent Projections for the current Fiscal Year delivered
pursuant to 
Section 4.5(h) and (3) a schedule of the outstanding Indebtedness for
borrowed money of Borrowers and their Subsidiaries describing in reasonable detail each such
debt issue or loan outstanding and the principal amount and amount of accrued and unpaid
interest with respect to each such debt issue or loan.

27

 

	(b)	 	Year-End Financials. As soon as available and in any event within ninety (90) days
after the end of each Fiscal Year thereafter of Parent Company, Borrower Representative will
deliver (1) the consolidated and consolidating balance sheets of Parent Company and its
Subsidiaries, as at the end of such year, and the related consolidated and consolidating
statements of income, stockholders’ equity and cash flow for such Fiscal Year, (2) a schedule
of the outstanding Indebtedness for borrowed money of Parent Company and its Subsidiaries
describing in reasonable detail each such debt issue or loan outstanding and the principal
amount and amount of accrued and unpaid interest with respect to each such debt issue or loan
and (3) a report with respect to the consolidated Financial Statements from a firm of
Certified Public Accountants selected by Borrowers and reasonably acceptable to Agent, which
report shall be prepared in accordance with Statement of Auditing Standards No. 58 (the
“Statement”) “Reports on Audited Financial Statements” and such report shall
be “Unqualified” (as such term is defined in such Statement).
	 
	(c)	 	Accountants’ Reports. Promptly upon receipt thereof, Borrower Representative will
deliver copies of all significant reports submitted by Parent Company’s firm of certified
public accountants in connection with each annual, interim or special audit or review of any
type of the Financial Statements or related internal control systems of Borrowers or their
Subsidiaries made by such accountants, including any comment letter submitted by such
accountants to management in connection with their services.
	 
	(d)	 	Borrowing Base Certificate. As soon as available and in any event on the first
Business Day of each calendar month, and from time to time upon the request of Agent, Borrower
Representative will deliver a Borrowing Base Certificate (in substantially the same form as
Exhibit 4.5(d), the “Borrowing Base Certificate”) as at the last Business Day
of the preceding calendar week.
	 
	(e)	 	Management Report. Together with each delivery of Financial Statements of Parent
Company pursuant to Sections 4.5(a), Borrower Representative will deliver a management
report (1) describing the operations and financial condition of Parent Company and its
Subsidiaries for the month then ended and the portion of the current Fiscal Year then elapsed
(or for the Fiscal Year then ended in the case of year-end financials) and (2) discussing the
reasons for any significant variations. The information above shall be presented in
reasonable detail and shall be certified by the chief financial officer of Borrower
Representative to the effect that such information fairly presents the results of operations
and financial condition of Parent Company and its Subsidiaries as at the dates and for the
periods indicated.
	 
	(f)	 	Backlog. Together with each delivery of Financial Statements of Parent Company
pursuant to Section 4.5(a), Borrower Representative will deliver a schedule of backlog
(by customer and by Borrower), to be current as of its delivery date, to be in form and
content reasonably satisfactory to Agent, but including therein in any event the amount of
each contract, the expected installation date and status of contract (i.e., executed,
pending or upside).
	 
	(g)	 	Appraisals. From time to time, at Borrowers’ expense, at any time while and so long
as an Event of Default shall have occurred and be continuing, Agent may obtain appraisal

28

 

	 	 	reports in form and substance and from appraisers satisfactory to Agent stating the then
current market values of all or any portion of the Real Estate and personal property owned by
any of the Credit Parties.
	 
	(h)	 	Projections and Operating Plan. As soon as available and in any event no later than
thirty (30) days prior to the end of each of Parent Company’s Fiscal Years, Borrower
Representative will deliver (a) Projections of Parent Company and its Subsidiaries for the
forthcoming three (3) fiscal years, year by year, and for the forthcoming fiscal year, month
by month and (b) a board approved operating plan for Parent Company and its Subsidiaries for
the forthcoming Fiscal Year.
	 
	(i)	 	SEC Filings and Press Releases. Promptly upon their becoming available, but in any
event within five (5) Business Days thereafter Borrower Representative will deliver copies of
(1) all Financial Statements, reports, notices and proxy statements sent or made available by
Parent Company or any of its Subsidiaries to their Stockholders, (2) all regular and periodic
reports and all registration statements and prospectuses, if any, filed by Parent Company or
any of its Subsidiaries with any securities exchange or with the Securities and Exchange
Commission, any Governmental Authority or any private regulatory authority, and (3) all press
releases and other statements made available by Parent Company or any of its respective
Subsidiaries to the public concerning developments in the business of any such Person.
	 
	(j)	 	Events of Default, Etc. Promptly upon any officer of any Credit Party obtaining
knowledge of any of the following events or conditions, but in any event within five (5)
Business Days thereafter Borrower Representative shall deliver copies of all notices given or
received by such Borrower or any of their Subsidiaries with respect to any such event or
condition and a certificate of a Senior Officer of Borrower Representative specifying the
nature and period of existence of such event or condition and what action Borrowers or any of
their Subsidiaries has taken, is taking and proposes to take with respect thereto: (1) any
condition or event that constitutes, or which could reasonably be expected to result in the
occurrence of, an Event of Default or Default; (2) any notice that any Person has given to any
Borrower or any of their Subsidiaries or any other action taken with respect to a claimed
default or event or condition of the type referred to in Section 6.1(b); (3) any event
or condition that could reasonably be expected to result in any Material Adverse Effect; or
(4) any default or event of default with respect to any Indebtedness of any Borrower or any of
its Subsidiaries.
	 
	(k)	 	Litigation. Promptly upon any officer of any Credit Party obtaining knowledge of but
in any event within five (5) Business Days thereafter (1) the institution of any action,
charge, claim, demand, suit, proceeding, petition, governmental investigation, tax audit or
arbitration now pending or, to the best knowledge of such Credit Party after due inquiry,
threatened against or affecting any Credit Party or any of its Subsidiaries or any property of
any Credit Party or any of its Subsidiaries (“Litigation”) not previously disclosed by
Borrower Representative to Agent or (2) any material development in any action, suit,
proceeding, governmental investigation or arbitration at any time pending against or affecting
any Credit Party or any property of any Credit Party which, in each case, could reasonably be
expected to have a Material Adverse Effect, Borrower Representative will

29

 

	 	 	promptly give notice
thereof to Agent and provide such other information as may be reasonably available to them to
enable Agent and its counsel to evaluate such matter.
	 
	(l)	 	Notice of Corporate and other Changes. Borrower Representative shall provide prompt
(but within five (5) Business Days) written notice of (1) all jurisdictions in which a Credit
Party becomes qualified after the Closing Date to transact business, (2) any change after the
Closing Date in the authorized and issued Stock of any Credit Party or any amendment to their
articles or certificate of incorporation, by laws, partnership agreement or other
organizational documents, (3) any Subsidiary created or acquired by any Credit Party or any of
its Subsidiaries after the Closing Date, such notice, in each case, to identify the applicable
jurisdictions, capital structures or Subsidiaries, as applicable, and (4) any other event that
occurs after the Closing Date which would cause any of the representations and warranties in
Section 5 of this Agreement or in any other Loan Document to be untrue or misleading
in any material respect. The foregoing notice requirement shall not be construed to
constitute consent by any of the Lenders to any transaction referred to above which is not
expressly permitted by the terms of this Agreement.
	 
	(m)	 	Other Information. Promptly (but within five (5) Business Days), Borrower
Representative will deliver such other information and data with respect to any Credit Party
or any Subsidiary of any Credit Party as from time to time may be reasonably requested by
Agent.
	 
	(n)	 	Compliance Certificate. Together with each delivery of Financial Statements of
Borrowers and their Subsidiaries pursuant to 
Sections 4.5(a) and (b), Borrower
Representative will deliver a fully and properly completed Compliance Certificate (in
substantially the same form as Annex F (the “Compliance Certificate”) signed
by Borrower Representative’s chief executive officer or chief financial officer.
	 
	(o)	 	Taxes. Borrower Representative shall provide prompt (but within five (5) Business
Days) written notice of (i) the execution or filing with the IRS or any other Governmental
Authority of any agreement or other document extending, or having the effect of extending, the
period for assessment or collection of any Charges by any Credit Party or any of its
Subsidiaries and (ii) any agreement by any Credit Party or any of its Subsidiaries or request
directed to any Credit Party or any of its Subsidiaries to make any adjustment under IRC
Section 481(a), by reason of a change in accounting method or otherwise, which could
reasonably be expected to have a Material Adverse Effect.
	 
	4.6	 	Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement.
For purposes of this Agreement, all accounting terms not otherwise defined herein shall have
the meanings assigned to such terms in conformity with GAAP. Financial statements and other
information furnished to Agent pursuant to Sections 4.5 or any other section (unless
specifically indicated otherwise) shall be prepared in accordance with GAAP as in effect at
the time of such preparation; provided that no Accounting Change shall affect financial
covenants, standards or terms in this Agreement; provided further that Borrowers shall prepare
footnotes to the Financial Statements required to be delivered hereunder that show the
differences between the Financial Statements delivered

30

 

	 	 	(which reflect such Accounting Changes)
and the basis for calculating financial covenant compliance (without reflecting such
Accounting Changes). All such adjustments described in clause (c) of the definition of
the term Accounting Changes resulting from expenditures made subsequent to the Closing Date
(including capitalization of costs and expenses or payment of pre-Closing Date liabilities)
shall be treated as expenses in the period the expenditures are made.

SECTION 5.

REPRESENTATIONS AND WARRANTIES

To induce Agent and Lenders to enter into the Loan Documents and make Loans, Borrowers and the
other Credit Parties executing this Agreement, jointly and severally, represent, warrant and
covenant to Agent and each Lender that, except as otherwise expressly set forth in the Schedules
attached hereto, the following statements are or, after giving effect to the Related Transactions,
will be true, correct and complete until the Termination Date with respect to all Credit Parties:

	5.1	 	Disclosure. No representation or warranty of any Credit Party contained in this
Agreement, the Financial Statements referred to in Section 5.5, the other Related
Transactions Documents or any other document, certificate or written statement furnished to
Agent or any Lender by or on behalf of any such Person for use in connection with the Loan
Documents or the Related Transactions Documents contains any untrue statement of a material
fact or omitted, omits or will omit to state a material fact necessary in order to make the
statements contained herein or therein not misleading in any material respect in light of the
circumstances in which the same were made.
	 
	5.2	 	No Material Adverse Effect. Since December 31, 2007, there have been no events or
changes in facts or circumstances affecting any Credit Party or any of its Subsidiaries which
individually or in the aggregate have had or could reasonably be expected to have a Material
Adverse Effect and that have not been disclosed herein or in the attached Disclosure
Schedules.
	 
	5.3	 	No Conflict. The consummation of the Related Transactions does not and will not
violate or conflict with any laws, rules, regulations or orders of any Governmental Authority
or violate, conflict with, result in a breach of, or constitute a default (with due notice or
lapse of time or both) under any Contractual Obligation or Organizational Documents of any
Credit Party or any of its Subsidiaries except if such violations, conflicts, breaches or
defaults could not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

31

 

	5.4	 	Organization, Powers, Capitalization and Good Standing, Organization and Powers.
	 
	(a)	 	Each of the Credit Parties and each of their Subsidiaries is duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization and qualified to do
business in all states where such qualification is required except where failure to be so
qualified could not reasonably be expected to have a Material Adverse Effect. The
jurisdiction of organization and all jurisdictions in which each Credit Party is qualified to
do business are set forth on Schedule 5.4(a). Each of the Credit Parties and each of
their Subsidiaries has all requisite organizational power and authority to own and operate its
properties, to carry on its business as now conducted and proposed to be conducted, to enter
into each Related Transactions Document to which it is a party and to incur the Obligations,
grant liens and security interests in the Collateral and carry out the Related Transactions.
	 
	(b)	 	Capitalization. As of the Closing Date: (i) each Subsidiary of a Credit Party is
listed on Schedule 5.4(b); (ii) the authorized Stock of each of the Credit Parties and
each of their Subsidiaries is as set forth on Schedule 5.4(b); (iii) all issued and
outstanding Stock of each of the Credit Parties and each of their Subsidiaries is duly
authorized and validly issued, fully paid, nonassessable, free and clear of all Liens other
than those in favor of Agent for the benefit of Agent and Lenders, and such Stock was issued
in compliance with all applicable state, federal and foreign laws concerning the issuance of
securities; (iv) the identity of the holders of the Stock of each of the Credit Parties and
the percentage of their fully diluted ownership of the Stock of each of the Credit Parties is
set forth on Schedule 5.4(b); and (v) no Stock of any Credit Party or any of their
Subsidiaries, other than those described above, is issued and outstanding. Except as provided
in Schedule 5.4(b), as of the Closing Date, there are no preemptive or other
outstanding rights, options, warrants, conversion rights or similar agreements or
understandings for the purchase or acquisition from any Credit Party or any of their
Subsidiaries of any Stock of any such entity.
	 
	(c)	 	Binding Obligation. This Agreement is, and the other Related Transactions Documents
when executed and delivered will be, the legally valid and binding obligations of the
applicable parties thereto, each enforceable against each of such parties, as applicable, in
accordance with their respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws affecting, creditors’ rights generally and the
effects of general principles of equity.
	 
	5.5	 	Financial Statements and Projections.
	 
	(a)	 	All Financial Statements concerning the Credit Parties which have been or will hereafter be
furnished to Agent pursuant to this Agreement, including the Historical Financial Statements,
have been or will be prepared in accordance with GAAP consistently applied (except as
disclosed therein) and do or will present fairly in all material respects the financial
condition of the entities covered thereby as at the dates thereof and the results of their
operations for the periods then ended, subject to, in the case of unaudited Financial
Statements, the absence of footnotes and normal year end adjustments.

32

 

	(b)	 	The Projections delivered on or prior to the Closing Date and the updated Projections
delivered pursuant to Section 4.5(h) represent and will represent as of the date
thereof the good faith estimate of Borrowers and their senior management concerning the most
probable course of their business.
	 
	5.6	 	Intellectual Property. As of the Closing Date, each of the Credit Parties and its
Subsidiaries owns, is licensed to use or otherwise has the right to use, all material
Intellectual Property used in or necessary for the conduct of its business as currently
conducted that is material to the condition (financial or other), business or operations of
such Credit Party and its Subsidiaries and all such Intellectual Property is identified on
Schedule 5.6 and fully protected and/or duly and properly registered, filed or issued
in the appropriate office and jurisdictions for such registrations, filings or issuances. As
of the Closing Date, except as disclosed in Schedule 5.6, the use of such Intellectual
Property by the Credit Parties and their Subsidiaries and the conduct of their businesses does
not and has not been alleged by any Person to infringe on the rights of any Person.
	 
	5.7	 	Investigations, Audits, Etc. As of the Closing Date, except as may be set forth on
Schedule 5.7, no Credit Party or any of their Subsidiaries is the subject of any
review or audit by the IRS or any governmental investigation concerning the violation or
possible violation of any law.
	 
	5.8	 	Employee Matters. As of the Closing Date, except as may be set forth on Schedule
5.8, (a) no Credit Party or Subsidiary of a Credit Party nor any of their respective
employees is subject to any collective bargaining agreement, (b) no petition for certification
or union election is pending with respect to the employees of any Credit Party or any of their
Subsidiaries and no union or collective bargaining unit has sought such certification or
recognition with respect to the employees of any Credit Party or any of their Subsidiaries,
(c) there are no strikes, slowdowns, work stoppages or controversies pending or, to the best
knowledge of any Credit Party after due inquiry, threatened between any Credit Party or any of
their Subsidiaries and its respective employees, other than employee grievances arising in the
ordinary course of business which could not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect and (d) hours worked by and
payment made to employees of each Credit Party and each of their Subsidiaries comply with the
Fair Labor Standards Act and each other federal, state, provincial, local or foreign law
applicable to such matters. Except in respect of the USVD Employment Agreement and as may be
set forth on Schedule 5.8, no Credit Party nor any of its Subsidiaries is party to an
employment contract.
	 
	5.9	 	Solvency. As of the Closing Date each of the Credit Parties and each of its
Subsidiaries is Solvent.
	 
	5.10	 	Litigation; Adverse Facts. Except as may be set forth on Schedule 5.10,
there are no judgments outstanding against any Credit Party or any of its Subsidiaries or
affecting any property of any Credit Party or any of its Subsidiaries, nor is there any
Litigation pending, or to the best knowledge of any Credit Party threatened, against any
Credit Party or any of its Subsidiaries which could reasonably be expected to result in any
Material Adverse Effect.

33

 

	5.11	 	Use of Proceeds; Margin Regulations. 
	 
	(a)	 	No part of the proceeds of any Loan will be used for “buying” or “carrying” “margin stock”
within the respective meanings of such terms under Regulation U of the Board of Governors of
the Federal Reserve System as now and from time to time hereafter in effect or for any other
purpose that violates the provisions of the regulations of the Board of Governors of the
Federal Reserve System. If requested by Agent, each Credit Party will furnish to Agent and
each Lender a statement to the foregoing effect in conformity with the requirements of FR Form
G-3 or FR Form 0-1, as applicable, referred to in Regulation U.
	 
	(b)	 	Borrowers shall utilize the proceeds of the Loans solely for the STN Acquisition and the
Related Transactions (and to pay any Related Transaction expenses), and for the financing of
Borrowers’ ordinary working capital needs and/or other purposes permitted by this Agreement.
Schedule 5.11 contains a description of Borrowers’ sources and uses of funds as of the
Closing Date, including Loans to be made on that date, and a funds flow memorandum detailing
how funds from each source are to be transferred for particular uses.
	 
	5.12	 	Ownership of Property; Liens. As of the Closing Date, the real estate (“Real
Estate”) listed in Schedule 5.12 constitutes all of the real property owned,
leased, subleased, or used by any Credit Party or any of its Subsidiaries. As of the Closing
Date, each of the Credit Parties and each of its Subsidiaries owns good and marketable fee
simple title to all of its owned Real Estate, and valid leasehold interests in all of its
leased Real Estate, all as described on Schedule 5.12, and copies of all such leases
or a summary of terms thereof reasonably satisfactory to Agent have been delivered to Agent.
Schedule 5.12 further describes any Real Estate with respect to which any Credit Party
or any of its Subsidiaries is a lessor, sublessor or assignor as of the Closing Date. As of
the Closing Date, each of the Credit Parties and each of its Subsidiaries also has good and
marketable title to, or valid leasehold interests in, all of its personal property and assets.
As of the Closing Date, none of the properties and assets of any Credit Party or any of its
Subsidiaries are subject to any Liens other than Permitted Encumbrances, and there are no
facts, circumstances or conditions known to any Credit Party that are reasonably likely to
result in any Liens (including Liens arising under Environmental Laws) other than Permitted
Encumbrances against the properties or assets of any Credit Party or any of its Subsidiaries.
Except as disclosed in Schedule 5.12, each of the Credit Parties and each of its
Subsidiaries has received all deeds, assignments, waivers, consents, nondisturbance and
attornment or similar agreements, bills of sale and other documents, and has duly effected all
recordings, filings and other actions necessary to establish, protect and perfect such Credit
Party’s or Subsidiary’s right, title and interest in and to all such Real Estate and other
properties and assets. As of the Closing Date, Schedule 5.12 also describes any
purchase options, rights of first refusal or other similar contractual rights pertaining to
any Real Estate. As of the Closing Date, no portion of any Credit Party’s or any of its
Subsidiaries’ Real Estate has suffered any material damage by fire or other casualty loss that
has not heretofore been repaired and restored in all material respects to its original
condition or otherwise remedied. As of the Closing Date, all material permits required to
have been issued or appropriate to enable the Real Estate to be lawfully occupied and

34

 

	 	 	used for
all of the purposes for which it is currently occupied and used have been lawfully issued and
are in full force and effect.
	 
	5.13	 	Environmental Matters. 
	 
	(a)	 	Except as set forth in Schedule 5.13, as of the Closing Date: (i) the Real Estate is
free of contamination from any Hazardous Material except for such contamination that could not
reasonably be expected to adversely impact the value or marketability of such Real Estate and
that could not reasonably be expected to result in Environmental Liabilities of the Credit
Parties or their Subsidiaries in excess of One Hundred Thousand Dollars ($100,000), in the
aggregate; (ii) no Credit Party and no Subsidiary of a Credit Party has caused or suffered to
occur any Release of Hazardous Materials on, at, in, under, above, to, from or about any of
their Real Estate; (iii) the Credit Parties and their Subsidiaries are and have been in
compliance with all Environmental Laws, except for such noncompliance that could not
reasonably be expected to result in Environmental Liabilities of the Credit Parties or their
Subsidiaries in excess of One Hundred Dollars ($100,000), in the aggregate; (iv) the Credit
Parties and their Subsidiaries have obtained, and are in compliance with, all Environmental
Permits required by Environmental Laws for the operations of their respective businesses as
presently conducted or as proposed to be conducted, except where the failure to so obtain or
comply with such Environmental Permits could not reasonably be expected to result in
Environmental Liabilities of the Credit Parties or their Subsidiaries in excess of One Hundred
Dollars ($100,000), in the aggregate, and all such Environmental Permits are valid,
uncontested and in good standing; (v) no Credit Party and no Subsidiary of a Credit Party is
involved in operations or knows of any facts, circumstances or conditions, including any
Releases of Hazardous Materials, that are likely to result in any Environmental Liabilities of
such Credit Party or Subsidiary which could reasonably be expected to be in excess of One
Hundred Dollars ($100,000), in the aggregate, and no Credit Party or Subsidiary of a Credit
Party has permitted any current or former tenant or occupant of the Real Estate to engage in
any such operations; (vi) there is no Litigation arising under or related to any Environmental
Laws, Environmental Permits or Hazardous Material that seeks damages, penalties, fines, costs
or expenses in excess of One Hundred Thousand Dollars ($100,000), in the aggregate or
injunctive relief against, or that alleges criminal misconduct by any Credit Party or any
Subsidiary of a Credit Party; (vii) no notice has been received by any Credit Party or any
Subsidiary of a Credit Party identifying any of them as a “potentially responsible party” or
requesting information under CERCLA or analogous state statutes, and to the knowledge of the
Credit Parties, there are no facts, circumstances or conditions that may result in any of the
Credit Parties or their Subsidiaries being identified as a “potentially responsible party”
under CERCLA or analogous state statutes; and (viii) the Credit Parties have provided to Agent
copies of all existing environmental reports, reviews and audits and all written information
pertaining to actual or potential Environmental Liabilities, in each case in possession of the
Credit Parties relating to any of the Credit Parties or their Subsidiaries.
	 
	(b)	 	Each Credit Party hereby acknowledges and agrees that Agent (i) is not now, and has not ever
been, in control of any of the Real Estate or affairs of such Credit Party or its
Subsidiaries, and (ii) does not have the capacity through the provisions of the Loan

35

 

	 	 	Documents
or otherwise to influence any Credit Party’s or its Subsidiaries’ conduct with respect to the
ownership, operation or management of any of their Real Estate or compliance with
Environmental Laws or Environmental Permits.
	 
	5.14	 	ERISA.
	 
	(a)	 	Schedule 5.14 lists all Plans and separately identifies all Pension Plans, including
Title IV Plans, Multiemployer Plans, ESOPs and Welfare Plans, including all Retiree Welfare
Plans. As of the Closing Date, copies of all such listed Plans, together with a copy of the
latest form IRS/DOL 5500-series for each such Plan have been delivered to Agent. Except with
respect to Multiemployer Plans, each Qualified Plan has been determined by the IRS to qualify
under Section 401 of the IRC, and the trusts created thereunder have been determined to be
exempt from tax under the provisions of Section 501 of the IRC, and nothing has occurred that
would cause the loss of such qualification or tax exempt status. Each Plan is in compliance
with the applicable provisions of ERISA and the IRC, including the timely filing of all
reports required under the IRC or ERISA, including the statement required by 29 CFR Section
2520.104 23. Neither any Credit Party nor ERISA Affiliate has failed to make any contribution
or pay any amount due as required by either Section 412 of the IRC or Section 302 of ERISA or
the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has engaged in a
“prohibited transaction,” as defined in Section 406 of ERISA and Section 4975 of the IRC, in
connection with any Plan, that would subject any Credit Party to a material tax on prohibited
transactions imposed by Section 502(i) of ERISA or Section 4975 of the IRC.
	 
	(b)	 	As of the Closing Date, except as may be set forth in Schedule 5.14: (i) no Title IV
Plan has any Unfunded Pension Liability; (ii) no ERISA Event or event described in Section
4062(e) of ERISA with respect to any Title IV Plan has occurred or is reasonably expected to
occur; (iii) there are no pending, or to the knowledge of any Borrower, threatened claims
(other than claims for benefits in the normal course), sanctions, actions or lawsuits,
asserted or instituted against any Plan or any Person as fiduciary or sponsor of any Plan;
(iv) no Credit Party or ERISA Affiliate has incurred or reasonably expects to incur any
liability as a result of a complete or partial withdrawal from a Multiemployer Plan; (v)
within the last five years no Title IV Plan of any Credit Party or ERISA Affiliate has been
terminated, whether or not in a “standard termination” as that term is used in Section
404(b)(1) of ERISA, nor has any Title IV Plan of any Credit Party or ERISA Affiliate
(determined at any time within the past five years) with Unfunded Pension Liabilities been
transferred outside of the “controlled group” (within the meaning of Section
4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate; (vi) except in the case of any
ESOP, Stock of all Credit Parties and their ERISA Affiliates makes up, in the aggregate, no
more than ten percent (10%) of fair market value of the assets of any Plan measured on the
basis of fair market value as of the latest valuation date of any Plan; and (vii) no liability
under any Title IV Plan has been satisfied with the purchase of a contract from an insurance
company that is not rated AAA by the S&P or an equivalent rating by another nationally
recognized rating agency.
	 
	5.15	 	Brokers. Except as may be disclosed in Schedule 5.15, no broker or finder
acting on behalf of any Credit Party or Affiliate thereof brought about the obtaining, making
or

36

 

	 	 	closing of the Loans or the Related Transactions, and no Credit Party or Affiliate thereof
has any obligation to any Person in respect of any finder’s or brokerage fees in connection
therewith.
	 
	5.16	 	Deposit and Disbursement Accounts. Schedule 5.16 lists all banks and other
financial institutions at which any Credit Party maintains deposit or other accounts as of the
Closing Date, including the Disbursement Account, and Schedule 5.16 correctly
identifies the name, address and telephone number of each depository, the name in which the
account is held, a description of the purpose of the account, the complete account number
therefore and listing of any lockboxes maintained through any financial institutions for
processing payments by account debtors and other proceeds of Collateral.
	 
	5.17	 	STN Acquisition Agreement. On or before the Closing Date, Parent Company shall have
delivered to Agent complete and correct copies of the STN Acquisition Documents (including all
schedules, exhibits, amendments, supplements, modifications, assignments and all other
documents delivered pursuant thereto or in connection therewith). No Credit Party and no
other Person party thereto is in default in the performance or compliance with any provisions
thereof. The STN Acquisition Documents comply with, and the STN Acquisition has been
consummated in accordance with, all applicable laws in all material respects. The STN
Acquisition has been consummated substantially in accordance with the STN Acquisition
Documents as heretofore presented to, reviewed with, and approved by Agent, and for a total
consideration payable in connection therewith of not more than $4,379,017 of which not more
than $2,709,262.75 shall be payable in cash on the Closing Date plus an additional amount in
escrow of $500,000 pursuant to the STN Acquisition Escrow Agreement. The STN Acquisition
Agreement is in full force and effect as of the Closing Date and has not been terminated,
rescinded or withdrawn. All requisite approvals by Governmental Authorities having
jurisdiction over the STN Acquisition Sellers, any Credit Party and other Persons referenced
therein, with respect to the transactions contemplated by the STN Acquisition Agreement, have
been obtained, and no such approvals impose any conditions to the consummation of the
transactions contemplated by the STN Acquisition Agreement or to the conduct by any Credit
Party of its business thereafter. To the best of Parent Company’s knowledge, none of the STN
Sellers’ representations or warranties in the STN Acquisition Agreement contain any untrue
statement of a material fact or omit any fact necessary to make the statements therein not
misleading. Notwithstanding anything contained in any STN Acquisition Document to the
contrary, such representations and warranties of the Credit Parties are incorporated into this
Agreement by this Section 5.17 as of the Closing Date and shall, solely for purposes
of this Agreement and the benefit of Agent and Lenders, survive the consummation of the STN
Acquisition.
	 
	5.18	 	Insurance. Schedule 5.18 lists all insurance policies of any nature
maintained, as of the Closing Date, for current occurrences by each Credit Party, as well as a
summary of the key business terms of each such policy such as deductibles, coverage limits and
term of policy.

37

 

	5.19	 	Anti-Terrorism Law.
	 
	(a)	 	Compliance with Law. No Credit Party and, to the knowledge of the Credit Parties,
none of its Affiliates is in violation of any laws relating to terrorism or money laundering
(“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), and the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56.
	 
	(b)	 	Prohibited Lists. No Credit Party and to the knowledge of the Credit Parties, no
Affiliate or other agent of any Credit Party acting or benefiting in any capacity in
connection with the Loans is any of the following: (i) a person that is listed in the annex
to, or is otherwise subject to the provisions of, the Executive Order; (ii) a person owned or
controlled by, or acting for or on behalf of, any person that is listed in the annex to, or is
otherwise subject to the provisions of, the Executive Order; (iii) a person with which any
Lender is prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law; (iv) a person that commits, threatens or conspires to commit or support
“terrorism” as defined in the Executive Order; or (v) a person that is named as a “specialty
designated national and blocked person” on the most current list published by the U.S.
Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website
or any replacement website or other replacement official publication of such list.
	 
	(c)	 	Relationships. No Credit Party and, to the knowledge of the Credit Parties, no other
agent of any Credit Party acting in any capacity in connection with the Loans (i) conducts any
business or engages in making or receiving any contribution of funds, goods or services to or
for the benefit of any person described in paragraph (b) above, (ii) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant
to the Executive Order, or (iii) engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law.
	 
	5.20	 	Compliance with Laws. Each Credit Party represents and warrants that it (i) is in compliance and each of its Subsidiaries is in
compliance with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority and the
obligations, covenants and conditions contained
in all Contractual Obligations other than those
laws, rules, regulations, orders and provisions
of such Contractual Obligations the
noncompliance with which could not be
reasonably expected to have, either
individually or in the aggregate, a Material
Adverse Effect, and (ii) maintains and each of
its Subsidiaries maintains all licenses,
qualifications and permits referred to above
except where the failure to maintain could not
reasonably be expected to have, either
individually or in the aggregate, a Material
Adverse Effect.
	 
	5.21	 	Taxes and Tax Returns.
	 
	(a)	 	As of the Closing Date, (i) all tax returns required to be filed by the Credit Parties have
been timely and properly filed and (ii) all taxes for which a notice of assessment or
collection has been received (other than amounts being contested in good faith by

38

 

	 	 	appropriate
proceedings), have been paid except for any such filings, payments or accruals which would not
have a Material Adverse Effect. No Governmental Authority has asserted any claim for taxes,
or to any Credit Party’s knowledge, has threatened to assert any claim for taxes that (A) are
not indemnified by the STN Acquisition Sellers and (B) that would, if paid by a Credit Party,
have a Material Adverse Effect. All taxes required by law to be withheld or collected and
remitted (including, without limitation, income, tax, unemployment insurance and workman’s
compensation premiums) with respect to the Credit Parties have been withheld or collected and
paid to the appropriate Governmental Authorities (or are properly being held for such
payment), except for amounts which would not reasonably be expected have a Material Adverse
Effect.
	 
	(b)	 	None of the Credit Parties has been notified that either the IRS or any other Governmental
Authority has raised any adjustments or intends to raise such adjustments, in connection with
any tax return of the Credit Parties, which adjustments would have a Material Adverse Effect
	 
	(c)	 	None of the Credit Parties is a party to, is bound by, or has any obligation under, any tax
sharing agreement, tax indemnification agreement or similar contract or arrangement, excluding
leases entered into in the ordinary course of business and sales contracts, that either
individually or in the aggregate, could reasonably be expected have a Material Adverse Effect.

SECTION 6.

DEFAULT, RIGHTS AND REMEDIES

	6.1	 	Event of Default. “Event of Default” shall mean the occurrence or existence
of any one or more of the following:
	 
	(a)	 	Payment. Failure to pay (i) when due any principal of or interest on any Loan or
fees payable pursuant to Section 1.3 hereof or (ii) with in five (5) Business Days
after demand, any other amount of any Obligation, whether under this Agreement or any of the
other Loan Documents or otherwise; or
	 
	(b)	 	Default in Other Agreements. (1) Any Credit Party or any of its Subsidiaries fails
to pay when due or within any applicable grace period any principal or interest on
Indebtedness (other than the Loans) or any Contingent Obligations or (2) breach or default of
any Credit Party or any of its Subsidiaries, or the occurrence of any condition or event, with
respect to any Indebtedness (other than the Loans) or any Contingent Obligations, if the
effect of such failure, breach, default or occurrence is to cause or to permit the holder or
holders then to cause, Indebtedness and/or Contingent Obligations having an aggregate
principal amount in excess of One Hundred Thousand Dollars ($100,000) to become or be declared
due prior to their stated maturity; or
	 
	(c)	 	Breach of Certain Provisions. Failure of any Credit Party to perform or comply with
any term or condition contained in Section 2.3, Section 2.9, Section 3
or Section 4; or
	 
	(d)	 	Breach of Warranty. Any representation, warranty, certification or other statement
made by any Credit Party in any Loan Document or in any statement or certificate at any time

39

 

	 	 	given by such Person in writing pursuant or in connection with any Loan Document is false in
any material respect (without duplication of materiality qualifiers contained therein) on the
date made; or
	 
	(e)	 	Other Defaults Under Loan Documents. Any Credit Party defaults in the performance of
or compliance with any term contained in this Agreement or the other Loan Documents (other
than occurrences described in other provisions of this Section 6.1 for which a
different grace or cure period is specified, or for which no cure period is specified and
which constitute immediate Events of Default) and such default is not remedied or waived
within ten (10) Business Days after the earlier of (1) receipt by Borrower
Representative of notice from Agent or Requisite Lenders of such default or (2) actual
knowledge of any officer of Borrower or any other Credit Party of such default; or
	 
	(f)	 	Involuntary Bankruptcy; Appointment of Receiver, Etc. (1) A court enters a decree or
order for relief with respect to any Credit Party in an involuntary case under the Bankruptcy
Code, which decree or order is not stayed or other similar relief is not granted under any
applicable federal or state law; or (2) the continuance of any of the following events for
sixty (60) days unless dismissed, bonded or discharged: (a) an involuntary case is commenced
against any Credit Party, under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect; or (b) a decree or order of a court for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar powers over any
Credit Party, or over all or a substantial part of its property, is entered; or (c) a
receiver, trustee or other custodian is appointed without the consent of a Credit Party, for
all or a substantial part of the property of the Credit Party; or
	 
	(g)	 	Voluntary Bankruptcy; Appointment of Receiver, Etc. (1) any Credit Party commences a
voluntary case under the Bankruptcy Code, or consents to the entry of an order for relief in
an involuntary case or to the conversion of an involuntary case to a voluntary case under any
such law or consents to the appointment of or taking possession by a receiver, trustee or
other custodian for all or a substantial part of its property; or (2) any Credit Party makes
any assignment for the benefit of creditors; or (3) the board of directors of any Credit Party
adopts any resolution or otherwise authorizes action to approve any of the actions referred to
in this Section 6.1(g); or
	 
	(h)	 	Judgment and Attachments. Any money judgment, writ or warrant of attachment, or
similar process (other than those described elsewhere in this Section 6.1) involving
(1) an amount in any individual case in excess of One Hundred Thousand Dollars ($100,000) or
(2) an amount in the aggregate at any time in excess of One Hundred Thousand Dollars
($100,000) (in either case to the extent not adequately covered by insurance in Agent’s
Permitted Discretion as to which the insurance company has acknowledged coverage) is entered
or filed against one or more of the Credit Parties or any of their respective assets and
remains undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days or in
any event later than five (5) Business Days prior to the date of any proposed sale thereunder;
or

40

 

	(i)	 	Dissolution. Any order, judgment or decree is entered against any Credit Party
decreeing the dissolution or split up of such Credit Party and such order remains undischarged
or unstayed for a period in excess of ten (10) days; or
	 
	(j)	 	Solvency. Any Credit Party ceases to be Solvent, fails to pay its debts as they
become due or admits in writing its present or prospective inability to pay its debts as they
become due; or
	 
	(k)	 	Invalidity of Loan Documents. Any of the Loan Documents for any reason, other than a
partial or full release in accordance with the terms thereof, ceases to be in full force and
effect or is declared to be null and void, or any Credit Party denies that it has any further
liability under any Loan Documents to which it is party, or gives notice to such effect; or
	 
	(l)	 	Change of Control. A Change of Control occurs; or
	 
	(m)	 	Executive Management. Either: (i) Michael P. Fischer shall cease for any reason to
occupy the office of Chief Executive Officer of USVD or to perform the customary functions of
such office on a full time basis; or (ii) Scott M. Diamond shall cease for any reason to
occupy the office of Chief Operating Officer of USVD or to perform the customary functions of
such office on a full time basis; or (iii) Michael Nole shall cease for any reason to occupy
the office of Chief Executive Officer of Parent Company or to perform the customary functions
of such office on a full time basis; or (iv) Bryan McGuire shall cease for any reason to
occupy the office of Chief Financial Officer of Parent Company or to perform the customary
functions of such office on a full time basis; or (v) George Pacinelli shall cease for any
reason to occupy the office of President of Parent Company or to perform the customary
functions of such office on a full time basis; or (vi) Michael Promotico shall cease for any
reason to occupy the office of Chief Executive Officer of STN or to perform the customary
functions of such office on a full time basis; and, in each case, the Credit Parties fail to
replace such officer with a qualified replacement satisfactory to Agent within thirty (30)
days of such event occurring; it being understood, in the case of clauses
(iii) and (iv) above, that “full time basis” shall mean, for Messrs. Nole and
McGuire that each is spending at least ninety percent (90%) of his overall business time
engaged in such activities; or
	 
	(n)	 	Subordinated Indebtedness. The failure of any Credit Party or any creditor of any
Borrower or any of its Subsidiaries to comply with the terms of any Subordination Agreement,
or if any such document, or portion thereof, becomes null and void, or any party denies
further liability under any such document or provides notice to that effect; or
	 
	(o)	 	USVD Documents. The failure of any party thereto to comply with the terms of the
USVD Documents, or if any USVD Document, or portion thereof, becomes null and void, or any
party denies further liability thereunder or provides notice to such effect; or
	 
	(p)	 	Collateral Document. Any Collateral Document shall, at any time, cease to be in full
force and effect or shall be judicially declared null and void, or the validity or
enforceability thereof shall be contested by any Credit Party, or the Agent shall cease to
have a valid and perfected security interest having the priority contemplated thereunder in

41

 

	 	 	all of the collateral described therein, other than by action or inaction of the Agent if (i)
the aggregate value of the Collateral affected by any of the foregoing exceeds One Hundred
Thousand Dollars ($100,000) and (ii) any of the foregoing shall remain unremedied for ten (10)
days or more after receipt of notice thereof by the Borrower Representative from the Agent; or
	 
	(q)	 	Indictment. The indictment by any Governmental Authority of a Credit Party or
Affiliate of any Credit Party as to which there is a reasonable probability of a material and
adverse determination under any criminal statute, or commencement of criminal or civil
proceedings against any Credit Party or Affiliate of any Credit Party, pursuant to which
statute or proceeding the penalties or remedies sought or available include forfeiture of any
material portion of the Collateral or any other assets of any Credit Party which are necessary
or material to the conduct of its business.
	 
	6.2	 	Suspension or Termination of Commitments. Upon the occurrence of any Default or
Event of Default, and during its continuation, Agent may, and at the request of Requisite
Lenders Agent shall, without notice or demand, immediately suspend or terminate all or any
portion of Lenders’ obligations to make additional Loans under the Revolving Loan Commitment;
provided that, in the case of a Default, if the subject condition or event is waived
by Requisite Lenders or cured within any applicable grace or cure period, the Revolving Loan
Commitment shall be reinstated.
	 
	6.3	 	Acceleration and other Remedies. Upon the occurrence of any Event of Default
described in Sections 6.1(f) or 6.1(g), the Commitments shall be immediately
terminated and all of the Obligations, including the Revolving Loans, shall automatically
become immediately due and payable, without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or other requirements of any kind, all of which are hereby
expressly waived (including for purposes of Section 10) by Borrowers, and the
Commitments shall thereupon terminate. Upon the occurrence and during the continuance of any
other Event of Default, (i) Agent may, and at the request of the Requisite Lenders, Agent
shall, by written notice to Borrower Representative (a) reduce the aggregate amount of the
Commitments from time to time, or terminate the Commitments (b) declare all or any portion of
the Loans and all or any portion of the other Obligations to be, and the same shall forthwith
become, immediately due and payable together with accrued interest thereon, (c) terminate all
or any portion of the obligations of Lenders to make Revolving Credit Advances, or (d)
exercise any other remedies which may be available under the Loan Documents or applicable law
and (ii) Requisite Lenders may declare all or any portion of the Senior Obligations and other
Obligations related thereto to be, and the same shall forthwith become, immediately due and
payable together with accrued interest thereon.
	 
	6.4	 	Application of Payments. Upon the occurrence of any Event of Default and during its
continuation all payments and other monetary proceeds of Collateral received by Agent shall be
applied to the Obligations amounts then due and payable in the following order unless
otherwise then or from time to time required or approved by Requisite Lenders:

42

 

	 	(i)	 	to ratable payment of all Fees, costs and expenses incurred by or owing to
Agent with respect to this Agreement, the other Loan Documents or the Collateral;
	 
	 	(ii)	 	to ratable payment of all costs and expenses incurred by or owing to any Lender
with respect to this Agreement, the other Loan Documents or the Collateral;
	 
	 	(iii)	 	to ratable payment of interest on the Revolving Loans and the Term Loan and
all Fees payable to any Revolving Lender or any Term Loan Lender then due and owing
(other than any Prepayment Fee in respect of the Revolving Loan or Term Loan);
	 
	 	(iv)	 	to ratable payment of principal on the Revolving Loans and the Term Loan;
	 
	 	(v)	 	to ratable payment of any applicable Prepayment Fee in respect of the Revolving
Loan and/or the Term Loan; and
	 
	 	(vi)	 	to ratable payment of any other Obligations which may be then due and owing.

	 	 	Any balance remaining shall be delivered to Borrowers or to whomever may be lawfully
entitled to receive such balance or as a court of competent jurisdiction may direct.

SECTION 7.

CONDITIONS TO LOANS

The obligations of Lenders to make the Loans are subject to satisfaction of all of the applicable
conditions set forth below.

	7.1	 	Conditions to Initial Loans. The obligations of Lenders to make the initial Loans on
the Closing Date are subject to the following conditions precedent:
	 
	(a)	 	Continuing Conditions. Each of the conditions precedent specified in Section
7.2 shall be satisfied;
	 
	(b)	 	Loan Documents. Agent shall have received this Agreement (including all Schedules
and Exhibits), the Notes, all Collateral Documents, all Subordination Agreements and all other
Loan Documents to which the Credit Parties, or a Credit Party, are parties, duly executed and
delivered by a Senior Officer of each applicable Credit Party;
	 
	(c)	 	Filings, Registrations, Recordings and Searches. (i) Each document (including,
without limitation, any Uniform Commercial Code financing statement) required by this
Agreement, any other Collateral Document, under applicable law or otherwise as reasonably
requested by the Agent to be filed, registered or recorded in order to create, in favor of
Agent, a perfected security interest in or lien upon the Collateral shall have been properly
filed, registered or recorded in each jurisdiction in which the filing, registration or
recordation thereof is so required or requested, and Agent shall have received an
acknowledgment copy, or other evidence satisfactory to it, of each such filing, registration
or recordation and satisfactory evidence of the payment of any necessary fee, tax or expense
relating thereto; (ii) Agent shall also have received Code, tax and

43

 

	 	 	judgment lien searches
with respect to each Credit Party in such jurisdictions as Agent shall require, and the
results of such searches shall be satisfactory to Agent; and (iii) Agent shall have received
from the Borrower Representative, for each Credit Party, a perfection certificate relative to
the Collateral, the form of which shall be supplied by Agent to the Borrower Representative
prior to the Closing Date.
	 
	(d)	 	Secretary’s Certificates. Agent shall have received a certificate of the Secretary
(or an acceptable substitute officer having similar duties and powers, including, for
instance, a general partner or managing member) of each Credit Party, dated the Closing Date,
to be in form and substance acceptable to or required by Agent, certifying as to (i) the
incumbency and signature of the officers (or other representatives) of each Credit Party
executing this Agreement and/or any other Loan Documents, and (ii) the authorizations by the
Board of Directors of such Credit Party to such officers or other representatives to enter
into and carry out such transactions as are contemplated pursuant to this Agreement and the
other Loan Documents; and including therewith copies of the Organizational Documents of such
Credit Party as in effect on the Signing Date;
	 
	(e)	 	Good Standing Certificates. Agent shall have received good standing certificates for
each Credit Party dated not more than thirty (30) days prior to the Closing Date, issued by
the secretary of state or other appropriate official of each Credit Party’s jurisdiction of
incorporation or organization and each jurisdiction where the conduct of each Credit Party’s
business activities or the ownership of its properties necessitates qualification;
	 
	(f)	 	Legal Opinion. Agent shall have received the executed legal opinion of legal counsel
to the Credit Parties, in form and content satisfactory to Agent, which shall cover such
matters incident to the transactions contemplated by this Agreement, the Notes and all other
Loan Documents such as Agent may reasonably require, and each Credit Party hereby authorizes
and directs such counsel to deliver such opinions to Agent and Lenders;
	 
	(g)	 	No Litigation. Agent shall be satisfied that (i) no litigation, investigation or
proceeding before or by any arbitrator or Governmental Authority shall be continuing or
threatened against any Credit Party or against the officers or directors of any Credit Party
(A) in connection with the other Loan Documents or any of the transactions contemplated
thereby and which, in the reasonable opinion of Agent, is deemed material or (B) which could,
in the reasonable opinion of Agent, reasonably be expected to have a Material Adverse Effect;
and (ii) no injunction, writ, restraining order or other order of any nature materially
adverse to any Credit Party or the conduct of its business or inconsistent with the due
consummation of the Related Transactions shall have been issued by any Governmental Authority;
	 
	(h)	 	Material Contracts. Agent shall have received and reviewed all Material Contracts
and been satisfied therewith;
	 
	(i)	 	Collateral Examination. Agent shall have completed collateral examinations and
received appraisals, the results of which shall be satisfactory in form and substance to
Agent, of the Collateral and all books and records in connection therewith;

44

 

	(j)	 	Fees. Agent shall have received all fees and expenses payable to Agent and Lenders
on or prior to the Closing Date pursuant hereto or under any Other Document, including the
Chatham Fee Letter;
	 
	(k)	 	Financial Statements. Agent shall have received copies of the Initial Projections
and copies of the Historical Financial Statements, each of which shall be satisfactory in all
respects to Agent;
	 
	(l)	 	Insurance. Agent shall have received, in form and content satisfactory to Agent,
certified copies of insurance policies (or binders in respect thereof), together with
endorsements thereto and ACORD certificates, confirming the Credit Parties’ compliance with
Section 2.2;
	 
	(m)	 	Environmental Reports. If and to the extent that Borrowers own any Real Property in
fee simple on the Closing Date, Agent shall have received environmental studies and reports
prepared by independent environmental engineering firms with respect to such Real Property,
satisfactory in all respects to Agent;
	 
	(n)	 	Cash Management Systems. Agent shall have received duly executed agreements
establishing the cash management system described in Section 2.8,  if and to the
extent required thereby.
	 
	(o)	 	Consents. Agent shall have received any and all consents necessary to permit the
effectuation of the transactions contemplated by this Agreement and the other Loan Documents;
and, Agent shall have received such consents and waivers of such third parties as might assert
claims with respect to the Collateral, as Agent and its counsel shall deem necessary;
	 
	(p)	 	No Adverse Material Change. Agent shall be satisfied that since the end of Parent
Company’s respective most recently completed Fiscal Years for which audited financial
statements have been reported there shall not have occurred any event, condition or state of
facts which could reasonably be expected to have a Material Adverse Effect and no
representations made or information supplied to Agent or Lenders shall have been proven to be
inaccurate or misleading in any material respect;
	 
	(q)	 	Bailee’s Agreements. Unless Agent otherwise has agreed to waive such requirement in
one or more instances (and impose reserves under the Borrowing Base in regard thereto), Agent
shall have received landlord, warehouse operator and processor agreements (as applicable)
satisfactory in form and content to Agent with respect to all premises leased by, licensed to
or otherwise used by Borrowers at which inventory or equipment is located or in which
inventory or equipment is otherwise being processed, finished or stored, each, to be in a form
and substance satisfactory to Agent, in its Permitted Discretion;
	 
	(r)	 	Pledge Agreements. Agent shall have received a Pledge Agreement from each Credit
Party in respect of the Stock of each Subsidiary owned by it in form and content satisfactory
to Agent in its Permitted Discretion;

45

 

	(s)	 	Intellectual Property. To the extent that any Credit Party owns on the Closing Date
any trademarks or patents (or applications therefor) which are registered with the United
States Patent and Trademark Office, or any copyrights (or applications therefore) which are
registered with the United States Copyright Office, Agent shall have received from such Credit
Party, as appropriate, a Patent Security Agreement, a Trademark Security Agreement, and/or a
Copyright Security Agreement; each to be in form and content satisfactory to Agent in its
Permitted Discretion;
	 
	(t)	 	Closing Certificate. Agent shall have received a closing certificate signed by a
Senior Officer of Borrower Representative dated the Closing Date, stating that (i) all
representations and warranties set forth in this Agreement and the other Loan Documents are
true and correct on and as of such date, (ii) the Credit Parties are on such date in
compliance with all the terms and provisions set forth in this Agreement and the other Loan
Documents and (iii) on such date, no Default or Event of Default has occurred or is
continuing;
	 
	(u)	 	Liquidity at Closing. Agent shall have received evidence satisfactory to it that
after giving effect to the making of the initial Advances hereunder and the payment of all
closing costs associated therewith (regardless whether required to be paid on the Closing
Date), Borrowers shall have Undrawn Availability plus unrestricted cash on hand on the
Closing Date of an amount equal to not less than Seven Hundred Thousand Dollars ($700,000);
	 
	(v)	 	Recapitalization. Agent shall have received evidence satisfactory to it of the
Recapitalization having been consummated, including therewith (A) the release of all Prior
Lender Liens, (B) the cancellation of all Prior Lender Obligations and the DD Subordinated
Note, (C) the issuance of Preferred A Stock to the Equity Investor and (D) issuance of the
Equity Investor Note;
	 
	(w)	 	Solvency. Agent shall have received a certificate duly executed by a Senior Officer
of Borrower Representative attesting to each Credit Party’s Solvency in conformity with
Section 5.9;
	 
	(x)	 	[Reserved];
	 
	(y)	 	EBITDA. Agent shall have determined from the Historical Financial Statements and
Initial Projections that on the Closing Date after giving effect to all Related Transactions,
the EBITDA of the Parent Company and its Consolidated Subsidiaries over the twelve (12) Fiscal
Months preceding the Closing Date, on a pro forma basis, is at least Two Million Two Hundred
Ninety-Two Thousand Dollars ($2,292,000).
	 
	(z)	 	New Capital. Agent shall have received evidence satisfactory to it that the Parent
Company shall have received from the Equity Investor on or subsequent to June 15, 2008, but on
or before the Closing Date, the following: (i) at least $2,500,000, in cash, in consideration
of the issuance of additional shares of Preferred A Stock to Equity Investor; (ii) a release
of all liability in respect of the Prior Lender Obligations and the DD Subordinated Note,
heretofore acquired by the Equity Investor, in its capacity as the Prior

46

 

	 	 	Lender, for not less
than $3,500,000, in cash paid by the Equity Investor to Hilco and DD Growth Premium, with the
balance of the sum owing to the Equity Investor as Prior Lender in respect of the Prior Lender
Obligations being deferred in exchange for the issuance to the Equity Investor of the Equity
Investor Note.
	 
	(aa)	 	STN Acquisition. Agent shall have received evidence satisfactory to it of the Credit
Parties’ compliance with Section 5.17 in respect of the STN Acquisition.
	 
	(bb)	 	USVD Debt, Etc. Agent shall have received evidence satisfactory to it that Seven
Hundred Fifty Thousand Dollars ($750,000) in cash has been paid by Borrowers to the USVD
Sellers in respect of the USVD Seller Fixed Payment Obligations, and, in connection therewith,
that: (i) the holders of the USVD Seller Debt have acknowledged and agreed, in writing,
pursuant to the USVD Seller Subordination Agreement, that (A) the aforesaid payment of Seven
Hundred Fifty Thousand Dollars ($750,000) satisfies all obligations owing thereunder through
the Closing Date, and (B) the then remaining principal balance of the USVD Seller Debt, equal
in amount to Two Million Three Hundred Fifty Thousand Dollars ($2,350,000), shall be repaid as
follows: (1) $750,000, on September 26, 2008, (2) $750,000 on March 26, 2009 and (3) $850,000
on September 26, 2009; and (ii) the USVD Sellers shall have rescinded their pending
resignations from USVD on or prior to the Closing Date.
	 
	(cc)	 	Accounts Payable. Agent shall have received evidence satisfactory to it that as of
the Closing Date no accounts payable of any Borrower which are not then the subject of a
bona fide dispute are unpaid more than sixty (60) days beyond the due date
prescribed for their payment.
	 
	(dd)	 	Inter Tel. Agent shall have received evidence satisfactory to it that Inter Tel
Integrated Systems, Inc. has released all of its Liens against USVD on or before the Closing
Date.
	 
	(ee)	 	Cash Collateral. Borrowers shall have deposited with Agent from the proceeds of the
Term Note, a portion thereof, equal to Two Million Dollars ($2,000,000), as the initial
portion of the Cash Collateral pursuant to the Cash Collateral Agreement.
	 
	(ff)	 	All Other Matters. Agent shall have received all other Loan Documents which Agent
determines to be necessary to consummate the transactions contemplated to occur on or after
the Closing Date pursuant to this Agreement, and all corporate and other proceedings, and all
documents, instruments and other legal matters in connection with the transactions
contemplated herein shall be satisfactory in form and substance to Agent, all Lenders, and
their respective legal counsel, including, without limitation, the delivery of all documents
listed on, the taking of all actions set forth on and fulfillment of all other conditions
precedent listed in the Closing Checklist attached hereto as Annex C shall be
satisfied, all in form and substance, or in a manner, satisfactory to Agent and Lenders.
	 
	7.2	 	Conditions to All Loans. Except as otherwise expressly provided herein, no Lender
shall be obligated to fund any Advance, if, as of the date thereof (the “Funding
Date”):
	 
	(a)	 	any representation or warranty by any Credit Party contained herein or in any other Loan
Document is untrue or incorrect as of such date, except to the extent that such

47

 

	 	 	representation
or warranty expressly relates to an earlier date, and Agent or Requisite Revolving Lenders
have determined not to make such Advance as a result of the fact that such warranty or
representation is untrue or incorrect;
	 
	(b)	 	any Default or Event of Default has occurred and is continuing or would result after giving
effect to any Advance, and Agent or Requisite Revolving Lenders shall have determined not to
make any Advance as a result of that Default or Event of Default; or
	 
	(c)	 	after giving effect to any Advance, the outstanding amount of the Revolving Loan would exceed
remaining Borrowing Availability.

     The request and acceptance by any Borrower of the proceeds of any Advance shall be deemed to
constitute, as of the date thereof, (i) a representation and warranty by Borrowers that the
conditions in this Section 7.2, have been satisfied and (ii) a reaffirmation by Credit
Parties of the cross guaranty provisions set forth in Section 10 and of the granting and
continuance of Agent’s Liens, on behalf of itself and Lenders, pursuant to the Collateral
Documents.

SECTION 8.

ASSIGNMENT AND PARTICIPATION

	8.1	 	Assignment and Participations. 
	 
	(a)	 	Subject to the terms of this Section 8.1, any Lender may make an assignment to a
Qualified Assignee of, or sale of participations in, at any time or times, the Loan Documents,
Loans and any Commitment or any portion thereof or interest therein, including any Lender’s
rights, title, interests, remedies, powers or duties thereunder. Any assignment by a Lender
shall: (i) require the consent of Agent and, unless a Default or Event of Default then
exists, the Borrowers (which consent, in each instance, shall not be unreasonably withheld or
delayed with respect to a Qualified Assignee) and the execution of an assignment agreement (an
“Assignment Agreement” substantially in the form attached hereto as Exhibit
8.1(a) and otherwise in form and substance reasonably satisfactory to, and acknowledged
by, Agent); (ii) be conditioned on such assignee Lender representing to the assigning Lender
and Agent that it is purchasing the applicable Loans to be assigned to it for its own account,
for investment purposes and not with a view to the distribution thereof; (iii) (except with
respect to any assignment by a Lender to an Affiliate of such Lender) after giving effect to
any such partial assignment, the assignee Lender shall have Commitments in an amount at least
equal to One Million Dollars ($1,000,000) and the assigning Lender shall have retained
Commitments in an amount at least equal to One Million Dollars ($1,000,000); and (iv) require
a payment to Agent of an assignment fee of Five Thousand Dollars ($5,000). Notwithstanding
the above, Agent may, in its sole and absolute discretion, permit any assignment by a Lender
to a Person or Persons that are not Qualified Assignees, subject to Borrower Representative’s
consent rights as set forth above. In the case of an assignment by a Lender under this
Section 8.1, the assignee shall have, to the extent of such assignment, the same
rights, benefits and obligations as all other Lenders hereunder. The assigning Lender shall
be relieved of its obligations hereunder with respect to its Commitments or assigned portion
thereof and the Loans and other interests assigned by it from and after

48

 

	 	 	the date of such
assignment. Borrowers hereby acknowledge and agree that any assignment shall give rise to a
direct obligation of Borrowers to the assignee and that the assignee shall be considered to be
a “Lender.” In all instances, each Lender’s liability to make Loans hereunder shall
be several and not joint and shall be limited to such Lender’s Pro Rata Share of the
applicable Commitment. In the event Agent or any Lender assigns or otherwise transfers all or
any part of the Obligations, Agent or any such Lender shall so notify Borrowers and Borrowers
shall, upon the request of Agent or such Lender, execute new Notes in exchange for the Notes,
if any, being assigned. Notwithstanding the foregoing provisions of this Section
8.1(a), (a) any Lender may at any time pledge the Obligations held by it and such Lender’s
rights under this Agreement and the other Loan Documents to a Federal Reserve Bank, (b) any
Lender that is an investment fund may assign the Obligations held by it and such Lender’s
rights under this Agreement and the other Loan Documents to another investment fund managed by
the same investment advisor or pledge such Obligations and rights to trustee for the benefit
of its investors and (c) any Lender may assign the Obligations to an Affiliate of such Lender
or to a Person that is a Lender prior to the date of such assignment.
	 
	(b)	 	Any participation by a Lender of all or any part of its Commitments shall be made with the
understanding that all amounts payable by Borrowers hereunder shall be determined as if that
Lender had not sold such participation, and that the holder of any such participation shall
not be entitled to require such Lender to take or omit to take any action hereunder except
actions directly affecting (i) any reduction in the principal amount of, or interest rate or
Fees payable with respect to, any Loan in which such holder participates, (ii) any extension
of the scheduled amortization of the principal amount of any Loan in which such holder
participates or the final maturity date thereof, and (iii) any release of all or substantially
all of the Collateral (other than in accordance with the terms of this Agreement, the
Collateral Documents or the other Loan Documents). Solely for purposes of Sections
1.8, 1.9, 8.3 and 9.1, Borrowers acknowledge and agree that a
participation shall give rise to a direct obligation of Borrowers to the participant and the
participant shall be considered to be a “Lender.” Except as set forth in the
preceding sentence no Borrower or any other Credit Party shall have any obligation or duty to
any participant. Neither Agent nor any Lender (other than the Lender selling a participation)
shall have any duty to any participant and may continue to deal solely with the Lender selling
a participation as if no such sale had occurred.
	 
	(c)	 	Except as expressly provided in this Section 8.1, no Lender shall, as between
Borrowers and that Lender, or Agent and that Lender, be relieved of any of its obligations
hereunder as a result of any sale, assignment, transfer or negotiation of, or granting of
participation in, all or any part of the Loans, the Notes or other Obligations owed to such
Lender.
	 
	(d)	 	Each Credit Party shall assist each Lender permitted to sell assignments or participations
under this Section 8.1 as required to enable the assigning or selling Lender to effect
any such assignment or participation, including the execution and delivery of any and all
agreements, notes and other documents and instruments as shall be requested and the prompt
preparation of informational materials for, and the participation of management in meetings
with, potential assignees or participants, all on a timetable reasonably established by Agent
in its sole discretion. Each Credit Party executing this Agreement

49

 

	 	 	shall certify, to the same
extent and on the same basis as certified in this Agreement, the correctness, completeness and
accuracy of all descriptions of the Credit Parties and their respective affairs contained in
any selling materials provided by it and all other information provided by it and included in
such materials, except that any Projections delivered by Borrowers shall only be certified by
Borrowers as having been prepared by Borrowers in compliance with the representations
contained in Section 5.5. Agent shall maintain, on behalf of Borrowers, in its
offices located at 400 Galleria Parkway, Suite 1950, Atlanta, Georgia 30339, a
“register” for recording the name, address, commitment and Loans owing to each Lender
(other than Revolving Lenders). The entries in each such register shall be presumptive
evidence of the amounts due and owing to each Lender in the absence of manifest error.
Borrowers, Agent and each Lender may treat each Person whose name is recorded in such register
pursuant to the terms hereof as a Lender for all purposes of this Agreement. Each such
register described herein shall be available for inspection by Borrower and any Lender, at any
reasonable time upon reasonable prior notice.
	 
	(e)	 	A Lender may furnish any information concerning Credit Parties in the possession of such
Lender from time to time to assignees and participants (including prospective assignees and
participants); provided that such Lender shall obtain from assignees or participants
confidentiality covenants substantially equivalent to those contained in Section 9.13.
	 
	(f)	 	So long as no Event of Default has occurred and is continuing, no Lender shall assign or sell
participations in any portion of its Loans or Commitments to a potential Lender or
participant, if, as of the date of the proposed assignment or sale, the assignee Lender or
participant would be subject to capital adequacy or similar requirements under Section
1.8, or withholding taxes in accordance with Section 1.9.
	 
	8.2	 	Agent.
	 
	(a)	 	Appointment. Each Lender hereby designates and appoints Chatham Agent as Agent under
this Agreement and the other Loan Documents, and each Lender hereby irrevocably authorizes
Agent to execute and deliver the Collateral Documents and to take such action or to refrain
from taking such action on its behalf under the provisions of this Agreement and the other
Loan Documents and to exercise such powers as are set forth herein or therein, together with
such other powers as are reasonably incidental thereto. Agent is authorized and empowered to
amend, modify, or waive any provisions of this Agreement or the other Loan Documents on behalf
of Lenders subject to the requirement that certain of Lenders’ consent be obtained in certain
instances as provided in this Section 8.2 and Section 9.2. The provisions of
this Section 8.2 are solely for the benefit of Agent and Lenders and neither Borrowers
nor any other Credit Party shall have any rights as a third party beneficiary of any of the
provisions hereof. In performing its functions and duties under this Agreement, Agent shall
act solely as agent of the applicable Lenders and do not assume and shall not be deemed to
have assumed any obligation toward or relationship of agency or trust with or for Borrowers or
any other Credit Party. Agent may perform any of its duties hereunder, or under the Loan
Documents, by or through its agents or employees.

50

 

	(b)	 	Nature of Duties. The duties of Agent shall be mechanical and administrative in
nature. Agent shall not have by reason of this Agreement a fiduciary relationship in respect
of any Lender. Nothing in this Agreement or any of the Loan Documents, express or implied, is
intended to or shall be construed to impose upon Agent any obligations in respect of this
Agreement or any of the Loan Documents except as expressly set forth herein or therein. Each
Lender shall make its own independent investigation of the financial condition and affairs of
each Credit Party in connection with the extension of credit hereunder and shall make its own
appraisal of the creditworthiness of each Credit Party and Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender with any
credit or other information with respect thereto (other than as expressly required herein).
If Agent seeks the consent or approval of any Lenders to the taking or refraining from taking
any action hereunder, then Agent shall send notice thereof to each applicable Lender. Agent
shall promptly notify each applicable Lender any time that the Requisite Lenders or and/or the
Requisite Senior Lenders (as applicable) have instructed Agent to act or refrain from acting
pursuant hereto.
	 
	(c)	 	Rights, Exculpation, Etc. Neither Agent nor any of its respective officers,
directors, employees or agents shall be liable to any Lender for any action taken or omitted
by them hereunder or under any of the Loan Documents, or in connection herewith or therewith,
except that Agent shall be liable to the extent of its own gross negligence or willful
misconduct as determined by a final non-appealable order by a court of competent jurisdiction.
Agent shall not be liable for any apportionment or distribution of payments made by it in
good faith and if any such apportionment or distribution is subsequently determined to have
been made in error the sole recourse of any Lender to whom payment was due but not made, shall
be to recover from other Lenders any payment in excess of the amount to which they are
determined to be entitled (and such other Lenders hereby agree to return to such Lender any
such erroneous payments received by them). In no event shall Agent be liable for punitive,
special, consequential, incidental, exemplary or other similar damages. In performing its
functions and duties hereunder, Agent shall exercise the same care which it would in dealing
with loans for its own account, but neither Agent nor any of its respective agents or
representatives shall be responsible to any Lender for any recitals, statements,
representations or warranties herein or for the execution, effectiveness, genuineness,
validity, enforceability, collectibility, or sufficiency of this Agreement or any of the Loan
Documents or the transactions contemplated thereby, or for the financial condition of any
Credit Party. Agent shall not be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this Agreement or
any of the Loan Documents or the financial condition of any Credit Party, or the existence or
possible existence of any Default or Event of Default. Agent may at any time request
instructions from Requisite Lenders, Requisite Revolving Lenders or all affected Lenders with
respect to any actions or approvals which by the terms of this Agreement or of any of the Loan
Documents, Agent is permitted or required to take or to grant. If such instructions are
promptly requested, Agent shall be absolutely entitled to refrain from taking any action or to
withhold any approval and shall not be under any liability whatsoever to any Person for
refraining from any action or withholding any approval under any of the Loan Documents until
it shall have received such instructions from the Requisite Lenders or, as

51

 

	 	 	applicable, the
Requisite Revolving Lenders or such other portion of the Lenders as shall be prescribed by
this Agreement. Without limiting the foregoing, no Lender shall have any right of action
whatsoever against Agent as a result of Agent acting or refraining from acting under this
Agreement or any of the other Loan Documents in accordance with the instructions of Requisite
Lenders, Requisite Revolving Lenders or all affected Lenders, as applicable; and,
notwithstanding the instructions of Requisite Lenders, Requisite Revolving Lenders or all
affected Lenders, as applicable, Agent shall have no obligation to take any action if it
believes, in good faith, that such action is deemed to be illegal by Agent or exposes Agent to
any liability for which it has not received satisfactory indemnification in accordance with
Section 8.2(e).
	 
	(d)	 	Reliance. Agent shall be entitled to rely, and shall be fully protected in relying,
upon any written or oral notices, statements, certificates, orders or other documents or any
telephone message or other communication (including any writing, telex, fax or telegram)
believed by it in good faith to be genuine and correct and to have been signed, sent or made
by the proper Person, and with respect to all matters pertaining to this Agreement or any of
the Loan Documents and its duties hereunder or thereunder. Agent shall be entitled to rely
upon the advice of legal counsel, independent accountants, and other experts selected by Agent
in its sole discretion.
	 
	(e)	 	Indemnification. Lenders will reimburse and indemnify Agent for and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including, without limitation, attorneys’ fees and expenses), advances or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against Agent in its capacity as such in any way relating to or arising out of this
Agreement or any of the Loan Documents or any action taken or omitted by Agent in its capacity
as such in under this Agreement or any of the Loan Documents, in proportion to each Lender’s
Pro Rata Share, but only to the extent that any of the foregoing is not reimbursed by
Borrowers; provided, however, that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses, advances or disbursements to the extent resulting from Agent’s gross negligence or
willful misconduct as determined by a final non-appealable order by a court of competent
jurisdiction. If any indemnity furnished to Agent for any purpose shall, in the opinion of
Agent or, be insufficient or become impaired, Agent may call for additional indemnity and
cease, or not commence, to do the acts indemnified against even if so directed by the
Requisite Lenders, Requisite Senior Lenders, Requisite Revolving Lenders or such other portion
of the Lenders as shall be prescribed by this Agreement until such additional indemnity is
furnished. The obligations of Lenders under this Section 8.2(e) shall survive the
payment in full of the Obligations and the termination of this Agreement.
	 
	(f)	 	Chatham (or any Successor Agent) Individually. With respect to its Commitments
hereunder, Chatham (or any Successor Agent) shall have and may exercise the same rights and
powers hereunder and is subject to the same obligations and liabilities as and to the extent
set forth herein for any other Lender. Chatham (or any Successor Agent), either directly or
through strategic affiliations, may lend money to, acquire equity or other ownership interests
in, provide advisory services to and generally engage in any

52

 

	 	 	kind of banking, trust or other
business with any Credit Party as if it were not acting as Agent pursuant hereto and without
any duty to account therefor to Lenders. Chatham (or any Successor Agent), either directly or
through strategic affiliations, may accept fees and other consideration from any Credit Party
for services in connection with this Agreement or otherwise without having to account for the
same to Lenders.
	 
	(g)	 	Successor Agents.

	 	(i)	 	Resignation. Agent may resign from the performance of all its agency
functions and duties hereunder at any time by giving at least thirty (30) Business
Days’ prior written notice to Borrower Representative and Lenders. Such resignation
shall take effect upon the acceptance by a successor Agent of appointment pursuant to
clause (ii) below or as otherwise provided in clause (ii) below.
	 
	 	(ii)	 	Appointment of Successor. Upon any such applicable notice of
resignation pursuant to clause (i) above, Requisite Lenders shall appoint a
successor Agent, which, unless an Event of Default has occurred and is continuing,
shall be reasonably acceptable to Borrowers. If a successor Agent shall not have been
so appointed within the thirty (30) Business Day period referred to in clause
(i) above, the retiring Agent upon notice to Borrower Representative, shall then
appoint a successor Agent who shall serve as Agent until such time, if any, as
Requisite Lenders appoint a successor Agent in the manner as provided above.
	 
	 	(iii)	 	Successor Agents. Upon the acceptance of any appointment as Agent or
under the Loan Documents by a successor Agent such successor Agent or shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Agent and the retiring Agent shall be discharged from its duties and
obligations under the Loan Documents. After any retiring Agent’s resignation as Agent
the provisions of this Section 8.2 shall continue to inure to its benefit as to
any actions taken or omitted to be taken by it in its capacity as Agent.

	(h)	 	Collateral Matters.

	 	(i)	 	Release of Collateral. Lenders hereby irrevocably authorize Agent, at
its option and in its discretion, to release any Lien granted to or held by Agent upon
any Collateral (A) upon termination of the Commitments and payment and satisfaction of
all Obligations (other than contingent indemnification obligations to the extent no
claims giving rise thereto have been asserted), (B) constituting property being sold or
disposed of if Borrowers (or any of them) certify to Agent that the sale or disposition
is made in compliance with the provisions of this Agreement (and Agent may rely in good
faith conclusively on any such certificate, without further inquiry) or (C) in
accordance with the provisions of the next sentence. In addition, with the consent of
Requisite Lenders, Agent may release any Lien granted to or held by Agent upon any
collateral having a book value not greater than ten percent (10%) of the total book
value of all Collateral, either in a single transaction or in a series of related
transactions; provided,

53

 

	 	 	 	however, that in no event will Agent, acting
under the authority granted to it pursuant to this sentence, release Collateral having
a total book value in excess of twenty percent (20%) of the book value of all
Collateral, as determined by Agent.
	 
	 	(ii)	 	Confirmation of Authority; Execution of Releases. Without in any
manner limiting Agent’s authority to act without any specific or further authorization
or consent by Lenders (as set forth in Section 8.2(h)(i)), each Lender agrees
to confirm in writing, upon request by Agent or Borrower Representative, the authority
to release any Collateral conferred upon Agent under Section 8.2(h)(i). Upon
receipt by Agent of any required confirmation from the Requisite Lenders of its
authority to release any particular item or types of Collateral, and upon at least ten
(10) Business Days’ prior written request by Borrower Representative, Agent shall (and
is hereby irrevocably authorized by Lenders to) execute such documents as may be
necessary to evidence the release of the Liens granted to Agent upon such Collateral;
provided, however, that (x) Agent shall not be required to execute any such document on
terms which, in Agent’s opinion, would expose Agent to liability or create any
obligation or entail any consequence other than the release of such Liens without
recourse or warranty, and (y) such release shall not in any manner discharge, affect or
impair the Obligations or any Liens upon (or obligations of any Credit Party, in
respect of), all interests retained by any Credit Party, including the proceeds of any
sale, all of which shall continue to constitute part of the Collateral.
	 
	 	(iii)	 	Absence of Duty. Agent shall have no obligation whatsoever to any
Lender or any other Person to assure that the property covered by the Collateral
Documents exists or is owned by Borrowers or any other Credit Party or is cared for,
protected or insured or has been encumbered or that the Liens granted to Agent 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 in this
Section 8.2(h) or in any of the Loan Documents, it being understood and agreed
that in respect of the property covered by the Collateral Documents or any act,
omission or event related thereto, Agent may act in any manner it may deem appropriate,
in its discretion, given Agent’s own interest in property covered by the Collateral
Documents as one of the Lenders and that Agent shall have no duty or liability
whatsoever to any of the other Lenders, provided that Agent shall exercise the same
care which it would in dealing with loans for its own account.

	(i)	 	Agency for Perfection. Agent and each Lender hereby appoint each other Lender as
agent for the purpose of perfecting Agent’s security interest in assets which, in accordance
with the Code in any applicable jurisdiction, can be perfected by possession or control.
Should any Lender (other than Agent) obtain possession or control of any such assets, such
Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor, shall deliver
such assets to Agent or in accordance with Agent’s instructions or transfer control to Agent
in accordance with Agent’s instructions. Each Lender agrees that it will not have any right
individually to enforce or seek to enforce any Collateral 

54

 

	 	 	Document or to realize upon any
collateral security for the Loans unless instructed to do so by Agent in writing, it being
understood and agreed that such rights and remedies may be exercised only by Agent.
	 
	(j)	 	Notice 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 and Fees required to be paid to Agent for the account of Lenders,
unless Agent shall have received written notice from a Lender or Borrower Representative
referring to this Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”. Agent will use reasonable efforts to notify each Lender of
its receipt of any such notice, unless such notice is with respect to defaults in the payment
of principal, interest and fees, in which case Agent will notify each Lender of its receipt of
such notice. Agent shall take such action with respect to such Default or Event of Default as
may be requested by Requisite Lenders in accordance with Section 6. 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 or in the best interests of Lenders.
	 
	(k)	 	Lender Actions Against Collateral. Each Lender agrees that it will not take any
enforcement action, nor institute any actions or proceedings, with respect to the Loans,
against any Borrower or any Credit Party hereunder or under the other Loan Documents or
against any Collateral (including the exercise of any right of set-off) without the consent of
the Agent or Requisite Lenders. All such enforcement actions and proceedings shall be taken
in concert and at the direction with the consent of Agent or Requisite Lenders. Agent is
authorized to issue all notices to be issued by or on behalf of Lenders with respect to any
Subordinated Debt. With respect to any action by Agent to enforce the rights and remedies of
Agent and the Lenders under this Agreement and the other Loan Documents, each Lender hereby
consents to the jurisdiction of the court in which such action is maintained, and agrees to
deliver its Notes to Agent to the extent necessary to enforce the rights and remedies of Agent
for the benefit of the Lenders under the Mortgages in accordance with the provisions hereof.
	 
	8.3	 	Set Off and Sharing of Payments. In addition to any rights now or hereafter granted
under applicable law and not by way of limitation of any such rights, during the continuance
of any Event of Default, each Lender is hereby authorized by Borrowers at any time or from
time to time, with reasonably prompt subsequent notice to Borrower Representative (any prior
or contemporaneous notice being hereby expressly waived) to set off and to appropriate and to
apply any and all (A) balances held by such Lender at any of its offices for the account of
any Borrower or any of its Subsidiaries (regardless of whether such balances are then due to
any Borrower or its Subsidiaries), and (B) other property at any time held or owing by such
Lender to or for the credit or for the account of any Borrower or any of its Subsidiaries,
against and on account of any of the Obligations; except that no Lender shall exercise any
such right without the prior written consent of Agent. Notwithstanding anything herein to the
contrary, the failure to give notice of any set off and application made by such Lender to
Borrower Representative shall not affect the validity of such set off and application.
Any Lender exercising a right

55

 

	 	 	to set off shall purchase for cash (and the other Lenders shall
sell) interests in each of such other Lender’s Pro Rata Share of the Obligations as would be
necessary to cause all Lenders to share the amount so set off with each other Lender entitled
to share in the amount so set off in accordance with their respective Pro Rata Shares in a
manner consistent with Section 6.5. Borrowers agree, to the fullest extent permitted
by law, that any Lender may exercise its right to set off with respect to amounts in excess of
its Pro Rata Share of the Obligations and upon doing so shall deliver such amount so set off
to the Agent for the benefit of all Lenders entitled to share in the amount so set off in
accordance with their Pro Rata Shares in a manner consistent with Section 6.4.

	8.4	 	Disbursement of Funds. Agent may, on behalf of Revolving Lenders, disburse funds to
Borrowers for Revolving Loans requested. Each Revolving Lender shall reimburse Agent on
demand for all funds disbursed on its behalf by Agent, or if Agent so requests, each Revolving
Lender will remit to Agent its Pro Rata Share of any Revolving Loan before Agent disburses
same to Borrowers. If Agent elects to require that each Revolving Lender make funds available
to Agent prior to a disbursement by Agent to Borrowers, Agent shall advise each Revolving
Lender by telephone or fax of the amount of such Revolving Lender’s Pro Rata Share of the
Revolving Loan requested by Borrower Representative no later than 1:00 p.m. (New York time) on
the Funding Date applicable thereto, and each such Revolving Lender shall pay Agent such
Revolving Lender’s Pro Rata Share of such requested Revolving Loan, in same day funds, by wire
transfer to Agent’s account on such Funding Date. If any Revolving Lender fails to pay the
amount of its Pro Rata Share within one (1) Business Day after Agent’s demand, Agent shall
promptly notify Borrower Representative, and Borrowers shall immediately repay such amount to
Agent. Any repayment required pursuant to this Section 8.4 shall be without premium
or penalty. Nothing in this Section 8.4 or elsewhere in this Agreement or the other
Loan Documents, including the provisions of Section 8.5, shall be deemed to require
Agent to advance funds on behalf of any Lender or to relieve any Revolving Lender from its
obligation to fulfill its commitments hereunder or to prejudice any rights that Agent or
Borrowers may have against any Lender as a result of any default by such Revolving Lender
hereunder.
	 
	8.5	 	Disbursements of Advances; Payment Advances; Payments(a) . (a) At least once each
calendar month or more frequently at Agent’s election (each, a “Settlement Date”),
Agent shall advise each Lender by telephone or fax of the amount of such Lender’s Pro Rata
Share of principal, interest and Fees paid for the benefits of Lenders with respect to each
applicable Loan (other than the Revolving Loan). Provided that each Lender has funded all
payments and Advances required to be made by it and purchased all participations required to
be purchased by it under this Agreement and the other Loan Documents as of such Settlement
Date, Agent shall pay to each Lender such Lender’s Pro Rata Share of principal, interest and
Fees paid by Borrowers to Agent since the previous Settlement Date for the benefit of such
Lender on the Loans held by it. Such payments shall be made by wire transfer to such Lender’s
account (as specified by such Lender in Annex E or the applicable Assignment
Agreement) not later than 2:00 p.m. (New York time) on the next Business Day following each
Settlement Date. To the extent that any Lender (a “Non Funding Lender”) has failed to
fund all such payments and Advances or failed to fund the purchase of all such participations
required to be funded or purchased by such Lender

56

 

	 	 	pursuant to this Agreement, Agent shall be
entitled to set off the funding shortfall against that Non Funding Lender’s Pro Rata Share of
all payments received from Borrowers.
	 
	(b)	 	Availability of Lender’s Pro Rata Share. Agent may assume that each Revolving Lender
will make its Pro Rata Share of each Revolving Credit Advance available to Agent on each
Funding Date. If such Pro Rata Share is not, in fact, paid to Agent by such Revolving Lender
when due, Agent will be entitled to recover such amount on demand from such Revolving Lender
without setoff, counterclaim or deduction of any kind. If any Revolving Lender fails to pay
the amount of its Pro Rata Share forthwith upon Agent’s demand, Agent shall promptly notify
Borrower Representative and Borrowers shall immediately repay such amount to Agent. Nothing
in this Section 8.5(b) or elsewhere in this Agreement or the other Loan Documents
shall be deemed to require Agent to advance funds on behalf of any Revolving Lender or to
relieve any Revolving Lender from its obligation to fulfill its Commitments hereunder or to
prejudice any rights that Borrowers may have against any Revolving Lender as a result of any
default by such Revolving Lender hereunder. To the extent that Agent advances funds to
Borrowers on behalf of any Revolving Lender and is not reimbursed therefor on the same
Business Day as such Advance is made, Agent shall be entitled to retain for its account all
interest accrued on such Advance until reimbursed by the applicable Revolving Lender.
	 
	(c)	 	Return of Payments.

	 	(i)	 	If Agent pays an amount to a Lender under this Agreement in the belief or
expectation that a related payment has been or will be received by Agent from Borrowers
and such related payment is not received by Agent then Agent will be entitled to
recover such amount from such Lender on demand without setoff, counterclaim or
deduction of any kind.
	 
	 	(ii)	 	If Agent determines at any time that any amount received by Agent under this
Agreement must be returned to any Borrower or paid to any other Person pursuant to any
insolvency law or otherwise, then, notwithstanding any other term or condition of this
Agreement or any other Loan Document, Agent shall not be required to distribute any
portion thereof to any Lender. In addition, each Lender will repay to Agent on demand
any portion of such amount that Agent has distributed to such Lender, together with
interest at such rate, if any, as Agent is required to pay to any Borrower or such
other Person, without setoff, counterclaim or deduction of any kind.

	(d)	 	Non-Funding Lenders. The failure of any Non Funding Lender to make any Revolving
Credit Advance or any payment required by it hereunder on the date specified therefor shall
not relieve any other Lender (each such other Revolving Lender, an “Other Lender”) of
its obligations to make such Advance or purchase such participation on such date, but neither
any Other Lender, Agent shall not be responsible for the failure of any Non-Funding Lender to
make an Advance, purchase a participation or make any other payment required hereunder.
Notwithstanding anything set forth herein to the contrary, a Non-Funding Lender shall not have
any voting or consent rights under or with respect to any Loan Document or constitute a
“Lender” or a “Revolving Lender” (or be included in 

57

 

	 	 	the calculation of
“Requisite Lenders” or “Requisite Revolving Lenders” hereunder) for any voting
or consent rights under or with respect to any Loan Document.

SECTION 9.

MISCELLANEOUS

	9.1	 	Indemnities. Borrowers agree, jointly and severally, to indemnify, pay, and hold
Agent, each Lender and their respective Affiliates, officers, directors, employees, agents,
and attorneys (the “Indemnitees”) harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims, costs and expenses
(including all reasonable fees and expenses of counsel to such Indemnitees) (collectively,
“Losses”), of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against the Indemnitee as a result of such Indemnitees being a party to this
Agreement or the transactions consummated pursuant to this Agreement or otherwise relating to
any of the Related Transactions; provided, that Borrowers shall have no obligation to an
Indemnitee hereunder with respect to Losses to the extent resulting from the gross negligence
or willful misconduct of, or the breach of this Agreement by, that Indemnitee as determined by
a court of competent jurisdiction. If and to the extent that the foregoing undertaking may be
unenforceable for any reason, Borrowers agree to make the maximum contribution to the payment
and satisfaction thereof which is permissible under applicable law.
	 
	9.2	 	Amendments and Waivers.
	 
	(a)	 	Except for actions expressly permitted to be taken by Agent, no amendment, modification,
termination or waiver of any provision of this Agreement or any other Loan Document, or any
consent to any departure by any Credit Party therefrom, shall in any event be effective unless
the same shall be in writing and signed by Borrowers, and by Requisite Lenders, Requisite
Revolving Lenders or all affected Lenders, as applicable. Except as set forth in clauses
(b) and (c) below, all such amendments, modifications, terminations or waivers
requiring the consent of any Lenders shall require the written consent of Requisite Lenders.
	 
	(b)	 	No amendment, modification, termination or waiver of or consent with respect to any provision
of this Agreement that increases the percentage advance rates set forth in the definition of
the Borrowing Base shall be effective unless the same shall be in writing and signed by Agent,
Requisite Lenders and Borrowers. No amendment, modification, termination or waiver of or
consent with respect to any provision of this Agreement that waives compliance with the
conditions precedent set forth in Section 7.2 to the making of any Revolving Loan
shall be effective unless the same shall be in writing and signed by Agent, Requisite
Revolving Lenders and Borrowers. Notwithstanding anything contained in this Agreement to the
contrary, no waiver or consent with respect to any Default or any Event of Default shall be
effective for purposes of the conditions precedent to the making of Revolving Loans set forth
in Section 7.2 unless the same shall be in writing and signed by Agent, Requisite
Revolving Lenders and Borrowers.

58

 

	(c)	 	No amendment, modification, termination or waiver shall, unless in writing and signed by
Agent and each Lender directly affected thereby: (i) increase the principal amount, or
postpone or extend the scheduled date of expiration, of any Lender’s Commitment (which action
shall be deemed to directly affect all Lenders); (ii) reduce the principal of, rate of
interest on (other than any determination or waiver to charge or not charge interest at the
Default Rate) or Fees payable with respect to any Loan of any affected Lender; (iii) extend
any scheduled payment date or final maturity date of the principal amount of any Loan of any
affected Lender; (iv) waive, forgive, defer, extend or postpone any payment of interest or
Fees as to any affected Lender (which action shall be deemed only to affect those Lenders to
whom such payments are made); (v) release any Guaranty or release all or substantially all of
the Collateral, except as otherwise provided in this Credit Agreement or the other Loan
Documents; (vi) change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Loans that shall be required for Lenders or any of them to take any action
hereunder (which action shall be deemed to directly affect all Lenders); and (vii) amend or
waive this Section 9.2 or the definitions of the terms “Requisite Lenders” or
“Requisite Revolving Lenders” insofar as such definitions affect the substance of this
Section 9.2 or the term “Pro Rata Share” (which action shall be deemed to
directly affect all Lenders). Furthermore, no amendment, modification, termination or waiver
affecting the rights or duties of Agent under this Agreement or any other Loan Document shall
be effective unless in writing and signed by Agent in addition to Lenders required hereinabove
to take such action. Each amendment, modification, termination or waiver shall be effective
only in the specific instance and for the specific purpose for which it was given. No
amendment, modification, termination or waiver shall be required for Agent to take additional
Collateral pursuant to any Loan Document. No amendment, modification, termination or waiver
of any provision of any Note shall be effective without the written concurrence of the holder
of that Note. No notice to or demand on any Credit Party in any case shall entitle such
Credit Party or any other Credit Party to any other or further notice or demand in similar or
other circumstances. Any amendment, modification, termination, waiver or consent effected in
accordance with this Section 9.2 shall be binding upon each holder of the Notes at the
time outstanding and each future holder of the Notes.
	 
	9.3	 	Notices; Effectiveness. Any Communication required shall be in writing addressed to the respective party as set
forth below and may be personally served by telecopier transmission, by United States
certified or registered mail or by a nationally-recognized overnight courier. A Communication
shall be deemed to have been given: (i) upon receipt, if delivered in person; (ii) upon
receipt (confirmed by automatic answer back or like evidence of receipt), if sent by
telecopier during normal business hours at the office of the recipient on the date of
transmission if transmitted on a Business Day before 4:00 p.m. New York Time; (iii) one (1)
Business Day after delivery to the courier properly addressed, if delivered by overnight
courier; or (iv) five (5) Business Days after deposit with postage prepaid and properly
addressed, if delivered by United States certified or registered mail.

     In any such case, such Communication to any party shall, if made in writing, be made to the
address of such party indicated below for receiving Communications in writing and, if made by
telecopier, shall be made to such Fax number as indicated below. Any party may from time

59

 

to time
change its address for receiving Communications in writing, or its Fax number, by sending a notice
to the other parties hereto in writing.

     While the parties may communicate by electronic means to the electronic addresses set forth
below, no Communication shall be deemed given unless and until the same is deemed given in
accordance with the first paragraph in this Section 9.3.

	 	 	 
	If to Borrower Representative:
	 	Brookside Technology Holdings Corp.

	 
	 	15500 Roosevelt Blvd.

	 
	 	Clearwater, FL 33760

	 
	 	Attn:  Michael Nole, CEO

	 
	 	Fax:  727-231-8245
	 
	 	Electronic address: mnole@brooksideus.com

		 	
	With a copy to:
	 	Shumaker, Loop & Kendrick LLP

	 
	 	181 East Kennedy Boulevard

	 
	 	Suite 2800

	 
	 	Tampa, FL 33609

	 
	 	Attn:  Julio C. Esquivel

	 
	 	Fax:  813-229-1660
	 
	 	Electronic address: jesquivel@slk-law.com

		 	
	If to Agent:
	 	CHATHAM CREDIT MANAGEMENT III, LLC

	 
	 	400 Galleria Parkway, Suite 1950

	 
	 	Atlanta, GA  30339

	 
	 	Attn: Account Officer – Brookside

	 
	 	Fax:  (770) 618-2121

	 
	 	Electronic address: jh@chathamcapital.com

	 
	 	or tw@chathamcapital.com
	 
	 	 
	With a copy to:
	 	KING & SPALDING LLP

	 
	 	1180 Peachtree Street

	 
	 	Atlanta, GA 30309

	 
	 	Attn:  Gerald T. Woods

	 
	 	Fax:  (404) 572-5128
	 
	 	Electronic address: gwoods@kslaw.com
	 
	 	 
	If to a Lender:
	 	To the address or fax number set forth on the signature page
	 
	 	hereto or in the applicable Assignment Agreement

	9.4	 	Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of Agent or any Lender to exercise, nor any partial exercise
of, any power, right or privilege hereunder or under any other Loan Documents shall impair
such power, right, or privilege or be construed to be a waiver of any Default or Event of
Default. All rights and remedies existing hereunder or under any other Loan Document are
cumulative to and not exclusive of any rights or remedies otherwise available.

60

 

	9.5	 	Marshaling; Payments Set Aside. Neither Agent nor any Lender shall be under any obligation to marshal any assets in payment
of any or all of the Obligations. To the extent that Borrowers make payment(s) or Agent
enforces its Liens or Agent or any Lender exercises its right of set-off, and such payment(s)
or the proceeds of such enforcement or set-off is subsequently invalidated, declared to be
fraudulent or preferential, set aside, or required to be repaid by anyone (whether as a result
of any demand, litigation, settlement or otherwise), then to the extent of such recovery, the
Obligations or part thereof originally intended to be satisfied, and all Liens, rights and
remedies therefor, shall be revived and continued in full force and effect as if such payment
had not been made or such enforcement or set off had not occurred.
	 
	9.6	 	Severability. The invalidity, illegality, or unenforceability in any jurisdiction of any provision under
the Loan Documents shall not affect or impair the remaining provisions in the Loan Documents.
	 
	9.7	 	Lenders’ Obligations Several; Independent Nature of Lenders’ Rights. The obligation of each Lender hereunder is several and not joint and no Lender shall be
responsible for the obligation or commitment of any other Lender hereunder. In the event that
any Lender at any time should fail to make a Loan as herein provided, the Lenders, or any of
them, at their sole option, may make the Loan that was to have been made by the Lender so
failing to make such Loan. Nothing contained in any Loan Document and no action taken by
Agent or any Lender pursuant hereto or thereto shall be deemed to constitute Lenders to be a
partnership, an association, a joint venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt.
	 
	9.8	 	Headings. Section and subsection headings are included herein for convenience of reference only and
shall not constitute a part of this Agreement for any other purposes or be given substantive
effect.
	 
	9.9	 	Applicable Law. THIS AGREEMENT AND EACH OF THE OTHER LOAN
DOCUMENTS WHICH DOES NOT EXPRESSLY SET FORTH
APPLICABLE LAW SHALL BE GOVERNED BY AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.
	 
	9.10	 	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns except that Borrowers may not assign their rights or
obligations hereunder without the written consent of all Lenders.
	 
	9.11	 	No Fiduciary Relationship; Limited Liability. No provision in the Loan Documents and no course of dealing between the parties shall be
deemed to create any fiduciary duty owing to Borrowers or any Credit Party by Agent or any
Lender. Borrowers and each Credit Party agree that neither Agent nor any Lender shall have
liability to Borrowers or any Credit Party (whether sounding in tort, contract or otherwise)
for losses suffered by Borrowers or any Credit Party in connection with, arising out of, or in
any way related to the transactions contemplated and the relationship established by the Loan
Documents, or

61

 

	 	 	any act, omission or event occurring in connection therewith, unless and to the
extent that it is determined that such losses resulted from the gross negligence or willful
misconduct of the party from which recovery is sought as determined by a final non-appealable
order by a court of competent jurisdiction. Neither Agent nor any Lender shall have any
liability with respect to, and Borrowers and each Credit Party hereby waive, release and agree
not to sue for, any special, indirect or consequential damages suffered by Borrowers or any
Credit Party in connection with, arising out of, or in any way related to the Loan Documents
or the transactions contemplated thereby.
	 
	9.12	 	Construction. Agent, each Lender, Borrowers and each other Credit Party acknowledge that each of them has
had the benefit of legal counsel of its own choice and has been afforded an opportunity to
review the Loan Documents with its legal counsel and that the Loan Documents shall be
construed as if jointly drafted by Agent, each Lender, Borrowers and each other Credit Party.
	 
	9.13	 	Confidentiality. Agent and each Lender agree to exercise their
best efforts to, for a period of two years, keep
confidential any non-public information
delivered pursuant to the Loan Documents and
identified as such by Borrowers and not to
disclose such information to Persons other than
to potential assignees or participants or to any
Affiliate of, or Persons employed by or engaged,
by Agent, a Lender or any of their respective
Affiliates or a Lender’s assignees or
participants including attorneys, auditors,
professional consultants, rating agencies,
insurance industry associations and portfolio
management services and such individuals shall
agree to be bound by similar confidentiality
terms. The confidentiality provisions contained
in this Section 9.13 shall not apply to
disclosures (i) required to be made by Agent or
any Lender to any regulatory or governmental
agency or pursuant to law, rule, regulations or
legal process or (ii) consisting of general
portfolio information
that does not specifically identify Borrowers.
The obligations of Agent and Lenders under this
Section 9.13 shall supersede and replace the
obligations of Agent and Lenders under any
confidentiality agreement in respect of this
financing executed and delivered by Agent or any
Lender prior to the date hereof.
	 
	9.14	 	CONSENT TO JURISDICTION. BORROWERS AND CREDIT PARTIES HEREBY CONSENT TO THE JURISDICTION OF ANY STATE COURT LOCATED
WITHIN FULTON COUNTY, STATE OF GEORGIA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF
GEORGIA AND IRREVOCABLY AGREE THAT, SUBJECT TO AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN
SUCH COURTS. BORROWERS AND CREDIT PARTIES EXPRESSLY SUBMIT AND CONSENT TO THE JURISDICTION OF
THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS. BORROWERS AND CREDIT
PARTIES HEREBY WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREE THAT ALL SUCH SERVICE
OF PROCESS MAY BE MADE UPON BORROWERS AND CREDIT PARTIES BY CERTIFIED OR REGISTERED MAIL,
RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER REPRESENTATIVE, AT THE ADDRESS SET FORTH IN
THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN
POSTED.

62

 

	9.15	 	WAIVER OF JURY TRIAL. BORROWERS, CREDIT PARTIES, AGENT AND EACH LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS. BORROWERS, CREDIT PARTIES, AGENT AND EACH LENDER ACKNOWLEDGE THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON
THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THAT EACH WILL
CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. BORROWERS, CREDIT PARTIES,
AGENT AND EACH LENDER WARRANT AND REPRESENT THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING
THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS.
	 
	9.16	 	Survival of Warranties and Certain Agreements. All agreements, representations and warranties made herein shall survive the execution and
delivery of this Agreement, the making of the Loans and the execution and delivery of the
Notes. Notwithstanding anything in this Agreement or implied by law to the contrary, the
agreements of Borrowers set forth in Sections 1.3(d), 1.8, 1.9 and
9.1 shall survive the repayment of the Obligations and the termination of this
Agreement.
	 
	9.17	 	Entire Agreement. This Agreement, the Notes and the other Loan Documents embody the entire agreement among the
parties hereto and supersede all prior commitments, agreements, representations, and
understandings, whether oral or written, relating to the subject matter hereof, and may not be
contradicted or varied by evidence of prior, contemporaneous, or subsequent oral agreements or
discussions of the parties hereto. All Exhibits, Schedules and Annexes referred to herein are
incorporated in this Agreement by reference and constitute a part of this Agreement.
	 
	9.18	 	Counterparts; Effectiveness. This Agreement and any amendments, waivers, consents or supplements may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed an original, but all of which counterparts
together shall constitute but one in the same instrument. Signature pages to this Agreement
and the other Loan Documents may be detached from multiple separate counterparts and attached
to the same document and a telecopy of any such executed signature page shall be valid as an
original. This Agreement shall become effective upon the execution of a counterpart hereof by
each of the parties hereto.
	 
	9.19	 	Replacement of Lenders. 
	 
	(a)	 	Within fifteen (15) days after receipt by Borrower Representative of written notice and
demand from any Lender for payment pursuant to Section 1.8 or 1.9 or, as
provided in this Section 9.19(c), in the case of certain refusals by any Lender to
consent to certain proposed amendments, modifications, terminations or waivers with respect to
this Agreement that have been approved by Requisite Lenders, Requisite Senior Lenders,

63

 

	 	 	Requisite Revolving Lenders or all affected Lenders, as applicable (any such Lender demanding
such payment or refusing to so consent being referred to herein as an “Affected
Lender”), Borrowers may, at their option, notify Agent and such Affected Lender of their
intention to do one of the following:

	 	(i)	 	Borrowers may obtain, at Borrowers’ expense, a replacement Lender
(“Replacement Lender”) for such Affected Lender, which Replacement Lender shall
be reasonably satisfactory to Agent. In the event Borrowers obtain a Replacement
Lender that will purchase all outstanding Obligations owed to such Affected Lender and
assume its Commitments hereunder within ninety (90) days following notice of Borrowers’
intention to do so, the Affected Lender shall sell and assign all of its rights and
delegate all of its obligations under this Agreement to such Replacement Lender in
accordance with the provisions of Section 8.1, provided that Borrowers have
reimbursed such Affected Lender for any administrative fee payable pursuant to
Section 8.1 and, in any case where such replacement occurs as the result of a
demand for payment pursuant to Section 1.8 or 1.9, paid all amounts
required to be paid to such Affected Lender pursuant to Section 1.8 or
1.9 through the date of such sale and assignment; or
	 
	 	(ii)	 	Borrowers may, with Agent’s consent, prepay in full all outstanding Obligations
owed to such Affected Lender and terminate such Affected Lender’s Pro Rata Share of the
Revolving Loan Commitment in which case the Revolving Loan Commitment will be reduced
by the amount of such Pro Rata Share. Borrowers shall, within ninety (90) days
following notice of their intention to do so, prepay in full all outstanding
Obligations owed to such Affected Lender (including, in any case where such prepayment
occurs as the result of a demand for payment for increased costs, such Affected
Lender’s increased costs for which it is entitled to reimbursement under this Agreement
through the date of such prepayment), and terminate such Affected Lender’s obligations
under the Revolving Loan Commitment.

	(b)	 	In the case of a Non-Funding Lender pursuant to Section 8.5(a), at Borrower
Representative’s request, Agent or a Person acceptable to Agent shall have the right with
Agent’s consent and in Agent’s sole discretion (but shall have no obligation) to purchase from
any Non-Funding Lender, and each Non-Funding Lender agrees that it shall, at Agent’s request,
sell and assign to Agent or such Person, all of the Loans and Commitments of that Non-Funding
Lender for an amount equal to the principal balance of all Loans held by such Non-Funding
Lender and all accrued interest and Fees with respect thereto (excluding, however, any
Prepayment Fee) through the date of sale, such purchase and sale to be consummated pursuant to
an executed Assignment Agreement.
	 
	(c)	 	If, in connection with any proposed amendment, modification, waiver or termination pursuant
to Section 9.2 (a “Proposed Change”):

	 	(i)	 	requiring the consent of all affected Lenders, the consent of Requisite Lenders
is obtained, but the consent of other Lenders whose consent is required is not obtained
(any such Lender whose consent is not obtained as described in this

64

 

	 	 	 	clause (i)
and in clauses (ii) and (iii) below being referred to as a
“Non-Consenting Lender”);
	 
	 	(ii)	 	requiring the consent of Requisite Revolving Lenders, the consent of Revolving
Lenders holding fifty-one percent (51%) or more of the aggregate Revolving Loan
Commitments is obtained, but the consent of Requisite Revolving Lenders is not
obtained; or
	 
	 	(iii)	 	requiring the consent of Requisite Lenders, the consent of Lenders holding
fifty-one percent (51%) or more of the aggregate Commitments is obtained, but the
consent of Requisite Lenders is not obtained;

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

	9.20	 	Delivery of Termination Statements and Mortgage Releases. Upon payment in full in cash and performance of all of the Obligations (other than
indemnification Obligations as to which no claim has been asserted), termination of the
Commitments and a release of all claims against Agent and Lenders, and so long as no suits,
actions proceedings, or claims are pending or threatened against any Indemnitee asserting any
damages, losses or liabilities that are indemnified liabilities hereunder, Agent shall deliver
to Borrower Representative termination statements, mortgage releases and other documents
necessary or appropriate to evidence the termination of the Liens securing payment of the
Obligations.
	 
	9.21	 	Right to Cure. Agent may, in its Permitted Discretion, (a) cure any default by any Credit Party under any
Material Contract that affects the Collateral, its value or the ability of Agent or any Lender
Party to collect, sell or otherwise dispose of any Collateral or the rights and remedies of
Agent or any Lender Party therein or the ability of any Credit Party to perform its
obligations hereunder or under any of the Loan Documents, (b) pay or bond on appeal any
judgment entered against any Credit Party, (c) discharge any charges, Liens, security
interests or other encumbrances at any time levied on or existing with respect to the
Collateral and (d) pay any amount, incur any expense or perform any act which Agent determines
is necessary or appropriate to preserve, protect, insure or maintain the Collateral and the
rights of Agent with respect thereto. Agent may add any amounts so expended to the
Obligations and charge Borrowers’ Loan Account therefor, such amounts to be repayable by
Borrowers on demand, shall bear interest at the Default Rate until paid in full, shall be part
of the Obligations, and shall be secured by the Collateral. Agent shall be under no
obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to
have assumed any obligation or liability of any

65

 

	 	 	Credit Party. Any payment made or other
action taken by Agent under this Section shall be without prejudice to any right to assert an
Event of Default and to proceed accordingly.
	 
	9.22	 	Injunctive Relief. Each Credit Party recognizes that, in the event any Borrower fails to perform, observe or
discharge any of its obligations or liabilities under this Agreement, any remedy at law may
prove to be inadequate relief to Lenders; and, accordingly, Agent, if Agent so requests, shall
be entitled to temporary and permanent injunctive relief in any such case without the
necessity of proving that actual damages are not an adequate remedy.
	 
	9.23	 	Consequential Damages. None of Agent or any Lender
nor any agent or attorney for any
of them, shall be liable to any
Credit Party for consequential
damages arising from any breach
of contract, tort or other
wrong relating to the
establishment, administration or
collection of the Obligations or
any related transaction.
	 
	9.24	 	Captions. The captions at various places in this Agreement and any Other Document are intended for
convenience only and do not constitute and shall not be interpreted as part of this Agreement
or any other Loan Document.
	 
	9.25	 	Permitted Deliveries. Delivery of a counterpart hereto or to any Loan Document by facsimile transmission or by
Electronic Transmission of an Adobe portable document format file (also known as a “PDF
file”) shall be as effective as delivery of an original counterpart hereto. Any party
delivering an executed counterpart of any such agreement by telefacsimile or by Electronic
Transmission shall in a timely manner also deliver an original executed counterpart, but the
failure to do so shall not affect the validity, enforceability or binding effect of such
agreement.
	 
	9.26	 	Seals. If this Agreement or any Loan Document provides for imposition of a seal by any party
thereto, the word “seal” or the initials “L.S.” placed adjacent to, or near,
the party’s name or signature shall be a sufficient indication thereof.
	 
	9.27	 	Publicity. Each Borrower hereby authorizes Agent to make appropriate announcements of the financial
arrangements contemplated pursuant hereto, including, without limitation, announcements which
are commonly known as “tombstones” in such publications and to such selected parties as Agent
may deem appropriate. Without limiting the foregoing, Borrowers authorize Agent to utilize
any logo or other distinctive symbol associated with the Borrowers in connection with any such
announcement or any other promotion, advertising or marketing undertaken by it. In no event,
however, shall any Borrower use the name of Agent or any Lender or any logo or distinctive
symbol associated with any of them, unless, as appropriate, Agent, such Lender has given its
prior written consent thereto.
	 
	9.28	 	Survival of Representations and Warranties. All representations and warranties of each Credit Party contained in this Agreement and the
Loan Documents shall be true at the time of such Credit Party’s execution of this Agreement
and the Loan Documents, and

66

 

	 	 	shall survive the execution, delivery and acceptance thereof by
the parties thereto and the closing of the transactions described therein or related thereto.
	 
	9.29	 	Destruction of Invoices. Borrower Representative hereby authorizes and directs Agent and each Lender in accordance
with its standard document retention policies in such regard to destroy all invoices, agings,
inventory reports, financial statements and other data provided from time to time by the
Credit Parties to Agent and Lenders pursuant thereto.
	 
	9.30	 	Time. Time is of the essence in this Agreement and each other Document. Unless otherwise
expressly provided, all references herein and in any Other Documents to time shall mean and
refer to New York time. For purposes of the computation of a period of time from a specified
date to a later specified date, the word “from” means “from and including” and the words “to”
and “until” each means “to and including”; provided, that, with respect to a
computation of fees or interest payable to Agent or any Lender, such period shall, in any
event, consist of at least one (1) full day.
	 
	9.31	 	Patriot Act. The USA Patriot Act presently requires Agent and each Lender to obtain, verify and record
information that identifies each Person that opens an account or applies for a loan or lease.
Borrowers agrees to cooperate with Agent and Lenders in maintaining compliance with such law
on an ongoing basis. In addition to the foregoing, each Lender or assignee or participant of
a Lender that is not incorporated under the Laws of the United States of America or a State
thereof (and is not excepted from the certification requirement contained in Section 313 of
the USA Patriot Act and the applicable regulations because it is both (i) an affiliate of a
depository institution or foreign bank that maintains a physical presence in the United States
or foreign country, and (ii) subject to supervision by a banking authority regulating such
affiliated depository institution or foreign bank) shall deliver to Agent the certification,
or, if applicable, recertification, certifying that such Lender is not a “shell” and
certifying to other matters as required by Section 313 of the USA Patriot Act and the
applicable regulations: (1) within 10 days after the Closing Date, and (2) at such other times
as are required under the USA Patriot Act.
	 
	9.32	 	No Tax Advice. Each Borrower hereby acknowledges and agrees that, with respect to all tax and accounting
matters relating to this Agreement, the other Loan Documents, or the transactions contemplated
herein and therein, including the Related Transaction, it has not relied on any
representations made, consultation provided by, or advice given or rendered by any Lender
Party or any of its representatives, agents, or employees; and, instead, each Borrower has
sought, and relied upon, the advice of its own tax and accounting professionals with respect
to all such matters.
	 
	9.33	 	Completion of Blanks. If this Agreement or any other Loan Document contains any blank spaces, such as for dates or
amounts, the Credit Parties hereby authorize Agent to complete any such blank spaces according
to the terms upon which the transactions contemplated hereby or thereby were contemplated.

67

 

	9.34	 	Exculpation of Agent and Lender Parties. Nothing herein contained shall be construed to constitute Agent or any Lender as any Credit
Party agent for any purpose whatsoever, nor shall Agent or any Lender be responsible or liable
for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral
wherever the same may be located and regardless of the cause thereof. Agent and each Lender
shall not, whether by anything herein or in any assignment or otherwise, assume any Credit
Party obligations under any contract or agreement assigned to Agent or any Lender, and Agent
and each Lender shall not be responsible in any way for the performance by any Credit Party’s
of any of the terms and conditions thereof.
	 
	9.35	 	Electronic Transmissions. Subject to the provisions of this Section, each of the Borrowers, the other Credit Parties,
the Agent and the Lenders are authorized (but not required) to transmit, post or otherwise
make or communicate, in their sole discretion, Electronic Transmissions in connection herewith
and the transactions contemplated herein. Each of the Credit Parties hereby acknowledges and
agrees that the use of Electronic Transmissions is not necessarily secure and that there are
risks associated with such use, including risks of interception, disclosure and abuse and each
indicates it assumes and accepts such risks by hereby authorizing the transmission of
Electronic Transmissions. All uses of an E-System shall be governed by and subject to, in
addition to the terms and conditions of this Agreement, separate terms and conditions posted
or referenced in such E-System and related contractual obligations executed by the Borrowers,
the other Credit Parties, the Agent or the Lenders in connection with the use of such
E-System. All E-Systems and Electronic Transmissions shall be provided “as is” and “as
available.” Neither Agent nor any Lender nor any other Lender Party warrants the accuracy,
adequacy or completeness of any E-Systems or Electronic Transmission, and each disclaims all
liability for errors or omissions therein. No warranty of any kind is made by Agent or the
Lenders in connection with any E-systems or Electronic Transmission, including any warranty or
merchantability, fitness for a particular purpose, non-infringement of third-party rights or
freedom from viruses or other code defects. Each of the Credit Parties agrees that neither
Agent nor any Lender has any responsibility for maintaining or providing any equipment,
software, services or any testing required in connection with any Electronic Transmission or
otherwise required for any E-System.
	 
	9.36	 	Credit Inquiries. Credit Parties hereby authorize and permit Agent and Lenders (but Agent and Lenders shall
have no obligation) to respond to usual and customary credit inquiries from third parties
concerning the Credit Parties or any Subsidiaries.
	 
	9.37	 	Rules of Construction. Rules of construction with respect to accounting terms used in the Agreement or the other
Loan Documents shall be as set forth or referred to in Annex A. All other undefined
terms contained in any of the Loan Documents shall, unless the context indicates otherwise,
have the meanings provided for by the Code to the extent the same are used or defined
therein; in the event that any term is defined differently in different Articles or
Divisions of the Code, the definition contained in Article or Division 9 shall control.
Unless otherwise specified, references in the Agreement or any of the Appendices to a
Section, subsection or clause refer to such Section, subsection or clause as contained in
the Agreement. The words “herein,” “hereof” and “hereunder” and other words of
similar import refer to the Agreement as a whole, including all Annexes,

68

 

	 	 	Exhibits and
Schedules, as the same may from time to time be amended, restated, modified or supplemented,
and not to any particular section, subsection or clause contained in the Agreement or any
such Annex, Exhibit or Schedule. Wherever from the context it appears appropriate, each
term stated in either the singular or plural shall include the singular and the plural, and
pronouns stated in the masculine, feminine or neuter gender shall include the masculine,
feminine and neuter genders. The words “including”, “includes” and “include” shall be
deemed to be followed by the words “without limitation”; the word “or” is not exclusive;
references to Persons include their respective successors and assigns (to the extent and
only to the extent permitted by the Loan Documents) or, in the case of governmental Persons,
Persons succeeding to the relevant functions of such Persons; and all references to statutes
and related regulations shall include any amendments of the same and any successor statutes
and regulations. Whenever any provision in any Loan Document refers to the knowledge (or an
analogous phrase) of any Credit Party, such words are intended to signify that such Credit
Party has actual knowledge or awareness of a particular fact or circumstance or that such
Credit Party, if it had exercised reasonable diligence, would have known or been aware of
such fact or circumstance. All references herein to documents, instruments or agreements
shall, unless otherwise expressly provided herein, include any amendments (including
amendments and restatements) of same: An Event of Default, once it has occurred, may only
be discontinued by at written waiver from Agent at the direction of the Requisite Lenders.

SECTION 10.

CROSS-GUARANTY

	10.1	 	Cross-Guaranty. Each Credit Party hereby agrees that such Credit Party is jointly and severally liable for,
and hereby absolutely and unconditionally guarantees to Agent and Lenders and their respective
successors and assigns, the full and prompt payment (whether at stated maturity, by
acceleration or otherwise) and performance of, all Obligations owed or hereafter owing to
Agent and Lenders by each Borrower. Each Credit Party agrees that its guaranty obligation
hereunder is a continuing guaranty of payment and performance and not of collection, that its
obligations under this Section 10 shall not be discharged until payment and
performance, in full, of the Obligations has occurred, and that its obligations under this
Section 10 shall be absolute and unconditional, irrespective of, and unaffected by,
	 
	(a)	 	the genuineness, validity, regularity, enforceability or any future amendment of, or change
in, this Agreement, any other Loan Document or any other agreement, document or instrument to
which any Borrower is or may become a party;
	 
	(b)	 	the absence of any action to enforce this Agreement (including this Section 10) or
any other Loan Document or the waiver or consent by Agent and Lenders with respect to any of
the provisions thereof;
	 
	(c)	 	the existence, value or condition of, or failure to perfect its Lien against, any security
for the Obligations or any action, or the absence of any action, by Agent and Lenders in
respect thereof (including the release of any such security);

69

 

	(d)	 	the insolvency of any Credit Party; or
	 
	(e)	 	any other action or circumstances that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor.

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

	10.2	 	Waivers by Credit Parties.
	 
	(a)	 	Each Credit Party expressly waives all rights it may have now or in the future under any
statute, or at common law, or at law or in equity, or otherwise, to compel Agent or any Lender
to marshal assets or to proceed in respect of the Obligations guaranteed hereunder against any
other Credit Party, any other party or against any security for the payment and performance of
the Obligations before proceeding against, or as a condition to proceeding against, such
Credit Party.
	 
	(b)	 	To the maximum extent permitted by law, each Credit Party, in its capacity as a Guarantor
hereunder or a surety as a result of joint and several obligations hereunder, hereby waives
and agrees not to assert or take advantage of: (i) the unenforceability or invalidity of any
security or guaranty or the lack of perfection or continuing perfection, or failure of
priority of any security for the Obligations; (ii) any and all rights and defenses arising out
of an election of remedies by Agent or any Lender; (iii) any defense based upon any failure to
disclose to such Credit Party any information concerning the financial condition of any other
Credit Party or any other Person or any other circumstances bearing on the ability of any
other Credit Party or any other Person to pay and perform all obligations due under this
Agreement or any of the other Loan Documents; (iv) any failure of Agent or any Lender to
comply with applicable laws in connection with the sale or disposition of security, including,
without limitation, any failure by the Agent or any Lender to conduct a commercially
reasonable sale or other disposition of such security; (v) any defense based upon any statute
or rule of law which provides that the obligation of a surety must be neither larger in amount
nor in any other respects more burdensome than that of a principal, or that reduces a surety’s
or guarantor’s obligations in proportion to the principal’s obligation; (vi) any use of cash
collateral under Section 363 of the Bankruptcy Code; (vii) any defense based upon an election
by Agent or any Lender, in any proceeding instituted under the Bankruptcy Code, of the
application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; (viii) any
defense based upon any borrowing or any grant of a security interest under Section 364 of the
Bankruptcy Code; (ix) any right of subrogation, any right to enforce any remedy which
Agent or any Lender may have against any other Credit Party or any other Person and any
right to participate in, or benefit from, any security now or hereafter held by Agent or any
Lender for the Obligations; (x) presentment, demand, protest and notice of any kind,
including notice of acceptance of this Agreement and of the existence, creation or incurring
of new or additional Obligations; (xi) the benefit of any statute of limitations affecting
the liability of any other Credit Party or other Person, enforcement of this Agreement or
any other Loan Documents, the liability of any Credit Party hereunder or the enforcement
hereof; (xii) relief from any applicable valuation or appraisement laws;

70

 

	 	(xiii)	 	any other
action by Agent or any Lender, whether authorized by this Agreement or otherwise, or any
omission by Agent or any Lender or other failure of Agent or any Lender to pursue, or delay
in pursuing, any other remedy in its power; and (xiv) any and all claims and/or rights of
counterclaim, recoupment, setoff or offset. Each Credit Party agrees that the payment and
performance of all Obligations or any part thereof or other act which tolls any statute of
limitations applicable to this Agreement or the other Loan Documents shall similarly operate
to toll the statute of limitations applicable to such Credit Party’s liability hereunder.

	(c)	 	It is agreed among each Credit Party, Agent and Lenders that the foregoing waivers are of the
essence of the transaction contemplated by this Agreement and the other Loan Documents and
that, but for the provisions of this Section 10 and such waivers, Agent and Lenders
would decline to enter into this Agreement.
	 
	10.3	 	Benefit of Guaranty. Each Credit Party agrees that the provisions of this Section 10 are for the benefit
of Agent and Lenders and their respective successors, transferees, endorsees and assigns, and
nothing herein contained shall impair, as between any other Credit Party and Agent or Lenders,
the obligations of such other Credit Party under the Loan Documents.
	 
	10.4	 	Waiver of Subrogation, Etc. Notwithstanding anything to the contrary in this Agreement or in any other Loan Document,
and except as set forth in Section 10.7, each Credit Party hereby expressly and
irrevocably waives any and all rights at law or in equity to subrogation, reimbursement,
exoneration, contribution, indemnification or set off and any and all defenses available to a
surety, guarantor or accommodation co-obligor until all Obligations have been indefeasibly
paid in full in cash and all Commitments of the Agent and/or Lenders to provide further credit
have been terminated. Each Credit Party acknowledges and agrees that this waiver is intended
to benefit Agent and Lenders and shall not limit or otherwise affect such Credit Party’s
liability hereunder or the enforceability of this Section 10, and that Agent, that
Lenders and their respective successors and assigns are intended third party beneficiaries of
the waivers and agreements set forth in this Section 10.4 and that such waivers and
agreements shall remain in effect until all Obligations have been indefeasibly paid in full in
cash and all Commitments of the Agent and/or Lenders to provide further credit have been
terminated.
	 
	10.5	 	Election of Remedies. If Agent or any Lender may, under applicable law, proceed to realize its benefits under any
of the Loan Documents giving Agent or such Lender a Lien upon any Collateral, whether owned by
any Credit Party or by any other Person, either by judicial foreclosure or by non judicial
sale or enforcement, Agent or any Lender may, at its sole option, determine which of its
remedies or rights it may pursue without affecting any of its rights and remedies under this
Section 10. If, in the exercise of any of its rights and remedies, Agent or any
Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency
judgment against any Credit Party or any other Person, whether because of any applicable laws
pertaining to “election of remedies” or the like, each Credit Party hereby consents to
such action by Agent or such Lender and waives any claim based upon such action, even if such
action by Agent or such Lender shall result in

71

 

	 	 	a full or partial loss of any rights of
subrogation that each Credit Party might otherwise have had but for such action by Agent or
such Lender. Any election of remedies that results in the denial or impairment of the right
of Agent or any Lender to seek a deficiency judgment against any Credit Party shall not impair
any other Credit Party’s obligation to pay the full amount of the Obligations. In the event
Agent or any Lender shall bid at any foreclosure or trustee’s sale or at any private sale
permitted by law or the Loan Documents, Agent or such Lender may bid all or less than the
amount of the Obligations and the amount of such bid need not be paid by Agent or such Lender
but shall be credited against the Obligations. The amount of the successful bid at any such
sale, whether Agent, Lender or any other party is the successful bidder, shall be conclusively
deemed to be the fair market value of the Collateral and the difference between such bid
amount and the remaining balance of the Obligations shall be conclusively deemed to be the
amount of the Obligations guaranteed under this Section 10, notwithstanding that any
present or future law or court decision or ruling may have the effect of reducing the amount
of any deficiency claim to which Agent or any Lender might otherwise be entitled but for such
bidding at any such sale.
	 
	10.6	 	Limitation. Notwithstanding any provision herein contained to the contrary, each Credit Party’s
liability under this Section 10 (which liability is in any event in addition to
amounts for which such Credit Party is liable under Section 1) shall be limited to an
amount not to exceed as of any date of determination the greater of:
	 
	(a)	 	the net amount of all Loans advanced to any other Credit Party under this Agreement and then
re-loaned or otherwise transferred to, or for the benefit of, such Credit Party; and
	 
	(b)	 	the amount that could be claimed by Agent and Lenders from such Credit Party under this
Section 10 without rendering such claim voidable or avoidable under Section 548 of
Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into
account, among other things, such Credit Party’s right of contribution and indemnification
from each other Credit Party under Section 10.7.
	 
	10.7	 	Contribution with Respect to Guaranty Obligations. To the extent that any Credit Party shall make a payment under this Section 10 of
all or any of the Obligations (other than Loans made to that Credit Party for which it is
primarily liable) (a “Guarantor Payment”) that, taking into account all other
Guarantor Payments then previously or concurrently made by any other Credit Party, exceeds the
amount that such Credit Party would otherwise have paid if each Credit Party had paid the
aggregate Obligations satisfied by such Guarantor Payment in the same proportion that such
Credit Party’s Allocable Amount (as defined below) (as determined immediately prior to such
Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Credit Parties as
determined immediately prior to the making of such Guarantor Payment, then, following
indefeasible payment in full in cash of the Obligations and termination of the Commitments,
such Credit Party shall be entitled to receive contribution and indemnification payments from,
and be reimbursed by, each other Credit Party for the amount of such excess, pro rata based
upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

72

 

	(a)	 	As of any date of determination, the “Allocable Amount” of any Credit Party shall be
equal to the maximum amount of the claim that could then be recovered from such Credit Party
under this Section 10 without rendering such claim voidable or avoidable under Section
548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent
Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.
	 
	(b)	 	This Section 10.7 is intended only to define the relative rights of Credit Parties
and nothing set forth in this Section 10.7 is intended to or shall impair the
obligations of Credit Parties, jointly and severally, to pay any amounts as and when the same
shall become due and payable in accordance with the terms of this Agreement, including
Section 10.1. Nothing contained in this Section 10.7 shall limit the
liability of any Credit Party to pay the Loans made directly or indirectly to that Credit
Party and accrued interest, Fees and expenses with respect thereto for which such Credit Party
shall be primarily liable.
	 
	(c)	 	The parties hereto acknowledge that the rights of contribution and indemnification hereunder
shall constitute assets of the Credit Party to which such contribution and indemnification is
owing.
	 
	(d)	 	The rights of the indemnifying Credit Parties against other Credit Parties under this
Section 10.7 shall be exercisable upon the full and indefeasible payment of the
Obligations and the termination of the Commitments.
	 
	10.8	 	Liability Cumulative. The liability of Credit Parties under this Section 10 is in addition to and shall be
cumulative with all liabilities of each Credit Party to Agent and Lenders under this Agreement
and the other Loan Documents to which such Credit Party is a party or in respect of any
Obligations or obligation of the other Credit Party, without any limitation as to amount,
unless the instrument or agreement evidencing or creating such other liability specifically
provides to the contrary.

[Signature Pages Follow]

73

 

          Witness the due execution hereof by the respective duly authorized officers of the undersigned
as of the date first written above.

	 	 	 	 	 
	 	Borrowers:

BROOKSIDE TECHNOLOGY PARTNERS, INC.

 	 
	 	By:  	 	 
	 	Name: 	  	Michael Nole 	 
	 	Title: 	  	CEO 	 
	 
	 	STANDARD TEL ACQUISITIONS, LLC

 	 
	 	By: 	 	 
	 	Name:	 	Michael Nole 	 
	 	Title:	 	Managing Member 	 
	 
	 	U.S. VOICE & DATA, LLC

 	 
	 	By:  	 	 
	 	Name:	 	Michael Nole 	 
	 	Title:	 	Managing Member 	 
	 
	 	STANDARD TEL NETWORKS, LLC

 	 
	 	By:  	 	 
	 	Name:	 	Michael Nole 	 
	 	Title:	 	Managing Member 	 
	 
	 	TRANS-WEST NETWORK SOLUTIONS, INC.

d/b/a STANDARD TEL

 	 
	 	By:  	 	 
	 	Name:	 	Michael Nole 	 
	 	Title:	 	CEO 	 
	 

[Signature Page to Credit Agreement]

 

 

	 	 	 	 	 
	 	Credit Parties:

BROOKSIDE TECHNOLOGY HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Michael Nole 	 
	 	 	Title:  	CEO 	 
	 

[Signature Page to Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	CHATHAM CREDIT MANAGEMENT III, LLC,

as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Chatham Capital Holdings, Inc.	 	 
	 

	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

John E. Guy
	 	 
	 

	 	Title:
	 	Partner	 	 
	 
	 	 	 	 	 	 
	 	 	CHATHAM CREDIT MANAGEMENT III, LLC, not
individually, but as agent for CHATHAM
INVESTMENT FUND III, LLC and CHATHAM
INVESTMENT FUND III QP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Chatham Capital Holdings, Inc.	 	 
	 

	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	John E. Guy	 	 
	 

	 	Title:
	 	Partner	 	 
	 
	 	 	 	 	 	 
	 	 	Address:

400 Galleria Parkway, Suite 1950

Atlanta, GA 30339

ATTN: Account Officer

Fax: (770) 980-0503	 	 
	 
	 	 	 	 	 	 
	 	 	ABA No.: 121000248

Account No.: 4121502884

Bank: Wells Fargo Bank, N.A.

San Francisco, California

Account Holder: Chatham Credit Management III, LLC	 	 

[Signature Page to Credit Agreement]

 

 

ANNEX A

to

CREDIT AGREEMENT

DEFINITIONS

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

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

     “Accounting Changes” means: (a) changes in accounting principles required by GAAP and
implemented by any Borrower; (b) changes in accounting principles recommended by Borrowers’
certified public accountants and implemented by any Borrower; and (c) changes in carrying value of
any Borrower’s or any of its Subsidiaries’ assets, liabilities or equity accounts resulting from
(i) the application of purchase accounting principles (A.P.B. 16 and/or 17 and EITF 88 16 and FASB
109) to the Related Transactions or (ii) as the result of any other adjustments that, in each case,
were applicable to, but not included in, the Pro Forma.

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

     “Advances” means any Revolving Credit Advance.

     “Affected Lender” has the meaning ascribed to it in Section 9.19(a).

     “Affiliate” means, with respect to any Person, (a) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary,
five percent (5%) or more of the Stock having ordinary voting power in the election of directors of
such Person, (b) each Person that controls, is controlled by or is under common control with such

Annex A-1

 

Person, (c) each of such Person’s officers, directors, joint venturers and partners and (d) in
the case of Borrowers, the immediate family members, spouses and lineal descendants of individuals
who are Affiliates of any Borrower. For the purposes of this definition, “control” of a
Person shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of its management or policies, whether through the ownership of voting securities, by
contract or otherwise; provided, however, that the term “Affiliate” shall specifically
exclude Agent and each Lender.

     “Agent” means Chatham Agent in its capacity as Agent for Lenders or its successor
appointed pursuant to Section 8.2.

     “Agreement” means this Credit Agreement (including all schedules, subschedules,
annexes and exhibits hereto), as the same may be amended, supplemented, restated or otherwise
modified from time to time.

     “Allocable Amount” has the meaning ascribed to it in Section 10.7.

     “Anti-Terrorism Laws” has the meaning ascribed to it in Section 5.19.

     “Applicable Margins” means collectively, the Applicable Unused Line Fee Margin, the
Applicable Revolver LIBOR Margin, and the Applicable Term Loan LIBOR Margin.

     “Applicable Percentage” has the meaning ascribed to it in Section 1.3(c).

     “Applicable Revolver LIBOR Margin” means the per annum interest rate from time to time
in effect and payable in addition to the LIBOR Rate applicable to the Revolving Loan, as determined
by reference to Section 1.2(a).

     “Applicable Term Loan LIBOR Margin” means the per annum interest rate from time to
time in effect and payable in addition to the LIBOR Rate applicable to the Term Loan, as determined
by reference to Section 1.2(a).

     “Applicable Unused Line Fee Margin” means the per annum fee, from time to time in
effect, payable in respect of Borrowers’ non-use of committed funds pursuant to Section
1.3(b), which fee is determined by reference to Section 1.2 (a).

     “Asset Disposition” means the disposition whether by conveyance, sale, lease,
sublease, assignment, transfer or other disposition (including by way of merger or consolidation
and including any sale and leaseback transaction) of any of the following: (a) any of the Stock or
other equity or ownership interest of any of Borrowers’ Subsidiaries or (b) any or all of the
assets of Borrowers or any of their Subsidiaries other than sales of Inventory in the ordinary
course of business.

     “Assignment Agreement” has the meaning ascribed to it in Section 8.1(a).

     “Availability Reserve” means such reserves to the Borrowing Base as the Agent
determines from time to time in its Permitted Discretion are necessary or appropriate, which
reserves may relate to the assets used to determine the Borrowing Base or to any other assets,

Annex A-2

 

liabilities or other matter or circumstance deemed appropriate by the Agent in its Permitted
Discretion, including, without limitation, reserves (i) to replace, repair, restore or rebuild
Collateral and/or other assets of any Credit Party in connection with a Casualty Event, (ii) for
rental obligations for any Real Estate leased by any Credit Party not subject to a landlord’s
agreement, (iii) for debt obligations in respect of any Real Estate owned by any Credit Party and
subject to a mortgage in favor of a third party lender which is not subject to a mortgagee
agreement, or (iv) with respect to surety and appeal bonds, performance and return-of-money bonds
and other similar obligations.

     “Bankruptcy Code” means the provisions of Title 11 of the United States Code, 11
U.S.C. §§ 101 et seq. or other applicable bankruptcy, insolvency or similar laws.

     “Board” shall mean the Board of Governors of the Federal Reserve Bank.

     “Board of Directors” shall mean the board of directors, board of managers or similar
board or other form of governing body of a Person.

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

     “Borrower Representative” means Parent Company in its capacity as Borrower
Representative pursuant to the provisions of Section 1.10.

     “Borrowers Accountants” means the firm of Helin, Donovan, Trubee & Wilkinson, LLP, or
such other firm of independent certified public accountants retained by Parent Company for itself
and the Borrowers subsequent to the Closing Date with the approval of Agent.

     “Borrowing Availability” means as of any date of determination the lesser of
(i) the Maximum Amount and (ii) the Borrowing Base; in each case, less the Revolving Loans
then outstanding.

     “Borrowing Base” means, as of any date of calculation, a dollar amount equal to
(i) the lesser of (A) the Maximum Amount; or (B) the difference between (1) three
(3) times EBITDA for the twelve (12) Fiscal Months then most recently ended and reported in
accordance with Section 4.5(c) and (2) the unpaid principal amount of the Term Loan as of
the applicable Fiscal Month end, less (ii) all Availability Reserves.

     “Borrowing Base Certificate” has the meaning ascribed to it in Section 4.7(d).

     “BTP” has the meaning ascribed to it in the preamble.

     “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or permitted to be closed in the State of Georgia or New York.

     “Capital Expenditures” has the meaning ascribed to it in Section 4.1 of
Schedule 1 to Annex F.

Annex A-3

 

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

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

     “Cash Collateral” means all cash deposited by Borrowers with Agent on and subsequent
to the Closing Date pursuant to the Cash Collateral Agreement, and given as additional security for
the Obligations.

     “Cash Collateral Agreement” means the Cash Collateral Agreement, dated as of the
Closing Date, made between the Parent Company and Agent.

     “Cash Equivalents” means: (i) marketable securities (A) issued or directly and
unconditionally guaranteed as to interest and principal by the United States government or (B)
issued by any agency of the United States government the obligations of which are backed by the
full faith and credit of the United States, in each case maturing within one (1) year after
acquisition thereof; (ii) marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality thereof, in
each case maturing within one year after acquisition thereof and having, at the time of
acquisition, a rating of at least A-1 from S&P or at least P 1 from Moody’s; (iii) commercial paper
maturing no more than one year from the date of acquisition and, at the time of acquisition, having
a rating of at least A 1 from S&P or at least P 1 from Moody’s; (iv) amounts on deposit in a
deposit account with or certificates of deposit or bankers’ acceptances issued or accepted by any
Lender or by any commercial bank organized under the laws of the United States of America or any
state thereof or the District of Columbia that is at least (A) “adequately capitalized” (as defined
in the regulations of its primary Federal banking regulator) and (B) has Tier 1 capital (as defined
in such regulations) of not less than $250,000,000, in each case maturing within one year after
issuance or acceptance thereof; and (v) shares of any money market mutual or similar funds that (A)
has substantially all of its assets invested continuously in the types of investments referred to
in clauses (i) through (iv) above, (B) has net assets of not less than $500,000,000
and (C) has the highest rating obtainable from either S&P or Moody’s.

     “Casualty Event” means, with respect to any property (including Real Estate) of any
Person, any loss of title with respect to such property or any loss of or damage to or destruction
of, or any condemnation or other taking (including by any Governmental Authority) of, such property
for which such Person or any of its Subsidiaries receives insurance proceeds or proceeds of a
condemnation award or other compensation. “Casualty Event” shall include but not be
limited to any taking of all or any part of any Real Property of any Person or any part thereof, in
or by condemnation or other eminent domain proceedings pursuant to any law, or by reason of the
temporary requisition of the use or occupancy of all or any part of any Real Estate of any Person
or any part thereof by any Governmental Authority, civil or military.

     “Certificate of Exemption” has the meaning ascribed to it in Section 1.9(c).

Annex A-4

 

     “Change of Control” means the occurrence of one or more of the following events: (a)
less than a majority of the members of the Board of Directors of Parent Company shall be persons
who either (i) were serving as directors on the Closing Date or (ii) were nominated as directors
and approved by the vote of the majority of the directors who are directors referred to in
clause (i) above or this clause (ii); or (b) a “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act), other than the Equity Investor and/or one or more of
its Affiliates shall, as a result of a tender or exchange offer, open market purchases, privately
negotiated purchases or otherwise, have become the direct or indirect beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of Stock of Parent Company representing more than
twenty percent (20%) of the combined ordinary voting power of the Stock of Parent Company for the
election of directors or shall have the right to elect a majority of the Board of Directors of
Parent Company; provided, that, a Change of Control shall not include any of the foregoing
that results solely from the issuance of shares of Stock of Parent Company upon exercise of
warrants of Parent Company outstanding as of the Closing Date and disclosed in Schedule
5.4(b); provided, further, that such warrants are not amended or modified on or
after the Closing Date; and provided, further, that the exercise price or other
purchase price thereunder is not reduced, adjusted or otherwise modified and the number of equity
shares issued or issuable thereunder is not increased (whether by operation of law or in accordance
with the relevant governing documents or otherwise) on or after the Closing Date; or (c) Parent
Company ceases to beneficially and of record own and control, directly, free and clear of all Liens
(other than Liens in favor of Agent) one hundred percent (100%) of the issued and outstanding Stock
of each Borrower; or (d) the holders of the equity interests of any Credit Party or any Subsidiary
of any Credit Party approve any plan or proposal for the liquidation or dissolution of such Credit
Party or Subsidiary, as the case may be.

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

     “Chatham” means, individually and collectively, Chatham Agent and Chatham Lender.

     “Chatham Agent” has the meaning ascribed to it in the preamble to this Agreement.

     “Chatham Lender” has the meaning ascribed to it in the preamble to this Agreement.

     “Chatham Fee Letter” has the meaning ascribed to it in Section 1.3(a).

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

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

Annex A-5

 

     “Closing Date” means September ___, 2008.

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

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

     “Collateral Documents” means the Security Agreement, the Pledge Agreement, the
Trademark Security Agreements, the Copyright Security Agreements, the Patent Security Agreements,
the Cash Collateral Agreement, and all similar agreements entered into guaranteeing payment of, or
granting a Lien upon property as security for payment of, the Obligations or any portion thereof.

     “Commercial Tort Claim” means all “commercial tort claims” as defined in the
Code.

     “Commitment Termination Date” means the earliest of (a) the third
(3rd) anniversary of the Closing Date, (b) the date of termination of Lenders’
obligations to make Advances or permit existing Loans to remain outstanding pursuant to Section
6.3, and (c) the date of (i) indefeasible prepayment in full by Borrowers of the Loans, and
(ii) the permanent reduction of the Commitments to zero dollars ($0).

     “Commitments” means (a) as to any Lender, the aggregate of such Lender’s Revolving
Loan Commitment and Term Loan Commitment as set forth on Annex B to the Agreement or in the
most recent Assignment Agreement executed by such Lender and (b) as to all Lenders, the aggregate
of all Lenders’ Revolving Loan Commitments and Term Loan Commitments, which aggregate commitments
shall be Nine Million Dollars ($9,000,000) on the Closing Date, as such Commitments may be reduced,
amortized or adjusted from time to time in accordance with this Agreement.

     “Compliance Certificate” has the meaning ascribed to it in Section 4.5(n).

     “Communication” means any notice or other communication required or permitted to be
given or made under this Agreement.

Annex A-6

 

     “Consolidated Net Income” has the meaning ascribed to it in Section 4.1 of
Schedule 1 to Annex F.

     “Consolidated Subsidiary” means any Subsidiary of a Person the financial results of
which, in accordance with GAAP, are eligible to be consolidated with the financial results of such
Person for financial reporting purposes.

     “Contingent Obligation” means, as applied to any Person, any direct or indirect
liability of that Person: (i) with respect to Guaranteed Indebtedness and with respect to any
Indebtedness, lease, dividend or other obligation of another Person if the purpose or intent of the
Person incurring such liability, or the effect thereof, is to provide assurance to the obligee of
such liability that such liability will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such liability will be protected (in whole or
in part) against loss with respect thereto; (ii) with respect to any letter of credit issued for
the account of that Person or as to which that Person is otherwise liable for reimbursement of
drawings; (iii) under any foreign exchange contract, currency swap agreement, interest rate swap
agreement or other similar agreement or arrangement designed to alter the risks of that Person
arising from fluctuations in currency values or interest rates, (iv) any agreement, contract or
transaction involving commodity options or future contracts, (v) to make take-or-pay or similar
payments if required regardless of nonperformance by any other party or parties to an agreement, or
(vi) pursuant to any agreement to purchase, repurchase or otherwise acquire any obligation or any
property constituting security therefor, to provide funds for the payment or discharge of such
obligation or to maintain the solvency, financial condition or any balance sheet item or level of
income of another. The amount of any Contingent Obligation shall be equal to the amount of the
obligation so guaranteed or otherwise supported or, if not a fixed and determined amount, the
maximum amount so guaranteed.

     “Contractual Obligations” means, as applied to any Person, any indenture, mortgage,
deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party
or by which it or any of its properties is bound or to which it or any of its properties is subject
including the Related Transactions Documents.

     “Control Agreement” means tri-party deposit account, securities account or commodities
account control agreements by and among the applicable Credit Party, Agent and the depository,
securities intermediary or commodities intermediary, and each in form and substance satisfactory in
all respects to Agent and in any event proving to Agent “control” of such deposit account,
securities or commodities account within the meaning of Articles 8 and 9 of the Code.

     “Control Event” means any Event of Default.

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

     “Copyright Security Agreements” means any Copyright Security Agreement made in favor
of Agent, on behalf of itself and Lenders, by any applicable Credit Party.

Annex A-7

 

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

     “Credit Parties” means, the Parent Company, the Borrowers and each of their respective
Subsidiaries and each other Person who executes this Agreement as a “Credit Party” or a
Guaranty and who grants a Lien on all or substantially all of its assets to secure all of part of
the Obligations and all of the stock of which is pledged to Agent for the benefit of itself and
Lenders. For the sake of clarity, natural persons executing a Support Agreement and natural
persons pledging Stock pursuant to any Pledge Agreement, shall not be considered a “Credit
Party”.

     “Credit Parties Pledge Agreement” means the Pledge Agreement of even date herewith
executed by certain Credit Parties in favor of each Agent, on behalf of itself and Lenders,
pledging all Stock of each of the Borrowers and their Subsidiaries and all Intercompany Notes owing
to or held by such Credit Parties.

     “DD Growth Premium” means DD Growth Premium Fund, a Cayman Islands Fund, and its
successors and assigns.

     “DD Subordinated Note” means that certain Subordinated Promissory Note dated as of
August 30, 2007, and substituted and amended as of September 26, 2007, in the original principal
amount of One Million Dollars ($1,000,000), issued by Parent Company and payable to the Equity
Investor, as successor-in-interest to DD Growth Premium, as amended, restated, amended and
restated, supplemented, extended or otherwise modified and in effect on the Closing Date, together
with all promissory notes and other instruments given in substitution or exchange therefor.

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

     “Deposit Accounts” means all “deposit accounts” as such term is defined in the
Code.

     “Default Rate” has the meaning ascribed to it in Section 1.2(e).

     “Disbursement Account” has the meaning ascribed to it in Section 1.1(c).

     “Disclosure Schedules” means the Schedules prepared by Borrowers and denominated as
Schedules 3.1 through 5.18 in the index to the Agreement.

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

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

Annex A-8

 

     “EBITDA” has the meaning ascribed to it in Section 4.2 of Schedule 1
to Annex F.

     “Electronic Transmission” means each document, instruction, authorization, file,
information and any other communication transmitted, posted or otherwise made or communicated by
e-mail or E Fax, or otherwise to or from an E System or other equivalent service.

     “Environmental Laws” means all applicable federal, state, local and foreign laws,
statutes, ordinances, codes, rules, standards and regulations, now or hereafter in effect, and any
applicable judicial or administrative interpretation thereof, including any applicable judicial or
administrative order, consent decree, order or judgment, imposing liability or standards of conduct
for or relating to the regulation and protection of human health, safety, the environment and
natural resources (including ambient air, surface water, groundwater, wetlands, land surface or
subsurface strata, wildlife, aquatic species and vegetation). Environmental Laws include the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601
et seq.) (“CERCLA”); the Hazardous Materials Transportation Authorization
Act of 1994 (49 U.S.C. §§ 5101 et seq.); the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act (42 U.S.C.
§§ 6901 et seq.); the Toxic Substance Control Act (15 U.S.C. §§ 2601 et seq.); the
Clean Air Act (42 U.S.C. §§ 7401 et seq.); the Federal Water Pollution Control Act (33 U.S.C. §§
1251 et seq.); the Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.);
and the Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), and any and all
regulations promulgated thereunder, and all analogous state, local and foreign counterparts or
equivalents and any transfer of ownership notification or approval statutes.

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

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

     “Equipment” means all “equipment,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located and, in any event, including all such
Credit Party’s machinery and equipment, including processing equipment, conveyors, machine tools,
data processing and computer equipment, including embedded software and peripheral equipment and
all engineering, processing and manufacturing equipment, office machinery, furniture, materials
handling equipment, tools, attachments, accessories, automotive equipment,

Annex A-9

 

trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
equipment of every kind and nature, trade fixtures and fixtures not forming a part of real
property, together with all additions and accessions thereto, replacements therefor, all parts
therefor, all substitutes for any of the foregoing, fuel therefor, and all manuals, drawings,
instructions, warranties and rights with respect thereto, and all products and proceeds thereof and
condemnation awards and insurance proceeds with respect thereto.

     “Equity Documents” means the collective reference to (i) that certain Securities
Purchase Agreement dated as of September 14, 2007, between Parent Company and the Equity Investor,
(ii) that certain Investor Rights Agreement dated as of September 14, 2007, between Parent Company
and the Equity Investor and (iii) all other material agreements, documents and instruments executed
and/or delivered pursuant thereto or in connection therewith, in each case, as amended, restated,
amended and restated, supplemented or otherwise modified and in effect from time to time, to the
extent permitted hereunder.

     “Equity Investor” means Vicis Capital Master Fund, a sub-trust of Vicis Capital Series
Master Trust, a unit trust organized and existing under the laws of the Cayman Islands.

     “Equity Investor Note” means that certain Subordinated Promissory Note, dated as of
the Closing Date, in the principal amount of One Million Five Hundred Thousand Dollars
($1,500,000), executed by Parent Company and payable to the Equity Investor.

     “Equity Investor Note Subordination Agreement” means that certain Subordinated
Agreement of even date herewith among Parent Company, Borrowers, Agent and the Equity Investor, as
it may be amended, restated, amended and restated, supplemented or otherwise modified and in effect
from time to time in accordance with the terms and provisions thereof.

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

     “ERISA Affiliate” means, with respect to any Credit Party, any trade or business
(whether or not incorporated) that, together with such Credit Party, are treated as a single
employer within the meaning of Sections 414(b), (c), (m) or (o) of the IRC.

     “ERISA Event” means, with respect to any Credit Party or any ERISA Affiliate, (a) any
event described in Section 4043(c) of ERISA with respect to a Title IV Plan; (b) the withdrawal of
any Credit Party or ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (c)
the complete or partial withdrawal of any Credit Party or any ERISA Affiliate from any
Multiemployer Plan; (d) the filing of a notice of intent to terminate a Title IV Plan or the
treatment of a plan amendment as a termination under Section 4041 of ERISA; (e) the institution of
proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) the failure by any
Credit Party or ERISA Affiliate to make when due required contributions to a Multiemployer Plan or
Title IV Plan unless such failure is cured within 30 days; (g) any other event or condition that
might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for
the imposition of liability under Section 4069 or 4212(c) of ERISA;

Annex A-10

 

(h) the termination of a Multiemployer Plan under Section 4041A of ERISA or the reorganization
or insolvency of a Multiemployer Plan under Section 4241 or 4245 of ERISA; or (i) the loss of a
Qualified Plan’s qualification or tax exempt status; or (j) the termination of a Plan described in
Section 4064 of ERISA.

     “ESOP” means a Plan that is intended to satisfy the requirements of Section 4975(e)(7)
of the IRC.

     “E-System” means any electronic system, including Intralinks® and any other internet
or extranet-based site, whether such electronic system is owned, operated or hosted by Agent or any
other Person, providing for access to data protected by passcodes or other security system.

     “Event of Default” has the meaning ascribed to it in Section 6.1.

     “Excess Net Proceeds” has the meaning ascribed to it in Section 2.2(b).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and any regulations promulgated thereunder.

     “Executive Order” has the meaning ascribed to it in Section 5.19.

     “Existing Subordinated Notes Debt Documents” means the collective reference to the
Existing Subordinated Notes and all other material agreements, documents and instruments executed
and/or delivered pursuant thereto or in connection therewith, in each case as amended, restated,
amended and restated, supplemented or otherwise modified and in effect from time to time in
accordance with the terms and provisions of the respective Existing Notes Subordination Agreements.

     “Existing Subordinated Notes” means the collective reference to (i) that certain
Subordinated Promissory Note dated September 17, 2007, in the original principal amount of
Fifty-One Thousand Dollars ($51,000), executed by Parent Company and payable to Burton J. and Ruth
M. Kleinsmith; (ii) that certain Subordinated Promissory Note dated May 31, 2007, in the original
principal amount of One Hundred Thirty-One Thousand Seventy Five and 34/100 Dollars ($131,075.34),
executed by Parent Company and payable to Burton J. and Ruth M. Kleinsmith; (iii) that certain
Subordinated Promissory Note dated September 17, 2007, in the original principal amount of Thirty
Thousand Dollars ($30,000), executed by Parent Company and payable to Michael Nole; (iv) that
certain Subordinated Promissory Note dated June 30, 2007, in the original principal amount of Two
Hundred Eight Thousand Three Hundred Seven and 53/100 Dollars ($208,307.53), executed by Parent
Company and payable to Randy Rogers, and (v) that certain Subordinated Promissory Note dated May
31, 2007, in the original principal amount of Forty-Seven Thousand One Hundred Seventy-Two and
60/100 Dollars ($47,172.60), executed by Parent Company and payable to Ken Dance, in each case as
amended, restated, amended and restated, supplemented, extended or otherwise modified and in effect
from time to time, together with all promissory notes and other instruments given in substitution
or exchange therefore, in each case to the extent permitted pursuant to respective Existing Note
Subordination Agreements.

Annex A-11

 

     “Existing Notes Subordination Agreements” means the collective reference to (i) that
certain Subordination Agreement of even date herewith among Parent Company, Borrowers, Agent and
Burton J. and Ruth M. Kleinsmith; (ii) that certain Subordination Agreement of even date herewith
among Parent Company, Borrowers, Agent and Burton J. and Ruth M. Kleinsmith; (iii) that certain
Subordination Agreement of even date herewith among Parent, Borrowers, Agent and Michael Nole; (iv)
that certain Subordination Agreement of even date herewith among Parent, Borrowers, Agent and Randy
Rogers; and (v) that certain Subordination Agreement of even date herewith among Parent, Borrowers,
Agent and Ken Dance, in each case, as amended, restated, amended and restated, supplemented or
otherwise modified and in effect from time to time in accordance with the terms and provisions
thereof.

     “Fair Labor Standards Act” means the Fair Labor Standards Act, 29 U.S.C. §201 et seq.

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

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

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

     “Financial Covenants” mean the financial covenants set forth in Section 4.1
through Section 4.5.

     “Financial Statements” means the consolidated and consolidating income statements,
statements of cash flows and balance sheets of Parent Company and its Subsidiaries delivered in
accordance with Section 4.5.

     “Fiscal Month” means any of the monthly accounting periods of Parent Company ending on
the last day of each calendar month in each Fiscal Year.

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

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

     “Fixed Charges” has the meaning ascribed to it in Section 4.3 of Schedule
1 to Annex F.

     “Fixed Charge Coverage Ratio” has the meaning ascribed to it in Section 4.3 of
Schedule 1 to Annex F.

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

     “Foreign Lender” has the meaning ascribed to it in Section 1.9(c).

Annex A-12

 

     “Funded Debt” means, with respect to any Person, without duplication, all Indebtedness
for borrowed money evidenced by notes, bonds, debentures, or similar evidences of Indebtedness and
that by its terms matures more than one year from, or is directly or indirectly renewable or
extendible at such Person’s option under a revolving credit or similar agreement obligating the
lender or lenders to extend credit over a period of more than one year from the date of creation
thereof, and specifically including Capital Lease Obligations, current maturities of long term
debt, revolving credit and short term debt extendible beyond one year at the option of the debtor,
and also including, in the case of Borrowers, the Obligations and, without duplication, Guaranteed
Indebtedness consisting of guaranties of Funded Debt of other Persons.

     “Funding Date” has the meaning ascribed to it in Section 7.2.

     “GAAP” means generally accepted accounting principles in the United States of America,
consistently applied.

     “General Intangibles” means “general intangibles,” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party, including all right, title and interest
that such Credit Party may now or hereafter have in or under any Contractual Obligation, all
payment intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents, and all
applications therefor and reissues, extensions or renewals thereof, rights in Intellectual
Property, interests in partnerships, joint ventures and other business associations, licenses,
permits, copyrights, trade secrets, proprietary or confidential information, inventions (whether or
not patented or patentable), technical information, procedures, designs, knowledge, know how,
software, data bases, data, skill, expertise, experience, processes, models, drawings, materials
and records, goodwill (including the goodwill associated with any Trademark or Trademark License),
all rights and claims in or under insurance policies (including insurance for fire, damage, loss
and casualty, whether covering personal property, real property, tangible rights or intangible
rights, all liability, life, key man and business interruption insurance, and all unearned
premiums), uncertificated securities, chooses in action, deposit, checking and other bank accounts,
rights to receive tax refunds and other payments, rights to receive dividends, distributions, cash,
Instruments and other property in respect of or in exchange for pledged Stock and Investment
Property, rights of indemnification, all books and records, correspondence, credit files, invoices
and other papers, including all tapes, cards, computer runs and other papers and documents in the
possession or under the control of such Credit Party or any computer bureau or service company from
time to time acting for such Credit Party.

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

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

     “Guaranteed Indebtedness” means, as to any Person, any obligation of such Person
guaranteeing, providing comfort or otherwise supporting any Indebtedness, lease, dividend, or

Annex A-13

 

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

     “Guaranties” means, collectively, the guaranties provided in Section 10 of
this Agreement and any other guaranty executed by any Guarantor in favor of Agent and Lenders in
respect of the Obligations.

     “Guarantor Payment” has the meaning ascribed to it on Section 10.7.

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

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

     “Hilco” means Hilco Financial, LLC.

     “Historical Financial Statements” means (i) the audited financial statements of Parent
Company and its Consolidated Subsidiaries as of their 2006 and 2007 Fiscal Years, together with its
internal financial statements for that portion most recently ended (in Fiscal Months) of their
current Fiscal Year; and (ii) the reviewed financial statements of STN and its Consolidated
Subsidiaries (including Trans-West) as of and for its 2006 and 2007 Fiscal Years, together with its
internal financial statements for that portion most recently ended (in Fiscal Months) of their
current Fiscal Year.

Annex A-14

 

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

     “Indemnitees” has the meaning ascribed to it in Section 9.1.

     “Initial Projections” means “Projections” of Parent Company and its Consolidated
Subsidiaries for their twelve (12) Fiscal Month period ending June 30, 2009.

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

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

     “Intercompany Notes” has the meaning ascribed to it in Section 3.1(b).

     “Interest Expense” has the meaning ascribed to it in Section 4.3 of
Schedule 1 to Annex F.

     “Interest Payment Date” means: (i) the first Business Day of each month, commencing
with the first such Business Day following the Closing Date and continuing thereafter until

Annex A-15

 

maturity of each Loan; (ii) at maturity of each Loan; and (iii) after maturity of any Loan,
until that Loan is paid in full, on demand.

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

     “Investment” means (i) any direct or indirect purchase or other acquisition by Credit
Parties or any of their Subsidiaries of any Stock, or other ownership interest in, any other
Person, and (ii) any direct or indirect loan, advance or capital contribution by Credit Parties or
any of their Subsidiaries to any other Person, including all indebtedness and accounts receivable
from that other Person that are not current assets or did not arise from sales to that other Person
in the ordinary course of business.

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

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

     “IRS” means the Internal Revenue Service.

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

     “Leverage Ratio” has the meaning ascribed to it in Section 4.4 of Schedule
1 to Annex F-14.

     “LIBOR Rate” means the greater of (i) the 3-month LIBOR rate, as published in
the Bloomberg Professional Service page BBAM 1 for the last Business Day of the calendar month
immediately preceding the calendar month for which interest is being calculated, or, if such
published rate ceases to be available, such other published “LIBOR Rate” as the Agent may
reasonably select, and (ii) two and 75/100ths percent (2.75%) per annum.

Annex A-16

 

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

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

     “Litigation” has the meaning ascribed to it in Section 4.5(k).

     “Loan Account” has the meaning ascribed to it in Section 1.7.

     “Loan Documents” means the Agreement, the Notes, the Collateral Documents, the Chatham
Fee Letter, the Warrants, the Warrantholders Rights Agreement, the Support Agreements, any Rate
Protection Agreements, the subordination provisions applicable to any Subordinated Debt and
intercreditor provisions applicable to any Indebtedness that is pari passu in right of payment to
the Obligations and all other agreements, instruments, documents and certificates identified in the
Closing Checklist executed and delivered to, or in favor of, Agent or any Lenders and including all
other pledges, powers of attorney, consents, assignments, contracts, notices, and all other written
matter whether heretofore, now or hereafter executed by or on behalf of any Credit Party, or any
employee of any Credit Party, and delivered to Agent or any Lender in connection with the Agreement
or the transactions contemplated thereby. Any reference in the Agreement or any other Loan
Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all
amendments, restatements, supplements or other modifications thereto, and shall refer to the
Agreement or such Loan Document as the same may be in effect at any and all times such reference
becomes operative.

     “Loans” means the Revolving Loans and the Term Loan.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or financial or other condition of the Credit Parties considered as a whole,
(b) Borrowers’ ability to pay any of the Loans or any of the other Obligations in accordance with
the terms of the Agreement, (c) the Collateral or Agent’s Liens, on behalf of itself and Lenders,
on the Collateral or the priority of such Liens, or (d) Agent’s or any Lender’s rights and remedies
under the Agreement and the other Loan Documents.

     “Material Contract” means and includes any of the following to the extent a Credit
Party is party thereto or otherwise bound thereby: (i) any contract for the sale, purchase or
lease of Real Estates; (ii) any contract for the sale, purchase or lease of personal property
having, respectively, a value greater than, or aggregate annual rentals in excess of, One Hundred
Thousand Dollars ($100,000), (iii) any license agreement for use of intellectual property which is
necessary for, or material to, the operation of a Credit Party’s business; (iv) any contract
evidencing, pertaining to or securing the payment of any Indebtedness permitted under
Section 3.1; (v) any Subordination Agreement; (vi) any labor or union contract; (vii) any

Annex A-17

 

employment, consulting or non-compete contract; (viii) this Agreement and any Loan Document;
(ix) any of the Related Transaction Documents; (x) the DD Subordinated Note Documents; (xi) the
Inter-Tel Dealer Agreement; (xii) the Existing Subordinated Notes Debt Documents; (xiii) the USVD
Documents; (xiv) the Equity Documents; and (xv) any other contract the termination of which
(without its contemporaneous replacement) would reasonably be expected to have a Material Adverse
Effect.

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

     “Maximum Lawful Rate” has the meaning ascribed to it in Section 1.2(f).

     “Moody’s” means Moody’s Investor’s Services, Inc.

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

     “Net Proceeds” means (i) cash proceeds received by Borrowers or any of their
Subsidiaries from any Asset Disposition or Casualty Event (including insurance proceeds and awards
of condemnation in connection with any Casualty Event and payments under notes or other debt
securities received in connection with any Asset Disposition), net of (a) the costs of such Asset
Disposition (including taxes attributable to such sale, lease or transfer) and any commissions and
other customary transaction fees, costs and expenses), other than any costs payable to any
Affiliate of a Credit Party (b) amounts applied to repayment of Indebtedness (other than the
Obligations) secured by a Lien permitted under the Agreement on the asset or property disposed, and
(c) any amounts required to be held in escrow until such time as such amounts are released from
escrow whereupon such amounts shall be considered Net Proceeds, and (ii) cash proceeds attributable
to any working capital, earnings, balance sheet or similar adjustment under the STN Acquisition
Agreement.

     “Non-Consenting Lender” has the meaning ascribed to it in Section 9.19(c).

     “Non-Funding Lender” has the meaning ascribed to it in Section 8.5(a).

     “Notes” means, collectively, the Revolving Notes and the Term Notes.

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

     “Obligations” means all loans, advances, debts, liabilities and obligations, for the
performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such
performance is then required or contingent, or such amounts are liquidated or determinable), owing
by any Credit Party to Agent or any Lender, and all covenants and duties regarding such amounts, of
any kind or nature, present or future, whether or not evidenced by any note, agreement or other
instrument, arising under the Agreement or any of the other Loan Documents. This term includes all
principal, interest (including PIK Interest and all interest that accrues after the commencement of
any case or proceeding by or against any Credit Party in

Annex A-18

 

bankruptcy, whether or not allowed in such case or proceeding), Fees, Charges, expenses,
attorneys’ fees and any other sum chargeable to any Credit Party under the Agreement or any of the
other Loan Documents. Without limitation of the foregoing, but for avoidance of any doubt, each of
the following is part of the Obligations; the Revolving Loans, together with interest thereon, the
Term Loan, together with interest thereon, the Warrant and any Rate Protection Agreements.

     “OFAC” has the meaning ascribed to it in Section 5.19(b).

     “Operating Cash Flow” has the meaning ascribed to it in Section 4.3 of
Schedule 1 to Annex F.

     “Organizational Documents” means (i) for corporations, its articles (or certificate)
of incorporation and by-laws; (ii) for partnerships, its articles (or certificate) of partnership
and partnership agreement; and (iii) for limited liability companies, its articles (or certificate)
of organization and its operating agreement.

     “Other Lender” has the meaning ascribed to it in Section 8.5(d).

     “Overadvance” has the meaning ascribed to it in Section 1.1(b).

     “Parent Company” has the meaning ascribed to it in the preamble to the Agreement.

     “Parent Company Pledge Agreement” means the Pledge Agreement of even date herewith
executed by the Stockholders of Parent Company in favor of Agent, on behalf of itself and Lenders,
pledging all Stock of Parent Company and all Intercompany Notes owing to or held by such
Stockholders.

     “Patent License” means rights under any written agreement now owned or hereafter
acquired by any Credit Party granting any right with respect to any invention on which a Patent is
in existence.

     “Patent Security Agreements” means any Patent Security Agreement made in favor of
Agent, on behalf of itself and Lenders, by any applicable Credit Party.

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

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means a Plan described in Section 3(2) of ERISA.

     “Permit” means any permit, approval, authorization, license, registration,
certification, certificate of authority, variance, permission, franchise, qualification, order,
filing or consent

Annex A-19

 

required from a Governmental Authority or other Person under an applicable Requirement of Law.

     “Permitted Discretion” means, with reference to Agent, a determination made by it
based upon its consideration of any factor which Agent believes in good faith (considered without
regard to any prior course of dealing): (a) will or could adversely affect the value of any
Collateral, the enforceability or priority of its Liens thereon or the amount which Agent would be
likely to receive (after giving consideration to delays in payment and costs of enforcement) in the
liquidation of such Collateral; (b) suggests that any collateral report or financial information
delivered to Agent by any Person on behalf of any Credit Party is incomplete, inaccurate or
misleading in any material respect; (c) materially increases the likelihood of a bankruptcy,
reorganization or other insolvency proceeding involving any Credit Party or any of the Collateral;
or (d) creates or reasonably could be expected to create a Default.

     “Permitted Encumbrances” means the following encumbrances: (a) Liens for taxes,
assessments or governmental charges or levies not yet due and payable or Liens for taxes,
assessments or governmental charges or levies being contested in good faith and by appropriate
proceedings for which adequate reserves have been established in accordance with GAAP, excluding
federal income tax Liens and Liens in favor of the PBGC under ERISA; (b) Liens in respect of
property or assets of any Borrower or any of its Subsidiaries imposed by law which were incurred in
the ordinary course of business and which have not arisen to secure Indebtedness for borrowed
money, such as carriers’, materialmen’s, warehousemen’s and mechanics’ Liens, statutory and common
law landlord’s Liens, and other similar Liens arising in the ordinary course of business, and which
either (1) do not in the aggregate materially detract from the value of such property or assets or
materially impair the use thereof in the operation of the business of any Borrower or any of its
Subsidiaries or (2) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing the forfeiture or sale of the property or asset subject to such Lien;
(c) Liens created by or pursuant to this Agreement, the Collateral Documents or the other Loan
Documents; (d) Liens in existence on the Closing Date which are listed, and the property subject
thereto described, on Schedule 3.2, without giving effect to any extensions or renewals
thereof; (e) Liens arising from judgments, decrees, awards or attachments in circumstances not
constituting an Event of Default, provided that the amount of cash and property (determined on a
fair market value basis) deposited or delivered to secure the respective judgment or decree or
subject to attachment shall not exceed $100,000 or the Dollar Equivalent thereof in the aggregate
at any time; (f) Liens (other than any Lien imposed by ERISA) (1) incurred or deposits made in the
ordinary course of business in connection with general insurance maintained by any Borrower and its
Subsidiaries, (2) incurred or deposits made in the ordinary course of business of any Borrower and
its Subsidiaries in connection with workers’ compensation, unemployment insurance and other types
of social security, (3) to secure the performance by any Borrower and its Subsidiaries of tenders,
statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory
bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds
and other similar obligations (exclusive of obligations for the payment of borrowed money) to the
extent incurred in the ordinary course of business, and (4) to secure the performance by any
Borrower and its Subsidiaries of leases of Real Property, to the extent incurred or made in the
ordinary course of business consistent with past practices; (g) licenses, sublicenses, leases or
subleases granted to third Persons in the ordinary course of business not interfering in any
material respect with the

Annex A-20

 

business of any Borrower or any of its Subsidiaries; (h) easements, rights-of-way,
restrictions, minor defects or irregularities in title, encroachments and other similar charges or
encumbrances, in each case not securing Indebtedness and not interfering in any material respect
with the ordinary conduct of the business of any Borrower or any of its Subsidiaries; (i) Liens
arising from precautionary UCC financing statements regarding operating leases; (j) Liens created
pursuant to or in connection with leases or Capital Leases permitted pursuant to this Agreement,
provided that (1) such Liens only serve to secure the payment of rent or Indebtedness arising under
such leases or Capital Leases and (2) the Liens encumbering the assets leased or purported to be
leased under such leases or Capital Leases do not encumber any other assets of any Borrower or any
of its Subsidiaries (other than letters of credit, payment undertaking agreements, guaranteed
investment contracts, deposits of cash or Cash Equivalents and other credit support arrangements,
in each case having an aggregate value not exceeding the fair market value of the assets leased or
purported to be leased under such leases or Capital Leases (each of such values determined at the
time when the lease agreement relating to the relevant lease or Capital Lease is signed and
delivered), and the proceeds of or attributable to the assets so leased or purported be leased);
(k) (1) those liens, encumbrances, hypothecs and other matters affecting title to any Real Property
and found reasonably acceptable by the Agent or insured against by title insurance, (2) as to any
particular Real Property at any time, such easements, encroachments, covenants, rights of way,
minor defects, irregularities or encumbrances on title which could not reasonably be expected to
materially impair such Real Property for the purpose for which it is held by the mortgagor or
grantor thereof, or the lien or hypothec held by the Agent, (3) zoning and other municipal
ordinances which are not violated in any material respect by the existing improvements and the
present use made by the mortgagor or grantor thereof of the premises, (4) general real estate taxes
and assessments not yet delinquent, (5) any Lien that would be disclosed on a true, correct and
complete survey of the Real Property that does not materially affect the use or enjoyment of the
Real Property as it is currently being used, and (6) such other similar items as the Agent may
consent to; (l) Liens in Equipment and Fixtures arising pursuant to purchase money security
interests securing Indebtedness representing the purchase price of assets acquired after the
Closing Date, provided that (1) any such Liens attach only to the assets so purchased,
upgrades thereon and, if the asset so purchased is an upgrade, the original asset itself (and such
other assets financed by the same financing source) and to the proceeds of or attributable to the
assets so purchased, (2) the Indebtedness (other than Indebtedness incurred from the same financing
source to purchase other assets and excluding Indebtedness representing obligations to pay
installation and delivery charges for the property so purchased) secured by any such Lien does not
exceed 100% of the lesser of the fair market value or the purchase price of the property
being purchased at the time of the incurrence of such Indebtedness and (3) the Indebtedness secured
thereby is permitted to be incurred pursuant to this Agreement; and (m) Liens securing Indebtedness
or leases that refinance, refund, extend, renew and/or replace Indebtedness or leases secured by
Liens described in clauses (a) through (l) above.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Credit Parties
issued or given in exchange for, or the proceeds of which are used to, extend, refinance, renew,
replace, substitute or refund Indebtedness incurred pursuant to clauses (a) through
(e) of Section 3.1, or any Indebtedness issued to so extend, refinance, renew,
replace, substitute or refund any such Indebtedness, so long as (a) such Indebtedness has a
weighted average life to maturity greater than or equal to the weighted average life to maturity of
the Indebtedness being refinanced, (b) such refinancing or renewal does not add any Credit Party as
guarantor, obligor

Annex A-21

 

or renewed, (c) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of
the Indebtedness so extended, refinanced, renewed, replaced, substituted or refunded (plus
all accrued interest thereon and the amount of all fees, commissions, discounts, costs, expenses
and premiums incurred in connection therewith), and (d) such refinancing or renewal Indebtedness
has substantially the same (or, from the perspective of Agent or Lenders, more favorable)
subordination provisions, if any, as applied to the Indebtedness being renewed or refinanced.

     “Person” means any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability company, institution,
public benefit corporation, other entity or government (whether federal, state, county, city,
municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or
department thereof).

     “PIK Interest” has the meaning ascribed thereto in Section 1.2(b).

     “Plan” means, at any time, an “employee benefit plan,” as defined in Section
3(3) of ERISA, that any Credit Party or ERISA Affiliate maintains, contributes to or has an
obligation to contribute to on behalf of participants who are or were employed by any Credit Party.

     “Pledge Agreements” means (i) the Parent Company Pledge Agreement and (ii) the Credit
Parties Pledge Agreement.

     “Preferred A Stock” means the Parent Company’s Series A Convertible Preferred Stock
authorized pursuant to the Parent Company’s Organizational Documents as in effect on the Closing
Date.

     “Prepayment Fee” has the meaning ascribed to it in Section 1.3(c).

     “Pro Forma” means the unaudited consolidated and consolidating balance sheets of
Parent Company and its Subsidiaries prepared in accordance with GAAP as of the Closing Date after
giving effect to the Related Transactions. The Pro Forma is annexed hereto as Annex D.

     “Prior Lender” means the Equity Investor, as successor-in-interest to Hilco.

     “Prior Lender Liens” means all Liens securing the payment of the Prior Lender
Obligations.

     “Prior Lender Obligations” means any obligations for borrowed funds incurred by any
Credit Party in favor of the Prior Lenders and existing on the Closing Date.

     “ProLogic” has the meaning assigned to it in the STN Acquisition Agreement.

     “Pro Rata Share” means with respect to all matters relating to any Lender (a) with
respect to the Revolving Loan, the percentage obtained by dividing (i) the Revolving Loan
Commitment of that Lender by (ii) the aggregate Revolving Loan Commitments of all Lenders, (b) with
respect to any Term Loan, the percentage obtained by dividing (i) the applicable Term Loan
Commitment of that Lender by (ii) the aggregate applicable Term Loan Commitments of all

Annex A-22

 

Lenders, (c) with respect to all Loans, the percentage obtained by dividing (i) the aggregate
Commitments of that Lender by (ii) the aggregate Commitments of all Lenders, and (d) with respect
to all Loans on and after the Commitment Termination Date, the percentage obtained by dividing (i)
the aggregate outstanding principal balance of the Loans held by that Lender, by (ii) the
outstanding principal balance of the Loans held by all Lenders, as any such percentages may be
adjusted by assignments pursuant to Section 8.1.

     “Proceeds” means all “proceeds” as such term is defined in the Code.

     “Projections” means Borrowers’ forecasted consolidated and consolidating: (a) balance
sheets; (b) profit and loss statements; (c) cash flow statements; and (d) capitalization
statements, all prepared on a Subsidiary by Subsidiary or division-by-division basis, if
applicable, and otherwise consistent with that portion of the Historical Financial Statements of
Borrowers consisting of, and limited to, their reviewed financial statements as of December 31,
2007, together with appropriate supporting details and a statement of underlying assumptions.

     “Proposed Change” has the meaning ascribed to it in Section 9.19(c).

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

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

     “Rate Protection Agreement”: Any interest rate swap, cap or option agreement, or any
other agreement with or Chatham, or through and approved by Chatham pursuant to which any Borrower
hedges interest rate risk with respect to a portion of the Obligations.

     “Real Estate” has the meaning ascribed to it in Section 5.12.

     “Recapitalization” means the satisfaction of the DD Subordinated Note and the Prior
Lender Obligations, in part, from the proceeds of the Term Loan and, as applicable, the initial
Revolving Loan, after review with, and approval by, Agent, and, in part, as to the remainder, by
the conversion of such Indebtedness to Preferred A Stock, together with the issuance of the Equity
Investor Note.

Annex A-23

 

     “Related Transactions” means the initial borrowing under the Revolving Loan and the
Term Loan on the Closing Date, the STN Acquisition, the Recapitalization, the subordinations
contemplated in the Subordination Documents, including the issuance of the Equity Investor Note in
exchange for cash in the amount thereof, the payment of all Fees, costs and expenses associated
with all of the foregoing and the execution and delivery of all of the Related Transactions
Documents.

     “Related Transactions Documents” means the Loan Documents, the STN Acquisition
Documents, the Subordination Documents and all other agreements or instruments executed in
connection with the Related Transactions.

     “Release” means any release, threatened release, spill, emission, leaking, pumping,
pouring, emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal, dumping,
leaching or migration of Hazardous Material in the indoor or outdoor environment, including the
movement of Hazardous Material through or in the air, soil, surface water, ground water or
property.

     “Replacement Lender” has the meaning ascribed to it in Section 9.19(a)(i).

     “Requirements of Law” means, as to any Person, the Governing Documents of such Person,
and any law, ordinance, policy, manual provision, guidance, principle of common law, statute, rule
or regulation, or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its assets or to which such Person or
any of its assets is subject including, without limitation, the Securities Act, the Securities
Exchange Act, Regulations T, U and X of the Federal Reserve Board, ERISA, the Fair Labor Standards
Act, the Worker Adjustment and Retraining Notification Act, Americans with Disabilities Act of
1990, the Social Security Act, any Health Care Law, Environmental Law, and any certificate of
occupancy, zoning ordinance, building, environmental or land use requirement or Permit or
environmental, labor, employment, occupational safety or health law, rule or regulation (including,
without limitation, those applicable to the disposal of medical waste).

     “Requisite Lenders” means Lenders having (a) more than sixty-six and two-thirds
percent (66 2/3%) of the Commitments of all Lenders, or (b) if the Commitments have been
terminated, more than sixty-six and two-thirds percent (66 2/3%) of the aggregate outstanding
amount of the Loans; provided, however, if there are only two (2) Lenders, then,
both Lenders shall be “Requisite Lenders” for purposes hereof, and if there is only one (1) Lender,
it shall be that Lender.

     “Requisite Revolving Lenders” means Revolving Lenders having (a) more than sixty-six
and two-thirds percent (66-2/3%) of the Revolving Commitments of all Revolving Lenders or (b) if
Revolving Commitments have been terminated, more than sixty-six and two-thirds percent (66-2/3%) of
the aggregate outstanding amount of the Revolving Loans; provided, however, if there are
only two (2) Revolving Lenders, then, both Revolving Lenders shall be “Requisite Revolving Lenders”
for purposes hereof, and if there is only one (1) Revolving Lender, it shall be that Lender.

Annex A-24

 

     “Restricted Payment” means, with respect to any Credit Party (a) the declaration or
payment of any dividend or the incurrence of any liability to make any other payment or
distribution of cash or other property or assets in respect of Stock; (b) any payment on account of
the purchase, redemption, defeasance, sinking fund or other retirement of such Credit Party’s Stock
or any other payment or distribution made in respect thereof, either directly or indirectly; (c)
any payment or prepayment of principal of, premium, if any, or interest, fees or other charges on
or with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or similar
payment and any claim for rescission with respect to, any Subordinated Debt; (d) any payment made
to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire Stock of such Credit Party now or hereafter outstanding; (e) any
payment of a claim for the rescission of the purchase or sale of, or for material damages arising
from the purchase or sale of, any shares of such Credit Party’s Stock or of a claim for
reimbursement, indemnification or contribution arising out of or related to any such claim for
damages or rescission; (f) any payment, loan, contribution, or other transfer of funds or other
property to any Stockholder of such Credit Party other than payment of compensation in the ordinary
course of business to Stockholders who are employees of such Credit Party and other payments
permitted under Section 3.8; and (g) any payment of management fees (or other fees of a
similar nature) or out-of-pocket expenses in connection therewith by such Credit Party to any
Stockholder of such Credit Party or its Affiliates.

     “Restricted Payment Test” means that on the date that any Restricted Payment described
in subsections (c), (d) or (e) of Section 3.5 is intended
to be, as of such date, after giving effect to such Restricted Payment on such date, and for the
thirty (30) days immediately preceding such date, for each such day, the sum of Borrowers’
unrestricted cash on hand plus Borrowing Availability has been at least Two Hundred Fifty Thousand
Dollars ($250,000).

     “Retiree Welfare Plan” means, at any time, a Welfare Plan that provides for continuing
coverage or benefits for any participant or any beneficiary of a participant after such
participant’s termination of employment, other than continuation coverage provided pursuant to
Section 4980B of the IRC and at the sole expense of the participant or the beneficiary of the
participant.

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

     “Revolving Lenders” means those Lenders having a Revolving Loan Commitment.

     “Revolving Loans” means, at any time the aggregate amount of Revolving Credit Advances
outstanding to Borrowers.

     “Revolving Loan Commitment” means (a) as to any Lender, the commitment of such Lender
to make its Pro Rata Share of Revolving Credit Advances as set forth on Annex B or in the
most recent Assignment Agreement, if any, executed by such Lender and (b) as to all Lenders, the
aggregate commitment of all Lenders to make the Revolving Credit Advances, which aggregate
commitment shall be in the amount specified in Section 1.1(b) on the Closing Date, as such
amount may be adjusted, if at all, from time to time in accordance with the Agreement.

     “Revolving Notes” has the meaning ascribed to it in Section 1.1(b).

Annex A-25

 

     “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc.

     “Scheduled Installments” has the meaning ascribed to it in Section 1.1(a).

     “Security Agreement” means the Security Agreement of even date herewith entered into
by and among Agent, on behalf of itself and Lenders, and each Credit Party that is a signatory
thereto.

     “Senior Officer” means, as to any Person, the chief executive officer, chief operating
officer or chief financial officer of such Person, regardless of title

     “Settlement Date” has the meaning ascribed to it in Section 8.5(a).

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

     “Solvent” means, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is greater than the total amount of liabilities,
including subordinated and contingent liabilities, of such Person; (b) the present fair saleable
value of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts and liabilities, including subordinated and
contingent liabilities as they become absolute and matured; (c) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as
such debts and liabilities mature; and (d) such Person is not engaged in a business or transaction,
and is not about to engage in a business or transaction, for which such Person’s property would
constitute an unreasonably small capital. The amount of contingent liabilities (such as
Litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount
that, in light of all the facts and circumstances existing at the time, represents the amount that
can be reasonably be expected to become an actual or matured liability.

     “Statement” has the meaning ascribed to it in Section 4.5(b).

     “STN” has the meaning ascribed to it in the preamble to the Agreement.

     “STN Acquisition” means the acquisition of all of the issued and outstanding Stock of
STN and Trans-West by Parent Company, acting through the STN Acquisition Sub, from the STN Sellers
pursuant to the STN Acquisition Agreement.

     “STN Acquisition Agreement” means that certain Stock Purchase Agreement dated on or
prior to the Closing Date, by and between the STN Sellers and the STN Acquisition Sub.

     “STN Acquisition Documents” means the STN Acquisition Agreement, the STN Acquisition
Escrow Agreement and all other agreements, instruments, documents and certificates entered into in
connection with the STN Acquisition Agreement.

Annex A-26

 

     “STN Acquisition Escrow Agreement” means the “Escrow Agreement,” as that quoted term
is defined and described in the STN Acquisition Agreement.

     “STN Acquisition Sellers” means the Trans-West Shareholders and the “ProLogic
Shareholders,” as that quoted term is defined in the STN Acquisition Agreement.

     “STN Acquisition Sub” has the meaning ascribed to it in the preamble to this
Agreement.

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

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

     “Subordinated Debt” means any Indebtedness of any Credit Party, existing on the
Closing Date or thereafter created, incurred or arising, which is subordinated in right of payment
to the payment of the Obligations in a manner and to an extent (a) that the Agent and Lenders have
approved in writing prior to the creation of such Indebtedness, or (b) as to any Indebtedness of
any Credit Party existing on the date of this Agreement, that the Agent and Lenders have approved
as Subordinated Debt in a writing delivered by the Agent to the Borrower’s Representative on or
prior to the Closing Date; provided, further, that the following have been approved
by Agent and Lenders as Subordinated Debt: (i) the Existing Subordinated Notes, subject to the
terms of the Existing Notes Subordination Agreements; (ii) the USVD Seller Debt, subject to the
terms of the USVD Seller Subordination Agreement; and (iii) the Equity Investor Note subject to the
terms of the Equity Investor Subordination Agreement. Without limitation of the foregoing, no
Indebtedness shall be considered Subordinated Debt unless and except to the extent that it is the
subject of a Subordination Agreement.

     “Subordination Agreement” means an agreement among the holder of any Indebtedness, the
Credit Parties’ and Agent pursuant to which the holder of such Indebtedness shall agree that its
rights and claims in regard thereto shall be subordinate to the rights and claims of Agent and
Lender in respect of the Obligations, on terms and conditions supplied by, or acceptable to, Agent
and Lenders. Without limitation of the forgoing, each of the Subordination Documents constitutes a
Subordination Agreement.

     “Subordination Documents” means, collectively: (i) the Existing Notes Subordination
Agreement; (ii) the USVD Seller Subordination Agreement; and (iii) the Equity Investor Note
Subordination Agreement; together with, in each case, all documents, instruments and agreements
evidencing, securing or otherwise pertaining to the Indebtedness made Subordinated Debt pursuant
thereto.

     “Subsidiary” means, with respect to any Person, (a) any corporation of which an
aggregate of more than fifty percent (50%) of the outstanding Stock having ordinary voting power to
elect a majority of the board of directors of such corporation (irrespective of whether, at the
time, Stock of any other class or classes of such corporation shall have or might have voting

Annex A-27

 

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

     “Support Obligations” means all “support obligations” as such term is defined
in the Code.

     “Term Loan” has the meaning ascribed to it in Section 1.1(a).

     “Term Loan Commitment” means (a) as to any Lender, the commitment of such Lender to
make its Pro Rata Share of the Term Loan (as set forth on Annex B) in the maximum aggregate
amount set forth in Section 1.1(a) or in the most recent Assignment Agreement, if any,
executed by such Lender and (b) as to all Lenders, the aggregate commitment of all Lenders to make
the Term Loan. The Term Loan Commitment shall reduce automatically by the amount prepaid or repaid
in respect of Term Loan (but solely by the amount of such prepayment or repayment allocable to a
Lender, for purposes of clause (a) of this definition).

     “Term Loan Lenders” means those Lenders having Term Loan Commitments.

     “Term Notes” has the meaning ascribed to it in Section 1.1(a).

     “Termination Date” means the date on which (a) the Loans have been indefeasibly repaid
in full, (b) all other Obligations under the Agreement and the other Loan Documents have been
completely discharged (other than contingent indemnification to the extent no claim has been
asserted), and (c) no Borrower shall have any further right to borrow any monies under the
Agreement.

     Threshold Amount” has the meaning ascribed to it in Section 1.5(b).

     “Title IV Plan” means a Pension Plan (other than a Multiemployer Plan), that is
covered by Title IV of ERISA, and that any Credit Party or ERISA Affiliate maintains, contributes
to or has an obligation to contribute to on behalf of participants who are or were employed by any
of them.

     “Trademark Security Agreement(s)” means any Trademark Security Agreement(s) made in
favor of Agent, on behalf of itself and Lenders, by any applicable Credit Party.

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

     “Trademarks” means all of the following now owned or hereafter adopted or acquired by
any Credit Party: (a) all trademarks, trade names, corporate names, business names, trade styles,

Annex A-28

 

service marks, logos, internet domain names, other source or business identifiers, prints and
labels on which any of the foregoing have appeared or appear, designs and general intangibles of
like nature (whether registered or unregistered), all registrations and recordings thereof, and all
applications in connection therewith, including registrations, recordings and applications in the
United States Patent and Trademark Office or in any similar office or agency of the United States,
any state or territory thereof, or any other country or any political subdivision thereof; (b) all
reissues, extensions or renewals thereof; and (c) all goodwill associated with or symbolized by any
of the foregoing.

     “Trans-West” has the meaning ascribed to it in the preamble to this Agreement.

     “Trans-West Shareholders” has the meaning ascribed to it in the STN Acquisition
Agreement.

     “Undrawn Availability, at a particular date, shall mean an amount equal to (a) the
lesser of (i) the Borrowing Base or (ii) the Maximum Amount, minus (b) the sum of (i) either (A)
the aggregate amount of Revolving Credit Advances outstanding on such date, or (B) the average
daily amount of all Revolving Credit Advances outstanding from and after the Closing Date or,
subsequent to that date which is thirty (30) days after the Closing Date, over the preceding thirty
(30) days’ period ending on such date, whichever, between (A) and (B) above is the greater sum;
plus (ii) all amounts due and owing to Borrowers’ trade creditors which are outstanding beyond then
agreed to trade terms (unless and except to the extent that the same are then the subject of a bona
fide dispute).

     “Unfunded Pension Liability” means, at any time, the aggregate amount, if any, of the
sum of (a) the amount by which the present value of all accrued benefits under each Title IV Plan
exceeds the fair market value of all assets of such Title IV Plan allocable to such benefits in
accordance with Title IV of ERISA, all determined as of the most recent valuation date for each
such Title IV Plan using the actuarial assumptions for funding purposes in effect under such Title
IV Plan, and (b) for a period of 5 years following a transaction which might reasonably be expected
to be covered by Section 4069 of ERISA, the liabilities (whether or not accrued) that could be
avoided by any Credit Party or any ERISA Affiliate as a result of such transaction.

     “Unused Line Fee” has the meaning ascribed to it in Section 1.3(b).

     “USVD” has the meaning ascribed to it in the preamble to this Agreement.

     “USVD Compensation” means any and all compensation and benefits to which Michael A.
Fischer or M. Scott Diamond, each individually, is entitled pursuant to Section 2(a) and Section 3
of each of the Employment Agreements.

     “USVD Documents” means the collective reference to the USVD Purchase Agreement, the
USVD Employment Agreements and the USVD Non-Compete Agreements.

     “USVD Employment Agreements” means, collectively, (a) that certain Employment
Agreement dated as of September 14, 2007, between M. Scott Diamond, in his individual capacity, and
Parent Company, and (b) that certain Employment Agreement dated as of September 14, 2007, between
Michael P. Fischer, in his individual capacity, and Parent

Annex A-29

 

Company, as amended, restated, amended and restated, supplemented or otherwise modified and in
effect form time to time in accordance with the terms and provisions of the USVD Seller
Subordination Agreement.

     “USVD Non-Compete Agreements” means those certain Non-Compete Agreements dated as of
September 14, 2007, between each of the respective USVD Sellers and Parent Company, as amended,
restated, amended and restated, supplemented or otherwise modified and in effect from time to time
in accordance with the terms and provisions of the USVD Seller Subordination Agreement.

     “USVD Purchase Agreement” means the Membership Interest Purchase Agreement, dated as
of September 14, 2007, between Parent Company and the USVD Sellers, as such agreement has been, or
may be, modified or amended from time to time.

     “USVD Seller Debt” means all Indebtedness of any Credit Party arising under or
pursuant to Section 2.2(c), Section 2.2(d), Section 2.4 or Section 2.5 of the USVD Purchase
Agreement, as reflected in, and modified by the USVD Seller Subordination Agreement.

     “USVD Seller Fixed Payment Obligations” means that portion of the USVD Seller Debt
arising under or pursuant to Section 2.2(c) of the USVD Purchase Agreement.

     “USVD Seller Subordination Agreement” means that certain Subordination and
Intercreditor Agreement of even date herewith among Parent Company, Borrowers, Agent and each of
the USVD Sellers, as amended, restated, amended and restated, supplemented or otherwise modified
and in effect from time to time in accordance with the terms and provisions thereof.

     “USVD Sellers” means, collectively, the “Seller Group,” as that quoted term is defined
in the USVD Purchase Agreement.

     “Warrants” means those certain Warrants for the purchase of Stock of Parent Company
dated as of the Closing Date executed by Parent Company in favor of Chatham, as the same may be
amended, restated, supplemented, or otherwise modified from time to time.

     “Warrantholders Rights Agreement” means the Warrant Purchase and Registration Rights
Agreement dated as of the Closing Date between Parent Company and Chatham, as amended, restated,
supplemented, or otherwise modified from time to time.

     “Welfare Plan” means a Plan described in Section 3(1) of ERISA.

Annex A-30

 

ANNEX B (from Annex A — Commitments definition)

to

CREDIT AGREEMENT

PRO RATA SHARES AND COMMITMENT AMOUNTS

Lender(s)

	 	 	 	 	 	 	 	 	 
	Revolving Loan Commitment: $2,000,000
	 	Chatham	 	$	2,000,000	 
	Term Loan Commitment: $7,000,000
	 	Chatham	 	$	7,000,000	 

Annex B-1

 

ANNEX C

to

CREDIT AGREEMENT

CLOSING CHECKLIST

[INSERT CLOSING CHECKLIST]

Annex C-1

 

 

ANNEX D

to

CREDIT AGREEMENT

PRO FORMA

[INSERT PRO FORMA]

Annex D-1

 

 

ANNEX E

to

CREDIT AGREEMENT

WIRE TRANSFER INFORMATION

	 	 	 
	Name:

	 	CHATHAM CREDIT MANAGEMENT III, LLC, not individually, but
as agent for CHATHAM INVESTMENT FUND III, LLC, and CHATHAM
INVESTMENT FUND III QP, LLC, as Lenders
	 
	 	 
	Bank:

	 	Wells Fargo Bank, N.A.
	ABA No.:

	 	121000248 
	Account No.:

	 	4121502884 
	Bank Address:

	 	San Francisco, California
	 
	 	 
	Account Holder:

	 	Chatham Credit Management III, LLC

Annex E-1

 

 

ANNEX F

to

CREDIT AGREEMENT

COMPLIANCE CERTIFICATE

[                                                            ]

     Date:                     , ___

     This Certificate is given by the undersigned (“Borrower Representative”) pursuant to
Section 4.5(n) of that certain Credit Agreement dated as of September ___, 2008 among
Borrowers, the other Credit Parties party thereto, the Lenders from time to time party thereto and
CHATHAM CREDIT MANAGEMENT III, LLC, as Agent (as such agreement may have been amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized
terms used herein without definition shall have the meanings set forth in the Credit Agreement.

     The undersigned is duly authorized to execute and deliver this Certificate on behalf of
Borrower Representative. By executing this Certificate such officer hereby certifies to Agent and
Lenders that:

     (a) the financial statements delivered with this Certificate in accordance with
Section 4.5(a) and/or 4.5(b) of the Credit Agreement fairly present in all material
respects the results of operations and financial condition of Borrowers and their Subsidiaries as
of the dates of such financial statements;

     (b) I have reviewed the terms of the Credit Agreement and have made, or caused to be made
under my supervision, a review in reasonable detail of the transactions and conditions of the
Credit Parties during the accounting period covered by such financial statements;

     (c) such review has not disclosed the existence during or at the end of such accounting period,
and I have no knowledge of the existence as of the date hereof, of any condition or event that
constitutes a Default or an Event of Default, except as set forth on Schedule 1 hereto,
which includes a description of the nature and period of existence of such Default or an Event of
Default and what action Borrowers have taken, are taking and propose to take with respect thereto;

     (d) except as set forth on Schedule 1 hereto, Borrowers are in compliance with the
covenants contained in Sections 3.1, 3.2, 3.3, 3.4, 3.5,
3.7 and 3.8 and Section 4 of the Credit Agreement, as demonstrated on
Schedule 1 hereto; and

     (e) except as set forth on Schedule 3 hereto, subsequent to the date of the most
recent Certificate submitted by Borrower Representative pursuant to Section 4.5(n) of the
Credit Agreement, no Credit Party has (i) changed its name as it appears in official filings in the
jurisdiction of its organization, (ii) changed its chief executive office, principal place of
business, corporate offices, warehouses or locations at which Collateral is held or stored, or the
location of its records concerning Collateral, (iii) changed the type of entity that it is, (iv)
changed (or has

Annex F-1 

 

had changed) its organization identification number, if any, issued by its jurisdiction of
organization, (v) changed its jurisdiction of organization, (vi) changed the end of its Fiscal
Year, or (vii) formed any new Subsidiary or entered into any partnership or joint venture with any
other Person; and

     (f) except as set forth on Schedule 4 hereto, subsequent to the date of the most
recent Certificate submitted by Borrower Representative pursuant to Section 4.5(m) of the
Credit Agreement, there has been no event which would alter any of the disclosures set forth on
Schedule 5.4(b) of the Credit Agreement.

     IN WITNESS WHEREOF, Borrower Representative has caused this Certificate to be executed by its
                                         this       day of                     ,      .

	 	 	 	 	 	 	 
	 	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Its
	 	 

	 	 
	 

	 	 	 	 

	 	 

Annex F-2 

 

SCHEDULE 1

Annex F

ALL AMOUNTS IN ANNEX F ARE WITHOUT DUPLICATION AND, UNLESS

OTHERWISE INDICATED, ARE CALCULATED FOR BORROWERS AND THEIR

SUBSIDIARIES ON A CONSOLIDATED BASIS

INDEBTEDNESS

(Section 3.1)

Indebtedness secured by purchase money Liens or incurred with respect to Capital Leases:

	 	 	 	 	 
	Actual in the aggregate
	 	$	                    	 
	 
	Permitted in the aggregate
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No

Annex F-3 

 

INVESTMENTS

(Section 3.3)

Loans and advances outstanding to employees for moving, traveling and other similar expenses in the
ordinary course of business:

	 	 	 	 	 
	Actual outstanding in the aggregate
	 	$	                    	 
	 
	Permitted outstanding in the aggregate
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No

Annex F-4 

 

CONTINGENT OBLIGATIONS

(Section 3.4)

Contingent Obligations incurred in the ordinary course of business with respect to surety and
appeal bonds, performance and return-of-money bonds and other similar obligations:

	 	 	 	 	 
	Actual outstanding in the aggregate
	 	$	                    	 
	 
	Permitted outstanding in the aggregate
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No

Annex F-5 

 

RESTRICTED PAYMENTS

(Section 3.5)

Annex F-6 

 

DISPOSAL OF ASSETS

(Section 3.7(d))

Describe any Asset Dispositions made during the period (list each transaction by market value of
assets sold):

	 	 	 	 	 
	 
	 	$	                    	 
	 	 	 	 	 
	 
	 	$	                    	 
	 	 	 	 	 
	 
	 	$	                    	 
	 	 	 	 	 
	 
	 	$	                    	 
	 	 	 	 	 
	 
	 	 	 	 
	Permitted aggregate market value of Asset Dispositions in
Fiscal Year
	 	$	                    	 
	 
	 	 	 	 
	In Compliance
	 	 Yes/No

Annex F-7 

 

TRANSACTIONS WITH AFFILIATES

(Section 3.8)

	 	 	 	 	 
	Directors fees paid in current Fiscal Year:
	 	 	 	 
	 
	Actual in the aggregate
	 	$	                    	 
	 
	Permitted in the aggregate
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No
	 
	USVD Employment Agreements:
	 	 	 	 
	 
	Actual Paid
	 	$	                    	 
	 
	Permitted to Be Paid
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No
	 
	USVD Non-Compete Agreements:
	 	 	 	 
	 
	Actual Paid
	 	$	                    	 
	 
	Permitted to Be Paid
	 	$	                    	 
	 
	In Compliance
	 	 Yes/No

Annex F-8 

 

CAPITAL EXPENDITURE LIMIT

(Section 4.1)

Capital Expenditures are defined as follows:

	 	 	 	 	 
	All expenditures (by the expenditure of cash or the
incurrence of Indebtedness) during the measuring
period for any fixed asset or improvements or for
replacements, substitutions or additions thereto
that have a useful life of more than one year and
that are required to be capitalized under GAAP	 	$                    
	 
	Plus:

	 	deposits made during the measuring period
in connection with fixed assets; less deposits
of a prior period included above
	 	                      
	 
	Less:

	 	Net Proceeds of Asset Dispositions and
Casualty Events which Borrowers are permitted
to reinvest under Sections 1.5© and 2.2 of the
Credit Agreement and are included in the
expenditures above
	 	                      
	 
	Capital Expenditures	 	$                    
	 
	Permitted Capital Expenditures	 	$                    
	 
	In Compliance	 	Yes/No

Annex F-9 

 

EBITDA

Consolidated Net Income is defined as follows:

	 	 	 	 	 
	Consolidated net income during the measuring period excluding:	 	$                    
	 

	 	the income (or deficit) of any Person accrued prior to the
date it became a Subsidiary of, or was merged or
consolidated into, Borrowers or any of Borrowers’
Subsidiaries
	 	$                    
	 

	 	the income (or deficit) of any Person (other than a
Subsidiary) in which Borrowers has an ownership interest,
except to the extent any such income has actually been
received by Borrowers or any of their Subsidiaries in the
form of cash dividends or distributions
	 	$                    
	 

	 	the undistributed earnings of any Subsidiary of Borrowers
to the extent that the declaration or payment of dividends
or similar distributions by such Subsidiary is not at the
time permitted by the terms of any contractual obligation
or requirement of law applicable to such Subsidiary
	 	$                    
	 

	 	any restoration to income of any contingency reserve,
except to the extent that provision for such reserve was
made out of income accrued during such period
	 	
$                    
	 

	 	
any net gain attributable to the write-up of any asset
	 	$                    
	 

	 	any net gain from the collection of the proceeds of life
insurance policies
	 	$                    
	 

	 	any net gain arising from the acquisition of any
securities, or the extinguishment of any Indebtedness, of
Borrowers or any of their Subsidiaries
	 	$                    
	 

	 	in the case of a successor to Borrowers or any of their
Subsidiaries by consolidation or merger or as a transferee
of its assets, any earnings of such successor prior to such
consolidation, merger or transfer of assets
	 	$                    
	 

	 	any deferred credit representing the excess of equity in
any Subsidiary of Borrowers at the date of acquisition of
such Subsidiary over the cost to Borrowers of the
investment in such Subsidiary
	 	$                    
	Consolidated Net Income	 	$                    

Annex F-10 

 

	 	 	 	 	 
	EBITDA is defined as follows (subject to the proviso set forth on Annex
F-12, below):	 	 
	Consolidated Net Income (from above)	 	$                    
	Less:

	 	(in each case to the extent included in the calculation of
Consolidated Net Income, but without duplication):	 	 
	 

	 	income tax credits
	 	$                    
	 

	 	interest income
	 	$                    
	 

	 	gain from extraordinary items (net of loss from
extraordinary items)
	 	$                    
	 

	 	any aggregate net gain (but not any aggregate net loss)
arising from the sale, exchange or other disposition of
capital assets (including any fixed assets, whether
tangible or intangible, all inventory sold in conjunction
with the disposition of fixed assets and all securities)
	 	$                    
	 

	 	any other non-cash or non-recurring gains
	 	$                    
	 

	 	expenditures related to the Related Transactions and not
reflected on the Pro Forma or the footnotes thereto (to the
extent not previously subtracted from net income in the
calculation of Consolidated Net Income)
	 	$                    
	Plus:

	 	(in each case to the extent deducted in the calculation of
Consolidated Net Income, but without duplication):	 	 
	 

	 	any provision for income taxes and franchise taxes
	 	$                    
	 

	 	Interest Expense (calculated in Section 4.3 of this Exhibit)
	 	$                    
	 

	 	depreciation and amortization
	 	$                    
	 

	 	amortized debt discount (but in the case of amortization
and expenses of Related Transactions, only to the extent
included in the Pro Forma)
	 	$                    
	 

	 	any deduction as the result of any grant to any members of
the management of Borrowers or any of their Subsidiaries of
any Stock
	 	$                    
	EBITDA	 	$                    

Annex F-11 

 

Notwithstanding, the foregoing, however, in respect of the computation
of the Leverage Ratio pursuant to Section 4.4 for each of the twelve
(12) Fiscal Months beginning with the Fiscal Month ending August 31,
2007 and ending with the Fiscal Month ending July 31, 2008, in lieu of
making the foregoing calculations month-by-month, as prescribed
hereinabove, the following shall constitute EBITDA:

	 	 	 	 	 
	Fiscal Month Ended	 	EBITDA
	August 31, 2007
	 	$	178,000	 
	September 30, 2007
	 	$	98,000	 
	October 31, 2007
	 	$	43,000	 
	November 30, 2007
	 	$	182,000	 
	December 31, 2007
	 	$	27,000	 
	January 31, 2008
	 	$	307,000	 
	February 29, 2008
	 	$	69,000	 
	March 31, 2008
	 	$	472,000	 
	April 30, 2008
	 	$	345,000	 
	May 31, 2008
	 	$	(34,000	)
	June 30, 2008
	 	$	412,000	 
	July 31, 2008
	 	$	199,000	 

Annex F-12 

 

MINIMUM FIXED CHARGE COVERAGE RATIO

(Section 4.3)

	 	 	 	 	 
	EBITDA (calculated in Annex F-10 of this Exhibit)	 	$                    
	Less:

	 	any provision for income taxes (whether paid or
payable in cash) and any tax distribution paid to any
holders of Stock of any Credit Party in respect of any
period while Parent Company was designated as a “subchapter
S corporation”
	 	                      
	 

	 	Capital Expenditures (calculated in Section 4.1
of this Exhibit)
	 	                      
	Operating Cash Flow	 	$                    
	Fixed Charges are defined as follows:	 	 
	Interest expense (whether cash or non-cash) deducted in the
determination of Consolidated Net Income, including interest
expense with respect to any Funded Debt	 	$                    
	Less:

	 	Amortization of capitalized fees and expenses incurred
with respect to the Related Transactions included in
interest expense above
	 	($                    )
	 

	 	Amortization of any original discount
attributable to any Funded Debt or warrants
included in interest expense above
	 	($                    )
	 

	 	Interest paid in kind (PIK Interest) and
included in interest expense above
	 	($                    )
	Interest Expense	 	$                    
	Plus:

	 	Scheduled payments of principal with respect to all
Indebtedness
	 	$                    
	Plus:

	 	Without duplication, any principal payments actually
made in respect of Subordinated Debt, whether or not
scheduled to be paid
	 	$                    
	Plus:

	 	Without duplication, USVD Seller Fixed Payment
Obligations, limited to $600,000 and only applicable
starting with September, 2009, Fixed Charges are to be
included for the following twelve (12) months, but also
including any amounts in excess of currently scheduled
amounts (for example, interest, if any)
	 	$                    

Annex F-13 

 

	 	 	 	 	 
	Plus:

	 	Any USVD Seller Debt (other than USVD Seller Fixed
Payment Obligations) paid in cash in such period, however,
in the case of the Earn-Out Payment, starting in April of
such year and continuing through the following March (when
such Earn-Out Payment is due), an amount based on
one-twelfth (1/12th) of the then calculated
Earn-Out Payment (as if paid in such month) using the
current trailing twelve (12) month EBITDA of USVD, such that
all prior months Earn-Out Payment calculations will be
adjusted in the current month to reflect the current
one-twelfth (1/12) calculation for inclusion in the current
month’s Fixed Charges
	 	$                    
	Plus:

	 	Any cash dividends or cash distributions actually paid on, or in respect of, Stock (including Preferred Stock)
	 	$                    
	Fixed Charges	 	$                    
	Fixed Charge Coverage Ratio (Operating Cash Flow from above,
divided by Fixed Charges)	 	                      

Annex F-14 

 

LEVERAGE RATIO

(Section 4.4)

Leverage Ratio is defined as follows:

	 	 	 	 	 
	Funded Debt (as defined in Annex A) as of the date of
determination, less Subordinated Debt
(as defined in Annex A)
	 	$	                    	 
	EBITDA (calculated in Annex F-10 of this Exhibit)
	 	$	                    	 
	Leverage Ratio (Funded Debt divided by EBITDA)
	 	 	                    	 
	Required Leverage Ratio
	 	 	                    	 
	In Compliance
	 	 Yes/No

Annex F-15 

 

CONDITIONS OR EVENTS WHICH CONSTITUTE

A DEFAULT OR EVENT OF DEFAULT

[If any condition or event exists that constitutes a Default or Event of Default, specify nature
and period of existence and what action Borrowers have taken, is taking or proposes to take with
respect thereto; if no condition or event exists, state “None.”]

Annex F-16 

 

SCHEDULE 2

Annex F

ORGANIZATION/LOCATION CHANGES

If any Credit Party has (i) changed its name as it appears in official filings in the state of its
organization, (ii) changed its chief executive office, principal place of business, corporate
offices, warehouses or locations at which Collateral is held or stored, or the location of its
records concerning Collateral, (iii) changed the type of entity that it is, (iv) changed (or has
had changed) its organization identification number, if any, issued by its jurisdiction or
organization, (v) changed its jurisdiction of organization, (vi) changed the end of its Fiscal
Year, or (vii) formed any new Subsidiary or entered into any partnership or joint venture with any
Person, such change shall be specified below; if no such change has been made, state
“None.”

Annex F-17 

 

SCHEDULE 3

Annex F

CAPITALIZATION CHANGES

If with respect to any Credit Party there has been a change in authorized Stock, issued and
outstanding Stock or the identity of the holders of any Stock, or if with respect to any Credit
Party there has been a change pertaining to preemptive rights or any other outstanding rights,
options, warrants, conversion rights or similar agreements or understandings for the purchase or
acquisition of any Stock, such change shall be set forth below; if no such change has occurred,
state “None.”

Annex F-18 

 

EXHIBIT 1.1(a)

to

CREDIT AGREEMENT

FORM OF TERM NOTE

Atlanta, Georgia

$     ,     ,          

September __, 2008

     FOR VALUE RECEIVED, each of the undersigned (each individually a “Borrower” and
collectively, the “Borrowers”), HEREBY PROMISES TO PAY to the order of                                         
(“Lender”) at the offices of CHATHAM CREDIT MANAGEMENT III, LLC, a Georgia limited
liability company, as agent for Lenders (“Agent”), at its address set forth in Section 9.3
of the Credit Agreement, or at such other place as Agent may designate from time to time in
writing, in lawful money of the United States of America and in immediately available funds, the
amount of                                          DOLLARS ($     ,     ,     ).
All capitalized terms used but not
otherwise defined herein have the meanings given to them in the “Credit Agreement” (as
hereinafter defined) or in Annex A thereto.

     This Term Note is one of the Term Notes issued pursuant to that certain Credit Agreement dated
as of September ___, 2008 by and among Borrowers, the other Persons named therein as Credit Parties,
Agent, Lenders and the other Persons signatory thereto from time to time as Lenders (including all
annexes, exhibits and schedules thereto and as from time to time amended, restated, supplemented or
otherwise modified, the “Credit Agreement”), and is entitled to the benefit and security of
the Credit Agreement, the Security Agreement and all of the other Loan Documents referred to
therein. Reference is hereby made to the Credit Agreement for a statement of all of the terms and
conditions under which the Loans evidenced hereby are made and are to be repaid. The principal
balance of the Term Loan, the rates of interest applicable thereto and the date and amount of each
payment made on account of the principal thereof, shall be recorded by Agent on its books; provided
that the failure of Agent to make any such recordation shall not affect the obligations of
Borrowers to make a payment when due of any amount owing under the Credit Agreement or this Term
Note.

     The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and
on the dates specified in the Credit Agreement. Interest thereon shall be paid until such
principal amount is paid in full at such interest rates and at such times, and pursuant to such
calculations, as are specified in the Credit Agreement. The terms of the Credit Agreement are
hereby incorporated herein by reference. Each Borrower shall be jointly and severally liable for
payments of the indebtedness evidenced hereby.

     If any payment on this Term Note becomes due and payable on a day other than a Business Day,
the payment thereof shall be extended to the next succeeding Business Day and, with respect to
payments of principal, interest thereon shall be payable at the then applicable rate during such
extension.

Exhibit 1.1(a)-1 

 

     Upon and after the occurrence of any Event of Default, this Term Note may, as provided in the
Credit Agreement, and without presentment, demand, protest, notice of intent to accelerate, notice
of acceleration or other legal requirement of any kind (all of which are hereby expressly waived by
Borrowers), be declared, and immediately shall become, due and payable.

     Time is of the essence of this Term Note.

     Except as provided in the Credit Agreement, this Term Note may not be assigned by Lender to
any Person.

Exhibit 1.1(a)-2 

 

     THIS TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

	 	 	 	 	 	 	 
	 	 	Borrowers:	 	 
	 
	 	 	 	 	 	 
	 	 	BROOKSIDE TECHNOLOGY PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. VOICE & DATA, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	STANDARD TEL ACQUISITIONS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	TRANS-WEST NETWORK SOLUTIONS, INC.	 	 
	 	 	d/b/a STANDARD TEL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	STANDARD TEL NETWORKS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 

Exhibit 1.1(a)-3 

 

EXHIBIT 1.1(b)(i)

to

CREDIT AGREEMENT

FORM OF REVOLVING NOTE

Atlanta, Georgia

$     ,     ,          

September __, 2008

     FOR VALUE RECEIVED, each of the undersigned (each individually a “Borrower” and
collectively, the “Borrowers”), HEREBY PROMISES TO PAY to the order of
                                         (“Lender”), at the offices of CHATHAM CREDIT MANAGEMENT III, LLC, a
Georgia limited liability company, as Agent (“Agent”), at its address at
                                                            , or at such other place as Agent may designate from time to time
in writing, in lawful money of the United States of America and in immediately available funds, the
amount of                                          DOLLARS AND                      CENTS ($     ,     , 
   ) or, if less, the
aggregate unpaid amount of all Revolving Credit Advances made by Lender to the undersigned under
the “Credit Agreement” (as hereinafter defined). All capitalized terms used but not
otherwise defined herein have the meanings given to them in the Credit Agreement or in Annex
A thereto.

     This Revolving Note is one of the Revolving Notes issued pursuant to that certain Credit
Agreement dated as of September ___, 2008 by and among Borrowers, the other Persons named therein as
Credit Parties, Agent, Lenders and the other Persons signatory thereto from time to time as Lenders
(including all annexes, exhibits and schedules thereto, and as from time to time amended, restated,
supplemented or otherwise modified, the “Credit Agreement”), and is entitled to the benefit
and security of the Credit Agreement, the Security Agreement and all of the other Loan Documents
referred to therein. Reference is hereby made to the Credit Agreement for a statement of all of
the terms and conditions under which the Loans evidenced hereby are made and are to be repaid. The
date and amount of each Revolving Credit Advance made by Lenders to Borrowers, the rates of
interest applicable thereto and each payment made on account of the principal thereof, shall be
recorded by Agent on its books; provided that the failure of Agent to make any such recordation
shall not affect the obligations of Borrowers to make a payment when due of any amount owing under
the Credit Agreement or this Revolving Note in respect of the Revolving Credit Advances made by
Lender to Borrowers.

     The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and
on the dates specified in the Credit Agreement, the terms of which are hereby incorporated herein
by reference. Interest thereon shall be paid until such principal amount is paid in full at such
interest rates and at such times, and pursuant to such calculations, as are specified in the Credit
Agreement. The terms of the Credit Agreement are hereby incorporated herein by reference.

     If any payment on this Revolving Note becomes due and payable on a day other than a Business
Day, the payment thereof shall be extended to the next succeeding Business Day and,

Exhibit 1.1(b)(i)-1 

 

with respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension.

     Upon and after the occurrence of any Event of Default, this Revolving Note may, as provided in
the Credit Agreement, and without presentment, demand, protest, notice of intent to accelerate,
notice of acceleration or other legal requirement of any kind (all of which are hereby expressly
waived by Borrowers), be declared, and immediately shall become, due and payable.

     Time is of the essence of this Revolving Note.

     Except as provided in the Credit Agreement, this Revolving Note may not be assigned by Lender
to any Person.

Exhibit 1.1(b)(i)-2 

 

     THIS REVOLVING NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

	 	 	 	 	 	 	 
	 	 	Borrowers:	 	 
	 
	 	 	 	 	 	 
	 	 	BROOKSIDE TECHNOLOGY PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. VOICE & DATA, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	STANDARD TEL ACQUISITIONS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	TRANS-WEST NETWORK SOLUTIONS, INC.	 	 
	 	 	d/b/a STANDARD TEL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michael Nole
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	STANDARD TEL NETWORKS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Michel Nole
	 	 
	 

	 	Title:
	 	Managing Member	 	 

Exhibit 1.1(b)(i)-3 

 

EXHIBIT 1.1(b)(ii)

to

CREDIT AGREEMENT

FORM OF NOTICE OF REVOLVING CREDIT ADVANCE

                    ,           

CHATHAM CREDIT MANAGEMENT III, LLC,

     as Agent

100 Galleria Parkway, Suite 270

Atlanta, GA 30339

	 	 	 
	Attention:

	 	Brookside
	 

	 	Account Manager

Ladies and Gentlemen:

     The undersigned (“Borrower Representative”) refers to the Credit Agreement, dated as
of September      , 2008 (the “Credit Agreement,” the terms defined therein being used herein
as therein defined), by and among the undersigned, the other persons named therein as Borrowers,
the other Credit Parties signatory thereto, CHATHAM CREDIT MANAGEMENT III, LLC, as Agent for
Lenders and the Lenders, and hereby gives you notice, irrevocably, pursuant to Section
1.1(b) of the Credit Agreement, that the undersigned hereby requests a Revolving Credit Advance
under the Credit Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Advance as required by Section 1.1(b) of the Credit Agreement:

     The date of the requested Revolving Credit Advance is                     ,      .

     The aggregate amount of the requested Revolving Credit Advance is $                    .

     The requested Revolving Credit Advance is to be sent to:

[Name of Bank]

[City of Bank]

Beneficiary:

Account No.: [number]

ABA No.: [number]

Attn: [name]

Exhibit 1.1(b)(ii)-1 

 

     The undersigned hereby certifies that all of the statements contained in Section 7.2
of the Credit Agreement are true and correct in all material respects on the date hereof, and will
be true in all material respects on the date of the requested Revolving Credit Advance, before and
after giving effect thereto and to the application of the proceeds therefrom.

	 	 	 	 	 
	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Michael Nole 	 
	 	 	Title:  	CEO 	 
	 

Exhibit 1.1(b)(ii)-2 

 

EXHIBIT 4.5(d)

to

CREDIT AGREEMENT

FORM OF BORROWING BASE CERTIFICATE

Date:                     ,           

     This Certificate is given by the undersigned (“Borrower Representative”) pursuant to
subsection 4.5(d) of that certain Credit Agreement dated as of September ___, 2008 among Borrowers,
the other Credit Parties party thereto, the Lenders from time to time party thereto, CHATHAM CREDIT
MANAGEMENT III, LLC, as agent for the Lenders (as such agreement may have been amended, restated,
supplemented or otherwise modified from time to time the “Credit Agreement”). Capitalized
terms used herein without definition shall have the meanings set forth in the Credit Agreement.

     The undersigned is duly authorized to execute and deliver this Certificate on behalf of
Borrower Representative. By executing this Certificate such officer hereby certifies to Agent and
Lenders that:

     (a) Attached hereto as Schedule 1 is a calculation of the Borrowing Base for Borrowers as of
the above date;

     (b) Based on such schedule, the Borrowing Base as of the above date is:

     $                                        

     IN WITNESS WHEREOF, Borrower Representative has caused this Certificate to be executed by its
                     this       day of                     ,      .

	 	 	 	 	 	 	 
	 	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Its.
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit 4.5(d)-1 

 

SCHEDULE 1

to Exhibit 4.5(d)

BORROWING BASE CALCULATION

BORROWING BASE CALCULATION

[TO BE INSERTED]

Exhibit 4.5(d)-2 

 

EXHIBIT 3.1

to

CREDIT AGREEMENT

FORM OF SUBORDINATED INTERCOMPANY NOTE

[To be inserted.]

Exhibit 3.1-1 

 

EXHIBIT 8.1(a)

to

CREDIT AGREEMENT

ASSIGNMENT AGREEMENT

     This
Assignment Agreement (this “Agreement”) is made as of                      ___, ___ by and
between                                                              (“Assignor Lender”)
and                                                             
(“Assignee Lender”) and acknowledged and consented to by CHATHAM CREDIT MANAGEMENT III,
LLC, as agent (“Agent”) All capitalized terms used in this Agreement and not otherwise
defined herein will have the respective meanings set forth in the Credit Agreement as hereinafter
defined.

RECITALS:

     WHEREAS, Brookside Technology Partners, Inc., among other of its affiliates
(“Borrowers” and individually as a “Borrower”), the other persons designated as
“Credit Parties” on the signature pages thereto (the Borrowers and such Credit Parties are
referred to herein as, the “Credit Parties”), Agent, Assignor Lender and other Persons
signatory thereto as Lenders have entered into that certain Credit Agreement dated as of September
___, 2008 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”) pursuant to which Assignor Lender has agreed to make certain Loans to
Borrowers;

     WHEREAS, Assignor Lender desires to assign to Assignee Lender [all/a portion] of its interest
in the Loans (as described below) and the Collateral and to delegate to Assignee Lender [all/a
portion] of its Commitments and other duties with respect to such Loans and Collateral;

     WHEREAS, Assignee Lender desires to become a Lender under the Credit Agreement and to accept
such assignment and delegation from Assignor Lender; and

     WHEREAS, Assignee Lender desires to appoint Agent to serve as agent for Assignee Lender under
the Credit Agreement.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions, and covenants
herein contained, Assignor Lender and Assignee Lender agree as follows:

1. ASSIGNMENT, DELEGATION, AND ACCEPTANCE

     1.1 Assignment. Assignor Lender hereby transfers and assigns to Assignee Lender,
without recourse and without representations or warranties of any kind (except as set forth in
Section 3.2), [all/such percentage] of Assignor Lender’s right, title, and interest in [the
Revolving Loan ], [the Term Loan], [the Loans], Loan Documents and the Collateral as will result in
Assignee Lender having as of the Effective Date (as hereinafter defined) a Pro Rata Share thereof,
as follows:

Exhibit 8.1(a)-1 

 

	 	 	 	 	 	 	 	 	 
	Assignee Lender’s Loans	 	Principal Amount	 	Pro Rata Share
	Revolving Loan
	 	$	                    	 	 	 	                    	%
	Term Loan
	 	$	                    	 	 	 	                    	%

     1.2 Delegation. Assignor Lender hereby irrevocably assigns and delegates to Assignee
Lender [all/a portion] of its Commitments and its other duties and obligations as a Lender under
the Loan Documents equivalent to the Pro Rata Shares set forth above.

     1.3 Acceptance by Assignee Lender. By its execution of this Agreement, Assignee
Lender irrevocably purchases, assumes and accepts such assignment and delegation and agrees to be a
Lender with respect to the delegated interest under the Loan Documents and to be bound by the terms
and conditions thereof. By its execution of this Agreement, Assignor Lender agrees, to the extent
provided herein, to relinquish its rights and be released from its obligations and duties under the
Credit Agreement.

     1.4 Effective Date. Such assignment and delegation by Assignor Lender and acceptance
by Assignee Lender will be effective and Assignee Lender will become a Lender under the Loan
Documents as of [the date of this Agreement][                ,           ] (“Effective Date”) and upon
payment of the Assigned Amount and the Assignment Fee (as each term is defined below). [Interest
and Fees accrued prior to the Effective Date are for the account of Assignor Lender, and Interest
and Fees accrued from and after the Effective Date are for the account of Assignee Lender.]

2. INITIAL PAYMENT AND DELIVERY OF NOTES

     2.1 Payment of the Assigned Amount. Assignee Lender will pay to Assignor Lender, in
immediately available funds, not later than 12:00 noon (New York time on the Effective Date, an
amount equal to its Pro Rata Share of the then outstanding principal amount of the Loans as set
forth above in Section 1.1 [together with accrued interest, fees and other amounts as set
forth on Schedule 2.1] (the “Assigned Amount”).

     2.2 Payment of Assignment Fee. [Assignor Lender and/or Assignee Lender] will pay to
Agent, for its own account in immediately available funds, not later than 12:00 noon (New York time
on the Effective Date, the assignment fee in the amount of $3,500 (the “Assignment Fee”) as
required pursuant to Section 8.1(a) of the Credit Agreement.

     2.3 Execution and Delivery of Notes. Following payment of the Assigned Amount and the
Assignment Fee, Assignor Lender will deliver to Agent the Notes previously delivered to Assignor
Lender for redelivery to Borrowers and Agent will obtain from Borrowers for delivery to [Assignor
Lender and] Assignee Lender, new executed Notes evidencing Assignee Lender’s [and Assignor Lender’s
respective] Pro Rata Share[s] in the Loans after giving effect to the assignment described in
Section 1. Each new Note will be issued in the aggregate maximum principal amount of the
[applicable] Commitment [of the Lender to whom such Note is issued] OR [the Assignee Lender].

Exhibit 8.1(a)-2 

 

3. REPRESENTATIONS, WARRANTIES AND COVENANTS

     3.1 Assignee Lender’s Representations, Warranties and Covenants. Assignee Lender
hereby represents, warrants, and covenants the following to Assignor Lender and Agent:

     (a) This Agreement is a legal, valid, and binding agreement of Assignee Lender, enforceable
according to its terms;

     (b) The execution and performance by Assignee Lender of its duties and obligations under this
Agreement and the Loan Documents will not require any registration with, notice to, or consent or
approval by any Governmental Authority;

     (c) Assignee Lender is familiar with transactions of the kind and scope reflected in the Loan
Documents and in this Agreement;

     (d) Assignee Lender has made its own independent investigation and appraisal of the financial
condition and affairs of each Credit Party, has conducted its own evaluation of the Loans, the Loan
Documents and each Credit Party’s creditworthiness, has made its decision to become a Lender to
Borrowers under the Credit Agreement independently and without reliance upon Assignor Lender or
Agent, and will continue to do so;

     (e) Assignee Lender is entering into this Agreement in the ordinary course of its business,
and is acquiring its interest in the Loans for its own account and not with a view to or for sale
in connection with any subsequent distribution; provided, however, that at all times the
distribution of Assignee Lender’s property shall, subject to the terms of the Credit Agreement, be
and remain within its control;

     (f) No future assignment or participation granted by Assignee Lender pursuant to Section 8.1
of the Credit Agreement will require Assignor Lender, Agent, or Borrower to file any registration
statement with the Securities and Exchange Commission or to apply to qualify under the blue sky
laws of any state;

     (g) Assignee Lender has no loans to, written or oral agreements with, or equity or other
ownership interest in any Credit Party;

     (h) Assignee Lender will not enter into any written or oral agreement with, or acquire any
equity or other ownership interest in, any Credit Party without the prior written consent of Agent;
and

     (i) As of the Effective Date, Assignee Lender (i) is entitled to receive payments of principal
and interest in respect of the Obligations without deduction for or on account of any taxes imposed
by the United States of America or any political subdivision thereof [, (ii) is not subject to
capital adequacy or similar requirements under Section 1.8(a) of the Credit Agreement, (iii) does
not require the payment of any increased costs under Section 1.8(b) of the Credit Agreement, and
(iv) is not unable to fund LIBOR Loans under Section 1.8(b) of the Credit Agreement,] and Assignee
Lender will indemnify Agent from and against all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, or expenses that result

Exhibit 8.1(a)-3 

 

from Assignee Lender’s failure to fulfill its obligations under the terms of Section 1.9(c) of
the Credit Agreement [or from any other inaccuracy in the foregoing].

	3.2	 	Assignor Lender’s Representations, Warranties and Covenants. Assignor Lender hereby
represents, warrants and covenants the following to Assignee Lender:

     (a) Assignor Lender is the legal and beneficial owner of the Assigned Amount;

     (b) This Agreement is a legal, valid and binding agreement of Assignor Lender, enforceable
according to its terms;

     (c) The execution and performance by Assignor Lender of its duties and obligations under this
Agreement and the Loan Documents will not require any registration with, notice to or consent or
approval by any Governmental Authority;

     (d) Assignor Lender has full power and authority, and has taken all action necessary to
execute and deliver this Agreement and to fulfill the obligations hereunder and to consummate the
transactions contemplated hereby;

     (e) Assignor Lender is the legal and beneficial owner of the interests being assigned hereby,
free and clear of any adverse claim, lien, encumbrance, security interest, restriction on transfer,
purchase option, call or similar right of a third party; and

     (f) This Assignment by Assignor Lender to Assignee Lender complies, in all material respects,
with the terms of the Loan Documents.

4. LIMITATIONS OF LIABILITY

     Neither Assignor Lender (except as provided in Section 3.2) nor Agents makes any
representations or warranties of any kind, nor assumes any responsibility or liability whatsoever,
with regard to (a) the Loan Documents or any other document or instrument furnished pursuant
thereto or the Loans or other Obligations, (b) the creation, validity, genuineness, enforceability,
sufficiency, value or collectibility of any of them, (c) the amount, value or existence of the
Collateral, (d) the perfection or priority of any Lien upon the Collateral, or (e) the financial
condition of any Credit Party or other obligor or the performance or observance by any Credit Party
of its obligations under any of the Loan Documents. Neither Assignor Lender nor Agent has or will
have any duty, either initially or on a continuing basis, to make any investigation, evaluation,
appraisal of, or any responsibility or liability with respect to the accuracy or completeness of,
any information provided to Assignee Lender which has been provided to Assignor Lender or Agent by
any Credit Party. Nothing in this Agreement or in the Loan Documents shall impose upon the
Assignor Lender or Agent any fiduciary relationship in respect of the Assignee Lender.

5. FAILURE TO ENFORCE

     No failure or delay on the part of Agent or Assignor Lender in the exercise of any power,
right, or privilege hereunder or under any Loan Document will impair such power, right, or
privilege or be construed to be a waiver of any default or acquiescence therein. No single or

Exhibit 8.1(a)-4 

 

partial exercise of any such power, right, or privilege will preclude further exercise thereof
or of any other right, power, or privilege. All rights and remedies existing under this Agreement
are cumulative with, and not exclusive of, any rights or remedies otherwise available.

6. NOTICES

     Unless otherwise specifically provided herein, any notice or other communication required or
permitted to be given will be in writing and addressed to the respective party as set forth below
its signature hereunder, or to such other address as the party may designate in writing to the
other.

7. AMENDMENTS AND WAIVERS

     No amendment, modification, termination, or waiver of any provision of this Agreement will be
effective without the written concurrence of Assignor Lender, Agent and Assignee Lender.

8. SEVERABILITY

     Whenever possible, each provision of this Agreement will be interpreted in such manner as to
be effective and valid under applicable law. In the event any provision of this Agreement is or is
held to be invalid, illegal, or unenforceable under applicable law, such provision will be
ineffective only to the extent of such invalidity, illegality, or unenforceability, without
invalidating the remainder of such provision or the remaining provisions of the Agreement. In
addition, in the event any provision of or obligation under this Agreement is or is held to be
invalid, illegal, or unenforceable in any jurisdiction, the validity, legality, and enforceability
of the remaining provisions or obligations in any other jurisdictions will not in any way be
affected or impaired thereby.

9. SECTION TITLES

     Section and Subsection titles in this Agreement are included for convenience of reference
only, do not constitute a part of this Agreement for any other purpose, and have no substantive
effect.

10. SUCCESSORS AND ASSIGNS

     This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

11. APPLICABLE LAW

     THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
GEORGIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE.

Exhibit 8.1(a)-5 

 

12. COUNTERPARTS

     This Agreement and any amendments, waivers, consents, or supplements may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which,
when so executed and delivered, will be deemed an original and all of which shall together
constitute one and the same instrument.

[Signature page follows]

Exhibit 8.1(a)-6 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	ASSIGNEE LENDER:	 	 	 	ASSIGNOR LENDER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	Title:

	 	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Notice Address:	 	 	 	Notice Address:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

ACKNOWLEDGED AND CONSENTED TO:

CHATHAM CREDIT MANAGEMENT III, LLC, as Agent

	 	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

BROOKSIDE TECHNOLOGY HOLDINGS CORP., Borrower Representative

	 	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

Exhibit 8.1(a)-7 

 

SCHEDULE 2.1

Assignor Lender’s Loans

	 	 	 	 	 
	Principal Amount	 	 	 	 
	Revolving Loan
	 	$	                    	 
	Term Loan
	 	$	                    	 
	Subtotal
	 	$	                    	 
	Accrued Interest
	 	$	                    	 
	Unused Line Fee
	 	$	                    	 
	Other + or -$
	 	$	                    	 
	Total
	 	$	                    	 

All determined as of the Effective Date.

Schedule 2.1-1EX-10.03 CHATHAM TERM NOTE DATED SEPT. 23,2008

Exhibit 10.03

TERM NOTE

Atlanta, Georgia

$7,000,000

September 23, 2008

     FOR VALUE RECEIVED, each of the undersigned (each individually a “Borrower” and
collectively, the “Borrowers”), HEREBY PROMISES TO PAY to the order of CHATHAM INVESTMENT
FUND III, LLC and CHATHAM INVESTMENT FUND III QP, LLC (collectively, “Lender”) at the
offices of CHATHAM CREDIT MANAGEMENT III, LLC, a Georgia limited liability company, as agent for
Lenders (“Agent”), at its address set forth in Section 9.3 of the Credit Agreement, or at
such other place as Agent may designate from time to time in writing, in lawful money of the United
States of America and in immediately available funds, the amount of SEVEN MILLION DOLLARS
($7,000,000). All capitalized terms used but not otherwise defined herein have the meanings given
to them in the “Credit Agreement” (as hereinafter defined) or in Annex A thereto.

     This Term Note is one of the Term Notes issued pursuant to that certain Credit Agreement dated
as of September ___, 2008 by and among Borrowers, the other Persons named therein as Credit Parties,
Agent, Lenders and the other Persons signatory thereto from time to time as Lenders (including all
annexes, exhibits and schedules thereto and as from time to time amended, restated, supplemented or
otherwise modified, the “Credit Agreement”), and is entitled to the benefit and security of
the Credit Agreement, the Security Agreement and all of the other Loan Documents referred to
therein. Reference is hereby made to the Credit Agreement for a statement of all of the terms and
conditions under which the Loans evidenced hereby are made and are to be repaid. The principal
balance of the Term Loan, the rates of interest applicable thereto and the date and amount of each
payment made on account of the principal thereof, shall be recorded by Agent on its books; provided
that the failure of Agent to make any such recordation shall not affect the obligations of
Borrowers to make a payment when due of any amount owing under the Credit Agreement or this Term
Note.

     The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and
on the dates specified in the Credit Agreement. Interest thereon shall be paid until such
principal amount is paid in full at such interest rates and at such times, and pursuant to such
calculations, as are specified in the Credit Agreement. The terms of the Credit Agreement are
hereby incorporated herein by reference. Each Borrower shall be jointly and severally liable for
payments of the indebtedness evidenced hereby.

     If any payment on this Term Note becomes due and payable on a day other than a Business Day,
the payment thereof shall be extended to the next succeeding Business Day and, with respect to
payments of principal, interest thereon shall be payable at the then applicable rate during such
extension.

     Upon and after the occurrence of any Event of Default, this Term Note may, as provided in the
Credit Agreement, and without presentment, demand, protest, notice of intent to

 

 

accelerate, notice of acceleration or other legal requirement of any kind (all of which are
hereby expressly waived by Borrowers), be declared, and immediately shall become, due and payable.

     Time is of the essence of this Term Note.

     Except as provided in the Credit Agreement, this Term Note may not be assigned by Lender to
any Person.

2

 

     THIS TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

	 	 	 	 	 
	 	Borrowers:

BROOKSIDE TECHNOLOGY PARTNERS, INC.

 	 
	 	By:  	 	 
	 	Name:  	Michael Nole 
	 	Title:  	CEO 
	 
	 	U.S. VOICE & DATA, LLC

 	 
	 	By:  	 	 
	 	Name:  	Michael Fischer 	 
	 	Title:  	CEO 	 
	 
	 	STANDARD TEL ACQUISITIONS, LLC

 	 
	 	By:  	 	 
	 	Name:  	Michael Nole 	 
	 	Title:  	Managing Member 	 
	 
	 	TRANS-WEST NETWORK SOLUTIONS, INC.

d/b/a STANDARD TEL

 	 
	 	By:  	 	 
	 	Name:  	Michael Nole 	 
	 	Title:  	CEO 	 
	 
	 	STANDARD TEL NETWORKS, LLC

 	 
	 	By:  	 	 
	 	Name:  	Michael Nole 	 
	 	Title:  	Managing Member 	 
	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]