Document:

exv10w3

Exhibit 10.3

 

AMENDED AND RESTATED

COLLATERAL MANAGEMENT AGREEMENT

By

BIOSCRIP, INC.,

as Borrower,

and

THE LOAN PARTIES PARTY HERETO

and

HEALTHCARE FINANCE GROUP LLC

as Collateral Manager,

as Administrative Agent and Collateral Agent,

Dated as of March 25, 2010

as

Amended and Restated

as of December 28, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. COLLATERAL MANAGER FEES, INDEMNITIES AND AUTHORIZATIONS
	 	 	2	 
	 
	 	 	 	 
	Section 1.01 Indemnities.
	 	 	2	 
	Section 1.02 Telephonic Notice.
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II. GENERAL PAYMENT MECHANICS; GOVERNMENTAL ENTITIES PAYMENT MECHANICS; MISDIRECTED PAYMENTS
	 	 	3	 
	 
	 	 	 	 
	Section 2.01 General Payment Mechanics.
	 	 	3	 
	Section 2.02 Governmental Entities Payment Mechanics.
	 	 	3	 
	Section 2.03 Misdirected Payments; EOB’s.
	 	 	4	 
	Section 2.04 No Rights of Withdrawal.
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III. COLLECTION AND DISTRIBUTION
	 	 	4	 
	 
	 	 	 	 
	Section 3.01 Collections on the Receivables.
	 	 	4	 
	Section 3.02 Distribution of Funds.
	 	 	5	 
	Section 3.03 Distribution of Funds at the Maturity Date or Upon an Event of Default.
	 	 	5	 
	Section 3.04 Allocation of Servicing Responsibilities.
	 	 	5	 
	Section 3.05 Distributions to the Loan Parties Generally.
	 	 	6	 
	Section 3.06 Collateral Manager.
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES; COVENANTS; REMEDIES
	 	 	6	 
	 
	 	 	 	 
	Section 4.01 Representations and Warranties; Covenants.
	 	 	6	 
	Section 4.02 Remedies; Right of Set-Off.
	 	 	6	 
	Section 4.03 Attorney-in-Fact.
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V. MISCELLANEOUS
	 	 	7	 
	 
	 	 	 	 
	Section 5.01 Amendments, etc.
	 	 	7	 
	Section 5.02 Notices, etc.
	 	 	7	 
	Section 5.03 Assignability.
	 	 	7	 
	Section 5.04 Further Assurances.
	 	 	7	 
	Section 5.05 Costs and Expenses; Collection Costs.
	 	 	7	 
	Section 5.06 Term.
	 	 	8	 
	Section 5.07 Joint and Several Liability.
	 	 	9	 
	Section 5.08 Entire Agreement; Severability.
	 	 	9	 
	Section 5.09 GOVERNING LAW.
	 	 	9	 
	Section 5.10 WAIVER OF JURY TRIAL, JURISDICTION AND VENUE.
	 	 	9	 
	Section 5.11 Execution in Counterparts.
	 	 	10	 
	Section 5.12 Survival of Termination.
	 	 	10	 
	Section 5.13 Joinder of Additional Loan Parties.
	 	 	10	 

i

 

	 	 	 	 	 
	 	 	Page	 
	EXHIBIT I to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT II to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT III to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT IV to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT V to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT VI to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	EXHIBIT VII to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	SCHEDULE I to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	SCHEDULE II to Collateral Management Agreement
	 	 	1	 
	 
	 	 	 	 
	SCHEDULE III to Collateral Management Agreement
	 	 	1	 

ii

 

     AMENDED AND RESTATED COLLATERAL MANAGEMENT AGREEMENT, dated as of March 25, 2010 and as
AMENDED AND RESTATED as of December 28, 2010 (as so Amended and Restated and as it may be further
amended, supplemented or otherwise modified from time to time in accordance with its terms, the
“Collateral Management Agreement”), among BIOSCRIP INC., a Delaware corporation (the
“Borrower”), the other Loan Parties from time to time party hereto by execution of this
Agreement or otherwise by execution of a Joinder Agreement, HEALTHCARE FINANCE GROUP, LLC
(“HFG”), in its capacity as administrative agent and collateral agent for the Secured
Parties, as successor to Jefferies Finance LLC in such capacities (in such capacities, the
“Agent”), and in its capacity as collateral manager for the Secured Parties (in such
capacity, the “Collateral Manager”).

R E C I T A L S:

     A. Borrower, the subsidiaries of Borrower party thereto, Agent, the Collateral Manager, the
lending institutions from time to time party thereto as lenders (the “Lenders”) and other
entities party thereto have entered into that certain credit agreement, dated as of March 25, 2010,
as such credit agreement is being Amended and Restated in its entirety as of the date hereof
pursuant to the terms of an amended and restated credit agreement (as so amended and restated and
as further amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”). Terms not otherwise defined herein shall have the meanings set forth
in the Credit Agreement or, if not defined therein, in the Security Agreement.

     B. Borrower, the other Loan Parties, the Agent and the Collateral Manager entered into this
Collateral Management Agreement (as in effect immediately prior to the Restatement Date, the
“Existing CMA”) to provide for, among other things, certain matters with respect to the
Collateral.

     C. Borrower and the other Loan Parties have received and will continue to receive substantial
benefits from the execution, delivery and performance of the Secured Obligations under the Credit
Agreement and the other Loan Documents and are, therefore, willing to enter into this Agreement to
amend and restate the Existing CMA in the manner set forth herein.

     D. This Agreement is given by each Loan Party in favor of the Collateral Agent and Collateral
Manager for the benefit of the Secured Parties to secure the payment and performance of all of the
Secured Obligations and each of the Collateral Agent and the Collateral Manager agrees to act, on
the terms and conditions set forth herein and in the other Loan Documents, for the benefit of the
Secured Parties.

     E. It is a condition to the obligations of the Lenders to make the Loans under the Credit
Agreement and a condition to the Issuing Bank issuing Letters of Credit under the Credit Agreement
that the Borrower, each other Loan Party, the Collateral Manager and the Agent execute and deliver
the applicable Loan Documents, including this Agreement.

     Accordingly, the Borrower, each other Loan Party, the Agent and the Collateral Manager each
agrees to AMEND AND RESTATE the Existing CMA on the Restatement Date in its entirety as follows:

 

 

ARTICLE I.

COLLATERAL MANAGER FEES, INDEMNITIES AND AUTHORIZATIONS

     Section 1.01 Indemnities. Each of the Loan Parties hereby agrees to indemnify and
hold harmless the Collateral Manager and its respective Affiliates (together with their respective
directors, officers, agents, representatives, shareholders, lenders, counsel and employees, each an
“Indemnified Party”), from and against any and all losses, claims, damages, costs, expenses
(including reasonable counsel fees and disbursements) and liabilities which are actually incurred
by such Indemnified Party arising out of this Collateral Management Agreement, the amendment and
restatement hereof, or the financings contemplated under the Loan Documents, the Collateral
(including, without limitation, the use thereof by any of such Persons or any other Person, the
exercise by the Collateral Manager of rights and remedies or any power of attorney hereunder, and
any action or inaction of the Collateral Manager hereunder and in accordance with any Loan
Document), the use of proceeds of any financial accommodations provided hereunder, any
investigation, litigation or other proceeding (brought or threatened) relating thereto, or the role
of any such Person or Persons in connection with the foregoing, whether or not any Indemnified
Party is named as a party to any legal action or proceeding (“Claims”). No Loan Party will
be responsible to any Indemnified Party hereunder for any Claims to the extent that a court having
jurisdiction shall have determined by a final nonappealable judgment that any such Claim shall have
arisen out of or resulted directly and principally from (i)(1) actions taken or omitted to be taken
by such Indemnified Party by reason of the bad faith, willful misconduct or gross negligence of any
Indemnified Party, or (2) in violation of any law or regulation applicable to such Indemnified
Party (except to the extent that such violation is attributable to any breach of any
representation, warranty or agreement by or on behalf of the Loan Parties or any of their
designees, in each case, as determined by a final nonappealable decision of a court of competent
jurisdiction), or (ii) a successful claim by any Loan Party against such Indemnified Party
(“Excluded Claims”). The Indemnified Party shall give the Borrower prompt written notice
of any Claim setting forth a description of those elements of the Claim of which such Indemnified
Party has knowledge. The Collateral Manager, as an Indemnified Party, shall be permitted hereunder
to select counsel to defend such Claim with the consent of the Borrower, such consent not to be
unreasonably withheld, at the expense of the Borrower and, if such Indemnified Party shall decide
to do so, then all such Indemnified Parties shall select the same counsel to defend such
Indemnified Parties with respect to such Claim; provided, however, that if any such Indemnified
Party shall in its reasonable opinion consider that the retention of one joint counsel as aforesaid
shall result in a conflict of interest, such Indemnified Party may, at the expense of the Borrower,
select its own counsel to defend such Indemnified Party with respect to such Claim. The
Indemnified Parties and the Borrower and their respective counsel shall cooperate with each other
in all reasonable respects in any investigation, trial and defense of any such Claim and any appeal
arising therefrom.

     Section 1.02 Telephonic Notice. Without in any way limiting the Borrower’s obligation
to confirm in writing any telephonic notice, the Collateral Manager may act without liability upon
the basis of telephonic notice believed by the Collateral Manager in good faith to be from an
Financial Officer of the Borrower prior to receipt of written confirmation.

2

 

ARTICLE II.

GENERAL PAYMENT MECHANICS; GOVERNMENTAL ENTITIES PAYMENT MECHANICS; MISDIRECTED PAYMENTS

     Section 2.01 General Payment Mechanics. (a) On or prior to the Restatement Date,
each of the Borrower, each other applicable Loan Party, the Collateral Manager (for the benefit of
the Secured Parties) and each Lockbox Bank shall have entered into the Depositary Agreements and
shall have caused the Lockbox Banks to establish the Lender Lockboxes and the Lender Lockbox
Accounts.

          (b) Each Loan Party shall prepare, execute and deliver (or shall have prepared, executed and
delivered) to each non-Governmental Entity who is or is proposed to be a payor of Receivables and
that has not previously received such Notice or is not sending payments to a Lender Lockbox or
Lender Lockbox Account in the manner required hereunder, with copies to the Collateral Manager, on
or prior to the Restatement Date, a Notice to Obligors addressed to each such non-Governmental
Entity, which Notice to Obligors shall state that all present and future Receivables owing to such
Loan Party are subject to a Lien in favor of the Collateral Agent (for the benefit of the Secured
Parties) and that all checks from such non-Governmental Entity on account of Receivables shall be
sent to a Lender Lockbox and all wire transfers from such non-Governmental Entity on account of
Receivables shall be wired directly into a Lender Lockbox Account.

          (c) Each Loan Party represents, covenants and agrees that, on and after the Closing Date, all
invoices (and, if provided by a Loan Party, return envelopes) sent or to be sent to
non-Governmental Entities shall set forth only the address of a Lender Lockbox as a return address
for payment of Receivables, and only a Lender Lockbox Account with respect to wire transfers for
payment of Receivables. Each Loan Party hereby further covenants and agrees to instruct and notify
each of the members of its accounting and collections staff to provide identical information in
communications with non-Governmental Entities with respect to Collections.

     Section 2.02 Governmental Entities Payment Mechanics. (a) On or prior to the
Restatement Date, each Loan Party, the Collateral Manager (for the benefit of the Secured Parties)
and each Lockbox Bank shall have entered into the Depositary Agreements, and Loan Party shall have
caused the Lockbox Banks to establish the Borrower Lockboxes and the Borrower Lockbox Accounts.
Each Loan Party shall prepare, execute and deliver (or shall have prepared, executed and delivered)
to each Governmental Entity or its fiscal intermediary who is or is proposed to be an Obligor of
Receivables and that has not previously received such Notice or is not sending payments to a
Borrower Lockboxes or a Borrower Lockbox Account in the manner required hereunder, with copies to
the Collateral Manager, on or prior to the Restatement Date, Notices to Governmental Entities,
which Notices to Governmental Entities shall provide that all checks from Governmental Entities on
account of Receivables shall be sent to a Borrower Lockbox and all wire transfers on account of
Receivables shall be wired directly into a Borrower Lockbox Account.

          (b) Each Loan Party represents, covenants and agrees that, on and after the Closing Date, all
invoices sent to be sent to Governmental Entities (and, if provided by a Loan

3

 

Party, return envelopes) shall set forth only the address of a Borrower Lockbox as a return
address for payment of Receivables, and only a Borrower Lockbox Account with respect to wire
transfers for payment of Receivables. Each Loan Party further covenants and agrees to instruct and
notify each of the members of its accounting and collections staff to provide identical information
in communications with Governmental Entities with respect to Collections.

          (c) Each Loan Party shall maintain its Borrower Lockbox Accounts exclusively for the receipt
of payments on account of Receivables from Governmental Entities. Each Loan Party shall take all
actions necessary to ensure that no payments from any Person other than a Governmental Entity shall
be deposited in the Borrower Lockbox Accounts.

     Section 2.03 Misdirected Payments; EOB’s. (a) In the event that any Loan Party
receives a Misdirected Payment in the form of a check, such Loan Party shall immediately send such
Misdirected Payment, in the form received by such Loan Party, by overnight delivery service to the
appropriate Lender Lockbox or Borrower Lockbox, as the case may be, together with the envelope in
which such payment was received. In the event a Loan Party receives a Misdirected Payment in the
form of cash or wire transfer, such Loan Party shall immediately wire transfer the amount of such
Misdirected Payment directly to a Lender Lockbox Account. All Misdirected Payments shall be sent
promptly upon receipt thereof, and in no event later than the close of business, on the first
Business Day after receipt thereof.

          (b) Each Loan Party hereby agrees and consents to the Agent and/or the Collateral Manager
taking such actions, solely during the continuation of an Event of Default, as are reasonably
necessary to ensure that future payments from the Obligor of a Misdirected Payment shall be made in
accordance with the Notice previously delivered to such Obligor, including, without limitation, to
the maximum extent permitted by law, (i) the Agent, the Collateral Manager, their respective
assigns or designees executing on such Loan Party’s behalf and delivering to such Obligor a new
Notice, and (ii) Agent, the Collateral Manager, their respective assigns or designees contacting
such Obligor by telephone to confirm the instructions previously set forth in the Notice to such
Obligor. At any time, upon the Collateral Manager’s request, a Borrower shall promptly (and in any
event, within two Business Days from such request) take such similar actions as the Collateral
Manager may request.

     Section 2.04 No Rights of Withdrawal. No member of the Loan Parties shall have any
rights of direction or withdrawal with respect to amounts held in the Lender Lockbox Accounts.

ARTICLE III.

COLLECTION AND DISTRIBUTION

     Section 3.01 Collections on the Receivables. The Collateral Agent and Collateral
Manager (in each case, for the benefit of the Secured Parties) shall be entitled with respect to
all Receivables, (i) to receive and to hold as collateral all Receivables and all Collections on
Receivables in accordance with the terms of the Depositary Agreements, and (ii) to have and to
exercise any and all rights to collect, record, track and, during the continuance of an Event of
Default, take all actions to obtain Collections with respect to all Receivables.

4

 

     Section 3.02 Distribution of Funds. On each date of any Credit Extension (including
the initial Credit Extension) (each such date, a “Funding Date”), and provided, that (i) no
Event of Default has occurred and is then continuing and the Final Maturity Date has not occurred,
and (ii) the Collateral Manager shall have received all Receivable Information for the period since
the immediately prior Funding Date, the Collateral Agent and Collateral Manager shall distribute
any and all Collections received in the Collection Account prior to 12:00 p.m. (New York City time)
on the immediately prior Funding Date as follows: first, to the Administrative Agent for
distribution to the applicable Secured Parties, an amount in cash equal to the amount, if any, of
fees or interest that is due and payable and has not otherwise been paid in full by the Borrower
and the other Loan Parties under the Loan Documents, until such amount has been paid in full;
second, to the Administrative Agent for distribution to the applicable Lenders, an amount in cash
equal to the Borrowing Base Deficiency, if any, until such amount is paid in full, in accordance
with Section 2.09(b) of the Credit Agreement; third, to the Administrative Agent for distribution,
on a pro rata basis, (x) to the applicable Lenders, an amount in cash equal to the payment, if any,
of principal on the Loans due and payable on such Funding Date, (y) to the Issuing Bank, any
reimbursements due under Section 2.18(e) of the Credit Agreement, and (z) to the Swingline Lender,
any amounts due in repayment of the Swingline Loan pursuant to Section 2.04(a)(ii) of the Credit
Agreement, until such amount has been paid in full; fourth, to the Administrative Agent for
distribution to the applicable Secured Parties, an amount in cash equal to the payment of any other
Obligations due and payable on such Funding Date, if any, until such amount has been paid in full,
and fifth, to the Borrower on behalf of the Borrower and its Subsidiaries, all remaining amounts of
Collections, as requested.

     Section 3.03 Distribution of Funds at the Maturity Date or Upon an Event of Default.
At the Final Maturity Date or upon the occurrence and during the continuance of an Event of
Default, subject to the rights and remedies of the Agent and Collateral Manager pursuant to
Section 4.02 hereof, the Collateral Agent and Collateral Manager (for the benefit of the
Secured Parties) shall distribute any and all Collections in accordance with the Credit Agreement.

     Section 3.04 Allocation of Servicing Responsibilities. (a) Tracking of Collections
and other transactions pertaining to the Receivables shall be administered by the Collateral
Manager (for the benefit of Secured Parties) in a manner consistent with the terms of this
Collateral Management Agreement. The responsibilities of the Loan Parties to the Collateral
Manager have been set forth in Exhibit V attached hereto. The Loan Parties shall cooperate
fully with the Collateral Manager in establishing and maintaining the Transmission of the
Receivable Information, including, without limitation, the matters described in Exhibit V,
and shall provide promptly to the Collateral Manager such other information necessary or desirable
for the administration of Collections on the Receivables as may be reasonably requested from time
to time.

          (b) The Borrower hereby agrees to perform the administration and servicing obligations set
forth in Exhibit V hereto with respect to its Receivables (the “Servicing
Responsibilities”). The Collateral Manager may, at any time following the occurrence of an
Event of Default (and shall, without requirement of notice to any party, upon an Event of Default
resulting from the events described in paragraphs (g) or (h) of Section 8.01 of the Credit
Agreement) appoint another Person, for the benefit of the Secured Parties, to succeed the Borrower
in the performance of the Servicing Responsibilities (which replacement shall be

5

 

effectuated through the outplacement to a third-party collection firm obligated to use
commercially reasonable efforts to maximize collections in accordance with the provisions of
Article 9 of the UCC).

     Section 3.05 Distributions to the Loan Parties Generally. Distributions to the Loan
Parties on each Business Day shall be deposited in the Borrower Account.

     Section 3.06 Collateral Manager. The Collateral Manager has been appointed as
Collateral Manager pursuant to the Credit Agreement and this Agreement. The actions of the
Collateral Manager hereunder are subject to the provisions of the Credit Agreement and the other
Loan Documents. The Collateral Manager shall have the right hereunder to make demands, to give
notices, to exercise or refrain from exercising any rights, and to take or refrain from taking
action, in accordance with this Agreement and the Credit Agreement, for the benefit of the Secured
Parties. The Collateral Manager may employ agents and attorneys-in-fact in connection herewith and
shall not be liable for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it in good faith, excepting therefrom, however, their gross negligence or willful
misconduct. Without limiting the foregoing, the Collateral Manager shall be deemed an agent of the
Collateral Agent for the purposes of giving effect to the Security Documents (including this
Agreement) and the other Loan Documents and the Collateral Agent shall not be liable for the
negligence or misconduct of the Collateral Manager.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES; COVENANTS;

REMEDIES

     Section 4.01 Representations and Warranties; Covenants. Each Loan Party makes on the
Restatement Date and on each subsequent Funding Date, the representations and warranties set forth
in the Credit Agreement, and hereby agrees to perform and observe the covenants set forth in the
Credit Agreement.

     Section 4.02 Remedies; Right of Set-Off. Each Loan Party hereby irrevocably
authorizes and instructs the Agent and the Collateral Manager to set-off the full amount of any
Obligations due and payable against (i) any Collections, or (ii) the principal amount of any Loans
requested on or after such due date. No further notification, act or consent of any nature
whatsoever is required prior to the right of the Agent or the Collateral Manager to exercise such
right of set-off; provided, however, the Collateral Manager shall promptly notify the Borrower
(with a copy to the Agent): (1) a set-off pursuant to this Section 4.02 occurred, (2) the
amount of such set-off and (3) a description of the Obligations that was due and payable.

     Section 4.03 Attorney-in-Fact. Each Loan Party hereby irrevocably designates and
appoints the Collateral Manager (for the benefit of the Secured Parties), to the extent permitted
by applicable law and regulation, as each Loan Party’s attorneys-in-fact, which irrevocable power
of attorney is coupled with an interest, with authority, upon the continuance of an Event of
Default (and to the extent not prohibited under applicable law and regulations) to (i) endorse or
sign such Loan Party’s name to financing statements, remittances, invoices, assignments, checks,
drafts, or other instruments or documents in respect of the Collateral, including the Receivables,
(ii) notify Obligors to make payments on the Receivables directly to the Agent or Collateral

6

 

Manager, and (iii) bring suit in such Loan Party’s name and settle or compromise such
Receivables as the Collateral Manager may, in its discretion, deem appropriate.

ARTICLE V.

MISCELLANEOUS

     Section 5.01 Amendments, etc. No amendment, supplement, modification or waiver of any
provision of this Collateral Management Agreement or consent to any departure therefrom by a party
hereto shall be effective unless in a writing signed by the Agent, the Collateral Manager and the
Borrower and then such amendment, supplement, modification waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. No failure on the part
of the Agent or the Collateral Manager to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other right.

     Section 5.02 Notices, etc. All notices and other communications hereunder shall,
unless otherwise stated herein, be in writing (which may include facsimile and email communication)
and shall delivered to such addresses and in such manner, and deemed delivered, as set forth in the
Credit Agreement.

     Section 5.03 Assignability. This Collateral Management Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective permitted successors and
assigns.

     Section 5.04 Further Assurances. Each Loan Party shall, at its cost and expense, upon
the reasonable request of the Collateral Manager, duly execute and deliver, or cause to be duly
executed and delivered, to the Collateral Manager such further instruments and do and cause to be
done such further acts as may be necessary or proper in the reasonable opinion of the Collateral
Manager to carry out more effectively the provisions and purposes of this Collateral Management
Agreement.

     Section 5.05 Costs and Expenses; Collection Costs. (a) Each of the Loan Parties,
jointly and severally, agrees to pay (i) on the Restatement Date and (ii) with respect to costs and
expenses incurred thereafter, within seven days of invoicing therefor and after reasonable
verification by the Borrower of such costs and expenses, which shall in no event exceed such
seven-day period, all reasonable costs and expenses in connection with the preparation, execution
and delivery of this Collateral Management Agreement and the amendment and restatement hereof and
any waiver, modification, supplement or amendment hereto, including, without limitation, the
reasonable fees and out-of-pocket expenses of counsel for the Collateral Manager and all costs and
expenses, if any (including reasonable counsel fees and expenses), of the Collateral Manager and
its Affiliates in connection with the waiver, supplement, modification, amendment and enforcement
of this Collateral Management Agreement.

          (b) Each of the Loan Parties, jointly and severally, further agree to pay on the Restatement
Date (and with respect to costs and expenses incurred following the Restatement Date, within seven
days of invoicing therefor) (i) all reasonable costs and expenses incurred by

7

 

the Collateral Manager in connection with (x) semi-annual audits of the Receivables,
collections with respect thereto and Inventory, and the books and records with respect to the
foregoing, (y) all audits conducted in connection with any material change in the Receivables or a
change in the Credit and Collection Policy (z) and all audits conducted during the continuance of
an Event of Default, (ii) all reasonable costs and expenses incurred by the Collateral Manager to
accommodate any significant coding or data system changes necessitated by the Loan Parties that
would affect the transmission or interpretation of data received through the interface, and (iii)
all reasonable costs and expenses incurred by the Collateral Manager for additional time and
material expenses of the Collateral Manager resulting from a lack of either cooperation or
responsiveness of any Loan Party to agreed-upon protocol and schedules with the Collateral Manager;
provided, that the Borrower has been informed of the alleged lack of cooperation or responsiveness
and has been provided the opportunity to correct such problems.

          (c) In the event that the Agent or the Collateral Manager shall retain an attorney or
attorneys to collect, enforce, protect, maintain, preserve or foreclose its interests with respect
to this Collateral Management Agreement, any other Loan Documents, any Obligations, any Receivable
or the Lien on any Collateral or any other security for the Obligations or under any instrument or
document delivered pursuant to this Collateral Management Agreement, or in connection with any
Obligations, the Loan Parties shall jointly and severally pay all of the reasonable costs and
expenses of such collection, enforcement, protection, maintenance, preservation or foreclosure,
including reasonable attorneys’ fees, which amounts shall be part of the Obligations, and the Agent
and the Collateral Manager may take judgment for all such amounts. The attorneys’ fees arising
from such services, including those of any appellate proceedings, and all reasonable out-of-pocket
expenses, charges, costs and other fees incurred by such counsel in any way or with respect to or
arising out of or in connection with or relating to any of the events or actions described in this
Section 5.05 shall be payable by the Loan Parties, on an a joint and several basis, to the
Agent and/or the Collateral Manager, as the case may be, on demand (with interest accruing from the
eighth day following the date of such demand, and shall be additional obligations under this
Collateral Management Agreement). Without limiting the generality of the foregoing, such expenses,
costs, charges and fees may include: recording costs, appraisal costs, paralegal fees, costs and
expenses; accountants’ fees, costs and expenses; court costs and expenses; photocopying and
duplicating expenses; court reporter fees, costs and expenses; long distance telephone charges; air
express charges; telegram charges; telecopier charges; secretarial overtime charges; and expenses
for travel, lodging and food paid or incurred in connection with the performance of such legal
services; provided that, as between the Agent and the Collateral Manager, the Collateral Manager
agrees that it will only take legal action in the enforcement of this Collateral Management
Agreement at the direction of the Agent.

     Section 5.06 Term. (a) This Collateral Management Agreement shall remain in full
force and effect during the term (including any renewal term and any restatement) of the Credit
Agreement.

          (b) The termination of this Collateral Management Agreement shall not affect any rights of the
Agent or Collateral Manager or any obligations of the Loan Parties arising on or prior to the
effective date of such termination, and the provisions hereof shall continue to be fully operative
until all Obligations incurred on or prior to such termination has been paid and performed in full.

8

 

     Section 5.07 Joint and Several Liability. Each Loan Party agrees that (i) they shall
be jointly and severally liable for the obligations, duties and covenants of each other under this
Collateral Management Agreement and the acts and omissions of each other, and (ii) they jointly and
severally makes each representation and warranty for itself and each other under this Collateral
Management Agreement. Notwithstanding the foregoing, if, in any action to enforce the Obligations
against any Loan Party or any proceeding to allow or adjudicate a claim hereunder, a court of
competent jurisdiction determines that enforcement of the joint and several obligations of the Loan
Parties against a Borrower for the full amount of the Obligations is not lawful under, or would be
subject to avoidance under Section 548 of the United States Bankruptcy Code or any applicable
provision of Federal or state law, the liability of such Loan Party hereunder shall be limited to
the maximum amount lawful and not subject to avoidance under such law.

     Section 5.08 Entire Agreement; Severability. (a) This Collateral Management
Agreement, including all exhibits and schedules hereto and the documents referred to herein, embody
the entire agreement and understanding of the parties concerning the subject matter contained
herein.

          (b) If any provision of this Collateral Management Agreement shall be declared invalid or
unenforceable, the parties hereto agree that the remaining provisions of this Collateral Management
Agreement shall continue in full force and effect.

     Section 5.09 GOVERNING LAW. THIS COLLATERAL MANAGEMENT AGREEMENT SHALL, IN ACCORDANCE
WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD
CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF THE SECURITY INTEREST GRANTED HEREUNDER, OR REMEDIES RELATED THERETO, IN
RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK.

     Section 5.10 WAIVER OF JURY TRIAL, JURISDICTION AND VENUE. EACH OF THE PARTIES HERETO
HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN THE EVENT OF ANY LITIGATION WITH RESPECT TO ANY
MATTER RELATED TO THIS COLLATERAL MANAGEMENT AGREEMENT, AND HEREBY IRREVOCABLY CONSENTS TO THE
JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN NEW YORK COUNTY, NEW YORK CITY, NEW YORK IN
CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS COLLATERAL MANAGEMENT
AGREEMENT. IN ANY SUCH LITIGATION, EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREES THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR
REGISTERED MAIL DIRECTED TO THE PARTIES HERETO AT THEIR ADDRESSES SET FORTH ON THE SIGNATURE PAGE
HEREOF.

9

 

     Section 5.11 Execution in Counterparts. This Collateral Management Agreement may be
executed in counterparts, each of which when so executed shall be deemed to be an original and all
of which when taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page of this Collateral Management Agreement by telecopy or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Collateral Management Agreement.

     Section 5.12 Survival of Termination. All indemnities contained herein shall survive
the termination hereof unless otherwise provided.

     Section 5.13 Joinder of Additional Loan Parties. The Borrower shall cause each Loan
Party which, from time to time, after the date hereof shall be required to pledge any assets to the
Collateral Agent for the benefit of the Secured Parties pursuant to the Credit Agreement and the
other Loan Documents, to execute and deliver to the Collateral Agent a Joinder Agreement within
five Business Days after the date on which it was acquired or created, and become a Subsidiary and,
in each case, upon such execution and delivery, such Subsidiary shall constitute a “Loan Party”
for all purposes hereunder with the same force and effect as if originally named as a Loan Party
herein. The execution and delivery of such Joinder Agreement shall not require the consent of any
Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full
force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement or
any other Loan Document.

[remainder of page intentionally blank; signature pages follow]

10

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers or other authorized signatories as of the day and year first
above written.

	 	 	 	 	 
	 	BIOSCRIP, INC., as Borrower

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	EACH SUBSIDIARY GUARANTOR SET FORTH ON ANNEX A

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 

[Amended and Restated Collateral Manager Agreement]

 

 

	 	 	 	 	 
	 	HEALTHCARE FINANCE GROUP, LLC, as Agent 

and as Collateral Manager

 	 
	 	By:  	/s/ John D. Calabro	 
	 	 	Name:  	John D. Calabro	 
	 	 	Title:  	Executive Vice President	 
	 

[Amended and Restated Collateral Manager Agreement]

 

 

Annex A

Subsidiary Guarantors

BioScrip Infusion Services, Inc.

Chronimed, LLC

BioScrip Pharmacy, Inc.

Bradhurst Specialty Pharmacy, Inc.

BioScrip Pharmacy (NY), Inc.

BioScrip PBM Services, LLC

Natural Living, Inc.

BioScrip Infusion Services, LLC

BioScrip Nursing Services, LLC

BioScrip Infusion Management, LLC

BioScrip Pharmacy Services, Inc.

CHS Holdings, Inc.

Critical Homecare Solutions, Inc.

Applied Health Care, LLC

Cedar Creek Home Health Care Agency, Inc.

Deaconess Enterprises, LLC

Deaconess HomeCare, LLC

East Goshen Pharmacy, Inc.

Elk Valley Health Services, Inc.

Elk Valley Home Health Care Agency, Inc.

Elk Valley Professional Affiliates, Inc.

Gericare, Inc.

Infusion Partners, LLC

Infusion Partners of Brunswick, LLC

Infusion Partners of Melbourne, LLC

Infusion Solutions, Inc.

Knoxville Home Therapies, LLC

National Health Infusion, Inc.

New England Home Therapies, Inc.

Option Health, Ltd.

Professional Home Care Services, Inc.

Regional Ambulatory Diagnostics, Inc.

Scott-Wilson, Inc.

South Mississippi Home Health, Inc.

South Mississippi Home Health, Inc. — Region I

South Mississippi Home Health, Inc. — Region II

South Mississippi Home Health, Inc. — Region III

Specialty Pharma, Inc.

Wilcox Medical, Inc.

 

 

EXHIBIT I

to Collateral Management Agreement

DEFINITIONS

     As used in this Collateral Management Agreement (including its Exhibits and Schedules), the
following terms shall have the following meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):

     “Borrower Account” shall mean initially account # 000009069730 at Bank of America,
N.A., ABA # 011500010, or, thereafter, such other bank account designated by the Borrower by
written notice to the Collateral Manager from time to time.

     “Borrower Lockbox” shall mean the lockboxes set forth on Schedule III hereto
to receive checks with respect to Receivables payable by Governmental Entities.

     “Borrower Lockbox Account” shall mean the accounts set forth on Schedule III
hereto in the name of each applicable Loan Party (or Loan Parties) and associated with the Borrower
Lockbox established and controlled by each applicable Loan Party (or Loan Parties) to deposit
Collections from Governmental Entities, including Collections received in the Borrower Lockbox and
Collections received by wire transfer directly from Governmental Entities, all as more fully set
forth in the Depositary Agreement.

     “Collection Account” shall mean the Collateral Manager’s account maintained at
Citibank, N.A., ABA # 021-000-089, Account #205779, Ref: A & T SF c/o HFG Healthco-4 LLC -
Collection Account, or such other bank account designated by the Collateral Manager from time to
time.

     “Collections” shall mean all cash collections, wire transfers, electronic funds
transfers and other cash proceeds of Receivables and Inventory, and all Net Cash Proceeds,
deposited in or transferred to the Collection Account, including, without limitation, all cash
proceeds thereof.

     “Credit and Collection Policy” shall mean those receivables credit and collection
policies and practices of the Loan Parties in effect on the date of this Collateral Management
Agreement and attached as Schedule II hereto.

     “Depositary Agreements” shall mean those certain Depositary Account Agreements, dated
the date hereof, among the relevant members of the Loan Parties, the Collateral Manager, and each
Lockbox Bank, in a form reasonably acceptable to the Collateral Manager, as such agreement
may be amended, modified or supplemented from time to time in accordance with its terms.

     “Governmental Entity” shall mean the United States of America, any state, any
political subdivision of a state and any agency or instrumentality of the United States of America
or any state or political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government. Payments from
Governmental Entities shall be deemed to include payments governed under the Social Security

Exhibit I-1

 

Act (42 U.S.C. §§ 1395 et seq.), including payments under Medicare, Medicaid and TRICARE/CHAMPUS, and
payments administered or regulated by CMS.

     “Indemnified Party” has the meaning set forth in Section 1.01.

     “Insurer” means any Person (other than a Governmental Entity) which in the ordinary
course of its business or activities agrees to pay for healthcare goods and services received by
individuals, including commercial insurance companies, nonprofit insurance companies (such as the
Blue Cross, Blue Shield entities), employers or unions which self insure for employee or member
health insurance, prepaid health care organizations, preferred provider organizations, health
maintenance organizations, commercial hospitals, physicians groups or any other similar Person.
“Insurer” includes insurance companies issuing health, personal injury, workers’ compensation or
other types of insurance but does not include any individual guarantor.

     “Joinder Agreement” shall mean an agreement substantially in the form annexed hereto
as Exhibit VII.

     “Lender Lockbox” shall mean the lockboxes located at the address set forth on
Schedule III to receive checks with respect to Receivables payable by Insurers.

     “Lender Lockbox Account” shall mean the accounts at the Lockbox Bank as set forth on
Schedule III as associated with the Lender Lockbox and established by the relevant members
of the Loan Parties to deposit Collections, including Collections received in the Lender Lockbox
and Collections received by wire transfer directly from Insurers, all as more fully set forth in
the Depositary Agreement.

     “Lockbox” shall mean either the Borrower Lockbox or the Lender Lockbox, as the context
requires.

     “Lockbox Account” shall mean either the Borrower Lockbox Account or the Lender Lockbox
Account, each associated with the respective Lockbox to deposit Collections, including Collections
received by wire transfer directly, all as more fully set forth in the Depositary Agreement.

     “Lockbox Banks” shall mean each of Bank of America, N.A., Citibank, N.A. and People’s
United Bank as lockbox bank under the applicable Depositary Agreement.

     “Notice to Governmental Entities” shall mean a notice letter on a Borrower’s corporate
letterhead in substantially the form attached hereto as Exhibit III.

     “Notice to non-Governmental Entities” shall mean a notice letter on a Borrower’s
corporate letterhead in substantially the form attached hereto as Exhibit IV.

     “Notice to Obligors” shall mean either a Notice to Governmental Entities or a Notice
to non-Governmental Entities, as the context requires.

     “Obligor” shall mean each Person who is responsible for the payment of all or any
portion of a Receivable.

Exhibit I-2

 

     “Servicing Responsibilities” has the meaning set forth in Section 3.04 hereto.

     “Transmission” shall mean, upon establishment of computer interface between the
Borrower and the Collateral Manager in accordance with the specifications established by the
Collateral Manager, the transmission of Receivable Information through computer interface to the
Collateral Manager in a manner satisfactory to the Collateral Manager.

Exhibit I-3

 

EXHIBIT II

to Collateral Management Agreement

RECEIVABLE INFORMATION

     The following information shall, as appropriate, be provided by each Loan Party to the
Collateral Manager with respect to each Receivable, together with such other information and in
such form as may reasonably be requested from time to time by the Collateral Manager and as, in
accordance with applicable law, may be disclosed or released to the Collateral Manager (the
“Receivable Information”):

	 	(i)	 	Cash Receipts Report – Cash receipt transaction data containing:

	 	– 	 	 Transaction date
	 
	 	– 	 	 Transaction number
	 
	 	– 	 	 Customer number
	 
	 	– 	 	Cash receipt amount

	 	(ii)	 	Invoices Report – Invoice transaction data containing:

	 	– 	 	Transaction date
	 
	 	– 	 	 Transaction number
	 
	 	– 	 	Customer number
	 
	 	– 	 	 Invoice amount

	 	(iii)	 	Adjustments Report – Adjustment transaction data containing:

	 	– 	 	 Transaction date
	 
	 	– 	 	 Transaction number
	 
	 	– 	 	 Customer number
	 
	 	– 	 	 Amount of adjustment

Exhibit II-1

 

EXHIBIT III

to Collateral Management Agreement

FORM OF NOTICE TO GOVERNMENTAL ENTITIES

[Letterhead of the applicable Loan Party]

[Date]

[Name and Address

of Governmental Entity]

Re:      Change of Account and Address [for Medicare Supplier No.]

To Whom it May Concern:

Please be advised that we have opened a new bank account at [specified financial institution] and a
post-office box with respect to such bank account. Accordingly, effective immediately and until
further notice, we hereby request that:

(1) All wire transfers be made directly into our account at:

[_______________]

(2) All remittance advices and other forms of payment, including checks, be made to our post office
box located at:

[_______________]

As provided in the Medicare Carriers Manual § 3060.11, the undersigned hereby
certifies that this payment arrangement will continue in effect only so long as the following
requirements are met:

a) [specified financial institution] does not provide financing to the undersigned nor acts on
behalf of another party in connection with the provision of such financing; and

b) The undersigned has sole control of the account, and [specified financial institution] is
subject only to the instructions of the undersigned (or its agents) regarding the account.

Thank you for your cooperation in this matter.

Exhibit III-1

 

EXHIBIT IV

to Collateral Management Agreement

FORM OF NOTICE TO NON-GOVERNMENTAL ENTITIES

[Letterhead of the Applicable Loan Party]

[Date]

[Name and Address

of Obligor]

Re:      Change of Account and Address

To Whom it May Concern:

We are pleased to announce that we have entered into a new long-term financing arrangements that
will allow us to continue to provide you with new and innovative services and products. As part of
this arrangement, we will be granting a security interest all of our existing and future
receivables payable by you to us as collateral to our lenders. Accordingly, you are hereby
directed to make:

(1) All wire transfers directly to the following account:

[________________]

(2) All remittance advices and other forms of payment, including checks, to the following address:

[________________]

[Please note that this is the same remittance name, address and account to which you
currently send payment.]

The foregoing directions shall apply to all existing receivables payable to us and (until further
written notice) to all receivables arising in the future and may not be revoked except by a writing
executed by us and Healthcare Finance Group LLC, as collateral manager under our new financing
facility.

Please acknowledge your receipt of this notice by signing the enclosed copy of this letter and
returning it in the enclosed envelope.

Thank you for your cooperation in this matter.

Exhibit IV-1

 

EXHIBIT V

to Collateral Management Agreement

SERVICING RESPONSIBILITIES

     The Borrower on behalf of each Loan Party shall be responsible for the following
administration and servicing obligations (the “Servicing Responsibilities”) which shall be
performed by the Borrower until such time as a successor servicer shall be designated and shall
accept appointment pursuant to Section 3.04(b) of this Collateral Management Agreement:

     (a) Servicing Standards and Activities. The Borrower agrees to administer and service
its Receivables (i) within the parameters of services set forth in paragraph (b) of this
Exhibit V, as such parameters may be modified by mutual written agreement of the Collateral
Manager and the Borrower, (ii) in compliance at all times with applicable law and with this
Collateral Management Agreements, covenants, objectives, policies and procedures set forth in this
Collateral Management Agreement, and (iii) in accordance with industry standards for servicing
healthcare receivables unless such standards conflict with the procedures set forth in paragraph
(b) of this Exhibit V in which case the provisions of paragraph (b) shall control. The
Borrower shall establish and maintain electronic data processing services for monitoring,
administering and collecting the Receivables in accordance with the foregoing standards and shall,
within three Business Days of the deposit of any checks, other forms of cash deposits, or other
written matter into a Lockbox, post such information to its electronic data processing services.

     (b) Parameters of Primary Servicing. The Servicing Responsibilities shall be
performed within the following parameters:

     (i) Subject to the review and authority of the Collateral Manager and the Agent and
except as otherwise provided herein, the Borrower shall have full power and authority to
take all actions that it may deem necessary or desirable, consistent in all material
respects with its existing policies and procedures with respect to the administration and
servicing of accounts receivable, in connection with the administration and servicing of its
Receivables. Without limiting the generality of the foregoing, the Borrower shall, in the
performance of its servicing obligations hereunder, act in accordance with all legal
requirements and subject to the terms and conditions of this Collateral Management
Agreement.

     (ii) During the continuance of an Event of Default, at the Collateral Manager’s request
or the Agent’s request, all enforcement and collection proceedings with respect to the
Receivables shall, unless prohibited by applicable law, be instituted and prosecuted in the
name of the Collateral Agent.

     (iii) No Borrower shall change in any material respect its existing policies and
procedures with respect to the administration and servicing of accounts receivable
(including, without limitation, the amount and timing of write-offs) without the prior
written consent of the Collateral Manager (with contemporaneous written notice thereof (in
reasonable detail) to the Agent).

Exhibit V-1

 

     (iv) The Borrower will be responsible for monitoring and collecting the Receivables,
including, without limitation, contacting Obligors that have not made payment on their
respective Receivables within the customary time period for such Obligor, and resubmitting
any claim rejected by an Obligor due to incomplete information.

     (v) If the Borrower determines that a payment with respect to a Receivable has been
received directly by a pharmacy or any other Person, the Borrower shall promptly advise the
Collateral Manager, and the Collateral Manager shall be entitled to presume that the reason
such payment was made to such pharmacy or other Person was because of a breach of
representation or warranty in this Collateral Management Agreement with respect to such
Receivable (such as, by way of example, the forms related to such Receivable not being
properly completed so as to provide for direct payment by the Obligor to the applicable
Borrower), unless such Borrower shall demonstrate that such is not the case. In the case of
any such Receivable which is determined not to be a Denied Receivable, the Borrower shall
promptly demand that such pharmacy or other Person remit and return such funds. If such
funds are not promptly received by the applicable Borrower, the Borrower shall take all
reasonable steps to obtain such funds.

     (vi) Notwithstanding anything to the contrary contained herein, no Borrower may amend,
waive or otherwise permit or agree to any deviation from the terms or conditions of any
Receivable in any material respect without the prior consent of the Collateral Manager.

     (c) Termination of Servicing Responsibilities; Cooperation. Upon the occurrence of an
Event of Default the Collateral Manager or Collateral Agent or the Agent may, by written notice,
terminate the performance of the Servicing Responsibilities by the Borrower, in which event such
Borrower shall immediately transfer to a successor servicer designated by the Collateral Manager or
the Agent, as the case may be, all records, computer access and other information as shall be
necessary or desirable, in the reasonable judgment of such successor servicer, to perform such
responsibilities. The Borrower shall otherwise cooperate fully with such successor servicer.

Exhibit V-2

 

EXHIBIT VI

to Collateral Management Agreement

INTERFACE WITH COLLATERAL MANAGER

     1. The Collateral Manager will convey appropriate data requirements and instructions to the
Borrower to establish a computer interface between each Loan Party’s systems and the Collateral
Manager’s receivables monitoring system. The interface will permit the Collateral Manager to
receive electronically teach Loan Party’s accounts receivable data, including the Receivable
Information, billing data and collection and other transaction data relating to the Receivables.

     2. The Loan Parties shall give the Collateral Manager at least ten Business Days’ notice of
any coding changes or electronic data processing system modifications made by such Borrower which
could affect the Collateral Manager’s processing or interpretation of data received through the
interface.

     3. The Collateral Manager shall have no responsibility to return to the Loan Parties any
information which the Collateral Manager receives pursuant to the computer interface.

     4. The Borrower, on behalf of the Loan Parties, will prepare weekly accounts receivable data
files of all transaction types for such Borrower’s sites that are included in the program. The
weekly cutoff will occur at a predetermined time each week, and the weekly cutoff date for all of
the sites must occur at exactly the same time. The cutoff date that will be selected will be at
the end of business for a specific day of the week, or in other words, at the end of such
Borrower’s transaction posting process for that day. The Borrower will temporarily maintain a copy
of the accounts data files in the event that the data is degraded or corrupted during transmission,
and needs to be re-transmitted.

     5. The Collateral Manager will be responsible for the management of the hardware,
communications and software used in the program.

     6. The Collateral Manager’s data center will receive the Receivable files, and immediately
confirm that the files have been passed without degradation or corruption of data by balancing the
detailed items to the control totals that accompany the files. Any problems in this process will
be immediately reported to the Borrower so that the Receivable file can be re-transmitted, if
necessary.

     7. Once the receipt of the Receivable data has been confirmed, the Collateral Manager will
perform certain tests and edits to ensure that each Receivable meets the specified eligibility
criteria. Compliance with concentration limits will be verified and the Collateral Manager will
notify the Collateral Manager that the Eligible Receivables have been determined.

     8. Each Loan Party’s sites will continue to post daily transactions to their respective
Receivable files. Each Loan Party’s Receivable files for each of the eligible sites will include
all transactions posted through that day. The Borrower will create a transaction report and a
Receivable file for each of the eligible sites. The transaction report will contain all
transactions posted to the respective site Receivable file for the specified period (and will
indicate the

Exhibit VI-1

 

respective site and the number of items and total dollars on each transaction report
for control purposes). The Receivable file will contain balances that reflect the transactions
posted on the Loan Parties’s systems through the end of business of the specified period.

     9. The Borrower will transmit the billing, transaction, and the most current Receivable data
files to the Collateral Manager’s data center according to the established schedule. The Borrower
should, again, maintain the backup of each of these files in the event that a re-transmission is
necessary.

     10. The Collateral Manager’s data center will confirm that the files have been received
intact, and will immediately communicate any problems to the Borrower in order to initiate a
re-transmission. The Collateral Manager will then post the transaction files to the accounts
receivable for accounts that the Collateral Manager is maintaining, and consequently update the
affected balances. Upon completion of the posting process, the Collateral Manager will generate
summary reports of the posting process that the Collateral Manager will use to complete various
funding activities. The Collateral Manager summary reports will reference the Loan Parties’s
transaction codes and activity to codes that are common to the funding program.

     11. The Collateral Manager will then compare the updated accounts balances on the Collateral
Manager’s system to the corresponding account balances reflected on the Receivable file. The
Collateral Manager expects that the balances for the funded Receivables will be congruent, and any
discrepancies will be immediately examined and resolved through the cooperative effort of the
Collateral Manager and the Loan Parties. The Collateral Manager shall produce discrepancy reports
(e.g., “Funding Only” or “Out of Balance” reports) and the Borrower shall respond promptly to such
reports.

     12. Once the reconciliation process has been completed and any discrepancies between the
Collateral Manager and the Loan Parties’s Receivable files resolved through the discrepancy report
process described in paragraph 9 above, the Collateral Manager will then process the Receivable
file and advise the Collateral Manager. The Collateral Manager will then proceed through exactly
the same process described in paragraph 6 above.

Exhibit VI-2

 

EXHIBIT VII

to Collateral Management Agreement

[Form of]

JOINDER AGREEMENT

[Name of New Loan Party]

[Address of New Loan Party]

[Date]

________________________

________________________

________________________

________________________

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Collateral Management Agreement, dated
as of March 25, 2010, as Amended and Restated as of December 28, 2010 (as so Amended and Restated,
and as further amended, amended and restated, supplemented or otherwise modified from time to time,
the “Collateral Management Agreement;” capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Collateral Management Agreement), made
by BioScrip, Inc., a Delaware corporation, the other Loan Parties party thereto, HEALTHCARE FINANCE
GROUP LLC, as collateral agent and administrative agent (in such capacities and together with any
successors in such capacity, the “Agent”) and as collateral manager for the Secured Parties
(in such capacity, the “Collateral Manager”).

     This joinder agreement supplements the Collateral Management Agreement and is delivered by the
undersigned, [________________] (the “New Loan Party”), pursuant to Section 5.13 of
the Collateral Management Agreement. The New Loan Party hereby agrees to be bound as a Loan Party
by all of the terms, covenants and conditions set forth in the Collateral Management Agreement to
the same extent that it would have been bound if it had been a signatory to the Collateral
Management Agreement on the execution date of the Collateral Management Agreement. The New Loan
Party hereby makes each of the representations and warranties and agrees to each of the covenants
applicable to the Loan Parties contained in the Collateral Management Agreement .

     Annexed hereto are supplements to each of the Schedules to the Collateral Management
Agreement, as applicable, with respect to the New Loan Party. Such supplements shall be deemed to
be part of the Collateral Management Agreement.

Exhibit VII-1

 

     This joinder agreement and any amendments, waivers, consents or supplements hereto 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 to be an original, but all such
counterparts together shall constitute one and the same agreement.

     THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CHOICE OF LAW
THAT WOULD APPLY THE LAWS OF ANOTHER JURISDICTION.

Exhibit VII-2

 

     IN WITNESS WHEREOF, the New Loan Party has caused this Joinder Agreement to be executed and
delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	[NEW LOAN PARTY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

AGREED TO AND ACCEPTED:

HEALTHCARE FINANCE GROUP, LLC,

as Collateral Manager and as Collateral Agent

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

[Schedules to be attached]

Exhibit VII-3exv10w1

EXHIBIT 10.1

 

CREDIT AGREEMENT

dated as of December 29, 2010

among

PIPER JAFFRAY COMPANIES,

as Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO

and

U.S. BANK NATIONAL ASSOCIATION,

as Syndication Agent

ASSOCIATED BANK, N.A.,

as a Co-Documentation Agent

FIFTH THIRD BANK,

as a Co-Documentation Agent

PNC BANK, NATIONAL ASSOCIATION,

as a Co-Documentation Agent

and

SUNTRUST BANK,

as Administrative Agent

 

SUNTRUST ROBINSON HUMPHREY, INC.,

as Joint Lead Arranger and Sole Book Manager

U.S. BANK NATIONAL ASSOCIATION,

as Joint Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS; CONSTRUCTION
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Classifications of Loans and Borrowings
	 	 	25	 
	Section 1.3. Accounting Terms and Determination
	 	 	25	 
	Section 1.4. Terms Generally
	 	 	26	 
	 
	 	 	 	 
	ARTICLE II AMOUNT AND TERMS OF THE COMMITMENTS
	 	 	26	 
	Section 2.1. General Description of Facilities
	 	 	26	 
	Section 2.2. Revolving Loans
	 	 	27	 
	Section 2.3. Procedure for Revolving Borrowings
	 	 	27	 
	Section 2.4. Swingline Commitment
	 	 	27	 
	Section 2.5. Term Loan Commitments
	 	 	29	 
	Section 2.6. Funding of Borrowings
	 	 	29	 
	Section 2.7. Interest Elections
	 	 	30	 
	Section 2.8. Optional Reduction and Termination of Commitments
	 	 	31	 
	Section 2.9. Repayment of Loans
	 	 	31	 
	Section 2.10. Evidence of Indebtedness
	 	 	32	 
	Section 2.11. Optional Prepayments
	 	 	33	 
	Section 2.12. Mandatory Prepayments
	 	 	33	 
	Section 2.13. Interest on Loans
	 	 	34	 
	Section 2.14. Fees
	 	 	35	 
	Section 2.15. Computation of Interest and Fees
	 	 	36	 
	Section 2.16. Inability to Determine Interest Rates
	 	 	36	 
	Section 2.17. Illegality
	 	 	37	 
	Section 2.18. Increased Costs
	 	 	37	 
	Section 2.19. Funding Indemnity
	 	 	39	 
	Section 2.20. Taxes
	 	 	39	 
	Section 2.21. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	41	 
	Section 2.22. Letters of Credit
	 	 	42	 
	Section 2.23. Defaulting Lenders
	 	 	47	 
	Section 2.24. Mitigation of Obligations
	 	 	48	 
	Section 2.25. Replacement of Lenders
	 	 	49	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT
	 	 	49	 
	Section 3.1. Conditions To Effectiveness
	 	 	49	 
	Section 3.2. Each Credit Event
	 	 	52	 
	Section 3.3. Delivery of Documents
	 	 	54	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	54	 
	Section 4.1. Existence; Power
	 	 	54	 
	Section 4.2. Organizational Power; Authorization
	 	 	54	 
	Section 4.3. Governmental Approvals; No Conflicts
	 	 	54	 
	Section 4.4. Financial Statements
	 	 	54	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.5. Litigation and Environmental Matters
	 	 	55	 
	Section 4.6. Compliance with Laws and Agreements
	 	 	55	 
	Section 4.7. Government Regulation
	 	 	55	 
	Section 4.8. Taxes
	 	 	56	 
	Section 4.9. Margin Regulations
	 	 	56	 
	Section 4.10. ERISA
	 	 	56	 
	Section 4.11. Ownership of Property
	 	 	57	 
	Section 4.12. Disclosure
	 	 	58	 
	Section 4.13. Labor Relations
	 	 	58	 
	Section 4.14. Subsidiaries
	 	 	58	 
	Section 4.15. Solvency
	 	 	58	 
	Section 4.16. OFAC
	 	 	58	 
	Section 4.17. Patriot Act
	 	 	59	 
	Section 4.18. Security Documents
	 	 	59	 
	Section 4.19. Material Contracts
	 	 	60	 
	Section 4.20. The Foundation
	 	 	60	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	60	 
	Section 5.1. Financial Statements and Other Information
	 	 	60	 
	Section 5.2. Notices of Material Events
	 	 	62	 
	Section 5.3. Existence; Conduct of Business
	 	 	63	 
	Section 5.4. Compliance with Laws, Etc.
	 	 	63	 
	Section 5.5. Payment of Obligations
	 	 	63	 
	Section 5.6. Books and Records
	 	 	63	 
	Section 5.7. Visitation, Inspection, Etc.
	 	 	64	 
	Section 5.8. Maintenance of Properties; Insurance
	 	 	64	 
	Section 5.9. Use of Proceeds and Letters of Credit
	 	 	64	 
	Section 5.10. Pre-Closing Dividend
	 	 	64	 
	Section 5.11. Additional Subsidiaries
	 	 	65	 
	Section 5.12. Further Assurances
	 	 	65	 
	 
	 	 	 	 
	ARTICLE VI FINANCIAL COVENANTS
	 	 	66	 
	Section 6.1. Leverage Ratio
	 	 	66	 
	Section 6.2. Minimum Regulatory Net Capital
	 	 	66	 
	Section 6.3. Minimum Cash on Hand
	 	 	66	 
	Section 6.4. Minimum Quality of Long Term Inventory
	 	 	66	 
	Section 6.5. Minimum Asset Management EBITDA
	 	 	66	 
	 
	 	 	 	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	67	 
	Section 7.1. Indebtedness and Preferred Equity
	 	 	67	 
	Section 7.2. Negative Pledge
	 	 	68	 
	Section 7.3. Fundamental Changes
	 	 	69	 
	Section 7.4. Investments, Loans, Etc.
	 	 	70	 
	Section 7.5. Restricted Payments
	 	 	72	 
	Section 7.6. Sale of Assets
	 	 	72	 
	Section 7.7. Transactions with Affiliates
	 	 	72	 
	Section 7.8. Restrictive Agreements
	 	 	73	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 7.9. Sale and Leaseback Transactions
	 	 	73	 
	Section 7.10. Hedging Transactions
	 	 	73	 
	Section 7.11. Amendment to Material Documents
	 	 	73	 
	Section 7.12. Accounting Changes
	 	 	73	 
	Section 7.13. Government Regulation
	 	 	74	 
	Section 7.14. ERISA
	 	 	74	 
	Section 7.15. Contributions to the Foundation
	 	 	74	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	74	 
	Section 8.1. Events of Default
	 	 	74	 
	Section 8.2. Application of Proceeds from Collateral
	 	 	78	 
	 
	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	79	 
	Section 9.1. Appointment of Administrative Agent
	 	 	79	 
	Section 9.2. Nature of Duties of Administrative Agent
	 	 	79	 
	Section 9.3. Lack of Reliance on the Administrative Agent
	 	 	80	 
	Section 9.4. Certain Rights of the Administrative Agent
	 	 	80	 
	Section 9.5. Reliance by Administrative Agent
	 	 	81	 
	Section 9.6. The Administrative Agent in its Individual Capacity
	 	 	81	 
	Section 9.7. Successor Administrative Agent
	 	 	81	 
	Section 9.8. Authorization to Execute other Loan Documents; Collateral
	 	 	82	 
	Section 9.9. No Other Duties, etc.
	 	 	83	 
	Section 9.10. Withholding Tax
	 	 	83	 
	Section 9.11. Administrative Agent May File Proofs of Claim
	 	 	83	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	84	 
	Section 10.1. Notices
	 	 	84	 
	Section 10.2. Waiver; Amendments
	 	 	87	 
	Section 10.3. Expenses; Indemnification
	 	 	88	 
	Section 10.4. Successors and Assigns
	 	 	90	 
	Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	93	 
	Section 10.6. WAIVER OF JURY TRIAL
	 	 	94	 
	Section 10.7. Right of Setoff
	 	 	94	 
	Section 10.8. Counterparts; Integration
	 	 	94	 
	Section 10.9. Survival
	 	 	95	 
	Section 10.10. Severability
	 	 	95	 
	Section 10.11. Confidentiality
	 	 	95	 
	Section 10.12. Interest Rate Limitation
	 	 	96	 
	Section 10.13. Waiver of Effect of Corporate Seal
	 	 	96	 
	Section 10.14. Patriot Act
	 	 	96	 
	Section 10.15. Independence of Covenants
	 	 	97	 
	Section 10.16. No Advisory or Fiduciary Relationship
	 	 	97	 

iii

 

	 	 	 	 	 

	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule I
	 	—	 	Applicable Margin
	Schedule II
	 	—	 	Commitment Amounts
	Schedule 1.1
	 	—	 	EBITDA Addback Amounts
	Schedule 4.5(a)
	 	—	 	Litigation
	Schedule 4.5(b)
	 	—	 	Environmental Matters
	Schedule 4.14
	 	—	 	Subsidiaries
	Schedule 4.19
	 	—	 	Material Contracts
	Schedule 7.1
	 	—	 	Existing Indebtedness
	Schedule 7.2
	 	—	 	Existing Liens
	Schedule 7.4
	 	—	 	Existing Investments
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	—	 	Form of Assignment and Acceptance
	Exhibit B
	 	—	 	Form of Guaranty and Pledge Agreement
	Exhibit C
	 	—	 	Form of Revolving Credit Note
	Exhibit D
	 	—	 	Form of Swingline Note
	Exhibit E
	 	—	 	Form of Term Note
	 
	 	 	 	 
	Exhibit 2.3
	 	—	 	Form of Notice of Revolving Borrowing
	Exhibit 2.4
	 	—	 	Form of Notice of Swingline Borrowing
	Exhibit 2.7
	 	—	 	Form of Notice of Conversion/Continuation
	Exhibit 3.1(b)(viii)
	 	—	 	Form of Secretary’s Certificate
	Exhibit 3.1(b)(xi)
	 	—	 	Form of Closing Certificate
	Exhibit 5.1(c)
	 	—	 	Form of Compliance Certificate

iv

 

CREDIT AGREEMENT

          THIS CREDIT AGREEMENT (this “Agreement”) is made and entered into as of December 29,
2010, by and among PIPER JAFFRAY COMPANIES, a Delaware corporation (the “Borrower”), the
several banks and other financial institutions and lenders from time to time party hereto (the
“Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (the
“Administrative Agent”), as issuing bank (the “Issuing Bank”) and as swingline
lender (the “Swingline Lender”).

W I T N E S S E T H:

          WHEREAS, the Borrower has requested that the Lenders (a) establish a $50,000,000 revolving
credit facility in favor of, and (b) make term loans in an aggregate principal amount equal to
$100,000,000 to, the Borrower; and

          WHEREAS, subject to the terms and conditions of this Agreement, the Lenders, the Issuing Bank
and the Swingline Lender to the extent of their respective Commitments as defined herein, are
willing severally to establish the requested revolving credit facility, letter of credit
subfacility and the swingline subfacility in favor of and severally to make the term loans to the
Borrower.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Borrower, the Lenders, the Administrative Agent, the Issuing Bank and the Swingline Lender
agree as follows:

ARTICLE I

DEFINITIONS; CONSTRUCTION

     Section 1.1. Definitions. In addition to the other terms defined herein, the following terms used
herein shall have the meanings herein specified (to be equally applicable to both the singular and
plural forms of the terms defined):

          “Adjusted LIBO Rate” shall mean, with respect to each Interest Period for a Eurodollar
Borrowing, the rate per annum obtained by dividing (i) LIBOR for such Interest Period by (ii) a
percentage equal to 1.00 minus the Eurodollar Reserve Percentage.

          “Administrative Agent” shall have the meaning assigned to such term in the opening
paragraph hereof.

          “Administrative Questionnaire” shall mean, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent and submitted to the
Administrative Agent duly completed by such Lender.

          “Affiliate” shall mean, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Person specified.

1

 

          “Aggregate Revolving Commitment Amount” shall mean the aggregate principal amount of
the Aggregate Revolving Commitments from time to time. On the Closing Date, the Aggregate
Revolving Commitment Amount equals $50,000,000.

          “Aggregate Revolving Commitments” shall mean, collectively, all Revolving Commitments
of all Lenders at any time outstanding.

          “Applicable Lending Office” shall mean, for each Lender and for each Type of Loan, the
lending office of such Lender (or an Affiliate of such Lender) designated for such Type of Loan in
the Administrative Questionnaire submitted by such Lender or such other office of such Lender (or
an Affiliate of such Lender) as such Lender may from time to time specify to the Administrative
Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained.

          “Applicable Margin” shall mean, as of any date with respect to all Loans outstanding
on such date or the letter of credit fee on such date, as the case may be, a percentage per annum
determined by reference to the applicable Leverage Ratio in effect on such date as set forth on
Schedule I; provided, that a change in the Applicable Margin resulting from a
change in the Leverage Ratio shall be effective on the second Business Day after the date on which
the Borrower delivers the financial statements required by Section 5.1(a) or (b)
and the Compliance Certificate required by Section 5.1(c); provided
further, that if at any time the Borrower shall have failed to deliver such financial
statements and such Compliance Certificate when so required, the Applicable Margin shall be at
Level III as set forth on Schedule I until such time as such financial statements and
Compliance Certificate are delivered, at which time the Applicable Margin shall be determined as
provided above. Notwithstanding the foregoing, the Applicable Margin from the Closing Date until
the financial statements and Compliance Certificate for the Fiscal Quarter ending March 31, 2011
are required to be delivered shall be at Level II as set forth on Schedule I.

          “Applicable Percentage” shall mean 0.50% per annum.

          “Approved Fund” shall mean any Person (other than a natural Person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business and that is administered or managed by
(i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that
administers or manages a Lender.

          “Arrangers” shall mean SunTrust Robinson Humphrey, Inc. and U.S. Bank National
Association.

          “Asset Management EBITDA” shall mean, for any period of determination, an amount equal
to the sum of (i) the operating income attributable to the “asset management” segment for such
period as reported by the Borrower in its financial statements delivered
pursuant to clauses (a) and (b) of Section 5.1 plus (ii) the amounts
set forth on Schedule 1.1 corresponding to the applicable period of determination.

          “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required by

2

 

Section
10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit A attached
hereto or any other form approved by the Administrative Agent.

          “Availability Period” shall mean the period from the Closing Date to the Revolving
Commitment Termination Date.

          “Base Rate” shall mean the highest of (i) the per annum rate which the Administrative
Agent publicly announces from time to time as its prime lending rate, as in effect from time to
time, (ii) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent
(0.50%) per annum and (iii) the Adjusted LIBO Rate determined on a daily basis for an Interest
Period of one (1) month, plus one percent (1.00%) per annum. The Administrative Agent’s prime
lending rate is a reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. The Administrative Agent may make commercial loans or other
loans at rates of interest at, above or below the Administrative Agent’s prime lending rate. Each
change in the any of the rates described above in this definition shall be effective from and
including the date such change is announced as being effective.

          “Borrower” shall have the meaning in the introductory paragraph hereof.

          “Borrowing” shall mean a borrowing consisting of (i) Loans of the same Class and Type,
made, converted or continued on the same date and in the case of Eurodollar Loans, as to which a
single Interest Period is in effect, or (ii) a Swingline Loan.

          “Business Day” shall mean (i) any day other than a Saturday, Sunday or other day on
which commercial banks in Atlanta, Georgia or Minneapolis, Minnesota are authorized or required by
law to close and (ii) if such day relates to a Borrowing of, a payment or prepayment of principal
or interest on, a conversion of or into, or an Interest Period for, a Eurodollar Loan or a notice
with respect to any of the foregoing, any day on which banks are open for dealings in dollar
deposits in the London interbank market.

          “Capital Expenditures” shall mean for any period, without duplication, (i) all
expenditures for property, plant and equipment and other capital expenditures of the Borrower and
its Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the
Borrower for such period prepared in accordance with GAAP and (ii) Capital Lease Obligations
incurred by the Borrower and its Subsidiaries during such period.

          “Capital Lease Obligations” of any Person shall mean all obligations of such Person to
pay rent or other amounts under any lease (or other arrangement conveying the right to use) of real
or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “Capital Stock” shall mean 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

3

 

is
defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Commission under the
Exchange Act).

          “Cash Collateralize” shall mean, in respect of any obligations, to provide and pledge
(as a first priority perfected security interest) cash collateral for such obligations in Dollars
(in amounts, unless otherwise specified herein, equal to 100% of such obligations), with a
depository institution, and pursuant to documentation in form and substance, reasonably
satisfactory to the Administrative Agent (and “Cash Collateralization” has a corresponding
meaning).

          “Cash on Hand” shall mean, on any date of determination, (i) all money, currency or
credit balances owned by the Borrower and held in any demand or deposit account in the United
States of America on the date of determination (excluding, for purposes of clarity, any amounts
available to be drawn or funded under lines of credit or other debt facilities, including, without,
limitation, Revolving Loans) and (ii) Permitted Investments; provided, however,
that amounts calculated under clause (i) of this definition shall exclude any amounts that
would not be considered “cash” under GAAP or “cash” as recorded on the books of the Borrower; and
provided, further, that amounts included under this definition shall (x) be
included only to the extent such amounts are not subject to any Lien or other restriction or
encumbrance of any kind (other than Liens (1) in favor of the Administrative Agent or (2) arising
solely by virtue of any statutory or common law provision relating to banker’s liens, rights of
set-off or similar rights so long as such liens and rights are not being enforced or otherwise
exercised), (y) exclude any amounts held by the Borrower in escrow, trust or other fiduciary
capacity for or on behalf of a client of the Borrower or any of its Affiliates and (z) exclude any
cash collateral securing any of the Obligations, other than cash held in the Deposit Account
subject to the Deposit Account Control Agreement and any Permitted Investment held in a Securities
Account subject to a Securities Account Control Agreement.

          “Change in Control” shall mean the occurrence of one or more of the following events:
(i) any sale, lease, exchange or other transfer (in a single transaction or a series of related
transactions) of all or substantially all of the assets of the Borrower to any Person or “group”
(within the meaning of the Exchange Act and the rules of the Commission thereunder in effect on the
date hereof), (ii) the acquisition of ownership, directly or indirectly, beneficially or of record,
by any Person or “group” (within the meaning of the Exchange Act and the rules of the Commission
thereunder as in effect on the date hereof) of 30% or more of the outstanding shares of the voting
stock of the Borrower, or (iii) occupation of a majority of the seats (other than vacant seats) on
the board of directors of the Borrower by Persons who were neither (a) nominated by the current
board of directors nor (b) appointed by directors so nominated.

          “Change in Law” shall mean (i) the adoption of any applicable law, rule or regulation
after the date of this Agreement, (ii) any change in any applicable law, rule or regulation, or any
change in the interpretation or application thereof, by any Governmental Authority after the date
of this Agreement, or (iii) compliance by any Lender (or its Applicable
Lending Office) or the Issuing Bank (or for purposes of Section 2.19(b), by the parent
corporation of such Lender or the Issuing Bank, if applicable) with any request, guideline or
directive (whether or not having the force of law) of any Governmental Authority made or issued
after the date of this Agreement.

4

 

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Term Loans and when
used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a
Swingline Commitment or a Term Loan Commitment.

          “Closing Date” shall mean the date on which the conditions precedent set forth in
Section 3.1 and Section 3.2 have been satisfied or waived in accordance with
Section 10.2.

          “Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from
time to time.

          “Collateral” shall mean all property and assets of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by the Guaranty and Pledge
Agreement or any Foreign Collateral Document.

          “Commission” shall mean the Securities and Exchange Commission and any successor
entity.

          “Commitment” shall mean a Revolving Commitment, a Swingline Commitment or a Term Loan
Commitment or any combination thereof (as the context shall permit or require).

          “Compliance Certificate” shall mean a certificate signed by the chief financial
officer or treasurer of the Borrower in the form of, and containing the certifications set forth
in, the certificate attached hereto as Exhibit 5.1(c).

          “Consolidated Tangible Net Worth” shall mean, as of any date, (i) the total assets of
the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated balance
sheet as of such date prepared in accordance with GAAP, after eliminating all amounts properly
attributable to noncontrolling interests, if any, in the stock and surplus of Subsidiaries, minus
(ii) the sum of (x) the total liabilities of the Borrower and its Subsidiaries that would be
reflected on the Borrower’s consolidated balance sheet as of such date prepared in accordance with
GAAP, (y) other than Investments described in Section 7.4(k) which are adjusted on a
mark-to-market basis in the ordinary course business of the Borrower and its Subsidiaries, the
amount of any write-up in the book value of any assets resulting from a revaluation thereof or any
write-up in excess of the cost of such assets acquired reflected on the consolidated balance sheet
of the Borrower as of such date prepared in accordance with GAAP and (z) the net book amount of all
goodwill and other assets of the Borrower and its Subsidiaries that would be classified as
intangible assets on a consolidated balance sheet of the Borrower as of such date prepared in
accordance with GAAP.

          “Consolidated Total Capital” shall mean, as of any date, the sum of (i) Consolidated
Total Debt as of such date and (ii) Consolidated Tangible Net Worth as of such date.

          “Consolidated Total Debt” shall mean, as of any date, all Indebtedness of the Borrower
and its Subsidiaries measured on a consolidated basis as of such date, but excluding (a)
Indebtedness of the type described in subsection (xi) of the definition thereof and (b)
Indebtedness of the type described in Section 7.1(g).

5

 

          “Contractual Obligation” of any Person shall mean any provision of any security issued
by such Person or of any agreement, instrument or undertaking under which such Person is obligated
or by which it or any of the property in which it has an interest is bound.

          “Control” shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
shall have meanings correlative thereto.

          “Default” shall mean any condition or event that, with the giving of notice or the
lapse of time or both, would constitute an Event of Default.

          “Default Interest” shall have the meaning set forth in Section 2.13(c).

          “Defaulting Lender” shall mean, at any time, a Lender as to which the Administrative
Agent has notified the Borrower that (i) such Lender has failed for three or more Business Days to
comply with its obligations under this Agreement to make a Revolving Loan, make a payment to the
Issuing Bank in respect of a Letter of Credit (including failure to make a payment in respect of an
LC Disbursement) and/or make a payment to the Swingline Lender in respect of a Swingline Loan (each
a “funding obligation”), (ii) such Lender has notified the Administrative Agent, or has
stated publicly, that it will not comply with any such funding obligation hereunder or has
defaulted on its funding obligations under any other loan agreement, credit agreement or similar or
other financing agreement unless such Lender’s failure is based on such Lender’s reasonable and
good faith determination that the conditions precedent to funding such obligation have not been
satisfied and such Lender has notified the Administrative Agent in writing of the same, (iii) such
Lender has, for three or more Business Days, failed to confirm in writing to the Administrative
Agent, in response to a written request of the Administrative Agent, that it will comply with its
funding obligations hereunder, or (iv) a Lender Insolvency Event has occurred and is continuing
with respect to such Lender. The Administrative Agent will promptly send to all parties hereto a
copy of any notice to the Borrower provided for in this definition.

          “Deposit Account” shall mean account number 2177081 at The PrivateBank and Trust
Company and any successor account thereto (including any deposit account at another depositary bank
used to hold the proceeds of the Dividend which are not invested in accordance with Section
7.4(g)).

          “Deposit Account Control Agreement” shall mean an agreement, in form and substance
acceptable to the Administrative Agent, executed by the Borrower, the Administrative Agent and the
applicable depositary bank and granting “control” (within the meaning of the Uniform Commercial
Code as in effect in the State of New York) over the Deposit Account at such depositary bank to the
Administrative Agent.

          “Dividend” shall have the meaning given such term in Section 3.1(xvii).

          “Dollar(s)” and the sign “$” shall mean lawful money of the United States of America.

6

 

          “Domestic Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
organized under the laws of one of the fifty states or commonwealths of the United States or the
District of Columbia or any territory of the United States.

          “Employee Benefit Plan” shall have that meaning as defined in Section 3(3) of ERISA
and for which the Borrower or an ERISA Affiliate maintains, contributes to or has an obligation to
contribute to on behalf of participants who are or were employed by the Borrower or its ERISA
Affiliates or on behalf of beneficiaries of such participants.

          “Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by or with any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, Release or threatened Release of
any Hazardous Material or to health and safety matters.

          “Environmental Liability” shall mean any liability, contingent or otherwise (including
any liability for damages, costs of environmental investigation and remediation, costs of
administrative oversight, fines, natural resource damages, penalties or indemnities), of the
Borrower or any Subsidiary directly or indirectly resulting from or based upon (i) any actual or
alleged violation of any Environmental Law, (ii) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (iii) any actual or alleged exposure to
any Hazardous Materials, (iv) the Release or threatened Release of any Hazardous Materials or (v)
any contract, agreement or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and any successor statute including any regulations promulgated thereunder.

          “ERISA Affiliate” shall mean any trade or business (whether or not incorporated),
which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of
the Code or, solely for the purposes of Section 303 of ERISA and Section 430 of the Code, is
treated as a single employer under Section 414 of the Code.

          “ERISA Event” shall mean with respect to the Borrower or any ERISA Affiliate, (i) any
“reportable event”, as defined in Section 4043 of ERISA with respect to a Plan (other than an event
for which the 30-day notice period is waived); (ii) the failure to make required contributions when
due to a Multiemployer Plan or Plan or the imposition of a Lien in favor of a Plan under Section
430(k) of the Code or Section 303(k) of ERISA; (iii) the filing pursuant to Section 412(c) of the
Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (iv) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, or the imposition of an Lien in
favor of the PBGC under Title IV of ERISA; (v) the
receipt from the PBGC or a plan administrator appointed by the PBGC of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (vi)
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 Plan or

7

 

Multiemployer Plan or for the imposition of liability under Section 4069 or 4212(c) of ERISA; (vii)
the incurrence of any liability with respect to the withdrawal or partial withdrawal from any Plan
including the withdrawal from a Plan subject to Section 4063 of ERISA during a plan year in which
it was a substantial employer, as defined in Section 4001(a)(2) of ERISA, or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (viii) or the
incurrence of any Withdrawal Liability with respect to any Multiemployer Plan; (ix) the receipt of
any notice concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent (within the meaning of Section 4245 of
ERISA) or in reorganization (within the meaning of Section 4241 of ERISA), or in “critical” status
(within the meaning of Section 432 of the Code or Section 305 of ERISA); or (x) a determination
that a Plan is, or is reasonably expected to be, in “at risk” status (within the meaning of Section
430 of the Code or Section 303 of ERISA).

          “Eurodollar” when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to
the Adjusted LIBO Rate.

          “Eurodollar Reserve Percentage” shall mean the aggregate of the maximum reserve
percentages (including, without limitation, any emergency, supplemental, special or other marginal
reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect
on any day to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate
pursuant to regulations issued by the Board of Governors of the Federal Reserve System (or any
Governmental Authority succeeding to any of its principal functions) with respect to eurocurrency
funding (currently referred to as “eurocurrency liabilities” under Regulation D). Eurodollar Loans
shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be available from time
to time to any Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage.

          “Event of Default” shall have the meaning provided in ARTICLE VIII.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time, and any successor statute.

          “Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
Applicable Lending Office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any Lender is located, (c) in
the case of a Foreign Lender, any withholding tax that (i) is
imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party to this Agreement, (ii) is imposed on amounts payable to such Foreign Lender at any time that
such Foreign Lender designates a new lending office, other than taxes that have accrued prior to
the designation of such lending office that are otherwise not Excluded Taxes, or (iii) is

8

 

attributable to such Foreign Lender’s failure to comply with Section 2.20(e) and (d) any
Taxes imposed on any “withholdable payment” payable to such recipient as a result of the failure of
such recipient to satisfy the applicable requirements as set forth in FATCA after December 31,
2012.

          “Existing Liquidity Facility” shall mean that certain Loan Agreement (Broker-Dealer
VRDN Facility) dated as of September 30, 2008, as amended through the Closing Date, between PJ&Co
and U.S. Bank National Association (and shall include any replacement liquidity facility, the terms
and conditions of which are substantially the same as the foregoing Loan Agreement).

          “FATCA” shall mean Sections 1471 through 1474 of the Code and any regulations or
official interpretations thereof.

          “Federal Funds Rate” shall mean, for any day, the rate per annum (rounded upwards, if
necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with member banks of the Federal Reserve System arranged by
Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding
Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for
such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the
quotations for such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by the Administrative Agent.

          “Fee Letters” shall mean (a) the SunTrust Fee Letter and (b) that certain fee letter,
dated December 29, 2010, executed by U.S. Bank National Association and accepted by Borrower.

          “FINRA” shall mean the Financial Industry Regulatory Authority or any successor
entity.

          “Fiscal Quarter” shall mean any fiscal quarter of the Borrower.

          “Fiscal Year” shall mean any fiscal year of the Borrower.

          “Fitch” shall mean Fitch Rating Group.

          “FOCUS Report” shall mean, for any Person, the Financial and Operational Combined
Uniform Single Report required to be filed on a monthly or quarterly basis, as the case may be,
with the Commission or the NYSE, or any report that is required in lieu of such report.

          “Foreign Collateral Documents” shall mean the Hong Kong Collateral Documents and the
UK Collateral Documents.

          “Foreign Lender” shall mean any Lender that is not a United States person under
Section 7701(a)(30) of the Code.

9

 

          “Foreign Subsidiary” shall mean any Subsidiary that is organized under the laws of a
jurisdiction other than one of the fifty states or commonwealths of the United States or the
District of Columbia or a territory of the United States.

          “Foundation” means Piper Jaffray Foundation, a Minnesota non-profit corporation.

          “GAAP” shall mean generally accepted accounting principles in the United States
applied on a consistent basis and subject to the terms of Section 1.3.

          “Governmental Authority” shall mean the government of the United States of America,
any other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantee” of or by any Person (the “guarantor”) shall mean any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly and including any obligation, direct or
indirect, of the guarantor (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for
the purchase of) any security for the payment thereof, (ii) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (iv) as an account party in respect of any
letter of credit or letter of guaranty issued in support of such Indebtedness or obligation;
provided, that the term “Guarantee” shall not include endorsements for collection or
deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in respect of which
Guarantee is made or, if not so stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform thereunder) as determined
by such Person in good faith. The term “Guarantee” used as a verb has a corresponding meaning.

          “Guaranty and Pledge Agreement” shall mean that certain Guaranty and Pledge Agreement,
dated as of the date hereof and substantially in the form of Exhibit B, executed by the
Borrower and each Domestic Subsidiary (other than PJ&Co).

          “Hazardous Materials” shall mean all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

          “Hedging Obligations” of any Person shall mean any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,

10

 

evidenced or acquired
under (i) any and all Hedging Transactions, (ii) any and all cancellations, buy backs, reversals,
terminations or assignments of any Hedging Transactions and (iii) any and all renewals, extensions
and modifications of any Hedging Transactions and any and all substitutions for any Hedging
Transactions.

          “Hedging Transaction” of any Person shall mean (a) any transaction (including an
agreement with respect to any such transaction) now existing or hereafter entered into by such
Person that is a rate swap transaction, swap option, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap or option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency option, spot transaction,
credit protection transaction, credit swap, credit default swap, credit default option, total
return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction,
buy/sell-back transaction, securities lending transaction, or any other similar transaction
(including any option with respect to any of these transactions) or any combination thereof,
whether or not any such transaction is governed by or subject to any master agreement and (b) any
and all transactions of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any
other master agreement (any such master agreement, together with any related schedules, a
“Master Agreement”), including any such obligations or liabilities under any Master
Agreement.

          “Hong Kong Collateral Documents” shall mean that certain Share Mortgage, dated as of
the date hereof executed by the Borrower and the Administrative Agent.

          “Indebtedness” of any Person shall mean, without duplication (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person in respect of the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course
of business; provided, that for purposes of Section 8.1(g), trade payables overdue
by more than 120 days shall be included in this definition except to the extent that any of such
trade payables are being disputed in good faith and by appropriate measures), (iv) all obligations
of such Person under any conditional sale or other title retention agreement(s) relating to
property acquired by such Person, (v) all Capital Lease Obligations of such Person, (vi) all
obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances
or similar extensions of credit, (vii) all Guarantees of such Person of the type of Indebtedness
described in clauses (i) through (vi) above and clause (xi) below, (viii)
all Indebtedness of a third party secured by any Lien on property owned by such Person, whether or
not such Indebtedness has been assumed by such Person, (ix) all obligations of such Person,
contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any Capital
Stock of such Person, (x) Off-Balance Sheet Liabilities and (xi) all Hedging Obligations. The
Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in
which such Person is a general partner or a joint venturer, except to the extent that the terms of
such Indebtedness provide that such Person is not liable therefor. For purposes of determining the
amount of attributed
Indebtedness from Hedging Obligations, the “principal amount” of any Hedging Obligations at
any time shall be the Net Mark-to-Market Exposure of such Hedging Obligations.

11

 

          “Indemnified Taxes” shall mean Taxes other than Excluded Taxes and Other Taxes.

          “Information Memorandum” shall mean the Confidential Information Memorandum dated
October, 2010 relating to the Borrower and the transactions contemplated by this Agreement and the
other Loan Documents.

          “Interest Period” shall mean with respect to (i) any Swingline Borrowing, such period
as the Swingline Lender and the Borrower shall mutually agree and (ii) any Eurodollar Borrowing, a
period of one, two or three months; provided, that:

     (i) the initial Interest Period for such Borrowing shall commence on the date of such
Borrowing (including the date of any conversion from a Borrowing of another Type), and each
Interest Period occurring thereafter in respect of such Borrowing shall commence on the day
on which the next preceding Interest Period expires;

     (ii) if any Interest Period would otherwise end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day, unless such
Business Day falls in another calendar month, in which case such Interest Period would end
on the next preceding Business Day;

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

     (iv) each principal installment of the Term Loans shall have an Interest Period ending
on each installment payment date and the remaining principal balance (if any) of the Term
Loans shall have an Interest Period determined as set forth above; and

     (v) no Interest Period may extend beyond the Revolving Commitment Termination Date,
unless on the Revolving Commitment Termination Date the aggregate outstanding principal
amount of Term Loans is equal to or greater than the aggregate principal amount of
Eurodollar Loans with Interest Periods expiring after such date, and no Interest Period may
extend beyond the Maturity Date.

          “Investments” shall have the meaning as set forth in Section 7.4.

          “Issuing Bank” shall mean SunTrust Bank, in its capacity as an issuer of Letters of
Credit pursuant to Section 2.22.

          “LC Commitment” shall mean that portion of the Aggregate Revolving Commitment Amount
that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount
not to exceed $5,000,000.

          “LC Disbursement” shall mean a payment made by the Issuing Bank pursuant to a Letter
of Credit.

12

 

          “LC Documents” shall mean all applications, agreements and instruments relating to the
Letters of Credit (but excluding the Letters of Credit).

          “LC Exposure” shall mean, at any time, the sum of (i) the aggregate undrawn amount of
all outstanding Letters of Credit at such time, plus (ii) the aggregate amount of all LC
Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The LC
Exposure of any Lender shall be its Pro Rata Share of the total LC Exposure at such time.

          “Lender Insolvency Event” shall mean that (i) a Lender or its Parent Company is
insolvent, or is generally unable to pay its debts as they become due, or admits in writing its
inability to pay its debts as they become due, or makes a general assignment for the benefit of its
creditors, or (ii) a Lender or its Parent Company is the subject of a bankruptcy, insolvency,
reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, custodian
or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent
Company has taken any action in furtherance of or indicating its consent to or acquiescence in any
such proceeding or appointment, or (iii) a Lender or its Parent Company has been adjudicated as, or
determined by any Governmental Authority having regulatory authority over such Person or its assets
to be, insolvent; provided that, for the avoidance of doubt, a Lender Insolvency Event
shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity
interest in or control of a Lender or its Parent Company by a Governmental Authority.

          “Lenders” shall have the meaning assigned to such term in the opening paragraph of
this Agreement and shall include, where appropriate, the Swingline Lender.

          “Letter of Credit” shall mean any stand-by letter of credit issued pursuant to
Section 2.22 by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment.

          “Leverage Ratio” shall mean, as of any date, the ratio of (i) Consolidated Total Debt
as of such date to (ii) Consolidated Total Capital as of such date.

          “LIBOR” shall mean, for any Interest Period with respect to a Eurodollar Loan, the
rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBOR01 Page (or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London, England time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period. If for any reason such rate
is not available, LIBOR shall be, for any Interest Period, the rate per annum reasonably determined
by the Administrative Agent as the rate of interest at which Dollar deposits in the approximate
amount of the Eurodollar Loan comprising part of such borrowing would be offered by the
Administrative Agent to major banks in the London interbank Eurodollar market at their request at
or about 10:00 a.m. two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.

          “License” shall mean any license, certificate of authority, permit or other
authorization which is required to be obtained from any Government Authority in connection

13

 

with the
operation, ownership or transaction of insurance, broker-dealer or investment advisory businesses
or other regulated businesses.

          “Lien” shall mean any mortgage, pledge, security interest, lien (statutory or
otherwise), charge, encumbrance, hypothecation, assignment, deposit arrangement, or other
arrangement having the practical effect of the foregoing or any preference or priority having the
practical effect of a security interest or any other security agreement or preferential arrangement
having the practical effect of a security interest of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease having the same economic
effect as any of the foregoing).

          “Loan Documents” shall mean, collectively, this Agreement, the Notes (if any), the LC
Documents, the Guaranty and Pledge Agreement, all Foreign Collateral Documents, all Deposit Account
Control Agreements, all Securities Account Control Agreements, all Notices of Borrowing, all
Notices of Conversion/Continuation, all Compliance Certificates and any and all other instruments,
agreements, documents and writings executed in connection with any of the foregoing.

          “Loan Parties” shall mean the Borrower and the Subsidiary Loan Parties.

          “Loans” shall mean all Revolving Loans, Swingline Loans and Term Loans in the
aggregate or any of them, as the context shall require.

          “Long Inventory” shall mean the total of Securities and spot commodities owned, at
market value, and (without duplication) Securities owned not readily marketable as reported monthly
on lines 850 and 860 in the most recent monthly FOCUS Report filed with the Commission.

          “Material Adverse Effect” shall mean, with respect to any event, act, condition or
occurrence of whatever nature (including any adverse determination in any litigation, arbitration,
or governmental investigation or proceeding), whether singularly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or occurrences whether or not
related, a material adverse change in, or a material adverse effect on, (i) the business, results
of operations, condition (financial or otherwise), assets, operations, liabilities (contingent or
otherwise) or prospects of the Borrower or of the Borrower and its Subsidiaries taken as a whole,
(ii) the ability of the Loan Parties to perform their respective material obligations under the
Loan Documents, (iii) the rights and remedies of the Administrative Agent, the Issuing Bank,
Swingline Lender, and the Lenders under any of the Loan Documents or (iv) the legality, validity or
enforceability of any of the Loan Documents.

          “Material Contract” shall mean any contract or other arrangement (other than the Loan
Documents), whether written or oral, to which the Borrower or any Subsidiary is a party (a)
requiring annual payments by any party thereto of more than 5.0% of the annual consolidated gross
revenues of the Borrower and its Subsidiaries, or (b) as to which the breach,
nonperformance, termination, cancellation or failure to renew by any party thereto could
reasonably be expected to have a Material Adverse Effect.

14

 

          “Material Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit) and Hedging Obligations of the Borrower or any of its Subsidiaries, individually or in an
aggregate committed or outstanding principal amount exceeding $5,000,000.

          “Maturity Date” shall mean, with respect to the Term Loans, the earlier of (i)
December 29, 2013 or (ii) the date on which the principal amount of all outstanding Term Loans have
been declared or automatically have become due and payable (whether by acceleration or otherwise).

          “Moody’s” shall mean Moody’s Investors Service, Inc.

          “MSRB” shall mean the Municipal Securities Rulemaking Board and any successor entity.

          “Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

          “Net Mark-to-Market Exposure” of any Person shall mean, as of any date of
determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses
over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized
losses” shall mean the fair market value of the cost to such Person of replacing the Hedging
Transaction giving rise to such Hedging Obligation as of the date of determination (assuming the
Hedging Transaction were to be terminated as of that date), and “unrealized profits” means the fair
market value of the gain to such Person of replacing such Hedging Transaction as of the date of
determination (assuming such Hedging Transaction were to be terminated as of that date).

          “Non-Defaulting Lender” shall mean, at any time, a Lender that is not a Defaulting
Lender.

          “Notes” shall mean, collectively, the Revolving Credit Notes, the Swingline Note and
the Term Notes.

          “Notice of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing,
and the Notices of Swingline Borrowing.

          “Notice of Conversion/Continuation” shall mean the notice given by the Borrower to the
Administrative Agent in respect of the conversion or continuation of an outstanding Borrowing as
provided in Section 2.7(b).

          “Notice of Revolving Borrowing” shall have the meaning as set forth in Section
2.3.

          “Notice of Swingline Borrowing” shall have the meaning as set forth in Section
2.4.

          “NYSE” shall mean the New York Stock Exchange, Inc.

15

 

          “Obligations” shall mean (a) all amounts owing by the Loan Parties to the
Administrative Agent, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to
or in connection with this Agreement or any other Loan Document or otherwise with respect to any
Loan or Letter of Credit, including, without limitation, all principal, interest (including any
interest accruing after the filing of any petition in bankruptcy or the commencement of any
insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), all reimbursement
obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses
(including all fees and expenses of counsel to the Administrative Agent, the Issuing Bank and any
Lender (including the Swingline Lender) incurred, or required to be reimbursed, by the Borrower, in
each case, pursuant to this Agreement or any other Loan Document), whether direct or indirect,
absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or
thereunder, (b) all Hedging Obligations owed by any Loan Party to any Lender or Affiliate of any
Lender, (c) all Treasury Management Obligations and (d) all obligations and indebtedness of the
Borrower or any other Loan Party under corporate card agreements, arrangements or programs
(including, without limitation, purchasing card and travel and entertainment card agreements,
arrangements or programs) maintained with any Lender, together with all renewals, extensions,
modifications or refinancings of any of the foregoing.

          “OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets
Control.

          “Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation
or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii)
any liability of such Person under any sale and leaseback transactions that do not create a
liability on the balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any
obligation (other than operating leases) arising with respect to any other transaction which is the
functional equivalent of or takes the place of borrowing but which does not constitute a liability
on the balance sheet of such Person.

          “OSHA” shall mean the Occupational Safety and Health Act of 1970, as amended from time
to time, and any successor statute.

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

          “PJ&Co” shall mean Piper Jaffray & Co., a Delaware corporation.

          “Parent Company” shall mean, with respect to a Lender, the bank holding company (as
defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning,
beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

          “Participant” shall have the meaning set forth in Section 10.4(d).

16

 

          “Patriot Act” shall have the meaning set forth in Section 10.14.

          “Payment Office” shall mean the office of the Administrative Agent located at 303
Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to which the
Administrative Agent shall have given written notice to the Borrower and the other Lenders.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA, and any successor entity performing similar functions.

          “Permitted Acquisition” shall mean any acquisition by the Borrower or any Subsidiary
Loan Party in the form of acquisitions of all or substantially all of the business or a line of
business (whether by the acquisition of Capital Stock, assets or any combination thereof) of any
other Person if each such acquisition meets all of the following requirements:

          (a) no less than fifteen (15) Business Days prior to the proposed closing date of such
acquisition, the Borrower shall have delivered written notice of such acquisition to the
Administrative Agent and the Lenders, which notice shall include the proposed closing date of such
acquisition;

          (b) the Borrower shall have certified on or before the closing date of such acquisition, in
writing and in a form reasonably acceptable to the Administrative Agent, that such acquisition has
been approved by the board of directors (or equivalent governing body) of the Person to be
acquired;

          (c) the Person or business to be acquired shall (i) be in a substantially similar line of
business as the Borrower and its Subsidiaries immediately prior to such acquisition and (ii) have
Target EBITDA of not less than $0 for the previous four fiscal quarters ending prior to the date of
such acquisition;

          (d) if such transaction is a merger or consolidation, the Borrower or a Subsidiary Loan Party
shall be the surviving Person and no Change in Control shall have been effected thereby;

          (e) the Borrower shall have delivered to the Administrative Agent such documents reasonably
requested by the Administrative Agent or the Required Lenders (through the Administrative Agent)
pursuant to Section 5.11 to be delivered at the time required pursuant to Section
5.11;

          (f) no later than five (5) Business Days prior to the proposed closing date of such
acquisition, the Borrower shall have delivered to (A) the Administrative Agent and the Lenders a
Compliance Certificate for the most recent Fiscal Quarter end preceding such acquisition for which
financial statements are available demonstrating, in form and substance reasonably satisfactory
thereto, compliance on a Pro Forma Basis (as of the date of the acquisition and after giving effect
thereto and any Indebtedness incurred in connection therewith) with each covenant contained in
ARTICLE VI and (B) the Administrative Agent an income statement for the Person or business
to be acquired for the period then ended;

17

 

          (g) no later than five (5) Business Days prior to the proposed closing date of such
acquisition the Borrower, to the extent requested by the Administrative Agent, (A) shall have
delivered to the Administrative Agent promptly upon the finalization thereof copies of
substantially final Permitted Acquisition Documents, and (B) shall have delivered to, or made
available for inspection by, the Administrative Agent substantially complete Permitted Acquisition
Diligence Information, which shall be in form and substance reasonably satisfactory to the
Administrative Agent;

          (h) no Event of Default shall have occurred and be continuing both before and after giving
effect to such acquisition and any Indebtedness incurred in connection therewith;

          (i) the aggregate amount of Indebtedness incurred or assumed in connection with such
acquisition, together with the aggregate amount of Indebtedness incurred or assumed in connection
with all other Permitted Acquisitions consummated after the Closing Date, does not exceed
$200,000,000; and

          (j) the Borrower shall provide such other documents and other information as may be reasonably
requested by the Administrative Agent or the Required Lenders (through the Administrative Agent) in
connection with the acquisition.

          “Permitted Acquisition Consideration” shall mean the aggregate amount of the purchase
price, including, but not limited to, any assumed debt, earn-outs (valued at the maximum amount
payable thereunder), deferred payments, net of the applicable acquired company’s cash and cash
equivalents balance (as shown on its most recent financial statements delivered in connection with
the applicable Permitted Acquisition) to be paid on a singular basis in connection with any
applicable Permitted Acquisition as set forth in the applicable Permitted Acquisition Documents
executed by the Borrower or Subsidiary Loan Party in order to consummate the applicable Permitted
Acquisition, but excluding any Capital Stock of the Borrower issued in connection therewith.

          “Permitted Acquisition Diligence Information” shall mean with respect to any
acquisition proposed by the Borrower or any Subsidiary Loan Party, to the extent applicable, all
material financial information and other material information, in each case, reasonably requested
to be delivered to the Administrative Agent in connection with such acquisition (except to the
extent that any such information is (a) subject to any confidentiality agreement, unless mutually
agreeable arrangements can be made to preserve such information as confidential, (b) classified or
(c) subject to any attorney-client privilege).

          “Permitted Acquisition Documents” shall mean with respect to any acquisition proposed
by the Borrower or any Subsidiary Loan Party, final copies or substantially final drafts if not
executed at the required time of delivery of the purchase agreement, sale agreement, merger
agreement or other agreement evidencing such acquisition, including, without limitation, all legal
opinions and each other document executed, delivered, contemplated by or prepared in connection
therewith and any amendment, modification or supplement to any of the foregoing.

18

 

          “Permitted Encumbrances” shall mean:

     (i) Liens imposed by law for taxes not yet due or which are being contested in good
faith by appropriate proceedings diligently conducted and with respect to which adequate
reserves are being maintained in accordance with GAAP;

     (ii) statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen and
other Liens imposed by operation of law in the ordinary course of business for amounts not
yet due or which are being contested in good faith by appropriate proceedings and with
respect to which adequate reserves are being maintained in accordance with GAAP;

     (iii) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

     (iv) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

     (v) judgment and attachment liens not giving rise to an Event of Default or Liens
created by or existing from any litigation or legal proceeding that are currently being
contested in good faith by appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP;

     (vi) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or materially interfere with the ordinary conduct of business of the Borrower and its
Subsidiaries taken as a whole;

     (vii) customary rights of set-off, revocation, refund or chargeback under deposit
agreements or under the Uniform Commercial Code or common law of banks or other financial
institutions where Borrower or any of its Subsidiaries maintains deposits (other than
deposits intended as cash collateral) in the ordinary course of business; and

     (viii) Liens, if any, securing the Obligations;

provided, that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness (other than the Obligations).

          “Permitted Investments” shall mean:

     (i) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States), in each case
maturing within one year from the date of acquisition thereof;

19

 

     (ii) commercial paper having the highest rating, at the time of acquisition thereof, of
S&P or Moody’s and in either case maturing within six months from the date of acquisition
thereof;

     (iii) certificates of deposit, bankers’ acceptances and time deposits maturing within
180 days of the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States or any state thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

     (iv) fully collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (i) above and entered into with a financial
institution satisfying the criteria described in clause (iii) above; and

     (v) mutual funds investing solely in any one or more of the Permitted Investments
described in clauses (i) through (iv) above.

          “Permitted Liens” shall have the meaning set forth in Section 7.2.

          “Person” shall mean any individual, partnership, firm, corporation, association, joint
venture, limited liability company, trust or other entity, or any Governmental Authority.

          “Plan” shall mean any Employee Benefit Plan (other than a Multiemployer Plan) subject
to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Borrower or any ERISA Affiliate either (i) maintains, contributes to or has an
obligation to contribute to on behalf of participants who are or were employed by any of them (or
on behalf of beneficiaries of such participants) or (ii) is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA or a “contributing sponsor” (as defined in ERISA Section 4001(a)(13).

          “Potential Defaulting Lender” shall mean, at any time, a Lender (i) as to which the
Administrative Agent has notified the Borrower that an event of the kind referred to in the
definition of “Lender Insolvency Event” has occurred and is continuing in respect of any financial
institution affiliate of such Lender or (ii) whose Parent Company or a financial institution
affiliate thereof has notified the Administrative Agent, or has stated publicly, that such Person
will not comply with its funding obligations under any other loan agreement or credit agreement or
other similar/other financing agreement unless such failure is based on such Person’s reasonable
and good faith determination that the conditions precedent to funding such obligation have not been
satisfied. The Administrative Agent will promptly send to all parties hereto a copy of any notice
to the Borrower provided for in this definition.

          “Pro Forma Basis” shall mean, with respect to any determination for any period, that
such determination shall be made giving pro forma effect to each Permitted Acquisition consummated
during such period (or, as the case may be, any specified Permitted Acquisition), with all
transactions relating thereto consummated during such period (including any incurrence, assumption,
refinancing or repayment of Indebtedness), as if such acquisition and related transactions had been
consummated on the first day of such period, in each case based on

20

 

historical results accounted for in accordance with GAAP and, to the extent applicable,
reasonable assumptions that are specified in details in the relevant Compliance Certificate,
financial statement or other document provided to the Administrative Agent in connection herewith
in accordance with Regulation S-X of the Exchange Act, and other cost savings and pro forma
adjustments reasonably acceptable to the Administrative Agent.

          “Pro Rata Share” shall mean (i) with respect to any Commitment of any Lender at any
time, a percentage, the numerator of which shall be such Lender’s Commitment (or if such
Commitments have been terminated or expired or the Loans have been declared to be due and payable,
such Lender’s Revolving Credit Exposure), and the denominator of which shall be the sum of such
Commitments of all Lenders (or if such Commitments have been terminated or expired or the Loans
have been declared to be due and payable, all Revolving Credit Exposure of all Lenders) and (ii)
with respect to all Commitments of any Lender at any time, the numerator of which shall be the sum
of such Lender’s Revolving Commitment (or if such Revolving Commitments have been terminated or
expired or the Loans have been declared to be due and payable, such Lender’s Revolving Credit
Exposure) and Term Loan and the denominator of which shall be the sum of all Lenders’ Revolving
Commitments (or if such Revolving Commitments have been terminated or expired or the Loans have
been declared to be due and payable, all Revolving Credit Exposure of all Lenders funded under such
Commitments) and Term Loans.

          “Qualified Plan” shall mean an Employee Benefit Plan that is intended to be
tax-qualified under Section 401(a) of the Code.

          “Regulation D, T, U and X” shall mean Regulation D, T, U and X, respectively, of the
Board of Governors of the Federal Reserve System, as the same may be in effect from time to time,
and any successor regulations.

          “Regulatory Net Capital” shall mean the “net capital” of PJ&Co as shown on its filed
monthly FOCUS report.

          “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective managers, administrators, trustees, partners, directors, officers,
employees, agents, advisors or other representatives of such Person and such Person’s Affiliates.

          “Release” shall mean any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into the environment
(including ambient air, surface water, groundwater, land surface or subsurface strata) or within
any building, structure, facility or fixture.

          “Required Coverage Amount” shall mean (i) on any date of determination prior to the
date that is twelve (12) months prior to the Maturity Date, an amount necessary to pay and satisfy
all Obligations that will be due and owing by the Borrower during the next two succeeding Fiscal
Quarters following any such date of determination and (ii) on any date of determination during the
period of twelve (12) months prior to the Maturity Date, an amount necessary to pay and satisfy all
Obligations that will be due and owing by the Borrower during the next succeeding Fiscal Quarter
following any such date of determination.

21

 

          “Required Lenders” shall mean, at any time, Lenders holding more than 50% of the
aggregate outstanding Revolving Commitments and Term Loans at such time or if the Lenders have no
Commitments outstanding, then Lenders holding more than 50% of the Revolving Credit Exposure and
Term Loans; provided, however, that to the extent that any Lender is a Defaulting
Lender, such Defaulting Lender and all of its Commitments and Revolving Credit Exposure shall be
excluded for purposes of determining Required Lenders.

          “Requirement of Law” for any Person shall mean the articles or certificate of
incorporation, bylaws, partnership certificate and agreement, or limited liability company
certificate of organization and agreement, as the case may be, and other organizational and
governing documents of such Person, and any law, treaty, rule or regulation, or determination of a
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

          “Responsible Officer” shall mean any of the president, the chief executive officer,
the chief operating officer, the chief financial officer, the treasurer or a vice president of the
Borrower or such other representative of the Borrower as may be designated in writing by any one of
the foregoing with the consent of the Administrative Agent; provided, that, with respect to
the financial covenants and Compliance Certificate, Responsible Officer shall mean only the chief
financial officer or the treasurer of the Borrower.

          “Restricted Payment” shall have the meaning set forth in Section 7.5.

          “Revolving Commitment” shall mean, with respect to each Lender, the obligation of such
Lender to make Revolving Loans to the Borrower and to participate in Letters of Credit and
Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to
such Lender on Schedule II, or in the case of a Person becoming a Lender after the Closing
Date through an assignment of an existing Revolving Commitment, the amount of the assigned
“Revolving Commitment” as provided in the Assignment and Acceptance executed by such Person as an
assignee, as the same may be increased or decreased pursuant to terms hereof.

          “Revolving Commitment Termination Date” shall mean the earliest of (i) December 29,
2013, (ii) the date on which the Revolving Commitments are terminated pursuant to Section
2.9 and (iii) the date on which all amounts outstanding under this Agreement have been declared
or have automatically become due and payable (whether by acceleration or otherwise).

          “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the
sum of the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swingline
Exposure.

          “Revolving Credit Note” shall mean a promissory note of the Borrower payable to the
order of a requesting Lender in the principal amount of such Lender’s Revolving Commitment, in
substantially the form of Exhibit C.

          “Revolving Loan” shall mean a loan made by a Lender (other than the Swingline Lender)
to the Borrower under its Revolving Commitment, which may either be a Base Rate Loan or a
Eurodollar Loan.

22

 

          “S&P” shall mean Standard & Poor’s Ratings Service, a division of the McGraw-Hill
Companies, Inc., and any successor thereto.

          “Securities” shall mean any stock, shares, partnership interests, voting trust
certificates, certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness,
secured or unsecured, convertible, subordinated, certificated or uncertificated, or otherwise, or
in general any instruments commonly known as “securities” or any certificates of interest, shares
or participations in temporary or interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the foregoing.

          “Securities Account” shall have the meaning assigned to such term in Section 8-501 of
the Uniform Commercial Code as in effect, from time to time, in the State of New York.

          “Securities Account Control Agreement” shall mean an agreement, in form and substance
acceptable to the Administrative Agent, executed by the Borrower, the Administrative Agent and the
applicable securities intermediary and granting “control” (within the meaning of the Uniform
Commercial Code as in effect in the State of New York) over the Securities Account at such
securities intermediary to the Administrative Agent.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time,
and any successor statute.

          “Self-Regulatory Organization” shall have the meaning assigned to such term in Section
3(a)(26) of the Exchange Act.

          “SIPC” shall mean the Securities Investor Protection Corporation or any successor
entity.

          “Subsidiary” shall mean, with respect to any Person (the “parent”), any
corporation, partnership, joint venture, limited liability company, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such
date, as well as any other corporation, partnership, joint venture, limited liability company,
association or other entity (i) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power, or in the case of a
partnership, more than 50% of the general partnership interests are, as of such date, owned,
controlled or held, or (ii) that is, as of such date, otherwise controlled, by the parent or one or
more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a Subsidiary of the
Borrower. Notwithstanding the foregoing, the Foundation shall not be a Subsidiary of the Borrower
or any of its Subsidiaries for purposes of this Agreement or any other Loan Document.

          “Subsidiary Loan Party” shall mean any Subsidiary that executes or becomes a party to
the Guaranty and Pledge Agreement.

          “SunTrust Fee Letter” shall mean that certain fee letter, dated October 1, 2010,
executed by SunTrust Robinson Humphrey, Inc. and SunTrust Bank and accepted by Borrower.

23

 

          “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding not to exceed $5,000,000.

          “Swingline Exposure” shall mean, with respect to each Lender, the principal amount of
the Swingline Loans in which such Lender is legally obligated either to make a Base Rate Loan or to
purchase a participation in accordance with Section 2.4, which shall equal such Lender’s
Pro Rata Share of all outstanding Swingline Loans.

          “Swingline Lender” shall mean SunTrust Bank.

          “Swingline Loan” shall mean a loan made to the Borrower by the Swingline Lender under
the Swingline Commitment.

          “Swingline Note” shall mean the promissory note of the Borrower payable to the order
of the Swingline Lender in the principal amount of the Swingline Commitment, in substantially the
form of Exhibit D.

          “Synthetic Lease” shall mean a lease transaction under which the parties intend that
(i) the lease will be treated as an “operating lease” by the lessee pursuant to Statement of
Financial Accounting Standards No. 13, as amended, and (ii) the lessee will be entitled to various
tax and other benefits ordinarily available to owners (as opposed to lessees) of like property.

          “Synthetic Lease Obligations” shall mean, with respect to any Person, the sum of (i)
all remaining rental obligations of such Person as lessee under Synthetic Leases which are
attributable to principal and, without duplication, (ii) all rental and purchase price payment
obligations of such Person under such Synthetic Leases assuming such Person exercises the option to
purchase the lease property at the end of the lease term.

          “Target EBITDA” shall mean, for any Person for any period, an amount equal to the sum
of (i) net income of such Person for such period plus (ii) to the extent deducted in determining
net income for such period and without duplication, (A) interest expense for such period, (B)
income tax expense for such period, (C) depreciation and amortization for such period, all as
determined in accordance with GAAP and (D) add backs of the type described on Schedule 1.1
and such other non-cash items approved by the Administrative Agent in its discretion.

          “Taxes” shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges, assessments or withholdings imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

          “Term Loan” shall have the meaning set forth in Section 2.5.

          “Term Loan Commitment” shall mean, with respect to each Lender, the obligation of such
Lender to make a Term Loan hereunder on the Closing Date, in a principal amount not exceeding the
amount set forth with respect to such Lender on Schedule II. The aggregate principal
amount of all Lenders’ Term Loan Commitments is $100,000,000.

24

 

          “Term Note” shall mean a promissory note of the Borrower payable to the order of a
requesting Lender in the principal amount of such Lender’s Term Loan Commitment, in substantially
the form of Exhibit E.

          “Treasury Management Obligations” shall mean, collectively, all obligations and other
liabilities of any Loan Parties pursuant to any agreements governing the provision to such Loan
Parties of treasury or cash management services, including deposit accounts, funds transfer,
purchasing card services, automated clearing house, zero balance accounts, returned check
concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade
finance services.

          “Type”, when used in reference to a Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Base Rate.

          “UK Collateral Documents” shall mean that certain Charge over Shares, dated as of the
date hereof executed by the Borrower and the Administrative Agent.

          “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     Section 1.2. Classifications of Loans and Borrowings. For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g. a “Revolving Loan” or “Term Loan”) or by Type (e.g. a
“Eurodollar Loan” or “Base Rate Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”).
Borrowings also may be classified and referred to by Class (e.g. “Revolving Borrowing”) or by Type
(e.g. “Eurodollar Borrowing”) or by Class and Type (e.g. “Revolving Eurodollar Borrowing”).

     Section 1.3. Accounting Terms and Determination. Unless otherwise defined or specified herein, all
accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be
made, and all financial statements required to be delivered hereunder shall be prepared, in
accordance with GAAP as in effect from time to time, applied on a basis consistent with the most
recent audited consolidated financial statements of the Borrower and its Subsidiaries delivered
pursuant to Section 5.1(a) (or, if no such financial statements have been delivered, on a
basis consistent with the audited consolidated financial statements of the Borrower and its
Subsidiaries last delivered to the Administrative Agent in connection with this Agreement);
provided, that if the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in ARTICLE VI to eliminate the effect of any change in GAAP on the
operation of such covenant (or if the Administrative Agent notifies the Borrower that the Required
Lenders wish to amend ARTICLE VI for such purpose), then the Borrower’s compliance with
such covenant shall be determined on the basis of GAAP in effect immediately before the relevant
change in GAAP became effective, until either such notice is withdrawn or such covenant is amended
in a manner satisfactory to the Borrower and the Required Lenders. Furthermore, the Borrower
hereby agrees that any election pursuant to FASB Statement No. 159 shall be disregarded for all
purposes of this Agreement, including, without limitation, for

25

 

calculating financial ratios herein and determining
compliance with the financial covenants herein.

     Section 1.4. Terms Generally. The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. In the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as it was originally
executed or as it may from time to time be amended, restated, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein),
(ii) any reference herein to any Person shall be construed to include such Person’s successors and
permitted assigns, (iii) the words “hereof”, “herein” and “hereunder” and words of similar import
shall be construed to refer to this Agreement as a whole and not to any particular provision
hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be construed to
refer to Articles, Sections, Exhibits and Schedules to this Agreement; (v) any reference to any law
or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time and (vi) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights. To the extent
that any of the representations and warranties contained in ARTICLE IV under this Agreement
is qualified by “Material Adverse Effect”, then the qualifier “in all material respects” contained
in Section 3.2(b) and the qualifier “in any material respect” contained in Section
8.1(c) shall not apply. Unless otherwise indicated, all references to time are references to
Eastern Standard Time or Eastern Daylight Savings Time, as the case may be. Unless otherwise
expressly provided herein, all references to dollar amounts shall mean Dollars. In determining
whether any individual event, act, condition or occurrence of the foregoing types could reasonably
be expected to result in a Material Adverse Effect, notwithstanding that a particular event, act,
condition or occurrence does not itself have such effect, a Material Adverse Effect shall be deemed
to have occurred if the cumulative effect of such event, act, condition or occurrence and all other
such events, acts, conditions or occurrences of the foregoing types which have occurred could
reasonably be expected to result in a Material Adverse Effect.

ARTICLE II

AMOUNT AND TERMS OF THE COMMITMENTS

     Section 2.1. General Description of Facilities. Subject to and upon the terms and conditions
herein set forth, (i) the Lenders hereby establish in favor of the Borrower a revolving credit
facility pursuant to which each
Lender severally agrees (to the extent of such Lender’s Revolving Commitment) to make
Revolving Loans to the Borrower in accordance with Section 2.2, (ii) the Issuing Bank
agrees to issue Letters of Credit in accordance with Section 2.22, (iii) the Swingline
Lender agrees to make Swingline Loans in accordance with Section 2.4, (iv) each

26

 

Lender
agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans
pursuant to the terms and conditions hereof; provided, that in no event shall the aggregate
principal amount of all outstanding Revolving Loans, Swingline Loans and outstanding LC Exposure
exceed at any time the Aggregate Revolving Commitment Amount from time to time in effect; and (v)
each Lender severally agrees to make a Term Loan to the Borrower in a principal amount not
exceeding such Lender’s Term Loan Commitment on the Closing Date.

     Section 2.2. Revolving Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata Share, to the
Borrower, from time to time during the Availability Period, in an aggregate principal amount
outstanding at any time that will not result in (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Revolving Commitment or (b) the sum of the aggregate Revolving Credit
Exposures of all Lenders exceeding the Aggregate Revolving Commitment Amount. During the
Availability Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans
in accordance with the terms and conditions of this Agreement; provided, that the Borrower
may not borrow or reborrow should there exist a Default or Event of Default.

     Section 2.3. Procedure for Revolving Borrowings. The Borrower shall give the Administrative Agent
written notice (or telephonic notice promptly confirmed in writing) of each Revolving Borrowing
substantially in the form of Exhibit 2.3 (a “Notice of Revolving Borrowing”) (x)
prior to 11:00 a.m. on the requested Business Day of each Base Rate Borrowing and (y) prior to 1:00
p.m. three (3) Business Days prior to the requested date of each Eurodollar Borrowing. Each Notice
of Revolving Borrowing shall be irrevocable and shall specify: (i) the aggregate principal amount
of such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), (iii) the Type
of such Revolving Loan comprising such Borrowing and (iv) in the case of a Eurodollar Borrowing,
the duration of the initial Interest Period applicable thereto (subject to the provisions of the
definition of Interest Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans
or Eurodollar Loans, as the Borrower may request. The aggregate principal amount of each
Eurodollar Borrowing shall be not less than $5,000,000 or a larger multiple of $1,000,000, and the
aggregate principal amount of each Base Rate Borrowing shall not be less than $1,000,000 or a
larger multiple of $100,000; provided, that Base Rate Loans made pursuant to Section
2.4 or Section 2.22(d) may be made in lesser amounts as provided therein. At no time
shall the total number of Eurodollar Borrowings outstanding at any time exceed four. Promptly
following the receipt of a Notice of Revolving Borrowing in accordance herewith, the Administrative
Agent shall advise each Lender of the details thereof and the amount of such Lender’s Revolving
Loan to be made as part of the requested Revolving Borrowing.

     Section 2.4. Swingline Commitment.

          (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrower, from time to time during the Availability Period, in an aggregate
principal amount outstanding at any time not to exceed the lesser of (i) the Swingline Commitment
then in effect and (ii) the difference between the Aggregate Revolving Commitment Amount and the
aggregate Revolving Credit Exposures of all Lenders; provided, that the Swingline Lender
shall not be required to make a Swingline Loan to refinance

27

 

an outstanding Swingline Loan. The
Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the
terms and conditions of this Agreement.

          (b) The Borrower shall give the Administrative Agent written notice (or telephonic notice
promptly confirmed in writing) of each Swingline Borrowing substantially in the form of Exhibit
2.4 (a “Notice of Swingline Borrowing”) prior to 1:00 p.m. on the requested date of
each Swingline Borrowing (which shall be a Business Day). Each Notice of Swingline Borrowing shall
be irrevocable and shall specify: (i) the principal amount of such Swingline Loan, (ii) the date of
such Swingline Loan (which shall be a Business Day), (iii) the duration of the Interest Period
applicable thereto and (iv) the account of the Borrower to which the proceeds of such Swingline
Loan should be credited. The Administrative Agent will promptly advise the Swingline Lender of
each Notice of Swingline Borrowing. Each Swingline Loan shall accrue interest at the Base Rate
plus the Applicable Margin. The aggregate principal amount of each Swingline Loan shall be not
less than $100,000 or a larger multiple of $50,000, or such other minimum amounts agreed to by the
Swingline Lender and the Borrower. The Swingline Lender will make the proceeds of each Swingline
Loan available to the Borrower in Dollars in immediately available funds at the account specified
by the Borrower in the applicable Notice of Swingline Borrowing not later than 4:00 p.m. on the
requested date of such Swingline Loan.

          (c) The Swingline Lender, at any time and from time to time in its sole discretion, may, on
behalf of the Borrower (which hereby irrevocably authorizes and directs the Swingline Lender to act
on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting the
Lenders (including the Swingline Lender) to make Base Rate Loans in an amount equal to the unpaid
principal amount of any Swingline Loan. Each Lender will make the proceeds of its Base Rate Loan
included in such Borrowing available to the Administrative Agent for the account of the Swingline
Lender in accordance with Section 2.7, which will be used solely for the repayment of such
Swingline Loan.

          (d) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then
each Lender (other than the Swingline Lender) shall purchase an undivided participating interest in
such Swingline Loan in an amount equal to its Pro Rata Share thereof on the date that such Base
Rate Borrowing should have occurred. On the date of such required purchase, each Lender shall
promptly transfer, in immediately available funds, the amount of its participating interest to the
Administrative Agent for the account of the Swingline Lender.

          (e) Each Lender’s obligation to make a Base Rate Loan pursuant to Section 2.4(c) or to
purchase the participating interests pursuant to Section 2.4(d) shall be absolute and
unconditional and shall not be affected by any circumstance, including without limitation (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may
have or claim against the Swingline Lender, the Borrower or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination
of any Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of any event or
condition which has had or could reasonably be expected to have a Material Adverse Effect, (iv) any
breach of this Agreement or any other Loan Document by the Borrower, the Administrative Agent or
any Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing. If such amount is not in fact made available to the Swingline

28

 

Lender by any
Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender,
together with accrued interest thereon for each day from the date of demand thereof (i) at the
Federal Funds Rate until the second Business Day after such demand and (ii) at the Base Rate at all
times thereafter. Until such time as such Lender makes its required payment, the Swingline Lender
shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid
participation for all purposes of the Loan Documents. In addition, such Lender shall be deemed to
have assigned any and all payments made of principal and interest on its Loans and any other
amounts due to it hereunder, to the Swingline Lender to fund the amount of such Lender’s
participation interest in such Swingline Loans that such Lender failed to fund pursuant to this
Section 2.4, until such amount has been purchased in full.

     Section 2.5. Term Loan Commitments. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make a single loan (each, a “Term Loan”) to the Borrower on the
Closing Date in a principal amount not to exceed the Term Loan Commitment of such Lender;
provided, that if for any reason the full amount of such Lender’s Term Loan Commitment is
not fully drawn on the Closing Date, the undrawn portion thereof shall automatically be cancelled.
The Term Loans may be, from time to time, Base Rate Loans or Eurodollar Loans or a combination
thereof; provided, that on the Closing Date all Term Loans shall be Base Rate Loans. The
execution and delivery of this Agreement by the Borrower and the satisfaction of all conditions
precedent pursuant to Section 3.1 shall be deemed to constitute the Borrower’s request to
borrow the Term Loans on the Closing Date.

     Section 2.6. Funding of Borrowings.

          (a) Each Lender will make available each Loan to be made by it hereunder on the proposed date
thereof by wire transfer in immediately available funds by 2:00 p.m. to the Administrative Agent at
the Payment Office; provided, that the Swingline Loans will be made as set forth in
Section 2.4. The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts that it receives, in like funds by the close of business on such
proposed date, to an account maintained by the Borrower with the Administrative Agent or at the
Borrower’s option, by effecting a wire transfer of such amounts to an account designated by the
Borrower to the Administrative Agent.

          (b) Unless the Administrative Agent shall have been notified by any Lender prior to (i) 12:00
p.m. on the date of a Base Rate Borrowing and (ii) 5:00 p.m. one (1) Business Day prior to the date
of a LIBOR Borrowing, in which such Lender is to participate that such Lender will not make
available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such amount available to the Administrative Agent on
such date, and the Administrative Agent, in reliance on
such assumption, may make available to the Borrower on such date a corresponding amount. If
such corresponding amount is not in fact made available to the Administrative Agent by such Lender
on the date of such Borrowing, the Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender together with interest at the Federal Funds Rate
until the second Business Day after such demand and thereafter at the Base Rate. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay
such corresponding amount to the Administrative Agent together with

29

 

interest at the rate specified
for such Borrowing. Nothing in this subsection shall be deemed to relieve any Lender from its
obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice any rights which
the Borrower may have against any Lender as a result of any default by such Lender hereunder.

          (c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective Pro
Rata Shares. No Lender shall be responsible for any default by any other Lender in its obligations
hereunder, and each Lender shall be obligated to make its Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

     Section 2.7. Interest Elections.

          (a) Each Borrowing initially shall be of the Type specified in the applicable Notice of
Borrowing, and in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Notice of Borrowing. Thereafter, the Borrower may elect to convert such
Borrowing into a different Type or to continue such Borrowing, and in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.7. The
Borrower may elect different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders holding Loans
comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall NOT apply to Swingline Borrowings, which may not be
converted or continued.

          (b) To make an election pursuant to this Section 2.7, the Borrower shall give the
Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) of
each Borrowing substantially in the form of Exhibit 2.7 (a “Notice of
Conversion/Continuation”) that is to be converted or continued, as the case may be, (x) prior
to 12:00 p.m. one (1) Business Day prior to the requested date of a conversion into a Base Rate
Borrowing and (y) prior to 1:00 p.m. three (3) Business Days prior to a continuation of or
conversion into a Eurodollar Borrowing. Each such Notice of Conversion/Continuation shall be
irrevocable and shall specify (i) the Borrowing to which such Notice of Conversion/Continuation
applies and if different options are being elected with respect to different portions thereof, the
portions thereof that are to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to clauses (iii) and (iv) below shall be
specified for each resulting Borrowing); (ii) the effective date of the election made pursuant to
such Notice of Conversion/Continuation, which shall be a Business Day, (iii) whether the resulting
Borrowing is to be a Base Rate Borrowing or a Eurodollar Borrowing; and (iv) if the resulting
Borrowing is to be a Eurodollar Borrowing, the Interest Period applicable thereto after giving
effect to such
election, which shall be a period contemplated by the definition of “Interest Period”. If any
such Notice of Conversion/Continuation requests a Eurodollar Borrowing but does not specify an
Interest Period, the Borrower shall be deemed to have selected an Interest Period of one month.
The principal amount of any resulting Borrowing shall satisfy the minimum borrowing amount for
Eurodollar Borrowings and Base Rate Borrowings set forth in Section 2.3.

          (c) If, on the expiration of any Interest Period in respect of any Eurodollar Borrowing, the
Borrower shall have failed to deliver a Notice of Conversion/ Continuation, then,

30

 

unless such Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert
such Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a
Eurodollar Borrowing if a Default or an Event of Default exists, unless the Administrative Agent
and each of the Lenders shall have otherwise consented in writing. No conversion of any
Eurodollar Loans shall be permitted except on the last day of the Interest Period in respect
thereof.

          (d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall
promptly notify each Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

     Section 2.8. Optional Reduction and Termination of Commitments.

          (a) Unless previously terminated, all Revolving Commitments, Swingline Commitments and LC
Commitments shall terminate on the Revolving Commitment Termination Date. The Term Loan
Commitments shall terminate on the Closing Date upon the making of the Term Loans pursuant to
Section 2.6.

          (b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) to the Administrative Agent (which notice shall be irrevocable), the Borrower
may reduce the Aggregate Revolving Commitments in part or terminate the Aggregate Revolving
Commitments in whole; provided, that (i) any partial reduction shall apply to reduce
proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial reduction
pursuant to this Section 2.8 shall be in an amount of at least $5,000,000 and any larger
multiple of $1,000,000, and (iii) no such reduction shall be permitted which would reduce the
Aggregate Revolving Commitment Amount to an amount less than the outstanding Revolving Credit
Exposures of all Lenders. Any such reduction in the Aggregate Revolving Commitment Amount below
the principal amount of the Swingline Commitment or the LC Commitment shall result in a
dollar-for-dollar reduction (rounded to the next lowest integral multiple of $100,000) in the
Swingline Commitment and the LC Commitment.

          (c) With the written approval of the Administrative Agent, the Borrower may terminate (on a
non-ratable basis) the unused amount of the Revolving Commitment of a Defaulting Lender upon not
less than five (5) Business Days’ prior notice to the Administrative Agent (which will promptly
notify the Lenders thereof), and in such event the provisions of Section 2.23 will apply to
all amounts thereafter paid by the Borrower for the account of any such Defaulting Lender under
this Agreement (whether on account of principal, interest, fees, indemnity or other amounts);
provided that such termination will not be deemed to be a waiver
or release of any claim the Borrower, the Administrative Agent, the Issuing Bank, the
Swingline Lender or any Lender may have against such Defaulting Lender.

     Section 2.9. Repayment of Loans.

          (a) The outstanding principal amount of all Revolving Loans shall be due and payable (together
with accrued and unpaid interest thereon) on the Revolving Commitment Termination Date.

31

 

          (b) The principal amount of each Swingline Borrowing shall be due and payable (together with
accrued and unpaid interest thereon) on the earlier of (i) the last day of the Interest Period
applicable to such Borrowing and (ii) the Revolving Commitment Termination Date.

          (c) The Borrower unconditionally promises to pay to the Administrative Agent for the account
of each Lender the then unpaid principal amount of the Term Loan of such Lender in installments
payable on the dates set forth below, with each such installment being in the aggregate principal
amount for all Lenders set forth opposite such date below (and on such other date(s) and in such
other amounts as may be required from time to time pursuant to this Agreement):

	 	 	 	 	 
	Installment Date	 	Aggregate Principal Amount
	March 31, 2011
	 	$	2,500,000	 
	June 30, 2011
	 	$	2,500,000	 
	September 30, 2011
	 	$	2,500,000	 
	December 31, 2011
	 	$	2,500,000	 
	March 31, 2012
	 	$	6,250,000	 
	June 30, 2012
	 	$	6,250,000	 
	September 30, 2012
	 	$	6,250,000	 
	December 31, 2012
	 	$	6,250,000	 
	March 31, 2013
	 	$	16,250,000	 
	June 30, 2013
	 	$	16,250,000	 
	September 30, 2013
	 	$	16,250,000	 
	December 29, 2013
	 	$	16,250,000	 

provided, that, to the extent not previously paid, the aggregate unpaid principal balance
of the Term Loans shall be due and payable on the Maturity Date.

     Section 2.10. Evidence of Indebtedness.

          (a) Each Lender shall maintain in accordance with its usual practice appropriate records
evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender from time to time, including the amounts of principal and interest payable thereon and paid
to such Lender from time to time under this Agreement. The Administrative Agent shall maintain
appropriate records in which shall be recorded (i) the Revolving Commitment and Term Loan
Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class
and Type thereof and the Interest Period applicable thereto, (iii) the date of each continuation thereof pursuant to Section
2.8, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to
Section 2.8, (v) the date and amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder in respect of such Loans and (vi)
both the date and amount of any sum received by the Administrative Agent hereunder from the
Borrower in respect of the Loans and each Lender’s Pro Rata Share thereof. The entries made in
such records shall be prima facie evidence of the existence and amounts of the obligations of the
Borrower therein recorded; provided, that the failure or delay of any Lender or the
Administrative Agent in maintaining or making entries into any such record or any error therein
shall not in any manner

32

 

affect the obligation of the Borrower to repay the Loans (both principal
and unpaid accrued interest) of such Lender in accordance with the terms of this Agreement.

          (b) At the request of any Lender (including the Swingline Lender) at any time, the Borrower
agrees that it will execute and deliver to such Lender a Revolving Credit Note and/or a Term Loan
Note and, in the case of the Swingline Lender only, a Swingline Note, payable to the order of such
Lender.

     Section 2.11. Optional Prepayments. The Borrower shall have the right at any time and from time to
time to prepay any Borrowing, in whole or in part, without premium or penalty, by giving
irrevocable written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent no later than (i) in the case of prepayment of any Eurodollar Borrowing, 11:00
a.m. not less than three (3) Business Days prior to any such prepayment, (ii) in the case of any
prepayment of any Base Rate Borrowing, not less than one Business Day prior to the date of such
prepayment, and (iii) in the case of Swingline Borrowings, prior to 11:00 a.m. on the date of such
prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such
prepayment and the principal amount of each Borrowing or portion thereof to be prepaid. Upon
receipt of any such notice, the Administrative Agent shall promptly notify each affected Lender of
the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is
given, the aggregate amount specified in such notice shall be due and payable on the date
designated in such notice, together with accrued interest to such date on the amount so prepaid in
accordance with Section 2.13(d); provided, that if a Eurodollar Borrowing is
prepaid on a date other than the last day of an Interest Period applicable thereto, the Borrower
shall also pay all amounts required pursuant to Section 2.20. Each partial prepayment of
any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case of
an advance of a Revolving Borrowing of the same Type pursuant to Section 2.2 or in the case
of a Swingline Loan pursuant to Section 2.4. Each prepayment of a Borrowing shall be
applied ratably to the Loans comprising such Borrowing, and in the case of a prepayment of a Term
Loan Borrowing, to principal installments required by Section 2.9(c) in inverse order of
maturity.

     Section 2.12. Mandatory Prepayments.

          (a) Immediately upon receipt by the Borrower or any of its Subsidiaries of proceeds of any
sale or disposition by the Borrower or such Subsidiary of any of its assets (excluding (i) sales of
Securities in the ordinary course of business, (ii) sales of obsolete equipment and (iii) so long
as no Event of Default has occurred and is continuing, sales of capital
assets the proceeds of which are reinvested in similar replacement assets of the Borrower and
its Subsidiaries within 180 days after such assets are sold and (iv) other sales of assets of the
Borrower or any of its Subsidiaries with an aggregate book value not to exceed $1,000,000 in any
Fiscal Year) the Borrower shall prepay the Loans in an amount equal to all such cash proceeds, net
of commissions and other reasonable and customary transaction costs, fees and expenses properly
attributable to such transaction and payable by such Borrower in connection therewith (in each
case, paid to non-Affiliates). Any such prepayment shall be applied in accordance with
paragraph (c) immediately below.

          (b) If the Borrower or any of its Subsidiaries issues any debt or equity securities (other
than (i) Indebtedness permitted under Section 7.1, (ii) equity securities issued by

33

 

a
Subsidiary of the Borrower to the Borrower or another Subsidiary, (iii) equity securities issued to
employees or directors of the Borrower or such Subsidiary or pursuant to the exercise of options
issued to such employees or directors and (iv) Capital Stock of the Borrower issued in connection
with a Permitted Acquisition) then no later than the Business Day following the date of receipt of
the proceeds thereof, Borrower shall prepay the Loans in an amount equal to all such cash proceeds,
net of underwriting discounts and commissions and other reasonable costs paid to non-Affiliates in
connection therewith. Any such prepayment shall be applied in accordance with paragraph
(c) immediately below.

          (c) Any prepayments made by the Borrower pursuant to Section 2.12(a) or (b)
above shall be applied by the Administrative Agent as follows: first, to Administrative
Agent’s fees and reimbursable expenses then due and payable pursuant to any of the Loan Documents;
second, to reduce the outstanding principal amount of the Term Loans in inverse order of
maturity; third, if the Term Loans have been paid in full, to the principal balance of the
Swingline Loans, until the same shall have been paid in full; fourth, to the principal
balance of the Revolving Loans, until the same shall have been paid in full, and fifth, to
Cash Collateralize the Letters of Credit in accordance with Section 2.22(g) in an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid fees thereon. The
Revolving Commitments of the Lenders shall not be permanently reduced by the amount of any
prepayments made pursuant to clauses third and fourth above.

          (d) If at any time the Revolving Credit Exposure of all Lenders exceeds the Aggregate
Revolving Commitment Amount, as reduced pursuant to Section 2.9 or otherwise, the Borrower
shall immediately repay Swingline Loans and Revolving Loans in an amount equal to such excess,
together with all accrued and unpaid interest on such excess amount and any amounts due under
Section 2.20. Each prepayment shall be applied first to the Swingline Loans to the full
extent thereof, second to the Base Rate Loans to the full extent thereof, and finally to Eurodollar
Loans to the full extent thereof. If after giving effect to prepayment of all Swingline Loans and
Revolving Loans, the Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving
Commitment Amount, the Borrower shall Cash Collateralize its reimbursement obligations with respect
to the Letters of Credit by depositing cash collateral in an amount equal to such excess plus any
accrued and unpaid fees thereon. Such account shall be administered in accordance with Section
2.22(g) hereof.

     Section 2.13. Interest on Loans.

          (a) The Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect from
time to time and on each Eurodollar Loan at the Adjusted LIBO Rate for the applicable Interest
Period in effect for such Loan, plus, in each case, the Applicable Margin in effect from time to
time.

          (b) The Borrower shall pay interest on each Swingline Loan at the Base Rate plus the
Applicable Margin in effect from time to time.

          (c) Notwithstanding clauses (a) and (b) above, if an Event of Default has
occurred and is continuing, at the option of the Required Lenders, and after acceleration, the
Borrower shall pay interest (“Default Interest”) with respect to all Eurodollar Loans at
the rate

34

 

per annum equal to 2.0% above the otherwise applicable interest rate for such Eurodollar
Loans for the then-current Interest Period until the last day of such Interest Period, and
thereafter, and with respect to all Base Rate Loans and all other Obligations described in
clause (a) of the definition thereof (other than Loans) that accrue interest, at the rate
per annum equal to 2.0% above the otherwise applicable interest rate for Base Rate Loans.

          (d) Interest on the principal amount of all Loans shall accrue from and including the date
such Loans are made to but excluding the date of any repayment thereof. Interest on all
outstanding Base Rate Loans shall be payable quarterly in arrears on the last day of each March,
June, September and December and on the Revolving Commitment Termination Date or the Maturity Date,
as the case may be. Interest on all outstanding Eurodollar Loans shall be payable on the last day
of each Interest Period applicable thereto and on the Revolving Commitment Termination Date or the
Maturity Date, as the case may be. Interest on each Swingline Loan shall be payable on the
maturity date of such Loan, which shall be the last day of the Interest Period applicable thereto,
and on the Revolving Commitment Termination Date. Interest on any Loan which is converted into a
Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion
or on the date of any such repayment or prepayment (on the amount repaid or prepaid) thereof. All
Default Interest shall be payable on demand.

          (e) The Administrative Agent shall determine each interest rate applicable to the Loans
hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by
telephone, promptly confirmed in writing). Any such determination shall be conclusive and binding
for all purposes, absent manifest error.

     Section 2.14. Fees.

          (a) The Borrower shall pay to the Administrative Agent for its own account fees in the amounts
and at the times set forth in the SunTrust Fee Letter.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the Applicable Percentage on the daily amount of the unused
Revolving Commitment of such Lender during the Availability Period. For purposes of computing
commitment fees with respect to the Revolving Commitments, the Revolving Commitment of each Lender
shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure, but not
Swingline Exposure, of such Lender.

          (c) The Borrower agrees to pay (i) to the Administrative Agent, for the account of each
Lender, a letter of credit fee with respect to its participation in each Letter of Credit, which
shall accrue at a rate per annum equal to the Applicable Margin for Eurodollar Loans then in effect
on the average daily amount of such Lender’s LC Exposure attributable to such Letter of Credit
during the period from and including the date of issuance of such Letter of Credit to but excluding
the date on which such Letter of Credit expires or is drawn in full (including without limitation
any LC Exposure that remains outstanding after the Revolving Commitment Termination Date) and (ii)
to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate of 0.25% per
annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during

35

 

the Availability Period (or until the date that such Letter
of Credit is irrevocably cancelled, whichever is later), as well as the Issuing Bank’s standard
fees with respect to issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Notwithstanding the foregoing, if the Required Lenders elect to
increase the interest rate on the Loans to the Default Interest pursuant to Section
2.13(c), the rate per annum used to calculate the letter of credit fee pursuant to clause
(i) above shall automatically be increased by an additional 2.0% per annum.

          (d) The Borrower shall pay to the Administrative Agent, for the ratable benefit of each
Lender, the upfront fee set forth in the Fee Letters, which shall be due and payable on the Closing
Date.

          (e) Accrued fees under paragraphs (b) and (c) above shall be payable quarterly
in arrears on the last day of each March, June, September and December, commencing on March 31,
2011 and on the Revolving Commitment Termination Date (and if later, the date the Loans and LC
Exposure shall be repaid in their entirety); provided, that any such fees accruing after
the Revolving Commitment Termination Date shall be payable on demand.

          (f) Anything herein to the contrary notwithstanding, during such period as a Lender is a
Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such
period pursuant to clauses (b) and (c) of this Section (without prejudice to the
rights of the Lenders other than Defaulting Lenders in respect of such fees), or any amendment fees
hereafter offered to any Lender, and the pro rata payment provisions of Section 2.21 will
automatically be deemed adjusted to reflect the provisions of this Section; provided that
(a) to the extent that a portion of the LC Exposure of a Defaulting Lender is reallocated to the
Non-Defaulting Lenders pursuant to clause (a)(i) of Section 2.23, such fees that
would have accrued for the benefit of such Defaulting Lender will instead accrue for the benefit of
and be payable to such Non-Defaulting Lenders, pro rata in accordance with their
respective Revolving Commitments and (b) to the extent any portion of such LC Exposure cannot be so
reallocated, such fees will instead accrue for the benefit of and be payable to the Issuing Bank.

     Section 2.15. Computation of Interest and Fees. Interest hereunder based on the Administrative
Agent’s prime lending rate shall be computed on the basis of a year of 365 days (or 366 days in a
leap year) and paid for the actual number of days elapsed (including the first day but excluding
the last day). All other computations of interest and fees hereunder shall be made on the basis of
a year of 360 days for
the actual number of days (including the first day but excluding the last day) occurring in
the period for which such interest or fees are payable (to the extent computed on the basis of days
elapsed). Each determination by the Administrative Agent of an interest amount or fee hereunder
shall be made in good faith and, except for manifest error, shall be final, conclusive and binding
for all purposes.

     Section 2.16. Inability to Determine Interest Rates. If prior to the commencement of any Interest
Period for any Eurodollar Borrowing,

     (i) the Administrative Agent shall have reasonably determined (which determination
shall be conclusive and binding upon the Borrower) that, by reason of

36

 

circumstances
affecting the relevant interbank market, adequate means do not exist for ascertaining LIBOR
for such Interest Period, or

     (ii) the Administrative Agent shall have received notice from the Required Lenders that
the Adjusted LIBO Rate does not adequately and fairly reflect the cost to such Lenders of
making, funding or maintaining their (or its, as the case may be) Eurodollar Loans for such
Interest Period,

the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in
writing) to the Borrower and to the Lenders as soon as practicable thereafter. Until the
Administrative Agent shall notify the Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, (i) the obligations of the Lenders to make Eurodollar Revolving
Loans or to continue or convert outstanding Loans as or into Eurodollar Loans shall be suspended
and (ii) all such affected Loans shall be converted into Base Rate Loans on the last day of the
then current Interest Period applicable thereto unless the Borrower prepays such Loans in
accordance with this Agreement. Unless the Borrower notifies the Administrative Agent at least one
Business Day before the date of any Eurodollar Revolving Borrowing for which a Notice of Revolving
Borrowing or Notice of Conversion/Continuation has previously been given that it elects not to
borrow on such date, then such Revolving Borrowing shall be made as a Base Rate Borrowing.

     Section 2.17. Illegality. If any Change in Law shall make it unlawful or impossible for any Lender
to make, maintain or fund any Eurodollar Loan and such Lender shall so notify the Administrative
Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other
Lenders, whereupon until such Lender notifies the Administrative Agent and the Borrower that the
circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make
Eurodollar Revolving Loans, or to continue or convert outstanding Loans as or into Eurodollar
Loans, shall be suspended. In the case of the making of a Eurodollar Revolving Borrowing, such
Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Borrowing
for the same Interest Period and if the affected Eurodollar Loan is then outstanding, such Loan
shall be converted to a Base Rate Loan either (i) on the last day of the then current Interest
Period applicable to such Eurodollar Loan if such Lender may lawfully
continue to maintain such Loan to such date or (ii) immediately if such Lender shall determine
that it may not lawfully continue to maintain such Eurodollar Loan to such date. Notwithstanding
the foregoing, the affected Lender shall, prior to giving such notice to the Administrative Agent,
designate a different Applicable Lending Office if such designation would avoid the need for giving
such notice and if such designation would not otherwise be disadvantageous to such Lender in the
good faith exercise of its discretion.

     Section 2.18. Increased Costs.

          (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement that is not otherwise included in the determination of the Adjusted LIBO Rate
hereunder against assets of, deposits with or for the account of, or credit extended or

37

 

participated in by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Bank; or

     (ii) subject any Lender or the Issuing Bank to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Loan made by it, or change the basis of taxation of payments to such Lender
or the Issuing Bank in respect thereof (except for Indemnified Taxes or Other Taxes covered
by Section 2.20 and the imposition of, or any change in the rate of, any Excluded
Tax payable by such Lender or the Issuing Bank); or

     (iii) impose on any Lender or on the Issuing Bank or the eurodollar interbank market
any other condition, cost or expense affecting this Agreement or any Eurodollar Loans made
by such Lender or any Letter of Credit or any participation therein;

and the result of any of the foregoing is to increase the cost to such Lender of making, converting
into, continuing or maintaining a Eurodollar Loan or to increase the cost to such Lender or the
Issuing Bank of participating in or issuing any Letter of Credit or to reduce the amount received
or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or any
other amount), then the Borrower shall promptly pay, upon written notice from and demand by such
Lender on the Borrower (with a copy of such notice and demand to the Administrative Agent), to the
Administrative Agent for the account of such Lender, within five Business Days after the date of
such notice and demand, additional amount or amounts sufficient to compensate such Lender or the
Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.

          (b) If any Lender or the Issuing Bank shall have determined that on or after the date of this
Agreement any Change in Law regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s or the Issuing Bank’s capital (or on the capital of the Parent
Company of such Lender or the Issuing Bank) as a consequence of its obligations hereunder or under
or in respect of any Letter of Credit to a level below that which such Lender, the Issuing Bank or
the Parent Company of such Lender or the Issuing Bank could have achieved but for such Change in
Law (taking into consideration such Lender’s or the Issuing Bank’s policies or the policies of the
Parent Company of such Lender or the Issuing
Bank with respect to capital adequacy), then, from time to time, within five (5) Business Days
after receipt by the Borrower of written demand by such Lender (with a copy thereof to the
Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender, the Issuing Bank or the Parent Company of such Lender or the Issuing Bank
for any such reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender, the Issuing Bank or the Parent Company of such Lender or the
Issuing Bank, as the case may be, specified in paragraph (a) or (b) of this
Section 2.19 shall be delivered to the Borrower (with a copy to the Administrative Agent)
and shall be conclusive, absent manifest error. The Borrower shall pay any such Lender or the
Issuing Bank, as the case may be, such amount or amounts within 10 days after receipt thereof.

38

 

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.19 shall not constitute a waiver of such Lender’s or the Issuing
Bank’s right to demand such compensation; provided, that the Borrower shall not be required
to compensate a Lender or the Issuing Bank under this Section 2.18 for any increased costs
or reductions incurred more than six (6) months prior to the date that such Lender or the Issuing
Bank notifies the Borrower of such increased costs or reductions and of such Lender’s or the
Issuing Bank’s intention to claim compensation therefor; and provided further, that
if the Change in Law giving rise to such increased costs or reductions is retroactive, then such
six-month period shall be extended to include the period of such retroactive effect.

     Section 2.19. Funding Indemnity. In the event of (a) the payment of any principal of a Eurodollar
Loan other than on the last day of the Interest Period applicable thereto (including as a result of
an Event of Default), (b) the conversion or continuation of a Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, or (c) the failure by the Borrower to borrow,
prepay, convert or continue any Eurodollar Loan on the date specified in any applicable notice
(regardless of whether such notice is withdrawn or revoked), then, in any such event, the Borrower
shall compensate each Lender, within five (5) Business Days after written demand from such Lender,
for any loss, cost or expense attributable to such event. In the case of a Eurodollar Loan, such
loss, cost or expense shall be deemed to include an amount determined by such Lender to be the
excess, if any, of (A) the amount of interest that would have accrued on the principal amount of
such Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate applicable to such
Eurodollar Loan for the period from the date of such event to the last day of the then current
Interest Period therefor (or in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Eurodollar Loan) over (B) the amount of
interest that would accrue on the principal amount of such Eurodollar Loan for the same period if
the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted or the
date on which the Borrower failed to borrow, convert or continue such Eurodollar Loan. A
certificate as to any additional amount payable under this Section 2.19 submitted to the
Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive, absent
manifest error.

     Section 2.20. Taxes.

          (a) Any and all payments by or on account of any obligation of the Borrower hereunder or under
any other Loan Document shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided, that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
Indemnified Taxes and Other Taxes) the Administrative Agent, any Lender or the Issuing Bank (as the
case may be) shall receive an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

39

 

          (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within five (5) Business Days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case
may be, on or with respect to any payment by or on account of any obligation of the Borrower
hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section 2.20) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or
the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing Bank, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall, to the extent available to the Borrower,
deliver to the Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the Code or any treaty to which the United States is a party, with respect to payments under
this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Borrower as will permit such payments
to be made without withholding or at a reduced rate. Without limiting the generality of the
foregoing, each Foreign Lender agrees that it will deliver to the Administrative Agent and the
Borrower (or in the case of a Participant, to the Lender from which the related participation shall
have been purchased), as appropriate, two (2) duly completed copies of (i) Internal Revenue Service
Form W-8 ECI, or any successor form thereto, certifying that the payments received from the
Borrower hereunder are effectively connected with such Foreign Lender’s conduct of a trade or
business in the United States; or (ii) Internal Revenue Service Form W-8 BEN, or any successor form
thereto, certifying that such Foreign Lender is entitled to benefits under an income tax treaty to
which the United States is a party
which eliminates or reduces the rate of withholding tax on payments of interest; or (iii)
Internal Revenue Service Form W-8 BEN, or any successor form prescribed by the Internal Revenue
Service, together with a certificate (A) establishing that the payment to the Foreign Lender
qualifies as “portfolio interest” exempt from U.S. withholding tax under Code section 871(h) or
881(c), and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code section
881(c)(3)(A), or the obligation of the Borrower hereunder is not, with respect to such Foreign
Lender, a loan agreement entered into in the ordinary course of its trade or business, within the
meaning of that section; (2) the Foreign Lender is not a 10% shareholder of the Borrower within the
meaning of Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a controlled
foreign corporation that is related to the Borrower within the meaning of Code section
881(c)(3)(C); or (iv) such other Internal Revenue Service forms as may be applicable to the Foreign
Lender, including Forms W-8 IMY or W-8 EXP. Each such Foreign Lender shall deliver to the Borrower
and the Administrative Agent such forms on or before the date that it becomes a party to this
Agreement (or in the case of a Participant, on or before the date such

40

 

Participant purchases the
related participation). In addition, each such Foreign Lender shall deliver such forms promptly
upon the obsolescence or invalidity of any form previously delivered by such Foreign Lender. Each
such Foreign Lender shall promptly notify the Borrower and the Administrative Agent at any time
that it determines that it is no longer in a position to provide any previously delivered
certificate to the Borrower (or any other form of certification adopted by the Internal Revenue
Service for such purpose).

     Section 2.21. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.18, Section 2.19 or Section 2.20, or otherwise) prior to 12:00
noon on the date when due, in immediately available funds, free and clear of any defenses, rights
of set-off, counterclaim, or withholding or deduction of taxes. Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at the Payment Office, except payments to
be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except
that payments pursuant to Section 2.18, Section 2.19, Section 2.20 and
Section 10.3 shall be made directly to the Persons entitled thereto. The Administrative
Agent shall distribute any such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on
a day that is not a Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest thereon shall be made
payable for the period of such extension. All payments hereunder shall be made in Dollars.

          (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, to the fees and reimbursable expenses
of the Administrative Agent then due and payable pursuant to any of the Loan Documents, (ii)
second, towards payment of interest and fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to such parties,
(iii) third, towards payment of principal and unreimbursed LC Disbursements then
due hereunder, ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties, and (iv) fourth,
towards payment of all other Obligations then due, ratably among the parties entitled thereto in
accordance with the amounts of such Obligations then due to such parties.

          (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or participations in
LC Disbursements or Swingline Loans that would result in such Lender receiving payment of a greater
proportion of the aggregate amount of its Loans and participations in LC Disbursements and
Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face value) participations
in the Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of

41

 

and accrued interest on their respective Loans
and participations in LC Disbursements and Swingline Loans; provided, that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in LC Disbursements or Swingline
Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower
rights of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of the Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount or amounts due. In such event, if the Borrower has not in fact made such payment, then
each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

     Section 2.22. Letters of Credit.

          (a) During the Availability Period, the Issuing Bank, in reliance upon the agreements of the
other Lenders pursuant to Section 2.22(e), agrees to issue, at the request of the
Borrower, Letters of Credit for the account of the Borrower on the terms and conditions
hereinafter set forth; provided, that (i) each Letter of Credit shall expire on the earlier
of (A) the date one year after the date of issuance of such Letter of Credit (or in the case of any
renewal or extension thereof, one year after such renewal or extension) and (B) the date that is
five (5) Business Days prior to the Revolving Commitment Termination Date; (ii) each Letter of
Credit shall be in a stated amount of at least $500,000; and (iii) the Borrower may not request any
Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC Exposure would
exceed the LC Commitment or (B) the aggregate Revolving Credit Exposure of all Lenders would exceed
the Aggregate Revolving Commitment Amount. Each Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the Issuing Bank without recourse a participation in
each Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount available to be
drawn under such Letter of Credit on the date of issuance with respect to all other Letters of
Credit. Each issuance of a Letter of Credit shall be deemed to

42

 

utilize the Revolving Commitment of
each Lender by an amount equal to the amount of such participation.

          (b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of
an outstanding Letter of Credit), the Borrower shall give the Issuing Bank and the Administrative
Agent irrevocable written notice at least three (3) Business Days prior to the requested date of
such issuance specifying the date (which shall be a Business Day) such Letter of Credit is to be
issued (or amended, extended or renewed, as the case may be), the expiration date of such Letter of
Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and
such other information as shall be necessary to prepare, amend, renew or extend such Letter of
Credit. In addition to the satisfaction of the conditions in ARTICLE III, the issuance of
such Letter of Credit (or any amendment which increases the amount of such Letter of Credit) will
be subject to the further conditions that such Letter of Credit shall be in such form and contain
such terms as the Issuing Bank shall approve and that the Borrower shall have executed and
delivered any additional applications, agreements and instruments relating to such Letter of Credit
as the Issuing Bank shall reasonably require; provided, that in the event of any conflict
between such applications, agreements or instruments and this Agreement, the terms of this
Agreement shall control.

          (c) At least two Business Days prior to the issuance of any Letter of Credit, the Issuing Bank
will confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received such notice and if not, the Issuing Bank will provide the Administrative Agent
with a copy thereof. Unless the Issuing Bank has received notice from the Administrative Agent on
or before the Business Day immediately preceding the date the Issuing Bank is to issue the
requested Letter of Credit directing the Issuing Bank not to issue the Letter of Credit because
such issuance is not then permitted hereunder because of the limitations set forth in Section
3.2 or that one or more conditions specified in ARTICLE III are not then satisfied,
then, subject to the terms and conditions hereof, the Issuing Bank shall, on the requested date,
issue such Letter of Credit in accordance with the Issuing Bank’s usual and customary business
practices.

          (d) The Issuing Bank shall examine all documents purporting to represent a demand for payment
under a Letter of Credit promptly following its receipt thereof. The Issuing Bank shall notify the
Borrower and the Administrative Agent of such demand for payment and
whether the Issuing Bank has made or will make a LC Disbursement thereunder; provided,
that any failure to give or delay in giving such notice shall not relieve the Borrower of its
obligation to reimburse the Issuing Bank and the Lenders with respect to such LC Disbursement. The
Borrower shall be irrevocably and unconditionally obligated to reimburse the Issuing Bank for any
LC Disbursements paid by the Issuing Bank in respect of such drawing, without presentment, demand
or other formalities of any kind. Unless the Borrower shall have notified the Issuing Bank and the
Administrative Agent prior to 1:00 p.m. on the Business Day immediately prior to the date on which
such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of
such drawing in funds other than from the proceeds of Revolving Loans, the Borrower shall be deemed
to have timely given a Notice of Revolving Borrowing to the Administrative Agent requesting the
Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact
amount due to the Issuing Bank; provided, that for purposes solely of such Borrowing, the
conditions precedent set forth in

43

 

Section 3.2 hereof shall not be applicable. The
Administrative Agent shall notify the Lenders of such Borrowing in accordance with Section
2.3, and each Lender shall make the proceeds of its Base Rate Loan included in such Borrowing
available to the Administrative Agent for the account of the Issuing Bank in accordance with
Section 2.7. The proceeds of such Borrowing shall be applied directly by the
Administrative Agent to reimburse the Issuing Bank for such LC Disbursement.

          (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then
each Lender (other than the Issuing Bank) shall be obligated to fund the participation that such
Lender purchased pursuant to subsection (a) in an amount equal to its Pro Rata Share of such LC
Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each
Lender’s obligation to fund its participation shall be absolute and unconditional and shall not be
affected by any circumstance, including without limitation (i) any setoff, counterclaim,
recoupment, defense or other right that such Lender or any other Person may have against the
Issuing Bank or any other Person for any reason whatsoever, (ii) the existence of a Default or an
Event of Default or the termination of the Aggregate Revolving Commitments, (iii) any adverse
change in the condition (financial or otherwise) of the Borrower or any of its Subsidiaries, (iv)
any breach of this Agreement by the Borrower or any other Lender, (v) any amendment, renewal or
extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing. On the date that such participation is required to
be funded, each Lender shall promptly transfer, in immediately available funds, the amount of its
participation to the Administrative Agent for the account of the Issuing Bank. Whenever, at any
time after the Issuing Bank has received from any such Lender the funds for its participation in a
LC Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment
on account thereof, the Administrative Agent or the Issuing Bank, as the case may be, will
distribute to such Lender its Pro Rata Share of such payment; provided, that if such
payment is required to be returned for any reason to the Borrower or to a trustee, receiver,
liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will return to
the Administrative Agent or the Issuing Bank any portion thereof previously distributed by the
Administrative Agent or the Issuing Bank to it.

          (f) To the extent that any Lender shall fail to pay any amount required to be paid pursuant to
paragraph (d) or (e) of this Section on the due date therefor, such Lender shall
pay interest to the Issuing Bank (through the Administrative Agent) on such amount from such
due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate;
provided, that if such Lender shall fail to make such payment to the Issuing Bank within
three (3) Business Days of such due date, then, retroactively to the due date, such Lender shall be
obligated to pay interest on such amount at the rate set forth in Section 2.14(d).

          (g) If any Event of Default shall occur and be continuing, on the Business Day that the
Borrower receives notice from the Administrative Agent or the Required Lenders demanding that its
reimbursement obligations with respect to the Letters of Credit be Cash Collateralized pursuant to
this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name
of the Administrative Agent and for the benefit of the Issuing Bank and the Lenders, an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid fees thereon;
provided, that such obligation to Cash Collateralize the

44

 

reimbursement obligations of the
Borrower with respect to Letters of Credit shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or notice of any kind, upon the occurrence
of any Event of Default with respect to the Borrower described in clause (h) or (i)
of Section 8.1. Such deposit shall be held by the Administrative Agent as collateral for
the payment and performance of the obligations of the Borrower under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Borrower agrees to execute any documents and/or certificates to
effectuate the intent of this paragraph. Other than any interest earned on the investment of such
deposits, which investments shall be made at the option and sole discretion of the Administrative
Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest and
profits, if any, on such investments shall accumulate in such account. Moneys in such account
shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for
which it had not been reimbursed and to the extent so applied, shall be held for the satisfaction
of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated, with the consent of the Required Lenders, be applied to
satisfy other obligations of the Borrower under this Agreement and the other Loan Documents. If
the Borrower is required to Cash Collateralize the reimbursement obligations of the Borrower with
respect to Letters of Credit as a result of the occurrence of an Event of Default, such cash
collateral so posted (to the extent not so applied as aforesaid) shall be returned to the Borrower
within three Business Days after all Events of Default have been cured or waived.

          (h) Promptly following the end of each calendar quarter, the Issuing Bank shall deliver
(through the Administrative Agent) to each Lender and the Borrower a report describing the
aggregate Letters of Credit outstanding at the end of such calendar quarter. Upon the request of
any Lender from time to time, the Issuing Bank shall deliver to such Lender any other information
reasonably requested by such Lender with respect to each Letter of Credit then outstanding.

          (i) The Borrower’s obligation to reimburse LC Disbursements hereunder shall be absolute,
unconditional and irrevocable and shall be performed strictly in accordance with the terms of this
Agreement under all circumstances whatsoever and irrespective of any of the following
circumstances:

     (i) Any lack of validity or enforceability of any Letter of Credit or this Agreement;

     (ii) The existence of any claim, set-off, defense or other right which the Borrower or
any Subsidiary or Affiliate of the Borrower may have at any time against a beneficiary or
any transferee of any Letter of Credit (or any Persons or entities for whom any such
beneficiary or transferee may be acting), any Lender (including the Issuing Bank) or any
other Person, whether in connection with this Agreement or the Letter of Credit or any
document related hereto or thereto or any unrelated transaction;

     (iii) Any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect;

45

 

     (iv) Payment by the Issuing Bank under a Letter of Credit against presentation of a
draft or other document to the Issuing Bank that does not comply with the terms of such
Letter of Credit;

     (v) Any other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section 2.22, constitute a
legal or equitable discharge of, or provide a right of setoff against, the Borrower’s
obligations hereunder; or

     (vi) The existence of a Default or an Event of Default.

Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party of any of the
foregoing shall have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to above), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes
beyond the control of the Issuing Bank; provided, that the foregoing shall not be construed
to excuse the Issuing Bank from liability to the Borrower to the extent of any actual direct
damages (as opposed to special, indirect (including claims for lost profits or other consequential
damages), or punitive damages, claims in respect of which are hereby waived by the Borrower to the
extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
failure to exercise due care when determining whether drafts or other documents presented under a
Letter of Credit comply with the terms thereof. The parties hereto expressly agree, that in the
absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally
determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have
exercised due care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to documents presented that
appear on their face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such documents if such
documents are not in strict compliance with the terms of such Letter of Credit.

          (j) Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of
Credit is issued and subject to applicable laws, (i) each standby Letter of Credit shall be
governed by the “International Standby Practices 1998” (ISP98) (or such later revision as may be
published by the Institute of International Banking Law & Practice on any date any Letter of Credit
may be issued), (ii) each documentary Letter of Credit shall be governed by the Uniform Customs and
Practices for Documentary Credits (2007 Revision), International Chamber of Commerce Publication
No. 600 (or such later revision as may be published by the International Chamber of Commerce on any
date any Letter of Credit may be issued) and (iii) the Borrower shall specify the foregoing in each
letter of credit application submitted for the issuance of a Letter of Credit.

46

 

     Section 2.23.
Defaulting Lenders. (a) If any Lender becomes, and during the period it remains, a
Defaulting Lender or Potential Defaulting Lender, the following provisions shall apply,
notwithstanding anything to the contrary in this Agreement:

     (i) the LC Exposure and Swingline Exposure of such Defaulting Lender will, subject to
the limitation in the first proviso below, automatically be reallocated (effective on the
day such Lender becomes a Defaulting Lender) among the Non-Defaulting Lenders pro rata in
accordance with their respective Revolving Commitments; provided that (x) the sum of
each Non-Defaulting Lender’s total Revolving Credit Exposure may not in any event exceed the
Revolving Commitment of such Non-Defaulting Lender as in effect at the time of such
reallocation and (y) neither such reallocation nor any payment by a Non-Defaulting Lender
pursuant thereto will constitute a waiver or release of any claim the Borrower, the
Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender may have
against such Defaulting Lender or cause such Defaulting Lender to be a Non-Defaulting
Lender;

     (ii) to the extent that any portion (the “unreallocated portion”) of the LC Exposure
and Swingline Exposure of any Defaulting Lender cannot be so reallocated, for any reason, or
with respect to the LC Exposure and Swingline Exposure of any Potential Defaulting Lender,
the Borrower will, not later than two (2) Business Days after demand by the Administrative
Agent (at the direction of the Issuing Bank and/or the Swingline Lender), (A) Cash
Collateralize the obligations of the Borrower to the Issuing Bank or Swingline Lender in
respect of such LC Exposure or Swingline Exposure, as the case may be, in an amount at least
equal to the aggregate amount of the unreallocated portion of the LC Exposure and Swingline
Exposure of such Defaulting Lender or such Potential Defaulting Lender, or (B) in the case
of such Swingline Exposure, prepay and/or Cash Collateralize in full the unreallocated
portion thereof, or (C) make other arrangements satisfactory to the Administrative Agent,
the Issuing Bank and the Swingline Lender in their sole discretion to protect them against
the risk of non-payment by such Defaulting Lender or Potential Defaulting Lender;
provided that (x) the sum of each Non-Defaulting Lender’s Revolving Credit Exposure
may not in any event exceed the Revolving Commitment of such Non-Defaulting Lender, and (y) neither any such reallocation nor any
payment by a Non-Defaulting Lender pursuant thereto nor any such Cash Collateralization or
reduction will constitute a waiver or release of any claim the Borrower, the Administrative
Agent, the Issuing Bank, the Swingline Lender or any other Lender may have against such
Defaulting Lender or Potential Defaulting Lender, or cause such Defaulting Lender or
Potential Defaulting Lender to be a Non-Defaulting Lender; and

     (iii) except as otherwise provided herein, any amount paid by the Borrower for the
account of a Defaulting Lender under this Agreement (whether on account of principal,
interest, fees, indemnity payments or other amounts) will be retained by the Administrative
Agent in a segregated non-interest bearing account until the termination of the Revolving
Commitments at which time the funds in such account will be applied by the Administrative
Agent, to the fullest extent permitted by law, in the following order of priority:
first, to the payment of any amounts owing by such Defaulting Lender to the
Administrative Agent under this Agreement, second, to the payment on a pro rata
basis of

47

 

any amounts owing by such Defaulting Lender to the Issuing Bank or the Swingline
Lender under this Agreement, third, if so determined by the Administrative Agent or
requested by the Issuing Bank or Swingline Lender, to be held as cash collateral for future
funding obligations of such Defaulting Lender in respect of any participation in any
Swingline Loan or Letter of Credit, fourth, to the payment of any amounts owing to
the Lenders, the Issuing Bank or Swingline Lender as a result of any judgment of a court of
competent jurisdiction obtained by any Lender, the Issuing Bank or Swingline Lenders against
that Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations
under this Agreement, fifth, so long as no Default exists, to the payment of any
amounts owing to the Borrower as a result of any judgment of a court of competent
jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement, and sixth, to
pay amounts owing under this Agreement to such Defaulting Lender or as a court of competent
jurisdiction may otherwise direct. Any payments, prepayments or other amounts paid or
payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a
Defaulting Lender or to post cash collateral pursuant to this clause (iii) shall be
deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably
consents hereto.

          (b) If the Borrower, the Administrative Agent, the Issuing Bank and the Swingline Lender agree
in writing that any Defaulting Lender should no longer be deemed to be a Defaulting Lender or a
Potential Defaulting Lender should no longer be deemed to be a Potential Defaulting Lender, as the
case may be, the Administrative Agent will so notify the parties hereto, whereupon as of the
effective date specified in such notice and subject to any conditions set forth therein, the LC
Exposure and the Swingline Exposure of the other Lenders shall be readjusted to reflect the
inclusion of such Lender’s Revolving Commitment, and such Lender will purchase at par such portion
of outstanding Revolving Loans of the other Lenders and/or make such other adjustments as the
Administrative Agent may determine to be necessary to cause the Revolving Credit Exposure of the
Lenders to be on a pro rata basis in accordance with their respective Revolving Commitments,
whereupon such Lender will cease to be a
Defaulting Lender or Potential Defaulting Lender and will be a Non-Defaulting Lender (and such
Revolving Credit Exposure of each Lender will automatically be adjusted on a prospective basis to
reflect the foregoing), and if any cash collateral has been posted with respect to such Defaulting
Lender or Potential Defaulting Lender, the Administrative Agent will promptly return such cash
collateral to the Borrower; provided that no adjustments will be made retroactively with
respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was a
Defaulting Lender; and provided, further, that except to the extent otherwise
expressly agreed by the affected parties, no change hereunder from Defaulting Lender or Potential
Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any
party hereunder.

     Section 2.24. Mitigation of Obligations. If any Lender requests compensation under Section
2.18, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.20, then such
Lender shall use reasonable efforts to designate a different lending office for funding or booking
its Loans hereunder or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the sole judgment of such Lender, such designation or assignment (i)

48

 

would eliminate or reduce amounts payable under Section 2.18 or Section 2.20, as
the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to
pay all costs and expenses incurred by any Lender in connection with such designation or
assignment.

     Section 2.25. Replacement of Lenders. If (a) any Lender requests compensation under Section
2.18, (b) the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.20, (c) any
Lender is a Defaulting Lender, or (d) in connection with any proposed amendment, waiver, or
consent, the consent of all of the Lenders, or all of the Lenders directly and adversely affected
thereby, is required pursuant to Section 10.2, and any such Lender refuses to consent to
such amendment, waiver or consent as to which the Required Lenders have consented, then, in each
case, the Borrower may, at its sole expense and effort (but without prejudice to any rights or
remedies the Borrower may have against such Defaulting Lender), upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions set forth in Section 10.4(b)) all its interests,
rights and obligations under this Agreement to an assignee that shall assume such obligations
(which assignee may be another Lender but excluding any Defaulting Lender); provided, that (i) the
Borrower shall have received the prior written consent of the Administrative Agent, which consent
shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal
to the outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (in the case of such outstanding
principal and accrued interest) and from the Borrower (in the case of all other amounts) and (iii)
in the case of a claim for compensation under Section 2.18 or payments required to be made
pursuant to Section 2.20, such assignment will result in a reduction in such compensation
or payments.

ARTICLE III

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

     Section 3.1. Conditions To Effectiveness. The obligations of the Lenders (including the Swingline
Lender) to make the initial Loans and the obligation of the Issuing Bank to issue any initial
Letters of Credit hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 10.2).

          (a) The Administrative Agent shall have received payment of all fees, expenses and other
amounts due and payable on or prior to the Closing Date, including reimbursement or payment of all
out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel to the
Administrative Agent) required to be reimbursed or paid by the Borrower hereunder, under any other
Loan Document and under any agreement with the Administrative Agent or the Arrangers (including the
Fee Letters).

          (b) The Administrative Agent (or its counsel) shall have received the following, each to be in
form and substance satisfactory to the Lenders:

49

 

     (i) a counterpart of this Agreement signed by or on behalf of each party hereto or
written evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement;

     (ii) if requested by a Lender, duly executed Revolving Credit Notes and Term Notes
payable to such Lender and the Swingline Note payable to the Swingline Lender;

     (iii) (A) the Guaranty and Pledge Agreement duly executed by the Borrower and each
Subsidiary that is a Domestic Subsidiary (other than PJ&Co) and (B) each Foreign Collateral
Document duly executed by the Borrower;

     (iv) evidence that all filings and recordations that are necessary to perfect the
security interests of the Administrative Agent, on behalf of the Lenders, in the Collateral
and the Administrative Agent shall have received evidence reasonably satisfactory to the
Administrative Agent that upon such filings and recordations such security interests
constitute valid and perfected first priority Liens thereon;

     (v) (A) original stock certificates or other certificates evidencing the Capital Stock
pledged pursuant to the Guaranty and Pledge Agreement and any Foreign Collateral Document,
together with an undated stock power for each such certificate duly executed in blank by the
registered owner thereof and (B) each original promissory note pledged pursuant to the
Guaranty and Pledge Agreement together with an undated endorsement for each such promissory
note duly executed in blank by the holder thereof;

     (vi) results of a Lien search (including a search as to judgments, pending litigation
and tax), in form and substance reasonably satisfactory thereto, made against
the Loan Parties under the Uniform Commercial Code (or applicable judicial docket) as
in effect in each jurisdiction in which filings or recordations under the Uniform Commercial
Code should be made to evidence or perfect security interests in all assets of such Loan
Party, indicating among other things that the assets of each such Loan Party are free and
clear of any Lien (except for Permitted Liens);

     (vii) a pay-off letter with respect to the repayment in full of all Variable Rate
Senior Notes due December 31, 2010 issued by the Borrower;

     (viii) a certificate of the Secretary or Assistant Secretary of each Loan Party in
the form of Exhibit 3.1(b)(viii), attaching and certifying copies of its bylaws and
of the resolutions of its board of directors, or partnership agreement or limited liability
company agreement, or comparable organizational documents and resolutions, authorizing the
execution, delivery and performance of the Loan Documents to which it is a party and
certifying the name, title and true signature of each officer of such Loan Party executing
the Loan Documents to which it is a party;

     (ix) certified copies of the articles or certificate of incorporation, certificate of
organization or limited partnership, or other registered organizational documents of each
Loan Party, together with certificates of good standing or existence, as may be available
from the Secretary of State of the jurisdiction of organization of such Loan Party and

50

 

each
other jurisdiction where such Loan Party is required to be qualified to do business as a
foreign entity;

     (x) (A) a favorable written opinion of Faegre & Benson LLP, counsel to the Loan
Parties, addressed to the Administrative Agent and each of the Lenders, and covering such
matters relating to the Loan Parties, the Loan Documents (including the UK Collateral
Documents) and the transactions contemplated therein as the Administrative Agent or the
Required Lenders shall reasonably request and (B) a favorable written opinion of Deacons,
counsel to the Secured Parties, addressed to the Administrative Agent and each of the
Lenders, and covering such matters relating to the Borrower, the Hong Kong Collateral
Documents and the transactions contemplated therein as the Administrative Agent or the
Required Lenders shall reasonably request;

     (xi) a certificate in the form of Exhibit 3.1(b)(xi), dated the Closing Date
and signed by a Responsible Officer, certifying that, after giving effect to the funding of
any initial Loan or initial issuance of a Letter of Credit (x) no Default or Event of
Default exists, (y) all representations and warranties of each Loan Party set forth in the
Loan Documents are true and correct and (z) since the date of the financial statements of
the Borrower described in Section 4.4, there shall have been no change which has had
or could reasonably be expected to have a Material Adverse Effect;

     (xii) certificates of insurance issued on behalf of insurers of the Borrower and its
Subsidiaries, describing in reasonable detail the types and amounts of insurance (property
and liability) maintained by the Borrower and its Subsidiaries;

     (xiii) a duly executed Notice of Borrowing;

     (xiv) a duly executed funds disbursement agreement, together with a report setting
forth the sources and uses of the proceeds hereof;

     (xv) certified copies of all consents, approvals, authorizations, registrations and
filings and orders required or advisable to be made or obtained under any Requirement of
Law, or by any Contractual Obligation of each Loan Party, in connection with the execution,
delivery, performance, validity and enforceability of the Loan Documents or any of the
transactions contemplated thereby, and such consents, approvals, authorizations,
registrations, filings and orders shall be in full force and effect and all applicable
waiting periods shall have expired, and no investigation or inquiry by any Governmental
Authority regarding this Agreement or any transaction being financed with the proceeds
hereof shall be ongoing;

     (xvi) copies of (A) the internally prepared quarterly financial statements of Borrower
and its Subsidiaries on a consolidated basis for the Fiscal Quarter ending on September 30,
2010, (B) the audited consolidated financial statements for Borrower and its Subsidiaries
for the Fiscal Year ending December 31, 2009 and (C) projections prepared by management of
the Borrower, of balance sheets, income statements and cash flow statements on an annual
basis for each year following the Closing Date through December 31, 2013;

51

 

     (xvii) evidence that PJ&Co shall have received all regulatory approvals necessary to
permit the payment of one or more cash dividends to the Borrower in an amount not less than
$50,000,000 in the aggregate (collectively, the “Dividend”) and PJ&Co shall have
paid the full amount of the Dividend to the Borrower without condition as to such regulatory
approval (or all such conditions shall have been satisfied) and the proceeds of the Dividend
shall have been used by the Borrower in accordance with Section 5.10;

     (xviii) the Deposit Account Control Agreement duly executed by each of the parties
thereto, together with evidence that the Borrower shall have deposited into the Deposit
Account any portion of the Dividend which shall not have been invested by the Borrower
pursuant to Section 7.4(g);

     (xix) certified copies of all agreements, indentures or notes governing the terms of
any Material Indebtedness;

     (xx) confirmation that except as set forth on Schedule 4.5(a), no litigation,
investigation or proceeding of or before any arbitrators or Governmental Authorities is
pending against or, to the knowledge of any of the Borrower, threatened against the Borrower
or any of its Subsidiaries that could reasonably be expected to have a Material Adverse
Effect;

     (xxi) the Borrower and each Guarantor shall have provided to the Administrative Agent
and the Lenders the documentation and other information requested by the Administrative
Agent in order to comply with requirements of the USA Patriot Act, as amended; and

     (xxii) such other documents, certificates and instruments reasonably requested by the
Administrative Agent.

Without limiting the generality of the provisions of Section 3.1, for purposes of
determining compliance with the conditions specified in this Section 3.1, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required hereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

     Section 3.2. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of
any Borrowing and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit is
subject to the satisfaction of the following conditions:

          (a) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of
Default shall exist;

          (b) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, all representations and
warranties of each Loan Party set forth in the Loan Documents shall be true

52

 

and correct on and as
of the date of such Borrowing or the date of issuance, amendment, extension or renewal of such
Letter of Credit, in each case before and after giving effect thereto except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct on and as of such earlier date;

          (c) since the date of the financial statements of the Borrower described in Section
4.4, there shall have been no change which has had or could reasonably be expected to have a
Material Adverse Effect; and

          (d) the Borrower shall have delivered the required Notice of Borrowing.

In addition to other conditions precedent herein set forth, if any Lender is a Defaulting Lender or
a Potential Defaulting Lender at the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, the
Issuing Bank will not be required to issue, amend or increase any Letter of Credit and the
Swingline Lender will not be required to make any Swingline Loans, unless in each case it is
satisfied that all related LC Exposure and Swingline Exposure of such Defaulting Lender or
Potential Defaulting Lender is fully covered or eliminated by any combination satisfactory to the
Issuing Bank or the Swingline Lender, as the case may be, of the following:

     (i) in the case of a Defaulting Lender, the LC Exposure and Swingline Exposure of such
Defaulting Lender is reallocated, as to outstanding and future Letters of Credit and
Swingline Exposure, to the Non-Defaulting Lenders as provided in Section 2.23(a)(i);
and

     (ii) in the case of a Defaulting Lender or a Potential Defaulting Lender, without
limiting the provisions of Section 2.23(a)(ii), the Borrower Cash Collateralizes its
payment and reimbursement obligations with respect to such Letter of Credit or Swingline
Loan in an amount at least equal to the aggregate amount of the unreallocated obligations
(contingent or otherwise) of such Defaulting Lender or Potential Defaulting Lender in
respect of such Letter of Credit or Swingline Loan, or the Borrower makes other arrangements
satisfactory to the Administrative Agent, the Issuing Bank and the Swingline Lender, as the
case may be, to protect them against the risk of non-payment by such Defaulting Lender or
Potential Defaulting Lender;

provided that (a) the sum of each Non-Defaulting Lender’s Revolving Credit Exposure may not
in any event exceed the Revolving Commitment of such Non-Defaulting Lender, and (b) neither any
such reallocation nor any payment by a Non-Defaulting Lender pursuant thereto nor any such Cash
Collateralization or reduction will constitute a waiver or release of any claim the Borrower, the
Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender may have against
such Defaulting Lender or Potential Defaulting Lender, or cause such Defaulting Lender or Potential
Defaulting Lender to be a Non-Defaulting Lender.

          Each Borrowing and each issuance, amendment, extension or renewal of any Letter of Credit
shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as
to the matters specified in paragraphs (a), (b) and (c) of this Section
3.2.

53

 

     Section 3.3. Delivery of Documents. All of the Loan Documents, certificates, legal opinions and
other documents and papers referred to in this ARTICLE III, unless otherwise specified,
shall be delivered to the Administrative Agent for the account of each of the Lenders and, except
for the Notes, in sufficient counterparts or copies for each of the Lenders and shall be in form
and substance satisfactory in all respects to the Administrative Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Administrative Agent and each Lender as follows:

     Section 4.1. Existence; Power. The Borrower and each of its Subsidiaries (i) is duly organized,
validly existing and in good standing as a corporation, partnership or limited liability company
under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority
to carry on its business as now conducted, and (iii) is duly qualified to do business, and is in
good standing, in each jurisdiction where such qualification is required, except, in the case of
either of clause (ii) or (iii), where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

     Section 4.2. Organizational Power; Authorization. The execution, delivery and performance by each
Loan Party of the Loan Documents to which it is a party are within such Loan Party’s organizational
powers and have been duly authorized by all necessary organizational, and if required, shareholder,
partner or member, action. This Agreement has been duly executed and delivered by the Borrower,
and constitutes, and each other Loan Document to which any Loan Party is a party, when executed and
delivered by such Loan Party, will constitute, valid and binding obligations of the Borrower or
such Loan Party (as the case may be), enforceable against it in accordance with their respective
terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity.

     Section 4.3. Governmental Approvals; No Conflicts. The execution, delivery and performance by the
Borrower of this Agreement, and by each Loan Party of the other Loan Documents to which it is a
party (a) do not require the Borrower or any other Loan Party to obtain any consent or approval of,
to make any registration or filing with, or require any action by, any Governmental Authority,
except those as have been obtained or made and are in full force and effect, (b) will not violate
any Requirements of Law applicable to the Borrower or any of its Subsidiaries or any judgment,
order or ruling of any Governmental Authority, (c) will not violate or result in a breach or
default under any Material Contract or give rise to a right thereunder to require any payment to be
made by the Borrower or any of its Subsidiaries and (d) will not result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens (if
any) created under the Loan Documents.

     Section 4.4. Financial Statements. The Borrower has furnished to each Lender (i) the audited
consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2009 and the
related consolidated statements of income, shareholders’ equity and cash flows for the

54

 

Fiscal Year
then ended prepared by Ernst & Young LLP and (ii) the unaudited consolidated balance sheet of the
Borrower and its Subsidiaries as of September 30, 2010, and the related unaudited consolidated
statements of income and cash flows for the Fiscal Quarter and year-to-date period then ending,
certified by a Responsible Officer. Such financial statements fairly present the consolidated
financial condition of the Borrower and its Subsidiaries as of such dates and the consolidated
results of operations for such periods in conformity with GAAP consistently applied, subject to
year end audit adjustments and the absence of footnotes in the case of the statements referred to
in clause (ii). Since December 31, 2009, there have been no changes with respect to the
Borrower and its Subsidiaries which have had or could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

     Section 4.5. Litigation and Environmental Matters.

          (a) Except as set forth on Schedule 4.5(a), no litigation, investigation or proceeding
of or before any arbitrators or Governmental Authorities is pending against or, to the
knowledge of the Borrower, threatened against or affecting the Borrower or any of its
Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination that
could reasonably be expected to have, either individually or in the aggregate, a Material Adverse
Effect or (ii) which in any manner draws into question the validity or enforceability of this
Agreement or any other Loan Document.

          (b) Except for the matters set forth on Schedule 4.5(b), neither the Borrower nor any
of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or
comply with any permit, license or other approval required under any Environmental Law, (ii) has
become subject to any Environmental Liability, (iii) has received notice of any claim with respect
to any Environmental Liability or (iv) knows of any basis for any Environmental Liability, except,
in each case, as could not be reasonably expected to result in a Material Adverse Effect.

     Section 4.6. Compliance with Laws and Agreements. The Borrower and each Subsidiary is in
compliance with (a) all Requirements of Law and all applicable laws, statutes, and rules,
regulations, judgments, decrees and orders of any Governmental Authority,
Self-Regulatory Organization or securities exchange having jurisdiction over the conduct of
their respective businesses or the ownership of their respective properties (including, without
limitation, the Exchange Act, the Investment Advisers Act, the Investment Company Act and the
applicable rules and regulations of the Commission, FINRA, MSRB, the U.K. Financial Services
Authority and the Hong Kong Securities and Futures Commission) and (b) all Material Contracts,
except in the case of clauses (a) and (b), where non-compliance, either singly or
in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

     Section 4.7. Government Regulation. Neither the Borrower nor any of its Subsidiaries is subject to
regulation under the Investment Company Act of 1940 or under any other federal or state statute or
regulation which would reasonably be expected to limit its ability to incur the Obligations or
which may otherwise render all or any portion of the Obligations unenforceable. Each of the
Borrower and each of its Subsidiaries possesses all Licenses, registrations and authorizations from
and with any Government Authority, Self-Regulatory Organization or securities exchange, necessary
or material to the conduct of its business as now

55

 

or presently proposed to be conducted, including,
without limitation, all necessary Licenses, registrations and authorizations from and with the U.K.
Financial Services Authority and the Hong Kong Securities and Futures Commission. PJ&Co is (a)
duly registered with the Commission as a broker-dealer under the Exchange Act, (b) a member in good
standing of the FINRA, (c) not in arrears in regard to any assessment made upon it by the SIPC and
(d) has received no notice from the Commission, FINRA, MSRB or any other Government Authority,
Self-Regulatory Organization or securities exchange of any alleged rule violation or other
circumstance which could reasonably be expected to have a Material Adverse Effect.

     Section 4.8.  Taxes. The Borrower and its Subsidiaries and each other Person for whose taxes the Borrower or any
Subsidiary could become liable have timely filed or caused to be filed all Federal income tax
returns and all other material tax returns that are required to be filed by them, and have paid all
taxes shown to be due and payable on such returns or on any assessments made against it or its
property and all other taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority, except where the same are currently being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as the case may be, has set
aside on its books adequate reserves in accordance with GAAP. The charges, accruals and reserves
on the books of the Borrower and its Subsidiaries in respect of such taxes are adequate, and no tax
liabilities that could be materially in excess of the amount so provided are anticipated.

     Section 4.9. Margin Regulations. None of the proceeds of any of the Loans or Letters of Credit
will be used, directly or indirectly, for “purchasing” or “carrying” any “margin stock” with the
respective meanings of each of such terms under Regulation U or for any purpose that violates the
provisions of the Regulation T, U or X. Following the application of the proceeds of any Loan,
less than 25% of the value of the assets of the Borrower and its Subsidiaries which are subject to
any limitation on sale, pledge or other restriction hereunder taken as a whole have been, and will
continue to be, represented by “margin stock” (as defined in Regulation U).

     Section 4.10. ERISA.  (a) No ERISA Event has occurred or is reasonably expected to occur that, when
taken together with all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The “benefit
obligations” of all Plans did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the “fair market value of the assets” of such Plans by more than
$5,000,000. No event has occurred since the issuance of such financial statements that would cause
the “benefit obligations” of all Plans to exceed the “fair market value of the assets” of such
Plans by the dollar amount specified in the previous sentence. The terms “benefit obligations” and
“fair market value of assets” shall be determined by and with such terms defined in accordance with
Statement of Financial Accounting Standards No. 158.

          (b) Each Employee Benefit Plan is in compliance in all material respects with the applicable
provisions of ERISA, the Code and other Requirements of Law, except for any failure under any
Employee Benefit Plan for which a voluntary correction is eligible for submission to the
appropriate Governmental Authority under a pre-approved correction program made available for such
purpose by a Governmental Authority and the total cost of fully implementing such correction is not
expected to exceed $125,000 (including any fees and preparation expenses). Except with respect to
Multiemployer Plans, each Qualified Plan (I) has

56

 

received a favorable determination from the IRS
applicable to the Qualified Plan’s current remedial amendment cycle (as described in Revenue
Procedure 2007-44 or “2007-44” for short), (II) has timely filed for a favorable determination
letter from the IRS during its staggered remedial amendment cycle (as defined in 2007-44) and such
application is currently being processed by the IRS, (III) has filed for a determination letter
prior to its “GUST remedial
amendment period” (as defined in 2007-44) and received such determination letter and the
staggered remedial amendment cycle first following the GUST remedial amendment period for such
Qualified Plan has not yet expired or (IV) is maintained under a prototype or volume submitter plan
and may rely upon a favorable opinion or letter issued by the IRS with respect to such prototype or
volume submitter plan. No event has occurred which would cause the loss of the Borrower’s or any
ERISA Affiliate’s reliance on the Qualified Plan’s favorable determination letter or opinion or
advisory letter.

          (c) With respect to any Employee Benefit Plan that is a retiree welfare benefit arrangement,
all amounts have been accrued on the Borrower’s financial statements in accordance with Statement
of Financial Accounting Standards No. 106.

          (d) Except as would not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect: (i) there are no pending or to the best of the Borrower’s knowledge,
threatened claims, actions or lawsuits or action by any Governmental Authority, participant or
beneficiary with respect to a Employee Benefit Plan; (ii) there are no violations of the fiduciary
responsibility rules under Part 4 of Title I of ERISA with respect to any Employee Benefit Plan;
and (iii) neither the Borrower nor ERISA Affiliate has engaged in a non-exempt “prohibited
transaction,” as defined in Section 406 of ERISA and Section 4975 of the Code, in connection with
any Employee Benefit Plan, that would subject the Borrower to a tax or penalty on prohibited
transactions imposed by Section 502(i) of ERISA or Section 4975 of the Code.

     Section 4.11. Ownership of Property.

          (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests
in, all of its real and personal property material to the operation of its business, including all
such properties reflected in the most recent audited consolidated balance sheet of the Borrower
referred to in Section 4.4 or purported to have been acquired by the Borrower or any
Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this Agreement. All leases that
individually or in the aggregate are material to the business or operations of the Borrower and its
Subsidiaries are valid and subsisting and are in full force.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise has the
right, to use, all patents, trademarks, service marks, trade names, copyrights and other
intellectual property material to its business, and the use thereof by the Borrower and its
Subsidiaries does not infringe in any material respect on the rights of any other Person known to
the Borrower or such Subsidiary.

          (c) The properties of the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies which are not Affiliates of the Borrower, in

57

 

such amounts with such
deductibles and covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Borrower or any applicable
Subsidiary operates.

     Section 4.12. Disclosure.The Borrower has disclosed to the Lenders all agreements, instruments, and corporate or other
restrictions to which the Borrower or any of its Subsidiaries is subject, and all other matters
known to any of them, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. Neither the Information Memorandum nor any of the reports
(including without limitation all reports that the Borrower is required to file with the
Commission), financial statements, certificates or other information furnished by or on behalf of
the Borrower to the Administrative Agent or any Lender in connection with the negotiation or
syndication of this Agreement or any other Loan Document or delivered hereunder or thereunder (as
modified or supplemented by any other information so furnished) contains any material misstatement
of fact or omits to state any material fact necessary to make the statements therein, taken as a
whole, in light of the circumstances under which they were made, not misleading.

     Section 4.13. Labor Relations. There are no material labor disputes or grievances against the
Borrower or any of its Subsidiaries, or, to the Borrower’s knowledge, threatened against or
affecting the Borrower or any of its Subsidiaries, and no significant unfair labor practice,
charges or grievances are pending against the Borrower or any of its Subsidiaries, or to the
Borrower’s knowledge, threatened against any of them before any Governmental Authority. All
payments due from the Borrower or any of its Subsidiaries pursuant to the provisions of any
collective bargaining agreement, if any, have been paid or accrued as a liability on the books of
the Borrower or any such Subsidiary, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

     Section 4.14. Subsidiaries. Schedule 4.14 sets forth the name of, the ownership interest of
the Borrower in, the jurisdiction of incorporation or organization of, and the type of, each
Subsidiary and identifies each Subsidiary that is a Subsidiary Loan Party, in each case as of the
Closing Date.

     Section 4.15. Solvency. After giving effect to the execution and delivery of the Loan Documents and
the making of the Loans under this Agreement, neither the Borrower nor its Subsidiaries will be
“insolvent,” within the meaning of such term as defined in § 101 of Title 11 of the United States
Code, as amended from time to time, or be unable to pay its debts generally as such debts become
due, or have an unreasonably small capital to engage in any business or transaction, whether
current or contemplated.

     Section 4.16. OFAC. No Loan Party (i) is a person whose property or interest in property is blocked
or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001
Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any dealings or transactions
prohibited by Section 2 of such executive order, or is otherwise associated with any such person in
any manner violative of Section 2, or (iii) is a person on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or

58

 

prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive
order.

     Section 4.17. Patriot Act. Each Loan Party is in compliance, in all material respects, with (i) the
Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto, and (ii) the Uniting And Strengthening
America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot
Act of 2001). No part of the proceeds of any Loan, and no Letters of Credit, will be used,
directly or indirectly, for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

     Section 4.18.
Security Documents. (a) The Guaranty and Pledge Agreement and the Foreign Collateral
Documents, upon execution and delivery thereof by the parties thereto, will create in favor of the
Administrative Agent, for the ratable benefit of the Lenders, a legal, valid and enforceable
security interest in the Collateral and the proceeds thereof in which a security interest may be
created under the Uniform Commercial Code as in effect from time to time, and the Lien created
under the Guaranty and Security Agreement and the Foreign Collateral Documents is (or will be, upon
the filing of appropriate financing statements with appropriate offices, the execution of
appropriate control agreements and the delivery of certificated securities and instruments to the
Administrative Agent, together with stock powers duly executed in blank) a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties in such Collateral, in
each case prior and superior in right to any other Person, other than in the case of Collateral
which is not Pledged Collateral (as such term is defined in the Guaranty and Security Agreement)
represented by certificates or evidenced by a Pledged Debt Instrument (as such term is defined in
the Guaranty and Security Agreement) with respect to Permitted Liens specified in clauses
(b) (solely to the extent that such Permitted Encumbrances are prior as a matter of law),
(c), (d), (e) and (i) (in the case of any extension of any
Permitted Lien specified in clause (d) of Section 7.2) of Section 7.2.

          (b) The Guaranty and Pledge Agreement and the Foreign Collateral Documents, upon execution and
delivery thereof by the parties thereto, will create in favor of the Administrative Agent, for the
ratable benefit of the Lenders, a legal, valid and enforceable security interest in the Pledged
Collateral (as defined in the Guaranty and Pledge Agreement) and the proceeds thereof, and, when
such Pledged Collateral (to the extent represented by certificates or evidenced by a Pledged Debt
Instrument) is delivered to the Administrative Agent, together with stock powers or allonges duly
executed in blank, the Guaranty and Pledge Agreement and the Foreign Collateral Documents shall
constitute a fully perfected Lien on, and security interest in, all right, title and interest of
the pledgor thereunder in such Pledged Collateral, in each case prior and superior in right to any
other Person (other than with respect to
Pledged Collateral which constitutes uncertificated securities, Permitted Encumbrances
described in clause (i) of the definition thereof).

59

 

     Section 4.19. Material Contracts. Attached hereto as Schedule 4.19 is a correct and
complete list, as of the date of this Agreement, of each Material Contract. Neither the Borrower,
nor any Subsidiary, nor, to the knowledge of the Borrower, any other party thereto is in material
default under any Material Contract.

     Section 4.20. The Foundation. The Foundation is a Minnesota non-profit corporation qualified under
Section 501(c)(3) of the Code.

ARTICLE V

AFFIRMATIVE COVENANTS

          The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains unpaid or outstanding:

     Section 5.1. Financial Statements and Other Information. The Borrower will deliver to the
Administrative Agent and each Lender:

          (a) as soon as available and in any event within 90 days after the end of each Fiscal Year of
Borrower, a copy of the annual audited report for such Fiscal Year for the Borrower and its
Subsidiaries, containing a consolidated balance sheet of the Borrower and its Subsidiaries as of
the end of such Fiscal Year and the related consolidated statements of income, stockholders’ equity
and cash flows (together with all footnotes thereto) of the Borrower and its Subsidiaries for such
Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal
Year, all in reasonable detail and reported on by Ernst & Young LLP or other independent public
accountants of nationally recognized standing (without a “going concern” or like qualification,
exception or explanation and without any qualification or exception as to scope of such audit) to
the effect that such financial statements present fairly in all material respects the financial
condition and the results of operations of the Borrower and its Subsidiaries for such Fiscal Year
on a consolidated basis in accordance with GAAP and that the examination by such accountants in
connection with such consolidated financial statements has been made in accordance with generally
accepted auditing standards;

          (b) as soon as available and in any event within 45 days after the end of each Fiscal Quarter
of the Borrower (other than the last Fiscal Quarter of each Fiscal Year), an unaudited consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter and the
related unaudited consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for such Fiscal Quarter and the then elapsed portion of such Fiscal Year, setting
forth in each case in comparative form the figures for the corresponding quarter and the
corresponding portion of Borrower’s previous Fiscal Year;

          (c) concurrently with the delivery of the financial statements referred to in clauses
(a) and (b) above, a Compliance Certificate signed by a Responsible Officer of the
Borrower, (i) certifying as to whether there exists a Default or Event of Default on the date of
such certificate, and if a Default or an Event of Default then exists, specifying the details
thereof and the action which the Borrower has taken or proposes to take with respect thereto, (ii)
setting forth in reasonable detail calculations demonstrating compliance with the financial
covenants set

60

 

forth in ARTICLE VI (including (I) for purposes of Section 6.4, a
listing of the perecentage of Long Inventory of the Borrower and its Subsidiaries in each rating
category assigned by each rating agency and (II) for purposes of Section 6.5, reasonably
detailed information relating to the deductions from revenue for such period attributable to the
“asset management” segment in determining operating income for such segment for such period), and
(iii) stating whether any change in GAAP or the application thereof has occurred since the date of
the Borrower’s audited financial statements referred to in Section 4.4 and, if any change
has occurred, specifying the effect of such change on the financial statements accompanying such
certificate; provided, however, that no action shall be required by the Borrower
under this clause (iii) to the extent any such change in GAAP or the application thereof
does not affect or apply to the Borrower and its Subsidiaries, including the presentation by the
Borrower of its financial statements;

          (d) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed with the Commission, or any Governmental
Authority succeeding to any or all functions of the Commission, or with any national securities
exchange, or distributed by the Borrower to its shareholders generally, as the case may be;

          (e) as soon as practicable and in any event within 15 days after the delivery of the financial
statements referred to in clause (a) above, a business plan of the Borrower and its
Subsidiaries for the ensuing four (4) Fiscal Quarters, such plan to be prepared in accordance with
GAAP and to include, on an annual basis, the following: (i) a quarterly operating and capital
budget, (ii) a projected income statement, (iii) a statement of cash flows and balance sheet, and
(iv) calculations demonstrating projected compliance with the financial covenants set forth in
ARTICLE VI, accompanied by a certificate of the Borrower signed by a Responsible Officer of
the Borrower to the effect that such projections are good faith estimates (utilizing reasonable
assumptions) of the financial condition and operations of the Borrower and its Subsidiaries for
such period;

          (f) together with each delivery of a Compliance Certificate pursuant to clause (c)
above, an updated list (containing information comparable to that required to be set forth on
Schedule 4.14 with respect to the Subsidiaries of the Borrower as of the Closing Date) of
all Subsidiaries of the Borrower;

          (g) as soon as practicable and in any event within 30 days after the end of each Fiscal
Quarter, the FOCUS Report for such Fiscal Quarter filed by PJ&Co with the Commission; and

          (h) promptly following any request therefor, such other information regarding the results of
operations, business affairs and financial condition of the Borrower or any
Subsidiary and/or the Long Inventory of the Borrower and its Subsidiaries as the
Administrative Agent or any Lender may reasonably request.

          In the event that any financial statement delivered pursuant to clause (a) or
(b) immediately above or any Compliance Certificate is shown to be inaccurate (regardless
of whether this Agreement or any Commitment is in effect when such inaccuracy is discovered), and
such inaccuracy, if corrected, would have led to the application of a higher Applicable

61

 

Margin for
any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable
Period, then (i) the Borrower shall immediately deliver to the Administrative Agent a corrected
Compliance Certificate for such Applicable Period, (ii) the Applicable Margin for such Applicable
Period shall be determined in accordance with the corrected Compliance Certificate, and (iii) the
Borrower shall immediately pay to the Administrative Agent the accrued additional interest owing as
a result of such increased Applicable Margin for such Applicable Period, which payment shall be
promptly applied by the Administrative Agent to the Obligations. This Section 5.1 shall
not limit the rights of the Administrative Agent or the Lenders with respect to Section
2.13(c) and ARTICLE VIII.

     Section 5.2. Notices of Material Events. The Borrower will furnish to the Administrative Agent and
each Lender prompt (and, in any event, not later than 5 Business Days after a Responsible Officer
becomes aware thereof) written notice of the following:

          (a) the occurrence of any Default or Event of Default;

          (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or, to the knowledge of the Borrower, affecting the Borrower or
any Subsidiary which, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

          (c) the occurrence of any event or any other development by which the Borrower or any of its
Subsidiaries (i) fails to comply with any Environmental Law or to obtain, maintain or comply with
any permit, license or other approval required under any Environmental Law, (ii) becomes subject to
any Environmental Liability, (iii) receives notice of any claim with respect to any Environmental
Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the
preceding clauses, which individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect;

          (d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding $1,000,000;

          (e) the occurrence of any default or event of default, or the receipt by Borrower or any of
its Subsidiaries of any written notice of an alleged default or event of default, with respect to
any Material Indebtedness of the Borrower or any of its Subsidiaries;

          (f) [Intentionally Omitted];

          (g) [Intentionally Omitted];

          (h) the early termination or material breach by any Person of a Material Contract (and, with
respect to any Person other than a Loan Party, to the extent the Borrower has knowledge of such
termination or breach);

          (i) as soon as possible and in any event within 10 days after any Responsible Officer of the
Borrower learns thereof, notice of the assertion or commencement of any claim, action, litigation,
suit or proceeding against or affecting the Borrower or any Subsidiary,

62

 

including any investigation
or proceeding commenced by the Commission, the Board of Governors of the Federal Reserve System,
FINRA, the U.K. Financial Services Authority, the Hong Kong Securities and Futures Commission, MSRB
or any other Government Authority, Self-Regulatory Organization or securities exchange, which could
reasonably be expected to have a Material Adverse Effect; and

          (j) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

Each notice delivered under this Section 5.2 shall be accompanied by a written statement of
a Responsible Officer setting forth the details of the event or development requiring such notice
and any action taken or proposed to be taken with respect thereto.

     Section 5.3. Existence; Conduct of Business. The Borrower will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew and maintain in
full force and effect its legal existence and its respective rights, Licenses, permits, privileges,
franchises, patents, copyrights, trademarks and trade names material to the conduct of its business
and will continue to engage in the same business as presently conducted or such other businesses
that are reasonably related thereto; provided, that nothing in this Section 5.3
shall prohibit any merger, consolidation, liquidation or dissolution permitted under Section
7.3.

     Section 5.4. Compliance with Laws, Etc. The Borrower will, and will cause each of its Subsidiaries
to, comply with all laws, rules, regulations and requirements of any Governmental Authority,
Self-Regulatory Organization or securities exchange applicable to its business and properties,
including without limitation, the Exchange Act, the Investment Advisers Act of 1940, the
Investment Company Act of 1940, the Commodity Exchange Act, Environmental Laws, and the applicable
rules and regulations of the Commission, the Board of Governors of the Federal Reserve, FINRA,
the U.K. Financial Services Authority, the Hong Kong Securities and Futures Commission,
MSRB, ERISA and OSHA, except where the failure to do so, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. Without
limiting the foregoing, the Borrower and its Subsidiaries shall comply in all material respects
with all applicable capital requirements of all Government Authorities (including, without
limitation, Rule 15c3-1 of the Exchange Act).

     Section 5.5. Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay and discharge all of its
obligations and liabilities (including without limitation all taxes, assessments and other
government charges, levies and all other claims that could result in a statutory Lien) before the
same shall become delinquent or in default, except where (a)(i)the validity or amount thereof is
being contested in good faith by appropriate proceedings and (ii) the Borrower or such Subsidiary
has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b)
the failure to make payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

     Section 5.6. Books and Records. The Borrower will, and will cause each of its Subsidiaries to,
keep books of record and account in which complete entries shall be made of all dealings and
transactions in relation to its business and activities to the extent necessary to prepare the
consolidated financial statements of the Borrower in conformity with GAAP. The

63

 

principal records
and books of account, including those concerning the Collateral, shall be kept at the chief
executive office of the Borrower. The Borrower will not move such records and books of account or
change its chief executive office or the name under which it does business without (a) giving the
Administrative Agent at least 10 days’ prior written notice, and (b) executing and delivering, or
authorizing the filing by the Administrative Agent of, financing statements reasonably satisfactory
to the Administrative Agent prior to such move or change.

     Section 5.7. Visitation, Inspection, Etc. The Borrower will, and will cause each of its
Subsidiaries to, permit any representative of the Administrative Agent or any Lender, to visit and
inspect its properties, to examine its books and records and to make copies and take extracts
therefrom, and to discuss its affairs, finances and accounts with any of its officers and with its
independent certified public accountants, all at such reasonable times and as often as the
Administrative Agent or any Lender may reasonably request after reasonable prior notice to the
Borrower; provided, however, if an Event of Default has occurred and is continuing,
no prior notice shall be required.

     Section 5.8. Maintenance of Properties; Insurance. The Borrower will, and will cause each of its
Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted, and (b) maintain with financially
sound and reputable insurance companies, insurance with respect to its properties and business, and
the properties and business of its Subsidiaries, against loss or damage of the kinds customarily
insured against by companies in the same or similar businesses operating in the same or similar
locations.

     Section 5.9. Use of Proceeds and Letters of Credit. The Borrower will use the proceeds of all
Loans to (i) refinance certain existing Variable Rate Senior Notes due December 31, 2010 and issued
by the Borrower pursuant to a certain Note Purchase Agreement dated as of December 31, 2009, (ii)
finance working capital needs and (iii) for other general corporate purposes of the Borrower and
its Subsidiaries. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that
would violate any rule or regulation of the Board of Governors of the Federal Reserve System,
including Regulations T, U or X. All Letters of Credit will be used for general corporate
purposes.

     Section 5.10. Pre-Closing Dividend. The Borrower will at all times use, or cause to be used, the
proceeds of the Dividend, and the proceeds of the dividend described in Section 6.5, either
(i) to be held by the Borrower as Cash on Hand which is held in the Deposit Account or one or more
Securities Accounts, (ii) invested by the Borrower pursuant to and in accordance with Section
7.4(g) or (iii) a combination of the immediately foregoing clauses (i) and
(ii). Notwithstanding the foregoing, in the event that the sum of (x) Cash on Hand which
is held in the Deposit Account or one or more Securities Accounts plus (y) the Investments
made by the Borrower pursuant to Section 7.4(g) is less than $50,000,000, then PJ&Co shall
be required to have the legal right and ability (without the consent or approval of any
Governmental Authority or the consent of any other Person) to provide an advance to the Borrower in
an amount up to 10% of its Regulatory Net Capital (exclusive of the Dividend) such that the sum of
(x) Cash on Hand which is held in the Deposit Account or one or more Securities Accounts
plus (y) the Investments made by the Borrower pursuant to Section 7.4(g)
plus (z) the amount of such Regulatory Net Capital available to be advanced or otherwise
distributed by PJ&Co to the

64

 

Borrower shall not be less than $55,000,000 (with at least $40,000,000
of such amount required to be (1) Cash on Hand which is held in the Deposit Account or one or more
Securities Accounts and/or (2) Investments permitted by Section 7.4(g) which are subject to
the Administrative Agent’s Lien pursuant to the Guaranty and Pledge Agreement). The Borrower will
cause all Cash on Hand described in clause (i) above or used in the calculations in the
previous sentence at all times to be deposited and held in either (A) the Deposit Account and
subject to a Deposit Account Control Agreement or (B) one or more Securities Account which are
subject to a Securities Account Control Agreement.

     Section 5.11. Additional Subsidiaries.

          If any Domestic Subsidiary is acquired or formed after the Closing Date, the Borrower will
promptly notify the Administrative Agent and the Lenders thereof and, unless such Domestic
Subsidiary is a regulated entity, within ten (10) Business Days after any such Domestic Subsidiary
is acquired or formed, will cause such Domestic Subsidiary to become a Subsidiary Loan Party. A
Domestic Subsidiary shall become an additional Subsidiary Loan Party by executing and delivering to
the Administrative Agent a Supplement to the Guaranty and Pledge Agreement substantially in the
form of Exhibit B thereto and such other documents and instruments as are required by Section
5.12, accompanied by (i) all other Loan Documents related thereto, (ii) certified copies of
certificates or articles of incorporation or organization, by-laws, membership operating
agreements, and other organizational documents, appropriate authorizing resolutions of the board of
directors of such Domestic Subsidiary, and opinions of counsel comparable to those delivered
pursuant to Section 3.1(b), and (iii) such other documents as the Administrative Agent may
reasonably request. Such Person shall also pledge, or cause any Person that is a Domestic
Subsidiary owning Capital Stock of such Person to pledge (and each Loan Party that owns, or shall
hereafter own, such Capital Stock hereby agrees to pledge), all Capital Stock of such Person to the
Administrative Agent as security for the Obligations by
delivering the original stock certificates evidencing such Capital Stock to the Administrative
Agent, together with appropriate stock powers executed in blank. No Subsidiary that becomes a
Subsidiary Loan Party shall thereafter cease to be a Subsidiary Loan Party or be entitled to be
released or discharged from its obligations under the Guaranty and Pledge Agreement, except as
provided expressly in this Agreement. In the event that any Person becomes a Foreign Subsidiary
owned directly by the Borrower or a Subsidiary Loan Party, whether pursuant to an acquisition or
otherwise, then (x) the Borrower shall promptly notify the Administrative Agent and the Lenders
thereof and (y) no later than thirty (30) days after such Person becomes a Foreign Subsidiary, or
if the Administrative Agent determines in its reasonable discretion that the Borrower is working in
good faith, such longer period as the Administrative Agent shall permit not to exceed sixty (60)
additional days, the Borrower shall, or shall cause the Subsidiary Loan Party owning such Person,
(i) to pledge sixty-six percent (66%) of the voting Capital Stock and one hundred percent (100%) of
the non-voting Capital Stock of such Foreign Subsidiary owned by the Borrower or such Subsidiary
Loan Party to the Administrative Agent as security for the Obligations pursuant to a Pledge
Agreement, or a joinder to the Pledge Agreement and (ii) to deliver the original stock certificates
evidencing such pledged Capital Stock, together with appropriate stock powers executed in blank.

     Section 5.12. Further Assurances. The Borrower will, and will cause each Subsidiary Loan Party to,
execute any and all further documents, financing statements, agreements and

65

 

instruments, and take all further action (including filing Uniform Commercial Code and other
financing statements) that may be required under applicable law, or that the Required Lenders or
the Administrative Agent may reasonably request, in order to effectuate the transactions
contemplated by the Loan Documents and in order to grant, preserve, protect and perfect the
validity and first priority (subject to Permitted Liens) of the security interests created or
intended to be created by the Guaranty and Pledge Agreement. The Borrower agrees to provide such
evidence as the Administrative Agent shall reasonably request as to the perfection and priority
status of each such security interest and Lien.

ARTICLE VI

FINANCIAL COVENANTS

          The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains unpaid or outstanding:

     Section 6.1. Leverage Ratio. The Borrower will maintain at all times a Leverage Ratio of less than
0.35:1.00.

     Section 6.2. Minimum Regulatory Net Capital. The Borrower will cause PJ&Co to maintain at all
times Regulatory Net Capital of at least the greater of: (a) $160,000,000, (b) the minimum “net
capital” required to be maintained by PJ&Co pursuant to Rule 15c3-1 of the Exchange Act,
(c) the minimum “net capital” required to be maintained by PJ&Co pursuant to FINRA Rule 4110
and (d) the sum of (x) $10,000,000 plus (y) the minimum amount of Regulatory Net Capital required
to be maintained by PJ&Co pursuant to any contract, instrument or agreement evidencing Indebtedness
funded to, or is committed to be provided to, the Borrower and/or its Subsidiaries. The Borrower
shall have fifteen (15) days after the date of receipt of any FOCUS Report for PJ&Co which
indicates a violation of this Section 6.2 to cure such violation; provided that no
period shall exist to satisfy such violation if any such violation of this Section 6.2 is a
direct result of a decrease in the Borrower’s total ownership equity in PJ&Co (as reflected in Part
II, line 30 of any such FOCUS Report).

     Section 6.3. Minimum Cash on Hand. The Borrower will maintain, at all times, Cash on Hand
in an amount not less than the Required Coverage Amount.

     Section 6.4. Minimum Quality of Long Term Inventory. The Borrower shall at all times
cause the Long Inventory owned by the Borrower and its Subsidiaries to comply with both of the
following tests:

     (i) not less than 40% of such Long Inventory shall be rated “A” or better by S&P, “A2”
or better by Moody’s or “A” or better by Fitch; and

     (ii) at least 60% of such Long Inventory shall be rated “BBB-” or better by S&P, “Baa3”
or better by Moody’s or “BBB-” by Fitch.

     Section 6.5. Minimum Asset Management EBITDA. The Borrower will maintain, as of the end of each
Fiscal Quarter, commencing with the Fiscal Quarter ending December 31, 2010, Asset Management
EBITDA for the four Fiscal Quarters then ended of not less than:

66

 

	 	 	 	 	 
	 	 	Minimum Asset	 
	Fiscal Quarter	 	Management EBITDA	 
	Each Fiscal Quarter ending on or prior to June 30, 2012
	 	$	20,000,000	 
	Each Fiscal Quarter ending after June 30, 2012
	 	$	25,000,000	 

provided, that, in the event that PJ&Co shall have received all regulatory approvals
necessary to permit the payment of a dividend to the Borrower in an amount not less than
$15,000,000 (exclusive of the Dividend) and PJ&Co shall have distributed such amount to the
Borrower without condition as to such regulatory approval (or all such conditions shall have been
satisfied) and the proceeds of such dividend are used by the Borrower in accordance with any of the
permitted purposes set forth in Section 5.10, the step-up in the minimum Asset Management
EBITDA to $25,000,000 after June 30, 2012 shall be disregarded and the minimum Asset Management
EBITDA at all times shall be $20,000,000.

ARTICLE VII

NEGATIVE COVENANTS

          The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains outstanding:

     Section 7.1. Indebtedness and Preferred Equity. The Borrower will not, and will not permit any of
its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness, except:

          (a) the Obligations;

          (b) Indebtedness of the Borrower and its Subsidiaries existing on the date hereof and set
forth on Schedule 7.1 and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (immediately prior to giving effect
to such extension, renewal or replacement) or shorten the maturity or the weighted average life
thereof;

          (c) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital Lease Obligations,
and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof; provided, that such Indebtedness
is incurred prior to or within 90 days after such acquisition or the completion of such
construction or improvements or extensions, renewals, and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (immediately prior to giving effect
to such extension, renewal or replacement) or shorten the maturity or the weighted

67

 

average life
thereof; and provided further, that the aggregate principal amount of such
Indebtedness under this clause (c) does not exceed $5,000,000 at any time outstanding;

          (d) Indebtedness of the Borrower owing to any Subsidiary and of any Subsidiary owing to
the Borrower or any other Subsidiary; provided, that any such Indebtedness that is owed by
a Subsidiary that is not a Subsidiary Loan Party to a Loan Party shall be subject to Section
7.4(d);

          (e) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of
Indebtedness of the Borrower or any other Subsidiary; provided, that Guarantees by any Loan
Party of Indebtedness of any Subsidiary that is not a Subsidiary Loan Party shall be subject to
Section 7.4(c);

          (f) (i) Indebtedness of any Person which becomes a Subsidiary after the date of this
Agreement; provided, that such Indebtedness exists at the time that such Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person becoming a
Subsidiary and (ii) unsecured Indebtedness incurred in connection with a Permitted Acquisition;
provided that the aggregate principal amount of such Indebtedness permitted under
clauses (i) and (ii) shall not exceed the amount set forth in clause (i) of
the definition of “Permitted Acquisition” at any time;

          (g) Commercial paper issued by PJ&Co, committed and uncommitted bank lines of credit with
maturities of one year or less incurred by PJ&Co and Piper Jaffray Asia Securities Ltd., securities
lending and securities sold under agreements to repurchase, in each case, used by PJ&Co and Piper
Jaffray Asia Securities Ltd. to facilitate and finance its broker-dealer business in the ordinary
course of its business; and

          (h) Indebtedness in respect of Hedging Obligations permitted by Section 7.10.

The Borrower will not, and will not permit any Subsidiary to, issue any preferred stock or any
other preferred equity interest that (i) matures or is mandatorily redeemable pursuant to a sinking
fund obligation or otherwise, (ii) is or may become redeemable or repurchaseable by the Borrower or
such Subsidiary at the option of the holder thereof, in whole or in part or (iii) is convertible or
exchangeable at the option of the holder thereof for Indebtedness or preferred stock or any other
preferred equity interest described in this paragraph, on or prior to, in the case of clause
(i), (ii) or (iii), the first anniversary of the Revolving Commitment
Termination Date.

     Section 7.2. Negative Pledge.
The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume
or suffer to exist any Lien on any of its assets or property now owned or hereafter acquired,
except for the following (collectively, “Permitted Liens”):

          (a) Liens securing the Obligations;

          (b) Permitted Encumbrances;

          (c) any Liens on any property or asset of the Borrower or any Subsidiary existing on the
Closing Date set forth on Schedule 7.2; provided, that such Lien shall not apply to
any other property or asset of the Borrower or any Subsidiary;

68

 

          (d) purchase money Liens upon or in any fixed or capital assets to secure the purchase
price or the cost of construction or improvement of such fixed or capital assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition, construction or
improvement of such fixed or capital assets (including Liens securing any Capital Lease
Obligations); provided, that (i) such Lien secures Indebtedness permitted by Section
7.1(c), (ii) such Lien attaches to such asset concurrently or within 90 days after the
acquisition, improvement or completion of the construction thereof; (iii) such Lien does not extend
to any other asset; and (iv) the Indebtedness secured thereby does not exceed the cost of
acquiring, constructing or improving such fixed or capital assets;

          (e) any Lien (i) existing on any asset of any Person at the time such Person becomes a
Subsidiary of the Borrower, (ii) existing on any asset of any Person at the time such Person is
merged with or into the Borrower or any Subsidiary of the Borrower or (iii) existing on any asset
prior to the acquisition thereof by the Borrower or any Subsidiary of the Borrower;
provided, that any such Lien was not created in the contemplation of any of the foregoing
and any such Lien secures only those obligations which it secures on the date that such Person
becomes a Subsidiary or the date of such merger or the date of such acquisition;

          (f) Liens in favor of the Borrower or any Subsidiary Loan Party;

          (g) customary restrictions on transfers of assets contained in agreements related to the
sale by the Borrower or the Subsidiaries of such assets pending their sale; provided that
such restrictions apply only to the assets to be sold and such sale is otherwise permitted
hereunder;

          (h) Liens securing (i) Indebtedness permitted pursuant to Section 7.1(g);
provided that such Liens do not include any of the Collateral and (ii) Indebtedness
permitted pursuant to Section 7.1(h); provided that (x) such Liens attach only to
the types of assets and property pledged pursuant to Hedging Transactions entered into by the
Borrower or any Subsidiary on or before the Closing Date, (y) the pledging of such assets or
property required by the applicable Hedging Transaction (1) is due to a change in the Net
Mark-to-Market Exposure of such Hedging Transaction and (2) does not change the 1-day Value at Risk
(VaR) (as defined in the Borrower’s external financial statements) of all Hedging Transactions
entered into for speculative purposes or of a speculative nature and (z) such Liens do not include
any of the Collateral; and

          (i) extensions, renewals, or replacements of any Lien referred to in paragraphs
(a), (c) and (d) of this Section 7.2; provided, that the
principal amount of the Indebtedness secured thereby is not increased and that any such extension,
renewal or replacement is limited to the assets originally encumbered thereby.

     Section 7.3. Fundamental Changes.

          (a) The Borrower will not, and will not permit any Subsidiary to, merge into or
consolidate into any other Person, or permit any other Person to merge into or consolidate with it,
or sell, lease, transfer or otherwise dispose of (in a single transaction or a series of
transactions) all or substantially all of its assets (in each case, whether now owned or hereafter

69

 

acquired) or all or substantially all of the stock of any of its Subsidiaries (in each case,
whether now owned or hereafter acquired) or liquidate or dissolve; provided, that if at the
time thereof and immediately after giving effect thereto, no Default or Event of Default shall have
occurred and be continuing (i) the Borrower or any Subsidiary may merge with a Person if the
Borrower (or such Subsidiary if the Borrower is not a party to such merger) is the surviving
Person, (ii) any Subsidiary may merge into another Subsidiary; provided, that if any party
to such merger is a Subsidiary Loan Party, the Subsidiary Loan Party shall be the surviving Person,
(iii) any Subsidiary may sell, transfer, lease or otherwise dispose of all or substantially all of
its assets to the Borrower or to a Subsidiary Loan Party and (iv) any Subsidiary (other than a
Subsidiary Loan Party) may liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not materially
disadvantageous to the Lenders; provided, that any such merger involving a Person that is
not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 7.4.

          (b) The Borrower will not, and will not permit any of its Subsidiaries to, engage in any
business other than businesses of the type conducted by the Borrower and its Subsidiaries on the
date hereof and businesses reasonably related thereto.

     Section 7.4. Investments, Loans, Etc. The Borrower will not, and will not permit any of its
Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that
was not a wholly-owned Subsidiary prior to such merger), any Capital Stock, evidence of
indebtedness or other securities (including any option, warrant, or other right to acquire any of
the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of,
or make or permit to exist any investment or any other interest in, any other Person, or purchase
or otherwise acquire (in one transaction or a series of transactions) all or substantially all of
the assets of a Person, or any assets of any other Person that constitute a business unit or
division of any other Person, or create or form any Subsidiary (all of the foregoing being
collectively called “Investments”), except:

          (a) Investments (other than Permitted Investments) existing on the date hereof and set
forth on Schedule 7.4 (including Investments in Subsidiaries existing on the date hereof);

          (b) cash and Permitted Investments;

          (c) Guarantees constituting Indebtedness permitted by Section 7.1;
provided, that the aggregate principal amount of Indebtedness of Subsidiaries that are not
Subsidiary Loan Parties that is Guaranteed by any Loan Party shall be subject to the limitation set
forth in clause (d) below;

          (d) Investments made by the Borrower in or to any Subsidiary and by any Subsidiary to the
Borrower or in or to another Subsidiary; provided, that the aggregate amount of Investments
by Loan Parties in or to, and Guarantees by Loan Parties of Indebtedness of any such Subsidiary
that is not a Subsidiary Loan Party (excluding all such Investments and Guarantees existing on the
Closing Date) pursuant to this clause (d) shall not exceed $1,000,000 at any time
outstanding;

70

 

          (e) loans or advances to employees, officers or directors of the Borrower or any
Subsidiary in the ordinary course of business for travel, relocation and related expenses;
provided, however, that the aggregate outstanding amount of all such loans and
advances does not exceed $20,000,000 at any time;

          (f) Hedging Transactions permitted by Section 7.10;

          (g) Investments made by the Borrower with proceeds of the Dividend, and the proceeds of
the dividend described in Section 6.5, in the form of intercompany loans made by the
Borrower to (i) PJ&Co, (ii) a Subsidiary Loan Party or (iii) regulated Foreign Subsidiaries;
provided that in the case of clause (iii) above, (x) such intercompany loan shall
be repaid in full within ten (10) Business Days following the date such intercompany loan is made,
(y) the outstanding principal amount of intercompany loans made pursuant to clause (iii)
above shall not at any time exceed $30,000,000 in the aggregate and (z) to the extent that any
intercompany loan made to a regulated Foreign Subsidiary may not be repaid to the Borrower without
the prior approval or consent of the applicable regulatory authority, such intercompany loan must
be repaid in full within 45 Business Days of the date such intercompany loan is made (in lieu of
the above 10 Business Day requirement) and the aggregate amount of all intercompany loans under
this clause (z) shall not exceed $20,000,000 at any time outstanding (it being understood
and agreed that the intercompany loans permitted under this clause (z) shall be treated as
a sublimit of the $30,000,000 limitation in clause (y) above and shall also be included in,
and be subject to, the $30,000,000 limitation in clause (y) above);

          (h) purchases in the nature of Capital Expenditures in the ordinary course of business
consistent with past practices;

          (i) Investments by PJ&Co made in the ordinary course of business in accordance with
Rule 15c3-3 of the Exchange Act;

          (j) Securities purchased under agreements to resell (to the extent such
transactions constitute Investments);

          (k) Investments in Securities, whether (i) purchased and held for resale, (ii) for
such Person’s own investment purposes or (iii) to fund deferred compensation
liabilities for employees, in each case, in the ordinary course of business and consistent with
past practice;

          (l) Investments in margin loans to retail customers in the ordinary course of business and
consistent with past practice;

          (m) Investments by the Borrower or any Subsidiary in the form of Permitted Acquisitions;
provided, that the aggregate amount of Permitted Acquisition Consideration for all
Permitted Acquisitions after the Closing Date does not exceed $20,000,000; and

          (n) other Investments in an aggregate amount not to exceed $1,000,000 in any Fiscal Year.

          For purposes of determining the amount of any Investment outstanding for purposes of this
Section 7.4, such amount shall be deemed to be the amount of such Investment

71

 

when made,
purchased or acquired less any amount realized in respect of such Investment upon the sale,
collection or return of capital (not to exceed the original amount invested).

     Section 7.5. Restricted Payments. The Borrower will not, and will not permit its Subsidiaries to,
declare or make, or agree to pay or make, directly or indirectly, any dividend or distribution on
any class of its Capital Stock, or make any payment on account of, or set apart assets for a
sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other
acquisition of, any shares of Capital Stock or Indebtedness subordinated to the Obligations of the
Borrower or any Guarantee thereof or any options, warrants, or other rights to purchase such
Capital Stock or such Indebtedness, whether now or hereafter outstanding (each, a “Restricted
Payment”), except for (i) dividends payable by the Borrower solely in shares of any class of
its common stock, (ii) Restricted Payments made by any Subsidiary to the Borrower or to another
Subsidiary, on at least a pro rata basis with any other shareholders if such Subsidiary is not
wholly owned by the Borrower and other wholly owned Subsidiaries and (iii) cash dividends and
distributions paid on, or purchases of, the common stock of the Borrower; provided, that
for the purpose of this clause (iii), (x) no Default or Event of Default has occurred and
is continuing at the time such dividend or distribution is paid or purchase is made and (y) the
aggregate amount of all such Restricted Payments made by the Borrower in any Fiscal Year does not
exceed the amount of equity granted in conjunction with the Borrower’s annual equity compensation
awards for such Fiscal Year; provided that the aggregate amount of all such Restricted
Payments made by the Borrower pursuant to this clause (y) in any Fiscal Year shall not
exceed $45,000,000.

     Section 7.6. Sale of Assets. The Borrower will not, and will not permit any of its Subsidiaries
to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets, business or
property, whether now owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell
any shares of such Subsidiary’s Capital Stock to any Person other than the Borrower or a Subsidiary
Loan Party (or to qualify directors if required by applicable law), except:

          (a) the sale or other disposition for fair market value of obsolete or worn out property
or other property not necessary for operations disposed of in the ordinary course of business;

          (b) the sale of Securities and Permitted Investments in the ordinary course of business;
and

          (c) the sale or other disposition of such assets in an aggregate amount (based on the fair
market value of such assets) not to exceed $1,000,000 in any 12 month period ending on the date of
determination thereof.

     Section 7.7. Transactions with Affiliates. The Borrower will not, and will not permit any of its
Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and
conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties, (b) transactions between or

72

 

among the Borrower and
any Subsidiary Loan Party not involving any other Affiliates and (c) any Restricted Payment
permitted by Section 7.5.

     Section 7.8. Restrictive Agreements. The Borrower will not, and will not permit any Subsidiary to,
directly or indirectly, enter into, incur or permit to exist any agreement that prohibits,
restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to
create, incur or permit any Lien upon any of its assets or properties, whether now owned or
hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to its Capital Stock, to make or repay loans or advances to the Borrower or any other
Subsidiary, to Guarantee Indebtedness of the Borrower or any other Subsidiary or to transfer any of
its property or assets to the Borrower or any Subsidiary of the Borrower; provided, that
(i) the foregoing shall not apply to restrictions or conditions as required by law, rules or
regulations of any Government Authority or by this Agreement or any other Loan Document, (ii)
the foregoing shall not apply to customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions
apply only to the Subsidiary that is sold and such sale is permitted hereunder, (iii) clause
(a) shall not apply to restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions and conditions apply only to the
property or assets securing such Indebtedness and (iv) clause (a) shall not apply to
customary provisions in leases and licenses restricting the transfer, sale or assignment thereof.

     Section 7.9. Sale and Leaseback Transactions. The Borrower will not, and will not permit any of
the Subsidiaries to, enter into any arrangement, directly or indirectly, whereby it shall sell or
transfer any property, real or personal, used or useful in its business, whether now owned or
hereinafter acquired, and thereafter rent or lease such property or other property that it intends
to use for substantially the same purpose or purposes as the property sold or transferred.

     Section 7.10. Hedging Transactions.
The Borrower will not, and will not permit any of the Subsidiaries to, enter into any Hedging
Transaction, other than (i) Hedging Transactions entered into in the ordinary course of business to
hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in the conduct of its
business or the management of its liabilities or (ii) for speculative purposes or of a speculative
nature in the ordinary course of business; provided that the 1-day Value at Risk (VaR) as
defined in the Borrower’s external financial statements of all Hedging Transactions entered into
for speculative purposes or of a speculative nature shall not exceed $1,000,000 at any time
outstanding.

     Section 7.11. Amendment to Material Documents. The Borrower will not, and will not permit any of its
Subsidiaries to, amend, modify or waive any of its rights in any manner that is adverse in any
material respect to the interests of the Lenders or the Borrower under its certificate of
incorporation, bylaws or other organizational documents.

     Section 7.12. Accounting Changes. The Borrower will not, and will not permit any of its
Subsidiaries to, make any significant change in accounting treatment or reporting practices, except
as required by GAAP, or change the Fiscal Year of the Borrower or of any of its Subsidiaries,
except to change the Fiscal Year of a Subsidiary to conform its fiscal year to that of the
Borrower.

73

 

     Section 7.13. Government Regulation. Neither the Borrower nor any of its Subsidiaries will (a) be or
become subject at any time to any law, regulation, or list of any Governmental Authority of the
United States (including, without limitation, the U.S. Office of Foreign Asset Control list) that
prohibits or limits the Lenders or the Administrative Agent from making any advance or extension of
credit to the Borrower or from otherwise conducting business with the Loan Parties, or (b) fail to
provide documentary and other evidence of the identity of the Loan Parties as may be requested by
the Lenders or the Administrative Agent at any time to enable the Lenders or the Administrative
Agent to verify the identity of the Loan Parties or to comply with any applicable law or
regulation, including, without limitation, Section 326 of the Patriot Act.

     Section 7.14. ERISA.

          The Borrower will not and will 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.

     Section 7.15. Contributions to the Foundation.

          The Borrower will not, and will not permit any of its Subsidiaries to, make any contribution
or other Investment in the Foundation, except, so long as no Event of Default has occurred and is
continuing, contributions or other Investments in the form of cash and Permitted Investments in an
aggregate amount not to exceed $3,000,000 in any Fiscal Year.

ARTICLE VIII

EVENTS OF DEFAULT

     Section 8.1. Events of Default. If any of the following events (each an “Event of
Default”) shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan or of any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment or otherwise; or

          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount payable under clause (a) of this Section 8.1) payable under
this Agreement or any other Loan Document, when and as the same shall become due and payable, and
such failure shall continue unremedied for a period of three (3) Business Days; or

          (c) any representation or warranty made or deemed made by or on behalf of the Borrower or
any Subsidiary in or in connection with this Agreement or any other Loan Document (including the
Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in
any certificate, report, financial statement or other document submitted to the Administrative
Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in
connection with this Agreement or any other Loan Document shall prove to be incorrect in any
material respect when made or deemed made or submitted; or

74

 

          (d) the Borrower shall fail to observe or perform any covenant or agreement contained in
Section 5.1, Section 5.2, Section 5.3 (with respect to the Borrower’s or
any Loan Party’s existence), Section 5.10 or ARTICLE VI or ARTICLE VII; or

          (e) any Loan Party shall fail to observe or perform any covenant or agreement contained in
this Agreement (other than those referred to in clauses (a), (b) and (d)
above) or any other Loan Document, and such failure shall remain unremedied for 30 days after the
earlier of (i) any officer of the Borrower becomes aware of such failure, or (ii) notice thereof
shall have been given to the Borrower by the Administrative Agent or any Lender; or

          (f) [Intentionally Omitted]; or

          (g) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other
surety) shall fail to pay any principal of, or premium or interest on, any Material Indebtedness
that is outstanding, when and as the same shall become due and payable (whether at scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument evidencing or
governing such Material Indebtedness; or any other event shall occur or condition shall exist under
any agreement or instrument relating to such Material Indebtedness and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if the effect of such
event or condition is to accelerate, or permit the acceleration of, the maturity of such Material
Indebtedness; or any such Material Indebtedness shall be declared
to be due and payable, or required to be prepaid or redeemed (other than by a regularly
scheduled required prepayment or redemption), purchased or defeased, or any offer to prepay,
redeem, purchase or defease such Material Indebtedness shall be required to be made, in each case
prior to the stated maturity thereof; or

          (h) the Borrower or any Subsidiary shall (i) commence a voluntary case or other proceeding
or file any petition seeking liquidation, reorganization or other relief under any federal, state
or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the
appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any
substantial part of its property, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in clause (i) of this
Section 8.1, (iii) apply for or consent to the appointment of a custodian, trustee,
receiver, liquidator or other similar official for the Borrower or any such Subsidiary or for a
substantial part of its assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or

          (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any
Subsidiary or its debts, or any substantial part of its assets, under any federal, state or foreign
bankruptcy, insolvency or other similar law now or hereafter in effect or (ii) the appointment of a
custodian, trustee, receiver, liquidator or other similar official for the Borrower or any
Subsidiary or for a substantial part of its assets, and in any such case, such proceeding or
petition shall remain undismissed for a period of 60 days or an order or decree approving or
ordering any of the foregoing shall be entered; or

75

 

          (j) the Borrower or any Subsidiary shall become unable to pay, shall admit in writing its
inability to pay, or shall fail to pay, its debts as they become due; or

          (k) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with other ERISA Events that have occurred, could reasonably be expected to result
in liability to the Borrower and the Subsidiaries in an aggregate amount exceeding $5,000,000; or

          (l) any judgment or order for the payment of money in excess of $5,000,000 in the
aggregate shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there
shall be a period of 30 consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect; or

          (m) any non-monetary judgment or order shall be rendered against the Borrower or any
Subsidiary that could reasonably be expected to have a Material Adverse Effect, and there shall be
a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or

          (n) PJ&Co shall fail for any reason to extend, renew or otherwise refinance the Existing
Liquidity Facility on or before (x) in the case of any extension, renewal or other
refinancing occurring concurrently with this Agreement, the Closing Date and (y) thereafter,
the date that is 15 days prior to the maturity or termination date of the Existing Liquidity
Facility, in each case, on substantially the same terms and conditions as the Existing Liquidity
Facility (except that the aggregate principal amount thereof may be reduced to an amount not less
than $150,000,000); or

          (o) the Commission or any Self-Regulatory Organization shall have notified the SIPC
pursuant to Section 5(a)(1) of the Securities Investors Protection Act of 1970, as amended
(“SIPA”) of facts which lead it to reasonably believe that the Borrower or any Subsidiary
thereof is in or is approaching financial difficulty, or the SIPC shall file an application for a
protective decree with respect to the Borrower or any of its Subsidiaries under Section 5(a)(3) of
the SIPA; or

          (p) The Commission or other Government Authority shall revoke or suspend any License of
any Subsidiary of the Borrower under Federal, foreign or Minnesota state law (or any other state in
which five percent (5%) or more of securities trade revenue is generated) to conduct business as a
securities broker-dealer (and such License shall not be reinstated within five days), or any
Subsidiary of the Borrower shall be suspended or expelled from membership in the FINRA or any other
Self-Regulatory Organization or securities exchange; or

          (q) a Change in Control shall occur or exist; or

          (r) (i) the Borrower or any of its Subsidiaries shall be enjoined, restrained or in any
way prevented by the order of any Governmental Authority from conducting any material part of the
business of the Borrower and its Subsidiaries and such order shall continue in effect for more than
thirty (30) days or (ii) any strike, lockout, labor dispute, embargo, condemnation,

76

 

act of God or public enemy or terrorism, or other casualty, which in any such case causes, for
more than fifteen (15) consecutive days, the cessation or substantial curtailment of revenue
producing activities of the Borrower or its Subsidiaries if such event or circumstance is not
covered by business interruption insurance and would have a Material Adverse Effect; or

          (s) the loss, suspension or revocation of, or failure to renew, any license, permit or
authorization now held or hereafter acquired by the Borrower or any of its Subsidiaries, or any
other action shall be taken by any Governmental Authority in response to any alleged failure by the
Borrower or any of its Subsidiaries to be in compliance with applicable law if such loss,
suspension, revocation or failure to renew or other action, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect; or

          (t) (i) the Guaranty and Pledge Agreement or any Foreign Collateral Document shall for any
reason cease to be valid and binding on, or enforceable against, any Loan Party party thereto, or
any Loan Party party thereto shall so state in writing, or any Loan Party shall seek to terminate
the Guaranty and Pledge Agreement or (ii) any security interest purported to be created by Guaranty
and Pledge Agreement or any Foreign Collateral Document shall cease to be, or shall be asserted by
the Borrower or any other Loan Party not to be, a valid, perfected, first priority (except for
Permitted Liens or as otherwise expressly provided in this Agreement) security interest in the
Collateral covered thereby; or

          (u) [Intentionally Omitted]; or

          (v) any “Event of Default” shall have occurred and be continuing (beyond any applicable period
of grace, if any, therein provided) under any other Loan Document (other than this Agreement);

then, and in every such event (other than an event with respect to the Borrower described in
clause (h) or (i) of this Section 8.1) and at any time thereafter during
the continuance of such event, the Administrative Agent may, and upon the written request of the
Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the
same or different times: (i) terminate the Commitments, whereupon the Commitment of each Lender
shall terminate immediately, (ii) declare the principal of and any accrued interest on the Loans,
and all other Obligations owing hereunder, to be, whereupon the same shall become, due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower, (iii) exercise all remedies contained in any other Loan Document,
and (iv) exercise any other remedies available at law or in equity; and that, if an Event of
Default specified in either clause (h) or (i) shall occur, the Commitments shall
automatically terminate and the principal of the Loans then outstanding, together with accrued
interest thereon, and all fees, and all other Obligations shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower.

77

 

     Section 8.2. Application of Proceeds from Collateral.

          All proceeds from each sale of, or other realization upon, all or any part of the Collateral
by the Administrative Agent or any of the Lenders during the existence of an Event of Default shall
be applied as follows:

          (a) first, to the reimbursable expenses of the Administrative Agent incurred in
connection with such sale or other realization upon the Collateral, until the same shall have been
paid in full;

          (b) second, to the fees and other reimbursable expenses of the Administrative Agent,
Swingline Lender and the Issuing Bank then due and payable pursuant to any of the Loan Documents,
until the same shall have been paid in full;

          (c) third, to all reimbursable expenses, if any, of the Lenders then due and payable
pursuant to any of the Loan Documents, until the same shall have been paid in full;

          (d) fourth, to the fees due and payable under clauses (b) and (c) of
Section 2.14 and interest then due and payable under the terms of this Agreement, until the
same shall have been paid in full;

          (e) fifth, to the aggregate outstanding principal amount of the Loans, the LC Exposure
and, to the extent secured by Liens, the Net Mark-to-Market Exposure of the Borrower and the
Subsidiary Loan Parties, until the same shall have been paid in full, allocated pro rata among the
Lenders and any Affiliates of Lenders that hold Net Mark-to-Market Exposure based on their
respective pro rata shares of the aggregate amount of such Loans, LC Exposure and Net
Mark-to-Market Exposure;

          (f) sixth, to additional cash collateral for the aggregate amount of all outstanding
Letters of Credit until the aggregate amount of all cash collateral held by the Administrative
Agent pursuant to this Agreement is equal to 105% of the LC Exposure after giving effect to the
foregoing clause fifth;

          (g) seventh, to all other Obligations until the same shall have been paid in full; and

          (h) eighth, to the extent any proceeds remain, to the Borrower or other parties
lawfully entitled thereto.

All amounts allocated pursuant to the foregoing clauses second through seventh to
the Lenders as a result of amounts owed to the Lenders under the Loan Documents shall be allocated
among, and distributed to, the Lenders pro rata based on their respective Pro Rata Shares;
provided, however, that all amounts allocated to that portion of the LC Exposure
comprised of the aggregate undrawn amount of all outstanding Letters of Credit pursuant to clause
fifth and sixth shall be distributed to the Administrative Agent, rather than to
the Lenders, and held by the Administrative Agent in an account in the name of the Administrative
Agent for the benefit of the Issuing Bank and the Lenders as cash collateral for the LC Exposure,
such account to be administered in accordance with Section 2.22(g).

78

 

ARTICLE IX

THE ADMINISTRATIVE AGENT

     Section 9.1. Appointment of Administrative Agent.

          (a) Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes
it to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent under this Agreement and the other Loan Documents, together with all such
actions and powers that are reasonably incidental thereto. The Administrative Agent may perform
any of its duties hereunder or under the other Loan Documents by or through any one or more
sub-agents or attorneys-in-fact appointed by the Administrative Agent. The Administrative Agent
and any such sub-agent or attorney-in-fact may perform any and all of its duties and exercise its
rights and powers through their respective Related Parties. The exculpatory provisions set forth
in this Article shall apply to any such sub-agent or attorney-in-fact and the Related Parties of
the Administrative Agent, any such sub-agent and any such attorney-in-fact and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Administrative Agent.

          (b) The Issuing Bank shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith until such time and except for so long as the
Administrative Agent may agree at the request of the Required Lenders to act for the Issuing Bank
with respect thereto; provided, that the Issuing Bank shall have all the benefits and
immunities (i) provided to the Administrative Agent in this Article with respect to any acts taken
or omissions suffered by the Issuing Bank in connection with Letters of Credit issued by it or
proposed to be issued by it and the application and agreements for letters of credit pertaining to
the Letters of Credit as fully as if the term “Administrative Agent” as used in this Article
included the Issuing Bank with respect to such acts or omissions and (ii) as additionally provided
in this Agreement with respect to the Issuing Bank.

     Section 9.2. Nature of Duties of Administrative Agent. The Administrative Agent shall not have any
duties or obligations except those expressly set forth in this Agreement and the other Loan
Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default or an
Event of Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except those
discretionary rights and powers expressly contemplated by the Loan Documents that the
Administrative Agent is required to exercise in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 10.2), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity.
The Administrative Agent shall not be liable for any action taken or not taken by it, its
sub-agents or attorneys-in-fact with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as

79

 

provided in Section 10.2) or in the absence of its own gross
negligence or willful misconduct as determined by a final, non-appealable judgment by a court of
competent jurisdiction. The Administrative Agent shall not be responsible for the negligence or
misconduct of any sub-agents or attorneys-in-fact selected by it with reasonable care. The
Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default
unless and until written notice thereof (which notice shall include an express reference to such
event being a “Default” or “Event of Default” hereunder) is given to the Administrative Agent by
the Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation made in or in
connection with any Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or
any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in
ARTICLE III or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent. The Administrative Agent may
consult with legal counsel (including counsel for the Borrower) concerning all matters pertaining
to such duties.

     Section 9.3. Lack of Reliance on the Administrative Agent. Each of the Lenders, the Swingline
Lender and the Issuing Bank acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Issuing Bank or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each of the Lenders, the Swingline Lender and the Issuing Bank also acknowledges
that it will, independently and without reliance upon the Administrative Agent, the Issuing Bank or
any other Lender and based on such documents and information as it has deemed appropriate, continue
to make its own decisions in taking or not taking of any action under or based on this Agreement,
any related agreement or any document furnished hereunder or thereunder. Each of the Lenders
acknowledges and agrees that outside legal counsel to the Administrative Agent in connection with
the preparation, negotiation, execution, delivery and administration (including any amendments,
waivers and consents) of this Agreement and the other Loan Documents is acting solely as counsel to
the Administrative Agent and is not acting as counsel to any Lender (other than the Administrative
Agent and its Affiliates) in connection with this Agreement, the other Loan Documents or any of the
transactions contemplated hereby or thereby.

     Section 9.4. Certain Rights of the Administrative Agent. If the Administrative Agent shall request
instructions from the Required Lenders with respect to any action or actions (including the failure
to act) in connection with this Agreement, the Administrative Agent shall be entitled to refrain
from such act or taking such act, unless and until it shall have received instructions from such
Lenders, and the Administrative Agent shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever
against the Administrative Agent
as a result of the Administrative Agent acting or refraining from acting hereunder in
accordance with the instructions of the Required Lenders where required by the terms of this
Agreement.

80

 

     Section 9.5. Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
posting or other distribution) believed by it to be genuine and to have been signed, sent or made
by the proper Person. The Administrative Agent may also rely upon any statement made to it orally
or by telephone and believed by it to be made by the proper Person and shall not incur any
liability for relying thereon. The Administrative Agent may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or not taken by it in accordance with the advice of such
counsel, accountants or experts.

     Section 9.6. The Administrative Agent in its Individual Capacity. The bank serving as the
Administrative Agent shall have the same rights and powers under this Agreement and any other Loan
Document in its capacity as a Lender as any other Lender and may exercise or refrain from
exercising the same as though it were not the Administrative Agent; and the terms “Lenders”,
“Required Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting
as the Administrative Agent and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the
Borrower as if it were not the Administrative Agent hereunder.

     Section 9.7. Successor Administrative Agent.

          (a) The Administrative Agent may resign at any time by giving notice thereof to the Lenders
and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint
a successor Administrative Agent, subject to the approval by the Borrower provided that no Default
or Event of Default shall exist at such time. If no successor Administrative Agent shall have been
so appointed, and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on
behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent, which shall
be a commercial bank organized under the laws of the United States of America or any state thereof
or a bank which maintains an office in the United States, having a combined capital and surplus of
at least $500,000,000.

          (b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a
successor, such successor Administrative Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under this
Agreement and the other Loan Documents. If within 45 days after written notice is given of the
retiring Administrative Agent’s resignation under this Section 9.7 no successor
Administrative Agent shall have been appointed and shall have accepted such appointment, then
on such 45th day (i) the retiring Administrative Agent’s resignation shall become
effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and
obligations under the Loan Documents and (iii) the Required Lenders shall thereafter perform all
duties of the retiring Administrative Agent under the Loan Documents until such time as the
Required Lenders appoint a successor Administrative Agent as provided above. After any retiring
Administrative Agent’s resignation hereunder, the provisions of this Article shall

81

 

continue in
effect for the benefit of such retiring Administrative Agent and its representatives and agents in
respect of any actions taken or not taken by any of them while it was serving as the Administrative
Agent.

          (c) In addition to the foregoing, if a Lender becomes, and during the period it remains, a
Defaulting Lender, the Issuing Bank and/or the Swingline Lender may, upon prior written notice to
the Borrower and the Administrative Agent, resign as Issuing Bank or Swingline Lender,
respectively, effective at the close of business on a date specified in such notice (which date may
not be less than five Business Days after the date of such notice); provided that such
resignation by the Issuing Bank will have no effect on the validity or enforceability of any Letter
of Credit then outstanding or on the obligations of the Borrower or any Lender under this Agreement
with respect to any such outstanding Letter of Credit or otherwise to the Issuing Bank; and
provided, further, that such resignation by the Swingline Lender will have no
effect on its rights in respect of any outstanding Swingline Loans or on the obligations of the
Borrower or any Lender under this Agreement with respect to any such outstanding Swingline Loan.

     Section 9.8.
Authorization to Execute other Loan Documents;
Collateral.  (a) Each Lender authorizes
the Administrative Agent to enter into each of the Loan Documents to which it is a party (other
than this Agreement) and to take all action contemplated by such Loan Documents. Each Lender
agrees (except to the extent provided in Section 9.7(b) following the resignation of the
Administrative Agent) that no Lender, other than the Administrative Agent acting on behalf of all
Lenders, shall have the right individually to seek to realize upon the security granted by any Loan
Document, it being understood and agreed that such rights and remedies may be exercised solely by
the Administrative Agent for the benefit of the Lenders, upon the terms of the Loan Documents.

          (b) In the event that any Collateral is pledged by any Person as collateral security for the
Obligations, the Administrative Agent is hereby authorized to execute and deliver on behalf of the
Lenders any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral
in favor of the Administrative Agent on behalf of the Lenders.

          (c) The Lenders hereby authorize the Administrative Agent, at its option and in its
discretion, to release any Lien granted to or held by the Administrative Agent upon any Collateral
(i) upon termination of the Commitments and payment and satisfaction of all of the Obligations or
the transactions contemplated hereby; (ii) as permitted by, but only in accordance with, the terms
of the applicable Loan Document; (iii) if approved, authorized or ratified in writing by the
Required Lenders, unless such release is required to be approved by all of the Lenders hereunder;
(iv) upon the release of a Subsidiary from the Guaranty and Pledge
Agreement (unless such release is required to be approved by all of the Lenders hereunder) or
the release of a Lien granted by a Loan Party in the case of the sale of the Subsidiary permitted
by the terms of this Agreement; or (v) upon the release of any Lien on any assets which are
transferred or disposed of in accordance with the terms of this Agreement or the Guaranty and
Pledge Agreement. Upon request by the Administrative Agent at any time, the Lenders will confirm
in writing the Administrative Agent’s authority to release particular types or items of Collateral
pursuant to this clause.

82

 

          (d) Upon any sale or transfer of assets constituting Collateral which is expressly permitted
pursuant to the terms of any Loan Documents, or consented to in writing by the Required Lenders,
and upon at least ten (10) Business Days’ prior written request by the Borrower, the Administrative
Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may
be necessary to evidence the release of the Liens granted to the Administrative Agent for the
benefit of the Lenders, upon the Collateral that was sold or transferred; provided,
however, that (i) the Administrative Agent shall not be required to execute any such
document on terms which, in the Administrative Agent’s opinion, would expose the Administrative
Agent to liability or create any obligation or entail any consequence other than the release of
such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge,
affect or impair the Obligations or any Liens upon (or obligations of the Borrower or any
Guarantor) in respect of all interests retained by the Borrower or any Guarantor, including
(without limitation) the proceeds of the sale, all of which shall continue to constitute part of
the Collateral.

     Section 9.9. No Other Duties, etc. Each Lender and the Borrower (for itself and the other Loan
Parties) hereby agrees that none of the Joint Lead Arrangers, Bookrunner or the Syndication Agent
listed on the cover page of this Agreement, in their capacities as such, shall have any duties or
obligations under any Loan Documents to the Borrower, any Lender or any Loan Party.

     Section 9.10. Withholding Tax. To the extent required by any applicable law, the Administrative
Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable
withholding tax. If the Internal Revenue Service or any authority of the United States or other
jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form was not delivered,
was not properly executed, or because such Lender failed to notify the Administrative Agent of a
change in circumstances that rendered the exemption from, or reduction of, withholding tax
ineffective, or for any other reason), such Lender shall indemnify the Administrative Agent (to the
extent that the Administrative Agent has not already been reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so) fully for all amounts paid, directly or
indirectly, by the Administrative Agent as tax or otherwise, including penalties and interest,
together with all expenses incurred, including legal expenses, allocated staff costs and any out of
pocket expenses.

     Section 9.11. Administrative Agent May File Proofs of Claim.

          (a) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any
Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or any
Revolving Credit Exposure shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether the Administrative Agent shall have made any demand on the
Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

     (i) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans or Revolving Credit Exposure and all other

83

 

Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable
in order to have the claims of the Lenders, the Issuing Bank, the Swingline Lender and the
Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders, the Issuing Bank, the Swingline Lender and the
Administrative Agent and its agents and counsel and all other amounts due the Lenders, the
Issuing Bank, the Swingline Lender and the Administrative Agent under Section 10.3)
allowed in such judicial proceeding; and

     (ii) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same; and

          (b) Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender, the Swingline Lender
and the Issuing Bank to make such payments to the Administrative Agent and, if the Administrative
Agent shall consent to the making of such payments directly to the Lenders, the Swingline Lender
and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Section 10.3.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender, the Swingline Lender or the Issuing Bank any
plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the
rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of
any Lender in any such proceeding.

ARTICLE X

MISCELLANEOUS

     Section 10.1. Notices.

     (a) Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications to any party herein to
be effective shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy, as follows:

	 	 	 	 	 

	 
	 	To the Borrower:	 	Piper Jaffray Companies
	 
	 	 	 	800 Nicollet Mall, Suite 800
	 
	 	 	 	Minneapolis, Minnesota 55402
	 
	 	 	 	Attention:  Tim Carter
	 
	 	 	 	Telecopy Number:  (612) 303-1316
	 
	 	 	 	Email:  timothy.l.carter@pjc.com

84

 

	 	 	 	 	 

	 
	 	To the Administrative Agent	 	 
	 
	 	or Swingline Lender:	 	SunTrust Bank
	 
	 	 	 	303 Peachtree Street, N. E.
	 
	 	 	 	Atlanta, Georgia 30308
	 
	 	 	 	Attention:  Scott Bazemore
	 
	 	 	 	Telecopy Number:  (404) 581-1775
	 
	 	 	 	Email:  scott.bazemore@suntrust.com
	 
	 	 	 	 
	 
	 	With a copy to:	 	SunTrust Bank
	 
	 	 	 	Agency Services
	 
	 	 	 	303 Peachtree Street, N. E./ 25th Floor
	 
	 	 	 	Atlanta, Georgia 30308
	 
	 	 	 	Attention:  Yasmin Ajani
	 
	 	 	 	Telecopy Number:  (404) 724-3879
	 
	 	 	 	Email:  yasmin.ajani@suntrust.com
	 
	 	 	 	 
	 
	 	 	 	and
	 
	 	 	 	 
	 
	 	 	 	Rick D. Blumen, Esq.
	 
	 	 	 	Alston & Bird LLP
	 
	 	 	 	1201 West Peachtree Street
	 
	 	 	 	Atlanta, Georgia  30309-3424
	 
	 	 	 	Telecopy Number: (404) 253-8366
	 
	 	 	 	Email:  rick.blumen@alston.com
	 
	 	 	 	 
	 
	 	To the Issuing Bank:	 	SunTrust Bank
	 
	 	 	 	25 Park Place, N. E./25th Floor
	 
	 	 	 	Atlanta, Georgia 30308
	 
	 	 	 	Attention:  Yasmin Ajani
	 
	 	 	 	Telecopy Number:  (404) 724-3879
	 
	 	 	 	 
	 
	 	To the Swingline Lender:	 	SunTrust Bank
	 
	 	 	 	Agency Services
	 
	 	 	 	303 Peachtree Street, N.E./25th Floor
	 
	 	 	 	Atlanta, Georgia 30308
	 
	 	 	 	Attention:  Agency Services
	 
	 	 	 	Telecopy Number: (404) 724-3879
	 
	 	 	 	Email:  services.agency@suntrust.com
	 
	 	 	 	 
	 
	 	To   any other Lender:	 	the address set forth in the Administrative
	 
	 	 	 	Questionnaire or the Assignment and Acceptance 

Agreement executed by such Lender

     Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All such notices and other
communications shall, when transmitted by overnight delivery, or faxed, be effective when

85

 

delivered
for overnight (next-day) delivery, or transmitted in legible form by facsimile machine,
respectively, or if mailed, upon the third Business Day after the date deposited into the mail or
if delivered, upon delivery; provided, that notices delivered to the Administrative Agent,
the Issuing Bank or the Swingline Lender shall not be effective until actually received by such
Person at its address specified in this Section 10.1.

          (b) Any agreement of the Administrative Agent, the Issuing Bank and the Lenders herein to
receive certain notices by telephone, facsimile or other electronic transmission is solely for the
convenience and at the request of the Borrower. The Administrative Agent, the Issuing Bank and the
Lenders shall be entitled to rely on the authority of any Person purporting to be a Person
authorized by the Borrower to give such notice and the Administrative Agent, the Issuing Bank and
the Lenders shall not have any liability to the Borrower or other Person on account of any action
taken or not taken by the Administrative Agent, the Issuing Bank and the Lenders in reliance upon
such telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all
other Obligations hereunder shall not be affected in any way or to any extent by any failure of the
Administrative Agent, the Issuing Bank and the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by the Administrative Agent, the Issuing Bank and the
Lenders of a confirmation which is at variance with the terms understood by the Administrative
Agent, the Issuing Bank and the Lenders to be contained in any such telephonic or facsimile notice.

          (c) Notices and other communications (including deliveries pursuant to Section 5.1) to
the Lenders, the Swingline Lender and the Issuing Bank hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by Administrative Agent; provided that the foregoing shall not apply to
notices to any Lender, the Swingline Lender or the Issuing Bank pursuant to ARTICLE II
unless such Lender, the Swingline Lender, the Issuing Bank, as applicable, and Administrative Agent
have agreed to receive notices under such Section by electronic communication and have agreed to
the procedures governing such communications. The Administrative Agent or Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices
or communications.

          (d) Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next Business Day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

86

 

     Section 10.2. Waiver; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or any other Loan Document, and no course of dealing
between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or further exercise
thereof or the exercise of any other right or power hereunder or thereunder. The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by
law. No waiver of any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section 10.2, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given. Without
limiting the generality of the foregoing, the making of a Loan or the issuance of a Letter of
Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether
the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default or Event of Default at the time.

          (b) No amendment or waiver of any provision of this Agreement or the other Loan Documents, nor
consent to any departure by the Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Borrower and the Required Lenders or the Borrower and the
Administrative Agent with the consent of the Required Lenders and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given;
provided, that no amendment or waiver shall: (i) increase the Commitment of any Lender
without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without
the written consent of each Lender affected thereby, (iii) postpone the date fixed for any payment
of any principal (excluding any mandatory prepayment) of, or interest on, any Loan or LC
Disbursement or interest thereon or any fees hereunder or reduce the amount of, waive or excuse any
such payment, or postpone the scheduled date for the termination or reduction of any Commitment,
without the written consent of each Lender affected thereby, (iv) change Section 2.22(b) or
(c) in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each Lender, (v) change
any of the provisions of this Section 10.2 or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders which are required to waive,
amend or modify any rights hereunder or make any determination or grant any consent hereunder,
without the consent of each Lender; (vi) release the Borrower or limit the liability of the
Borrower under the Loan Documents without the written consent of each Lender; (vii) release all or
substantially all Collateral (if any) securing any of the Obligations or agree to subordinate any
Lien in such Collateral to any other creditor of the Borrower or any Subsidiary, without the
written consent of each Lender; (viii) subordinate the Loans to any other Indebtedness without the
consent of all Lenders, or (ix) increase the aggregate of all Commitments without the consent of
all of the Lenders; provided further, that no such agreement shall amend, modify or
otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline
Lender or the Issuing Bank without the prior written consent of such Person. Notwithstanding
anything contained herein to the contrary, (x) no Defaulting Lender

87

 

shall have any right to approve
or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such
Defaulting Lender may not be increased or extended without the consent of such Lender and (y) this
Agreement may be amended and restated without the consent of any Lender (but with the consent of
the Borrower and the Administrative Agent) if, upon giving effect to such amendment and
restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated),
the Commitments of such Lender shall have terminated (but such Lender shall continue to be entitled
to the benefits of Section 2.19, Section 2.20, Section 2.21 and Section
10.3), such Lender shall have no other commitment or other obligation hereunder and shall have
been paid in full all principal, interest and other amounts owing to it or accrued for its account
under this Agreement. Notwithstanding anything herein or otherwise to the contrary, any Event of
Default occurring hereunder shall continue to exist (and shall be deemed to be continuing) until
such time as such Event of Default is waived in writing in accordance with the terms of this
Section notwithstanding (i) any attempted cure or other action taken by the Borrower or any other
Person subsequent to the occurrence of such Event of Default or (ii) any action taken or omitted to
be taken by the Administrative Agent or any Lender prior to or subsequent to the occurrence of such
Event of Default (other than the granting of a waiver in writing in accordance with the terms of
this Section).

     Section 10.3. Expenses; Indemnification.

          (a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the
Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent and its Affiliates, in connection with the syndication of
the credit facilities provided for herein, the preparation and administration of the Loan Documents
and any amendments, modifications or waivers thereof (whether or not the transactions contemplated
in this Agreement or any other Loan Document shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and
disbursements of outside counsel and the allocated cost of inside counsel) incurred by the
Administrative Agent, the Issuing Bank or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents, including
its rights under this Section 10.3, or in connection with
the Loans made or any Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit.

          (b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each
Lender, the Swingline Lender and the Issuing Bank, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses (including the
fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be
employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any
third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or

88

 

thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) the use by any Person of any information or materials
obtained by or through SyndTrak or other internet web sites, (iv) any actual or alleged presence or
Release of Hazardous Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (v) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses (x) are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y)
result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if
the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on
such claim as determined by a court of competent jurisdiction.

          (c) The Borrower shall pay, and hold the Administrative Agent and each of the Lenders harmless
from and against, any and all present and future stamp, documentary, and other similar taxes with
respect to this Agreement and any other Loan Documents, any Collateral described therein, or any
payments due thereunder, and save the Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to or resulting from any delay or omission to pay such
taxes.

          (d) To the extent that the Borrower fails to pay any amount required to be paid to the
Administrative Agent, the Issuing Bank or the Swingline Lender under clause (a),
(b) or (c) above, each Lender severally agrees to pay to the Administrative Agent,
the Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Pro Rata Share
(determined as of the time that the unreimbursed expense or indemnity payment is sought) of such
unpaid amount;
provided, that the unreimbursed expense or indemnified payment, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

          (e) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to actual or direct damages) arising out of, in
connection with or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the transactions contemplated herein or therein, any
Loan or any Letter of Credit or the use of proceeds thereof. No Indemnitee referred to in
paragraph (b) above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the other
Loan Documents or the transactions contemplated hereby or thereby.

89

 

          (f) All amounts due under this Section 10.3 shall be payable promptly after written
demand therefor.

     Section 10.4. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of paragraph (b) of this Section, (ii) by way of
participation in accordance with the provisions of paragraph (d) of this Section or (iii)
by way of pledge or assignment of a security interest subject to the restrictions of paragraph
(g) of this Section (and any other attempted assignment or transfer by any party hereto shall
be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby, Participants to the extent provided in paragraph (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and
the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Any Lender may at any time assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans at
the time owing to it); provided that any such assignment shall be subject to the following
conditions:

          (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case
of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

     (B) in any case not described in Section 10.4(b)(i)(A), the aggregate
amount of the Commitment (which for this purpose includes Loans and Revolving Credit
Exposure outstanding thereunder) or, if the applicable Commitment is not then in
effect, the principal outstanding balance of the Loans and Revolving Credit Exposure
of the assigning Lender subject to each such assignment (determined as of the date
the Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Acceptance, as of the Trade Date) shall not be less than $1,000,000, unless each of
the Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed); provided that the Borrower shall be
deemed to have consented to any such lower amount unless it shall object thereto by
written notice to the Administrative Agent within 5 Business Days after having
received notice thereof.

90

 

     (ii) Proportionate Amounts. Each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans, Revolving Credit Exposure or the Commitments
assigned.

     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by Section 10.4(b)(i)(B) and, in addition:

     (A) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) an Event of Default has occurred
and is continuing at the time of such assignment or (y) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund; provided that the
Borrower shall be deemed to have consented to any such assignment unless it shall
object thereto by written notice to the Administrative Agent within 5 Business Days
after having received notice thereof;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments to a Person that
is not a Lender with a Commitment; and

     (C) the consent of the Issuing Bank (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment that increases the
obligation of the assignee to participate in exposure under one or more Letters of
Credit (whether or not then outstanding), and the consent of the Swingline Lender
(such consent not to be unreasonably withheld or delayed) shall be required for any
assignment in respect of the Revolving Commitments.

     (iv) Assignment and Acceptance. The parties to each assignment shall
deliver to the Administrative Agent (A) a duly executed Assignment and Acceptance, (B) a
processing and recordation fee of $3,500, (C) an Administrative Questionnaire unless the
assignee is already a Lender and (D) the documents required under Section 2.21 if
such assignee is a Foreign Lender.

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be made to
a natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph
(c) of this Section 10.4, from and after the effective date specified in each
Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its obligations under this

91

 

Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Section 2.19, Section 2.20,
Section 2.21 and Section 10.3 with respect to facts and circumstances occurring
prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (d) of this Section 10.4. If the consent
of the Borrower to an assignment is required hereunder (including a consent to an assignment which
does not meet the minimum assignment thresholds specified above), the Borrower shall be deemed to
have given its consent five Business Days after the date notice thereof has actually been delivered
by the assigning Lender (through the Administrative Agent) to the Borrower, unless such consent is
expressly refused by the Borrower prior to such fifth Business Day.

          (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at one of its offices in Atlanta, Georgia a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amount of the Loans and Revolving Credit Exposure owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). Information
contained in the Register with respect to any Lender shall be available for inspection by such
Lender at any reasonable time and from time to time upon reasonable prior notice; information
contained in the Register shall also be available for inspection by the Borrower at any reasonable
time and from time to time upon reasonable prior notice. In establishing and maintaining the
Register, the Administrative Agent shall serve as the Borrower’s agent solely for tax purposes and
solely with respect to the actions described in this Section, and the Borrower hereby agrees that,
to the extent SunTrust Bank serves in such capacity, SunTrust Bank and its officers, directors,
employees, agents, sub-agents and affiliates shall constitute an “Indemnitee” for purposes of
Section 10.3.

          (d) Any Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent, the Swingline Lender or the Issuing Bank sell participations to any Person
(other than a natural person, the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent, the Lenders, the Issuing Bank
and the Swingline Lender shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement.

          (e) Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve
any amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to actions described in
Section 10.2(b) requiring the vote of all Lenders. Subject to paragraph (e) of
this Section 10.4, the Borrower agrees that each Participant shall be entitled to the
benefits of

92

 

Section 2.19, Section 2.20, and Section 2.21 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section 10.4. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.7 as though it were a Lender; provided such
Participant agrees to be subject to Section 2.19 as though it were a Lender.

          (f) A Participant shall not be entitled to receive any greater payment under Section
2.19 and Section 2.21 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.21
unless the Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.20(e) as though it were a
Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or any portion
of its rights under this Agreement to secure obligations of such Lender, including without
limitation any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) EACH LOAN DOCUMENT (OTHER THAN AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT)
WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT
EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICT OF LAW RULES).

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of the United States District Court of the Southern
District of New York, and of any state court of the State of New York sitting in New York county
and any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York state court or, to the extent permitted by applicable law, such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have
to bring any action or proceeding relating to this Agreement or any other Loan Document against the
Borrower or its properties in the courts of any jurisdiction.

          (c) The Borrower irrevocably and unconditionally waives any objection which it may now or
hereafter have to the laying of venue of any such suit, action or proceeding

93

 

described in paragraph (b) of this Section 10.5 and brought in any court
referred to in paragraph (b) of this Section 10.5. Each of the parties hereto
irrevocably waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to the service of process in the
manner provided for notices in Section 10.1. Nothing in this Agreement or in any other
Loan Document will affect the right of any party hereto to serve process in any other manner
permitted by law.

     Section 10.6. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 10.7. Right of Setoff. In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, each Lender and the Issuing Bank shall have
the right, at any time or from time to time upon the occurrence and during the continuance of an
Event of Default, without prior notice to the Borrower, any such notice being expressly waived by
the Borrower to the extent permitted by applicable law, to set off and apply against all deposits
(general or special, time or demand, provisional or final) of the Borrower at any time held or
other obligations at any time owing by such Lender and the Issuing Bank to or for the credit or the
account of the Borrower against any and all Obligations held by such Lender or the Issuing Bank, as
the case may be, irrespective of whether such Lender or the Issuing Bank shall have made demand
hereunder and although such Obligations may be contingent or unmatured. Each Lender and the
Issuing Bank agree promptly to notify the Administrative Agent and the Borrower after any such
set-off and any application made by such Lender and the Issuing Bank, as the case may be;
provided, that the failure to give such notice shall not affect the validity of such
set-off and application. Each Lender and the Issuing Bank agrees to apply all amounts collected
from any such set-off to the Obligations before applying such amounts to any other Indebtedness or
other obligations owed by the Borrower and any of its Subsidiaries to such Lender or Issuing Bank.

     Section 10.8. Counterparts; Integration.
This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy or by email, in pdf format), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. This
Agreement, the Fee Letters, the other Loan

94

 

Documents, and any separate letter agreement(s) relating
to any fees payable to the Administrative Agent constitute the entire agreement among the parties
hereto and thereto regarding the subject matters hereof and thereof and supersede all prior
agreements and understandings, oral or written, regarding such subject matters. Delivery of an
executed counterpart of a signature page of this Agreement and any other Loan Document by telecopy
or by email, in pdf format, shall be effective as delivery of a manually executed counterpart of
this Agreement or such other Loan Document.

     Section 10.9. Survival. All covenants, agreements, representations and warranties made by the
Borrower herein, in the Loan Documents and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of Section 2.19,
Section 2.20, Section 2.21, and Section 10.3 and ARTICLE IX shall
survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement or any provision hereof. All
representations and warranties made herein, in the Loan Documents in the certificates, reports,
notices, and other documents delivered pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the other Loan Documents, and the making of the Loans and the
issuance of the Letters of Credit.

     Section 10.10. Severability. Any provision of this Agreement or any other Loan Document held to be
illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be
ineffective to the extent of such illegality, invalidity or unenforceability without affecting the
legality, validity or enforceability of the remaining provisions hereof or thereof; and the
illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 10.11. Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders
agrees to take normal and reasonable precautions to maintain the confidentiality of any information
relating to the Borrower or any of its Subsidiaries or any of their respective businesses, to the
extent designated in writing as confidential and provided to it by the Borrower or any
Subsidiary, other than any such information that is available to the Administrative Agent, the
Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any of
its Subsidiaries, except that such information may be disclosed (i) to any Related Party of the
Administrative Agent, the Issuing Bank or any such Lender including without limitation accountants,
legal counsel and other advisors, (ii) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or
authority purporting to have jurisdiction over it (including any self-regulatory authority such as
the National Association of Insurance Commissioners), (iv) to the

95

 

extent that such information
becomes publicly available other than as a result of a breach of this Section 10.11, or
which becomes available to the Administrative Agent, the Issuing Bank, any Lender or any Related
Party of any of the foregoing on a non-confidential basis from a source other than the Borrower,
(v) in connection with the exercise of any remedy hereunder or under any other Loan Documents or
any suit, action or proceeding relating to this Agreement or any other Loan Documents or the
enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions
substantially the same as those of this Section 10.11, to (A) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, or (B) any actual or prospective party (or its Related Parties) to any swap
or derivative or similar transaction under which payments are to be made by reference to the
Borrower and its obligations, this Agreement or payments hereunder, (vii) any rating agency, (viii)
the CUSIP Service Bureau or any similar organization, or (ix) with the consent of the Borrower.
Any Person required to maintain the confidentiality of any information as provided for in this
Section 10.11 shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such information as
such Person would accord its own confidential information.

     Section 10.12. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Loan, together with all fees, charges and other amounts
which may be treated as interest on such Loan under applicable law (collectively, the
“Charges”), shall exceed the maximum lawful rate of interest (the “Maximum Rate”)
which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section 10.12 shall be cumulated
and the interest and Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Rate to the date of repayment, shall have been received by
such Lender.

     Section 10.13. Waiver of Effect of Corporate Seal. The Borrower represents and warrants that neither
it nor any other Loan Party is required to affix its corporate seal to this Agreement or any other
Loan Document pursuant to any Requirement of Law, agrees that this Agreement is delivered by
Borrower under seal and
waives any shortening of the statute of limitations that may result from not affixing the
corporate seal to this Agreement or such other Loan Documents.

     Section 10.14. Patriot Act. The Administrative Agent and each Lender hereby notifies the Loan
Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify
and record information that identifies each Loan Party, which information includes the name and
address of such Loan Party and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act. Each Loan
Party shall, and shall cause each of its Subsidiaries to, provide to the extent commercially
reasonable, such information and take such other actions as are reasonably

96

 

requested by the
Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in
maintaining compliance with the Patriot Act.

     Section 10.15. Independence of Covenants. All covenants hereunder shall be given independent effect
so that if a particular action or condition is not permitted by any of such covenants, the fact
that it would be permitted by an exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of Default if such action
is taken or condition exists.

     Section 10.16. No Advisory or Fiduciary Relationship. In connection with all aspects of the
transactions contemplated hereby (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services
regarding this Agreement provided by the Administrative Agent, the Lenders and the Arrangers are
arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and
the Administrative Agent, the Lenders and the Arrangers, on the other hand, (B) the Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms,
risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii)
(A) each of the Administrative Agent, the Lenders and the Arrangers is and has been acting solely
as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is
not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its
Affiliates, or any other Person and (B) neither the Administrative Agent nor any Lender or Arranger
has any obligation to the Borrower or any of its Affiliates with respect to the transactions
contemplated hereby except those obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent, each Lender and the Arrangers and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Borrower and its Affiliates, and neither the Administrative Agent nor any Lender or
the Arrangers has any obligation to disclose any of such interests to the Borrower or any of its
Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any
claims that it may have against the Administrative Agent or any Lender or either Arranger with
respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect
of any transaction contemplated hereby.

(remainder of page left intentionally blank)

97

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	PIPER JAFFRAY COMPANIES,

as Borrower

 	 
	 	By:  	/s/ Debbra L. Schoneman
 	 
	 	 	Name:  	Debbra L. Schoneman 	 
	 	 	Title:  	Chief Financial Officer 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK,

as Administrative Agent, as Issuing Bank, as

Swingline Lender and as a Lender

 	 
	 	By:  	/s/ Christopher Reasoner
 	 
	 	 	Name:  	Christopher Reasoner 	 
	 	 	Title:  	Managing Director 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Christopher M. Doering
 	 
	 	 	Name:  	Christopher M. Doering 	 
	 	 	Title:  	Vice President 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ASSOCIATED BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Nicholas G. Myers
 	 
	 	 	Name:  	Nicholas G. Myers 	 
	 	 	Title:  	Vice President 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	FIFTH THIRD BANK,

as a Lender

 	 
	 	By:  	/s/ Gary S. Cosey
 	 
	 	 	Name:  	Gary S. Cosey 	 
	 	 	Title:  	VP Corporate Banking 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Cara Gentile
 	 
	 	 	Name:  	Cara Gentile 	 
	 	 	Title:  	Vice President 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE PRIVATEBANK AND TRUST COMPANY,

as a Lender

 	 
	 	By:  	/s/ Seth Hove
 	 
	 	 	Name:  	Seth Hove 	 
	 	 	Title:  	Associate Managing Director 	 

Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ATLANTIC CAPITAL BANK,

as a Lender

 	 
	 	By:  	/s/ J. Christopher Deisley
 	 
	 	 	Name:  	J. Christopher Deisley 	 
	 	 	Title:  	Senior Vice President 	 
	 

Credit Agreement 

 

 

Schedule I

APPLICABLE MARGIN 

	 	 	 	 	 	 	 
	Pricing	 	 	 	Applicable Margin	 	Applicable Margin
	Level	 	Leverage Ratio	 	for Eurodollar Loans	 	for Base Rate Loans
	I

	 	Less than 0.15:1.00
	 	2.50% per annum
	 	1.50% per annum
	 
	 	 	 	 	 	 
	II

	 	Greater than or
equal to 0.15:1.00
but less than
0.27:1.00
	 	2.75% per annum
	 	1.75% per annum
	 
	 	 	 	 	 	 
	III

	 	Greater than or
equal to 0.27:1:00
	 	3.00% per annum
	 	2.00% per annum

 

 

Schedule II

COMMITMENT AMOUNTS

	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Term Loan
	Lender	 	Commitment Amount	 	Commitment Amount
	SunTrust Bank
	 	$	10,000,000	 	 	$	20,000,000	 
	U.S. Bank National Association
	 	$	9,334,000	 	 	$	18,666,000	 
	Associated Bank, N.A.
	 	$	8,000,000	 	 	$	16,000,000	 
	Fifth Third Bank
	 	$	8,000,000	 	 	$	16,000,000	 
	PNC Bank, National Association
	 	$	8,000,000	 	 	$	16,000,000	 
	The PrivateBank and Trust
Company
	 	$	5,000,000	 	 	$	10,000,000	 
	Atlantic Capital Bank
	 	$	1,666,000	 	 	$	3,334,000	 
	 
	 	 	 	 	 	 	 	 
	Total:
	 	$	50,000,000	 	 	$	100,000,000	 

 

 

SCHEDULE 1.1

EBITDA ADDBACK AMOUNTS

	•	 	Leasehold depreciation

	•	 	Furniture/equipment depreciation

	•	 	Software depreciation

	•	 	Equity compensation related expenses

	•	 	Equity grant cancels

	•	 	Forgiveable loan amortization

	•	 	Intangible amortization expense

	•	 	Goodwill expense

	•	 	Interest expense on long-term debt

	•	 	Other non-recurring/Extraordinary items

	•	 	Income Tax expense/benefit

 

 

SCHEDULE 4.5(a)

LITIGATION

Municipal Derivatives Investigations and Litigation

     The U.S. Department of Justice (“DOJ”), Antitrust Division, the SEC and various state
attorneys general are conducting broad investigations of numerous firms, including Piper Jaffray,
for possible antitrust and securities violations in connection with the bidding or sale of
guaranteed investment contracts and derivatives to municipal issuers from the early 1990s to date.
These investigations commenced in November 2006, and we have received and responded to various
subpoenas and requests for information. In December 2007, the DOJ notified one of our employees,
whose employment subsequently was terminated, that he is regarded as a target of the investigation.
We have been cooperating and continue to cooperate with these governmental investigations. In
addition, several class action complaints have been brought on behalf of a purported class of
state, local and municipal government entities that purchased municipal derivatives directly from
one of the defendants or through a broker, from January 1, 1992 to the present. The complaints,
which have been consolidated in In re Municipal Derivatives Antitrust Litigation, MDL No. 1950
(Master Docket No. 08-2516), allege antitrust violations and civil fraud and are pending in the
U.S. District Court for the Southern District of New York under the multi-district litigation
rules. The complaints seek unspecified treble damages under the Sherman Act.

 

 

SCHEDULE 4.5(b)

ENVIRONMENTAL MATTERS

None

 

 

SCHEDULE 4.14

SUBSIDIARIES

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Jurisdiction of	 	Ownership
	 	 	 	 	Incorporation	 	Interest
	Full Legal Name	 	Type of Entity	 	or Organization	 	of Borrower
	Piper Jaffray Companies

	 	Corporation
	 	Delaware
	 	n/a	 
	Piper Jaffray Ltd.*

	 	Corporation
	 	United Kingdom
	 	100%	
	PJC Nominees Ltd.*

	 	Corporation
	 	United Kingdom
	 	100% indirect

	Piper Jaffray Investment Management Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Advisory Research, Inc.

	 	Corporation
	 	Delaware
	 	100% indirect

	Fiduciary Asset Management Inc.

	 	Corporation
	 	Delaware
	 	100% indirect

	Piper Jaffray Investment Management LLC

	 	LLC
	 	Delaware
	 	100% indirect

	Piper Jaffray Municipal Fund LLC

	 	LLC
	 	Delaware
	 	100% indirect

	PJC Capital Management LLC

	 	LLC
	 	Delaware
	 	100%	
	PJC Capital LLC

	 	LLC
	 	Delaware
	 	100%	
	PJC Consumer Partners Acquisition I, LLC

	 	LLC
	 	Delaware
	 	100%	
	Piper Jaffray Lending Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Private Capital Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Funding LLC

	 	LLC
	 	Delaware
	 	100%	
	Piper Jaffray & Co.*

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Financial Products Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Financial Products II Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Financial Products III Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Lending LLC

	 	LLC
	 	Delaware
	 	100%	
	Piper Jaffray Ventures Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Ventures Capital, Inc.

	 	Corporation
	 	Delaware
	 	100% indirect

	Piper Jaffray Mena (LP) Inc.

	 	Corporation
	 	Delaware
	 	100%	
	Piper Jaffray Asia Holdings Limited*

	 	Local Company
	 	Hong Kong
	 	100%	
	Piper Jaffray Asia Limited*

	 	Local Company
	 	Hong Kong
	 	100% indirect

	Piper Jaffray Asia Securities Limited*

	 	Local Company
	 	Hong Kong
	 	100% indirect

	Piper Jaffray Asia Futures Limited*

	 	Local Company
	 	Hong Kong
	 	100% indirect

	Piper Jaffray Asia Management Services Ltd*

	 	Local Company
	 	Hong Kong
	 	100% indirect

	Grandward Investments Limited*

	 	Local Company
	 	Hong Kong
	 	100% indirect

All entities are Subsidiary Loan Parties, except as noted with an asterisk (*).

 

 

SCHEDULE 4.19

MATERIAL CONTRACTS

Sublease Agreement, dated as of September 18, 2003, between U.S. Bancorp and U.S. Bancorp Piper
Jaffray Inc.
http://www.sec.gov/Archives/edgar/data/1230245/000104746903034126/a2119016zex-107.txt

First Amendment to Sublease Agreement, by and among U.S. Bancorp and Piper Jaffray & Co. dated
March 26, 2010 http://www.sec.gov/Archives/edgar/data/1230245/000095012310046318/c58007exv10w3.htm

 

 

SCHEDULE 7.1

EXISTING INDEBTEDNESS

Credit Facilities

	1.	 	Piper Jaffray & Co. $250,000,000 Secured Committed Facility from U.S. Bank National
Association

	2.	 	Piper Jaffray & Co. $100,000,000 Secured Uncommitted Facility from JP Morgan Chase Bank, N.A.

	3.	 	Piper Jaffray & Co. $100,000,000 Secured Uncommitted Facility from BNY Mellon

	4.	 	Piper Jaffray & Co. $100,000,000 Unsecured Uncommitted Facility from BNY Mellon

	5.	 	Piper Jaffray & Co. $75,000,000 Secured Uncommitted Facility from Well Fargo Bank, National
Association

	6.	 	Piper Jaffray & Co. $300,000,000 Secured Commercial Paper Notes — Series A Program

	7.	 	Piper Jaffray LTD £500,000 CREST Settlement Bank Facility from Barlays Commercial Bank

	8.	 	Piper Jaffray Asia Securities Limited HK$19,000,000 with Standard Chartered: (i) HK$5,000,000
Current Account Overdraft Banking Facility, (ii) HK$10,000,000 Intraday Overdraft Banking
Facility, and (iii) HK$4,000,000 Drawings Against Uncleared Effects (DAUE)

Repurchase Agreements

	1.	 	Master Repurchase Agreement between Merrill Lynch Pierce, Fenner & Smith Incorporated and
Piper Jaffray & Co. dated March 2, 2010

	2.	 	Master Repurchase Agreement between RBC Capital Markets Corporation and Piper Jaffray & Co.
dated May 13, 2010

	3.	 	Master Repurchase Agreement between Mizuho Securities USA Inc. and Piper Jaffray & Co. dated
April 22, 2010

	4.	 	Master Repurchase Agreement between Morgan Stanley & Co Incorporated and Piper Jaffray Inc.
dated November 13, 1996

	5.	 	Master Repurchase Agreement between Cantor Fitzgerald & Co. and Piper Jaffray & Co. dated
June 27, 2006

Guarantees

	1.	 	Wahlert High School dba Holy Family Catholic Schools Guarantee by Piper Jaffray
Companies dated March 22, 2006 in connection with ISDA Master Agreement dated March 22, 2006
between Piper Jaffray Financial Products II Inc. and Wahlert High School.

 

 

	2.	 	EagleCrest Senior Housing LLC Guaranty by Piper Jaffray Companies dated July 30, 2007
in connection with ISDA Master Agreement dated July 30, 2007 between Piper Jaffray Financial
Products II Inc. and EagleCrest Senior Housing, LLC.

	3.	 	Presbyterian Homes of North Oaks, Inc. Guaranty by Piper Jaffray Companies dated
August 21, 2007 in connection with ISDA Master Agreement dated August 21, 2007 between Piper
Jaffray Financial Products II Inc. and Presbyterian Homes of North Oaks, Inc.

	4.	 	The Glenridge on Palmer Ranch, Inc. Guaranty by Piper Jaffray Companies dated
December 2006 in connection with ISDA Master Agreement dated December 2006 between Piper
Jaffray Financial Products II Inc. and The Glenridge on Palmer Ranch, Inc.

	5.	 	Presbyterian Homes Care Centers, Inc. Guaranty by Piper Jaffray Companies dated
September 26, 2007 in connection with ISDA Master Agreement dated September 26, 2007 between
Piper Jaffray Financial Products II Inc. and Presbyterian Homes Care Centers, Inc.

	5.	 	Wachovia Bank, N.A. Guaranty by Piper Jaffray Companies dated August 10, 2005 in
connection with ISDA Master Agreement and Schedule thereto dated as of August 10, 2005 between
Piper Jaffray Financial Products II Inc. and Wachovia Bank, N.A.

	6.	 	Morgan Stanley Municipal Funding Inc. Guaranty by Piper Jaffray Companies dated
September 21, 2005 in connection with ISDA Master Agreement, Schedule and Annex thereto dated
February 12, 2004 and the Amended and Restated Collateralized Shortfall and Security Agreement
dated as of May 5, 2008 between Piper Jaffray Financial Products II Inc. and Morgan
Stanley Municipal Funding Inc.

	7.	 	JPMorgan Chase Bank, N.A. Guarantee by Piper Jaffray Companies dated February 8,
2006 between Piper Jaffray Companies and JPMorgan Chase Bank, N.A in connection with ISDA
Master Agreement dated February 8, 2006 between JPMorgan Chase Bank, N.A. and Piper Jaffray
Financial Products II Inc.

	8.	 	Merrill Lynch Capital Services, Inc. Letter Guarantee by Piper Jaffray Companies
dated February 13, 2006 in connection with ISDA Master Agreement dated February 13, 2006
between Merrill Lynch Capital Services, Inc. and Piper Jaffray Financial Products II Inc.

	9.	 	Deutsche Bank AG Guaranty by Piper Jaffray Companies dated June 12, 2007 in
connection with ISDA Master Agreement dated June 12, 2007 between Deutsche Bank AG, New York
branch and Piper Jaffray Financial Products II Inc.

	10.	 	Lehman Brothers Special Financing Inc. Guaranty by Piper Jaffray Companies dated
September 26, 2007 in connection with ISDA Master Agreement dated September 26, 2007 between
Piper Jaffray Financial Products II Inc. and Lehman Brothers Special Financing Inc.

	11.	 	Citibank, N.A. Guaranty by Piper Jaffray Companies dated April 23, 2008 in
connection with ISDA Master Agreement dated April 23, 2008.

 

 

	13 	 	R.J O’Brien & Associates L.L.C Corporate Guarantee by Piper Jaffray & Co. for Piper
Jaffray Financial Products II Inc. dated October 2010 in connection with futures clearing
agreement.

	14.	 	JPMorgan Chase Bank, N.A. Guaranty by Piper Jaffray Companies dated October 2005 in
connection with a Global Custody and Clearance Agreement with Piper Jaffray Ltd.

	15.	 	Lloyds TSB Bank PLC Guarantee Continuing Guarantee by Piper Jaffray Companies dated
September 23, 2005, in connection with credit facility represented by the CREST Settlement
Bank Funding Agreement dated September 5, 2005 between Piper Jaffray Ltd. and Lloyds TSB Bank
PLC.

	Hedging Transactions

Certain
Subsidiaries have entered into Hedging Transactions of the type described in
Section 7.10(i)-(ii) of the Agreement. For more information, see “Derivative Contract Financial
Instruments” within Note 5 to the Borrower’s Notes to the Consolidated Financial Statement for the
Form 10-Q for the period ended September 30, 2010.

	ISDA Credit Documents

	1.	 	Credit Support Annex to the ISDA Master Agreement dated as of June 12, 2007, between
Deutsche Bank AG, New York Branch and Piper Jaffray Financial Products II Inc.

	2.	 	Credit Support Annex to the ISDA Master Agreement dated as of November 17, 2003
between Goldman Sachs Capital Markets, L.P. and U.S. Bancorp Piper Jaffray Inc. (together with
Assignment and Novation of Master Agreement. dated April 17, 2006 and Amendment to ISDA Master
Agreement dated September 3, 2009).

	3.	 	Credit Support Annex to the ISDA Master Agreement dated as of December 15, 2005
between Bear Stearns Capital Markets Inc. and Piper Jaffray Financial Products II Inc.
(together with 1st Amendment to Master Agreement dated December 12, 2007).

	4.	 	Credit Support Annex to the ISDA Master Agreement dated as of dated as of February 8,
2006 between JPMorgan Chase Bank, N.A. and Piper Jaffray Financial Products II Inc.

	5.	 	Credit Support Annex to the ISDA Master Agreement dated as of September 26, 2007
between Lehman Brothers Special Financing Inc. and Piper Jaffray Financial Products II Inc.

	6.	 	Credit Support Annex to the ISDA Master Agreement dated as of February 13, 2006
between Merrill Lynch Capital Services Inc. and Piper Jaffray Financial Products II Inc.

	7.	 	Amended and Restated Collateralized Shortfall and Security Agreement dated as of May
5, 2008 between Morgan Stanley Municipal Funding Inc. and Piper Jaffray Financial Products II
Inc.

 

 

	8.	 	Credit Support Annex to the ISDA Master Agreement dated as of August 10, 2005 between
Wachovia Bank, N.A. and Piper Jaffray Financial Products II Inc.

	9.	 	Credit Support Annex to the ISDA Master Agreement dated as of April 23, 2008 between
Citibank, N.A. and Piper Jaffray Financial Products II Inc.

 

 

SCHEDULE 7.2

EXISTING LIENS

Deed of Charge between JPMorgan Chase Bank, N.A. and Piper Jaffray Ltd. dated October 20, 2005
entered into in connection with the Global Custody and Clearance Agreement between JPMorgan Chase
Bank and Piper Jaffray Ltd.

See Hedging Transactions listed on Schedule 7.1. The Loan Parties have pledged financial
instruments and other inventory positions as collateral for repurchase agreements, secured
borrowings and securities loaned.

The Loan Parties to the ISDA Credit Documents listed on Schedule 7.1 have pledged the
Posted
Collateral or the Collateral (as defined in the applicable ISDA Credit Document) to the other
party thereto.

 

 

SCHEDULE 7.4

EXISTING INVESTMENTS

The Borrower and its Subsidiaries own the equity interests in the entities listed in Schedule 4.14.

Intercompany debt as of December 20, 2010 in the amounts listed below:

	 	 	 	 	 	 	 
	Lender:	 	Debtor:	 	Amount:	 
	Piper Jaffray Companies
	 	Piper Jaffray Limited	 	$	2,890,936	 
	Piper Jaffray Companies
	 	Piper Jaffray Financial Products, Inc.	 	$	1,511,033	 
	Piper Jaffray Companies
	 	Piper Jaffray Ventures Inc.	 	$	238,395	 
	Piper Jaffray Companies
	 	Piper Jaffray Funding LLC	 	$	172,841	 
	Piper Jaffray Companies
	 	Piper Jaffray Financial Products III	 	$	192,528	 

Investments
made pursuant to the Hedging Transactions and the Guarantees listed
on Schedule 7.1.

 

 

EXHIBIT A

FORM OF ASSIGNMENT AND ACCEPTANCE 

[date to be supplied]

     Reference is made to the Credit Agreement dated as of December 29, 2010 (as amended,
restated, supplemented or otherwise modified from time to time and in effect on the date hereof,
the “ Credit Agreement”), by and among Piper Jaffray Companies, a Delaware corporation (the
“Borrower”), the lenders from time to time party thereto and SunTrust Bank, as
Administrative Agent for such lenders. Terms defined in the Credit Agreement are used herein with
the same meanings.

     [name of assignor] (the “Assignor”) hereby sells and assigns, without
recourse, to [name of assignee] (the “Assignee”), and the Assignee hereby
purchases and assumes, without recourse, from the Assignor, effective as of the assignment date set
forth below (the “Assignment Date”), the interests set forth below in all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and the other Loan
Documents to the extent related to the amount and percentage interest identified below of all
outstanding rights and obligations of the respective facilities identified below, together with any
LC Exposure and Swingline Exposure included in such facilities (such rights and obligations being
referred to herein as the “Assigned Interest”) The Assignee hereby acknowledges receipt of
a copy of the Credit Agreement. From and after the Assignment Date, [(i) the Assignee shall be a
party to and be bound by the provisions of the Credit Agreement and, to the extent of the Assigned
Interest, have the rights and obligations of a Lender thereunder and (ii)]1 the Assignor
shall, to the extent of the Assigned Interest, relinquish its rights and be released from its
obligations under the Credit Agreement.

     This Assignment and Acceptance is being delivered to the Administrative Agent together with
(i) if the Assignee is a Foreign Lender, any documentation required to be delivered by the Assignee
pursuant to Section 2.20 (e) of the Credit Agreement, duly completed and executed by the Assignee,
and (ii) if the Assignee is not already a Lender under the Credit Agreement, an Administrative
Questionnaire in the form supplied by the Administrative Agent, and any documentation required to
be delivered pursuant to Section 10.4 of the Credit Agreement, duly completed by the Assignee. The
Assignee shall pay the fee payable to the Administrative Agent pursuant to Section 10.4(b) of the
Credit Agreement.

     The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the
Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other
adverse claim created by the Assignor and (iii) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Acceptance and to consummate the
transactions contemplated hereby, and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial

 

			
	1	 	Bracketed language may be omitted if Assignee is an existing Lender at the time of the assignment.

 

 

condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

     The Assignee (a) represents and warrants that (i) it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate
the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of Section 10.4 of the Credit Agreement (subject to receipt of such consents
as may be required under the Credit Agreement), (iii) from and after the effective date set forth
below (the “Effective Date”), it shall be bound by the provisions of the Credit Agreement
as a Lender thereunder with respect to the Assigned Interest and, to the extent of the Assigned
Interest, shall have the rights and obligations of a Lender thereunder (in addition to any rights
and obligations it may theretofore hold as a Lender), (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements delivered pursuant to
Section 5.1 thereof, as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and
Acceptance and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Administrative Agent or any other Lender,
and (v) if it is a Foreign Lender, attached to this Assignment and Acceptance is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on
the Administrative Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

Alternative to be selected [Alternative A: From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding
the Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date, unless otherwise agreed in writing by the Administrative Agent, the Assignor and the
Assignee.] [Alternative B: From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignee regardless of whether such amounts have accrued prior to, on or
after the Effective Date. The Assignor and the Assignee shall make all appropriate adjustments with
respect to payments made by the Administrative Agent for periods prior to the Effective Date or
with respect to the making of this assignment directly between themselves.]

This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns. This Assignment and Acceptance may be executed
in any number of counterparts, which together shall constitute one instrument. Delivery of an
executed counterpart of a signature page of this Assignment and Acceptance by telecopy or other
electronic method of transmission shall be effective as delivery of a manually executed

 

 

counterpart of this Assignment and Acceptance. This Assignment and Acceptance shall be governed by
and construed in accordance with the laws of the State of New York.

Assignment Date:

Legal Name of Assignor:

Legal Name of Assignee:

Assignee’s Address for Notices:

Effective Date of Assignment (“Effective Date”):

	 	 	 	 	 	 	 	 	 
	 	 	Amount	 	 	Percentage Assigned of	 
	 	 	Assigned of Revolving	 	 	Revolving Commitment/Term	 
	Facility	 	Commitment/Term Loan	 	 	Loan2	 
	Revolving Commitment:
	 	$	 	 	 	 	%	 
	Term Loan:
	 	$	 	 	 	 	%	 

The terms set forth above are hereby agreed to:

	 	 	 	 	 
	 	[Name of Assignor], as Assignor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Name of Assignee], as Assignee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	2	 	set forth, to at least 8 decimals, as a
percentage of the Term Loans and the aggregate Revolving Commitments of all
Lenders thereunder

 

 

The undersigned hereby consents to the within assignment3:

	 	 	 	 	 	 	 	 	 	 	 

	PIPER JAFFRAY COMPANIES	 	SUNTRUST BANK, as Administrative Agent:
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 

	 	Name:
	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 	 	Title:	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK, as Issuing Bank:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	3	 	Consents to be included to the extent required by
Section 10.4(b) of the Credit Agreement.

 

 

EXHIBIT B

FORM OF GUARANTY & PLEDGE AGREEMENT

[Attached hereto]

 

 

EXHIBIT C

FORM OF REVOLVING CREDIT NOTE 

$___________

[Date]

     FOR VALUE RECEIVED, the undersigned, PIPER JAFFRAY COMPANIES, a Delaware corporation (the
“Borrower”), hereby promises to pay to [NAME OF LENDER] (the “Lender”) or its
registered assigns, at the Payment Office of the Administrative Agent on the Revolving Commitment
Termination Date (as defined in the Credit Agreement defined below), the lesser of the principal
sum of ____________________________ AND NO/100 DOLLARS ($____________________) and the aggregate
unpaid principal amount of all Revolving Loans (as defined in the Credit Agreement defined below)
made by the Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United
States of America in immediately available funds, and to pay interest from the date hereof on the
principal amount thereof from time to time outstanding, in like funds, at said office, at the rate
or rates per annum and payable on such dates as provided in the Credit Agreement. In addition,
should legal action or an attorney-at-law be utilized to collect any amount due hereunder, the
Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees
actually incurred, in accordance with the terms of Section 10.3 of the Credit Agreement.

     Terms defined in that certain Credit Agreement dated as of December 29, 2010 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by
and among the Borrower, the lenders from time to time party thereto and SunTrust, as Administrative
Agent for the lenders, are used herein with the same meanings.

     Upon the occurrence and during the continuation of an Event of Default, the Borrower promises
to pay interest, on demand, at the rates provided in Section 2.13(c) of the Credit Agreement.

     In the event of an acceleration of the maturity of the Revolving Loans, this Revolving Credit
Note shall become immediately due and payable, without presentation, demand, protest or notice of
any kind, all of which are hereby waived by the Borrower.

     All Borrowings evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto
and made a part hereof, or otherwise recorded by such holder in its internal records; provided,
that the failure of the holder hereof to make such a notation or any error in such notation shall
not affect the obligations of the Borrower to make the payments of principal and interest in
accordance with the terms of this Revolving Credit Note and the Credit Agreement.

 

 

     This Revolving Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the acceleration of the
maturity hereof upon the happening of certain events, for prepayment of the principal hereof prior
to the maturity hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified. This Revolving Credit Note is
secured by and is also entitled to the benefits of the Loan Documents to the extent provided
therein and any other agreement or instrument providing collateral for the Revolving Loans,
whether now or hereafter in existence, and any filings, instruments, agreements and documents
relating thereto and providing collateral for the Revolving Loans.

THIS REVOLVING CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

[Remainder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the duly authorized officer of the Borrower as an authorized signatory has
executed this Revolving Credit Note as of the day and year first written above.

	 	 	 	 	 
	 	PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

LOANS AND PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Unpaid Principal	 	 
	 	 	 	 	Amount and	 	 	 	 	 	Balance of	 	 
	 	 	 	 	Type of Revolving	 	Payments of	 	Revolving Credit	 	Name of Person
	Date	 	Loan	 	Principal	 	Note	 	Making Notation
	 

 

 

EXHIBIT D

FORM OF SWINGLINE NOTE

			
	$5,000,000.00
	 	Atlanta, Georgia
	 
	 	[Date]

     FOR VALUE RECEIVED, the undersigned, PIPER JAFFRAY COMPANIES, a Delaware corporation (the
“Borrower”), hereby promises to pay to SUNTRUST BANK, a Georgia state banking corporation
(“SunTrust” or the “Swingline Lender”) or its registered assigns, at the Payment
Office of the Administrative Agent on the earlier of (i) the last day of the Interest Period
applicable to such Borrowing and (ii) the Revolving Commitment Termination Date (as such terms are
defined in the Credit Agreement dated as of December 29, 2010 as the same may be amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among
the Borrower, the Lenders from time to time party thereto and SunTrust, as Administrative Agent for
the Lenders, the lesser of the principal sum of FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00) or
the aggregate unpaid principal amount of all outstanding Swingline Loans made by the Swingline
Lender to the Borrower pursuant to the Credit Agreement from time to time, in lawful money of the
United States of America in immediately available funds, and to pay interest from the date hereof
on the principal amount thereof from time to time outstanding, in like funds, at said office, at
the rate or rates per annum and payable on such dates as provided in the Credit Agreement. In
addition, should legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Borrower further promises to pay all costs of collection, including the reasonable
attorneys’ fees of the Administrative Agent and the Swingline Lender in accordance with Section
10.3 of the Credit Agreement. Terms not defined herein shall have the meanings ascribed to such
terms in the Credit Agreement.

     Upon the occurrence and during the continuation of an Event of Default, the Borrower promises
to pay interest, on demand, at the rates provided in Section 2.13(c) of the Credit Agreement.

     In the event of an acceleration of the maturity of the Swingline Loans, this Swingline Note
shall become immediately due and payable, without presentation, demand, protest or notice of any
kind, all of which are hereby waived by the Borrower.

     All Borrowings evidenced by this Swingline Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto
and made a part hereof, or otherwise recorded by such holder in its internal records;
provided, that the failure of the holder hereof to make such a notation or any
error in such notation shall not affect the obligations of the Borrower to make the payments of
principal and interest in accordance with the terms of this Swingline Note and the Credit
Agreement.

     This Swingline Note is issued in connection with, and is entitled to the benefits of, the
Credit Agreement which, among other things, contains provisions for the acceleration of the

 

 

maturity hereof upon the happening of certain events, for optional and mandatory prepayment of
the principal hereof prior to the maturity hereof and for the amendment or waiver of certain
provisions of the Credit Agreement, all upon the terms and conditions therein specified. This
Swingline Note is secured by and is also entitled to the benefits of the Loan Documents to the
extent provided therein and any other agreement or instrument providing collateral for the
Swingline Loans, whether now or hereafter in existence, and any filings, instruments, agreements
and documents relating thereto and providing collateral for the Swingline Loans.

     THIS SWINGLINE NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

[Remainder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the duly authorized officer of the Borrower as an authorized signatory has
executed this Swingline Note as of the day and year first written above.

	 	 	 	 	 
	 	PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

LOANS AND PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount and	 	 	 	 	 	Unpaid Principal	 	 
	 	 	 	 	Type of Swingline	 	Payments of	 	Balance of	 	Name of Person
	Date	 	Loan	 	Principal	 	Swingline Note	 	Making Notation
	 

 

 

EXHIBIT E

FORM OF TERM NOTE

$___________

[Date]

     FOR VALUE RECEIVED, the undersigned, PIPER JAFFRAY COMPANIES, a Delaware corporation (the
“Borrower”), hereby promises to pay to [NAME OF LENDER] (the “Lender”) or its
registered assigns, at the Payment Office of the Administrative Agent on the Maturity Date (as
defined in that certain Credit Agreement dated as of December 29, 2010 (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”;
capitalized terms used in this Term Note and not otherwise defined shall have the meanings ascribed
to such terms in the Credit Agreement) by and among the Borrower, the Lenders from time to time
party thereto, and SunTrust Bank, as Administrative Agent for the Lenders (the “Agent”) the
lesser of the principal sum of ____________________________ AND NO/100 DOLLARS
($____________________) and the aggregate unpaid principal amount of all Term Loans made by the
Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of
America in immediately available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates
per annum and payable on such dates as provided in the Credit Agreement. In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further
promises to pay all costs of collection in accordance with the terms of the Credit Agreement.

     All borrowings evidenced by this Term Note and all payments and prepayments of the principal
hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto
and made a part hereof or on a continuation thereof which shall be attached hereto and made a part
hereof, or otherwise recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such notation shall not affect
the obligations of the Borrower to make the payments of principal and interest in accordance with
the terms of this Term Note and the Credit Agreement.

     Upon the occurrence and during the continuation of an Event of Default, the Borrower promises
to pay interest, on demand, at the rates provided in Section 2.13(c) of the Credit Agreement.

     In the event of an acceleration of the maturity of the Term Loans, this Note shall become
immediately due and payable, without presentation, demand, protest or notice of any kind, all of
which are hereby waived by the Borrower. In the event this Note is not paid when due at any stated
or accelerated maturity, the Borrower agrees to pay, in addition to the principal and interest, all
costs of collection, including reasonable attorneys’ fees.

 

 

     This Term Note is issued in connection with, and is entitled to the benefits of, the Credit
Agreement which, among other things, contains provisions for the acceleration of the maturity
hereof upon the happening of certain events, for prepayment of the principal hereof prior to the
maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all
upon the terms and conditions therein specified. This Term Note is secured by and is also
entitled to the benefits of the Loan Documents to the extent provided therein and any other
agreement or instrument providing collateral for the Term Loans, whether now or hereafter in
existence, and any filings, instruments, agreements and documents relating thereto and providing
collateral for the Term Loans.

     THIS TERM NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the duly authorized officer of the Borrower as an authorized signatory has
executed this Term Note as of the day and year first written above.

	 	 	 	 	 
	 	PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

LOANS AND PAYMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Unpaid Principal	 	 
	 	 	 	 	Amount and	 	Payments of	 	Balance of Term	 	Name of Person
	Date	 	Type of Term Loan	 	Principal	 	Note	 	Making Notation
	 

 

 

EXHIBIT 2.3

FORM OF NOTICE OF REVOLVING BORROWING 

[Date]

SunTrust Bank,

      as Administrative Agent

      for the Lenders referred to below

303 Peachtree Street, N.E.

Atlanta, GA 30308

Ladies and Gentlemen:

          Reference is made to the Credit Agreement dated as of December 29, 2010 (as amended, restated,
supplemented or otherwise modified from time to time and in effect on the date hereof, the
“Credit Agreement”), by and among the undersigned, as Borrower, the lenders from time to
time party thereto, and SunTrust Bank, as Administrative Agent. Terms defined in the Credit
Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving
Borrowing, and the Borrower hereby requests a Borrowing under the Credit Agreement, and in that
connection the Borrower specifies the following information with respect to the Borrowing requested
hereby:

	 	(A)	 	Aggregate principal amount of Borrowing1:                     
	 
	 	(B)	 	Date of Borrowing (which is a Business Day):                     
	 
	 	(C)	 	Type of Revolving Loan2:                     
	 
	 	(D)	 	[Interest Period3:                     ]4
	 
	 	(E)	 	Location and number of Borrower’s account to which proceeds of Borrowing are to be
disbursed:                     

[Continued on Following Page]

 

 

     The Borrower hereby represents and warrants that the conditions specified in paragraphs
(a), (b) and (c) of Section 3.2 of the Credit Agreement are satisfied.

	 	 	 	 	 
	 	Very truly yours,

PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	1	 	Not less than $5,000,000 and an integral multiple of $1,000,000 (or the remaining
amount of the Aggregate Revolving Commitment Amount, if less) for Eurodollar Borrowing, and not
less than $1,000,000 and an integral multiple of $100,000 (or the remaining amount of the Aggregate
Revolving Commitment Amount, if less) for Base Rate Borrowing.
	 
	2	 	Eurodollar Borrowing or Base Rate Borrowing.
	 
	3	 	Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.
	 
	4	 	Insert for Eurodollar Borrowings only.

 

 

EXHIBIT 2.4

FORM OF NOTICE OF SWINGLINE BORROWING 

[Date]

SunTrust Bank,

      as Administrative Agent

      for the Lenders referred to below

303 Peachtree Street, N.E.

Atlanta, GA 30308

Ladies and Gentlemen:

          Reference is made to the Credit Agreement dated as of December 29, 2010 (as amended, restated,
supplemented or otherwise modified from time to time and in effect on the date hereof, the
“Credit Agreement”), by and among the undersigned, as Borrower, the lenders named therein,
from time to time party thereto, and SunTrust Bank, as Administrative Agent. Terms defined in the
Credit Agreement are used herein with the same meanings. This notice constitutes a Notice of
Swingline Borrowing, and the Borrower hereby requests a Borrowing under the Credit Agreement, and
in that connection the Borrower specifies the following information with respect to the Borrowing
requested hereby:

	 	(A)	 	Principal amount of Swingline Loan1:                     
	 
	 	(B)	 	Date of Swingline Loan (which is a Business Day):                     
	 
	 	(C)	 	Proposed Interest Period2:                     
	 
	 	(D)	 	Location and number of Borrower’s account to which proceeds of Swingline Loan are to be
disbursed:                     

[remainder of page intentionally left blank]

 

			
	1	 	Not less than $100,000 or a larger multiple
of $50,000 (or such other minimum amounts agreed to by Swingline Lender and
Borrower)
	 
	2	 	Interest Period must be confirmed by
Swingline Lender

 

 

     The Borrower hereby represents and warrants that the conditions specified in paragraphs (a),
(b) and (c) of Section 3.2 of the Credit Agreement are satisfied.

	 	 	 	 	 
	 	Very truly yours,

PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT 2.7

FORM OF NOTICE OF CONVERSION/CONTINUATION

[Date]

SunTrust Bank,

      as Administrative Agent

      for the Lenders referred to below

303 Peachtree Street, N.E.

Atlanta, GA 30308

Ladies and Gentlemen:

          Reference is made to the Credit Agreement dated as of December 29, 2010 (as amended, restated,
supplemented or otherwise modified from time to time and in effect on the date hereof, the
“Credit Agreement”), by and among the undersigned, as Borrower, the lenders named therein,
and SunTrust Bank, as Administrative Agent. Terms defined in the Credit Agreement are used herein
with the same meanings. This notice constitutes a Notice of Conversion/Continuation and the
Borrower hereby requests the continuation or conversion of a Borrowing under the Credit Agreement,
and in that connection the Borrower specifies the following information with respect to the
Borrowing to be converted or continued as requested hereby:

	 	(A)	 	[Revolving Borrowing][Term Loan] to which this request applies:

	 
	 	(B)	 	Principal amount of Borrowing to be continued/converted: _________________
	 
	 
	 	(C)	 	Effective date of election (which is a Business Day): ______________________
	 
	 	(D)	 	Type of Borrowing: ______________________
	 
	 	(E)	 	[Interest Period1: ________________________]2

	 	 	 	 	 
	 	Very truly yours,

PIPER JAFFRAY COMPANIES

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	1	 	Which must comply with the definition of
“Interest Period” and end not later than the Revolving Commitment Termination
Date.
	 
	2	 	Insert for Eurodollar Borrowings only.

 

 

EXHIBIT 3.1(b)(viii)

FORM OF CERTIFICATE OF [ASSISTANT] SECRETARY

OF

[NAME OF LOAN PARTY]

          I, __________, [Assistant] Secretary of [NAME OF LOAN PARTY], a [State of incorporation or
formation] [corporation][limited liability company] (the “Company”), hereby certify as
follows pursuant to Section 3.1(b)(viii) of that certain Credit Agreement dated as of even date
herewith, by and among [PIPER JAFFRAY COMPANIES][the Company], as Borrower, the Lenders from time
to time party thereto, and SUNTRUST BANK, as Administrative Agent and the other parties thereto
(the “Credit Agreement”; capitalized terms not otherwise defined herein shall have the
meaning ascribed to such terms in the Credit Agreement) that:

     (1) I am the duly elected, qualified and acting [Assistant] Secretary of the Company.

     (2) Attached hereto as Exhibit A is a true, correct and complete copy of the [Articles
of Incorporation][Articles of Organization][Certificate of Formation] of the Company, certified to
be true, correct and complete by the Secretary of State of the State of [State of incorporation or
formation], and such [Articles of Incorporation][Articles of Organization][Certificate of
Formation] of the Company [has][have] not been amended, modified or otherwise supplemented since
the date of such certificate for the Secretary of State.

     (3) Attached hereto as Exhibit B is a true, correct and complete copy of the
[By-Laws][Operating Agreement][Limited Liability Company Agreement] of the Company, together with
all amendments thereto, all of which were duly adopted and are in full force and effect on the date
hereof.

     (4) Attached hereto as Exhibit C is a true, correct and complete copy of the
resolutions of the [Board of Directors][Member[s]][Board of Managers] of the Company, duly adopted
[by unanimous written consent] on __________, 2010, such action having been duly taken in
accordance with the provisions of applicable law, the [Articles of Incorporation][Articles of
Organization][Certificate of Formation] and the [By-Laws][Operating Agreement][Limited Liability
Company Agreement] of the Company, and being now in full force and effect, without any
modifications in any respect. Such resolutions authorize the Company and the officers designated
therein to execute and deliver, and to do all things necessary or appropriate for the payment and
performance of all the Company’s obligations under the Loan Documents to which the Company is a
party.

     (5) Attached hereto as Exhibit D is a true, correct and complete copy of a certificate
of [existence][good standing] issued by the Secretary of State of the State of [State of
incorporation or formation]. The Company has, from the date of such certificate, remained in good
standing under the laws of such State.

 

 

     (6) [Attached hereto as Exhibit E is a true, correct and complete copy of a
certificate of qualification to transact business or similar certificates, as the case may be, from
the Secretary of State of the State of [each other jurisdiction where such Loan Party is required
to be qualified to do business as a foreign entity]. The Company has, from the date of such
certificate, remained in good standing under the laws of such State.]1

     (7) The persons named on the grid attached hereto as Exhibit [E][F] have been elected
or appointed, are duly qualified and are presently incumbent officers of the Company with authority
to execute the Loan Documents to which the Company is a party, holding the respective offices set
forth opposite each name. The signature opposite the name of each such person is that person’s
genuine signature.

[remainder of page intentionally left blank]

 

			
	1	 	Insert only for entities which are required
to be qualified to do business as a foreign entity.

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate on this ___ day of
                    , 2010.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Assistant] Secretary 	 
	 

     I, __________, do hereby certify that I am the duly elected, qualified and acting __________
of the Company, that I am familiar with __________ and [his][her] signature, that __________ is the
duly elected, qualified and acting [Assistant] Secretary of the Company and that the foregoing
signature of __________ is [his][her] signature.

     IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of _________, 2010.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT A

 

 

EXHIBIT B

 

 

EXHIBIT C

 

 

EXHIBIT D

 

 

EXHIBIT [E][F]

INCUMBENCY GRID

	 	 	 	 	 	 	 
	Name	 	Title	 	Signature	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT 3.1(b)(xi)

FORM OF CLOSING CERTIFICATE

     Reference is made to the Credit Agreement dated as of December 29, 2010 (the “Credit
Agreement”) by and among Piper Jaffray Companies, a Delaware corporation (the
“Borrower”), the lenders from time to time party thereto, and SunTrust Bank, as
Administrative Agent. Terms defined in the Credit Agreement are used herein with the same
meanings. This certificate is being delivered pursuant to Section 3.1(b)(xi) of the Credit
Agreement.

I, ____________, [Title of Responsible Officer] of the Borrower do hereby certify on behalf of the
Borrower and not in an individual capacity that:

	 	(a)	 	no Default or Event of Default has occurred and is continuing at the date hereof;
	 
	 	(b)	 	the representations and warranties of each Loan Party set forth in the Loan
Documents are true and correct on and as of the date hereof;
	 
	 	(c)	 	since December 31, 2009, there has been no change, event or other circumstance
which has had or could reasonably be expected to have a Material Adverse Effect;
	 
	 	(d)	 	attached hereto as Exhibit A are copies of all consents, approvals,
authorizations, registrations and filings and orders required or advisable to be made or
obtained under any Requirement of Law, or by any Contractual Obligation of each Loan
Party, in connection with the execution, delivery, performance, validity and
enforceability of the Loan Documents or any of the transactions contemplated thereby,
and such consents, approvals, authorizations, registrations, filings and orders are in
full force and effect and all applicable waiting periods have expired;
	 
	 	(e)	 	attached hereto as Exhibit B is evidence that PJ&Co has received all
regulatory approvals necessary to permit the payment of the Dividend and PJ&Co has paid
the full amount of the Dividend to the Borrower without condition as to such regulatory
approval (or all such conditions have been satisfied) and the proceeds of the Dividend
has been used by the Borrower in accordance with Section 5.10 of the Credit Agreement;
	 
	 	(f)	 	attached hereto as Exhibit C are copies of all agreements, indentures or
notes governing the terms of any Material Indebtedness; and
	 
	 	(g)	 	no litigation, investigation or proceeding of or before any arbitrators or

 

 

	 	 	 	Governmental Authorities is pending against or, to the knowledge of any of the
Borrower, threatened against the Borrower or any of its Subsidiaries that could
reasonably be expected to have a Material Adverse Effect.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, I have hereunto signed my name as [Title of Responsible Officer]
of the Borrower and not in an individual capacity this ____ day of _________, 2010.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

 

 

Exhibit A

Consents

 

 

Exhibit B

Evidence of Dividend

 

 

Exhibit C

Material Indebtedness

 

 

EXHIBIT 5.1(c)

FORM OF COMPLIANCE CERTIFICATE

	 	 	 

	To:

	 	SunTrust Bank, as Administrative Agent
	 

	 	303 Peachtree St., N.E.
	 

	 	Atlanta, GA 30308

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement dated as of December 29, 2010 (as amended,
restated, supplemented or otherwise modified from time to time and in effect on the date hereof,
the “Credit Agreement”), among Piper Jaffray Companies (the “Borrower”), the
lenders from time to time party thereto, and SunTrust Bank, as Administrative Agent. Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to such terms in the
Credit Agreement.

     I, ______________, [Chief Financial Officer][Treasurer]of the Borrower do hereby certify on
behalf of the Borrower and not in an individual capacity as follows:

     1. The consolidated financial statements of the Borrower and its Subsidiaries attached hereto
for the fiscal [quarter][year] ending ____________ fairly present in all material respects the
financial condition and results of operations of the Borrower and its Subsidiaries as at the end of
such fiscal [quarter][year] on a consolidated basis, and the related statements of income cash
flows of the Borrower and its Subsidiaries for such fiscal [quarter][year], in accordance with GAAP
[(subject, in the case of such quarterly financial statements, to normal year-end audit adjustments
and the absence of footnotes)].

     2. The calculations set forth in Attachment 1 are computations of the financial
covenants set forth in Article VI of the Credit Agreement as of the last day of the period or for
such periods covered by the financial statements referenced in clause 1 above in accordance with
the terms of the Credit Agreement.

     3. Based upon a review of the activities the Borrower and its Subsidiaries (including, without
limitation, any and all transactions during the Test Period for which calculations or
determinations are required to be made pursuant to Article VI of the Credit Agreement) and the
financial statements attached hereto during the period covered thereby, as of the date hereof,
there exists no Default or Event of Default [if such is not the case, specify such Default or Event
of Default and its nature, when it occurred and whether it is continuing and the steps being taken
by the Borrower with respect to such event, condition or failure].

     4. There has been no change in GAAP or in the application thereof that has occurred since the
date of the Borrower’s audited financial statements referred to in Section 5.1(a) of the Credit
Agreement [If such is not the case, specify such change and the effect of such change on the
financial statements accompanying this certificate, if any.]

 

 

     IN WITNESS WHEREOF, I have hereunto signed my name as [Chief Financial Officer][Treasurer] of
the Borrower and not in an individual capacity this ____day of ______________, 20__.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	 	 

 

 

Attachment I to Compliance Certificate

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]