Document:

Form of Change of Control Severance Agreement

 Exhibit 10.23 
 CODEXIS, INC. 
 CHANGE OF CONTROL SEVERANCE
AGREEMENT 
 This Change of Control Severance Agreement (the “Agreement”) is made and entered into by and between
<Name of Executive> (the “Executive”) and Codexis, Inc., a Delaware corporation (the “Company”), effective as of the latest date set forth by the signatures of the parties hereto below (the “Effective Date”).

 R E C I T A L S 
 A. It is expected that the Company from time to time will consider the possibility of an acquisition by another company or other change of control. The Board of Directors of the Company (the
“Board”) recognizes that such consideration as well as the possibility of an involuntary termination or reduction in responsibility can be a distraction to Executive and can cause Executive to consider alternative employment opportunities.
The Board has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of such
an event. 
 B. The Board believes that it is in the best interests of the Company and its stockholders to provide Executive
with an incentive to continue Executive’s employment and to motivate Executive to maximize the value of the Company upon a Change of Control (as defined below) for the benefit of its stockholders. 
 C. The Board believes that it is imperative to provide Executive with severance benefits upon certain terminations of Executive’s
service to the Company that provide Executive with enhanced financial security and provides incentive and encouragement to Executive to remain with the Company notwithstanding the possibility of such an event. 
 D. Certain capitalized terms used in the Agreement are defined in Section 8 below. 
 The parties hereto agree as follows: 
 1. Term of Agreement. This Agreement shall become effective as of the Effective Date and terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been
satisfied. 
 2. At-Will Employment. The Company and Executive acknowledge that Executive’s employment is and shall
continue to be “at-will,” as defined under applicable law. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this
Agreement. 
 3. Covered Termination Within 12 Months Following Change of Control. If Executive experiences a Covered
Termination within the twelve (12) month period commencing upon a Change of Control, and if Executive, within sixty (60) days following the date of the Covered Termination, provides the Company with an executed Release of Claims (as
defined below) which is

 
not revoked within the applicable revocation period, if any, then in addition to any accrued but unpaid salary, bonus, vacation and expense reimbursement payable in accordance with applicable
law, the Company shall provide Executive with the following: 
 (a) Severance. Executive shall receive a lump sum cash
payment in an amount equal to the sum of twelve (12) months of Executive’s base salary at the rate in effect immediately prior to Executive’s termination of employment, less applicable withholdings. This severance payment shall be
made to Executive within sixty (60) days following the date of the Covered Termination. 
 (b) Equity Awards. Each
outstanding equity award, including, without limitation, stock options, restricted stock and restricted stock units, held by Executive shall automatically become vested and, if applicable, exercisable and any restrictions thereon shall immediately
lapse, in each case, with respect to one hundred percent (100%) of the then unvested shares subject to such equity award. 
 (c) Continued Healthcare. If Executive elects to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall
directly pay, or reimburse Executive for, the premium for Executive, Executive’s covered dependents and Executive’s spouse or domestic partner through the earlier of (i) the twelve (12) month anniversary of the date of
Executive’s Covered Termination and (ii) the date Executive, Executive’s covered dependents, if any, and Executive’s spouse or domestic partner, if any, become eligible for healthcare coverage under another employer’s
plan(s). After the Company ceases to pay premiums pursuant to the preceding sentence, Executive may, if eligible, elect to continue healthcare coverage at Executive’s expense in accordance with the provisions of COBRA. 
 4. Death or Disability Within 12 Months Following Change of Control. If Executive terminates employment with the Company due to death
or Disability and such termination constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the Department of Treasury regulations and other
guidance promulgated thereunder (a “Separation from Service”), in any event, within the twelve (12) month period commencing upon a Change of Control, then in addition to any accrued but unpaid salary, bonus, vacation and expense
reimbursement payable in accordance with applicable law, the Company shall provide Executive with the following: 
 (a)
Pro-Rata Vesting of Equity Awards. Each outstanding equity award, including, without limitation, stock options, restricted stock and restricted stock units, held by Executive shall automatically become vested and, if applicable, exercisable
and any restrictions thereon shall immediately lapse, in each case, with respect to that number of shares of Company common stock that would otherwise vest on the next vesting date for such equity award, assuming Executive’s continued service
through such date, pro-rated to the date of Executive’s termination due to death or Disability. 
 (b) Continued
Healthcare. If Executive, or any beneficiary of Executive, elects to receive continued healthcare coverage pursuant to the provisions of COBRA, the Company shall directly pay, or reimburse Executive, or such beneficiary, for, the premium for
Executive,

  

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Executive’s covered dependents and Executive’s spouse or domestic partner through the earlier of (i) the twelve (12) month anniversary of the date of Executive’s
termination of employment and (ii) the date Executive, Executive’s covered dependents, if any, and Executive’s spouse or domestic partner, if any, become eligible for healthcare coverage under another employer’s plan(s). After
the Company ceases to pay premiums pursuant to the preceding sentence, Executive may, if eligible, elect to continue healthcare coverage at Executive’s expense in accordance with the provisions of COBRA. 
 5. Termination in Connection With a Change of Control. Notwithstanding anything in this Agreement to the contrary, in the event
Executive experiences a Covered Termination and the Involuntary Termination without Cause underlying the Covered Termination, or the event upon which a Voluntary Termination for Good Reason underlying the Covered Termination is based, occurs at the
direction of a person or entity that has entered into an agreement with the Company that contemplates a transaction that, if consummated, would constitute a Change of Control, then for all purposes hereunder, including, without limitation, Sections
3 and 6, such Covered Termination shall be deemed to have occurred within the twelve (12) month period following a Change of Control and Executive shall be entitled to the benefits set forth in Section 3 with such benefits to be paid, or
commence being paid, upon the Covered Termination, but otherwise subject to the terms and conditions of Section 3. 
 6.
Termination Apart from Change of Control. If Executive’s service with the Company is terminated by the Company or by Executive for any or no reason prior to (other than pursuant to Section 5) or more than twelve (12) months
following a Change of Control or for any or no reason other than due to death, Disability or as a Covered Termination within the twelve (12) month period commencing upon a Change of Control, then Executive shall only be entitled to any accrued
but unpaid salary, bonus, vacation and expense reimbursement in accordance with applicable law. 
 7. Limitation on
Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and
(ii) but for this Section 7, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under this Agreement shall be payable either 
 (a) in full, or 
 (b) as to such lesser amount which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state
and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all or some
portion of such severance benefits may be taxable under Section 4999 of the Code. The specific benefits that shall be reduced, if any, and the order of such reduction shall be determined by the Executive in his or her sole discretion. Unless
the Company and Executive otherwise agree in writing, any determination required under this Section 7 shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be
conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 7, the Accountants may make reasonable assumptions and approximations concerning

  

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applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the
Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations
contemplated by this Section 7. 
 8. Definition of Terms. The following terms referred to in this Agreement shall
have the following meanings: 
 (a) Change of Control. “Change of Control” shall mean (i) a dissolution or
liquidation of the Company; (ii) a sale of all or substantially all the assets of the Company; (iii) a merger or consolidation in which the Company is not the surviving corporation and in which beneficial ownership of securities of the
Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors has changed; (iv) a reverse merger in which the Company is the surviving corporation but the shares of the common
stock of the Company outstanding immediately before the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, and in which beneficial ownership of securities of the Company
representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors has changed; (v) an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the
Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the Company or
other entity controlled by the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of
the combined voting power entitled to vote in the election of directors; or, (vi) in the event that the individuals who are members of the Incumbent Board cease for any reason to constitute at least fifty percent (50%) of the Board.
Notwithstanding the foregoing, a Change of Control shall not include any transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board acting in good faith and without regard to whether such
transaction is effectuated by a merger, equity financing or otherwise) or the initial public offering of the Company’s common stock. 
 (b) Covered Termination. “Covered Termination” shall mean an Involuntary Termination without Cause or a Voluntary Termination for Good Reason that constitutes the Executive’s
Separation from Service. 
 (c) Disability. “Disability” shall mean that Executive has been unable to perform
his Company duties as the result of his incapacity due to physical or mental illness, and such inability, at least one hundred eighty (180) days after its commencement, is determined to be total and permanent by a physician selected by the
Company or its insurers and acceptable to Executive or Executive’s legal representative (such agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least
thirty (30) days’ written notice by the Company of its intention to terminate Executive’s employment. In the event that Executive resumes the performance of substantially all of his duties hereunder before the termination of his
employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked. 
  

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 (d) Incumbent Board. “Incumbent Board” shall mean the individuals who, as
of the Effective Date, are members of the Board. If the election, or nomination for election by the Company’s stockholders, of any new director is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new director
shall be considered as a member of the Incumbent Board. 
 (e) Involuntary Termination without Cause. “Involuntary
Termination without Cause” shall mean the termination of Executive’s employment by the Company other than a termination following (i) the willful and continued failure to substantially perform the Executive’s duties with the
Company (other than as a result of physical or mental disability) after a written demand for substantial performance is delivered to the Executive by the Company, which demand specifically identifies the manner in which the Company believes that the
Executive has not substantially performed the Executive’s duties and that has not been cured within fifteen (15) days following receipt by the Executive of the written demand; (ii) commission of a felony (other than a traffic-related
offense) that in the written determination of the Company is likely to cause or has caused material injury to the Company’s business; (iii) dishonesty with respect to a significant matter relating to the Company’s business; or
(iv) material breach of any agreement by and between the Executive and the Company, which material breach has not been cured within fifteen (15) days following receipt by the Executive of written notice from the Company identifying such
material breach. 
 (f) Release of Claims. “Release of Claims” shall mean a general release of all claims
against the Company and its affiliates in a form reasonably acceptable to the Company. 
 (g) Voluntary Termination for Good
Reason. “Voluntary Termination for Good Reason” shall mean Executive’s voluntarily resignation after the occurrence of any of the following without Executive’s written consent: (i) a material diminution in
Executive’s base compensation; (ii) a material diminution in Executive’s authority, duties or responsibilities; (iii) a material change of at least thirty-five (35) miles in the geographic location at which Executive must
perform Executive’s services; or (iv) a material breach of this Agreement by the Company. Notwithstanding the foregoing, a resignation shall not constitute a “Voluntary Termination for Good Reason” unless the condition giving
rise to such resignation continues more than thirty (30) days following Executive’s written notice of the condition within ninety (90) days of the first occurrence of such condition and Executive’s termination occurs within one
hundred eighty (180) days following the first occurrence of such condition. 
 9. Successors. 
 (a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same
manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business
and/or assets which executes and delivers the assumption agreement described in this Section 9(a) or which becomes bound by the terms of this Agreement by operation of law. 
  

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 (b) Executive’s Successors. The terms of this Agreement and all rights of
Executive hereunder shall inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 10. Notices. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been
duly given when personally delivered or one day following mailing via Federal Express or similar overnight courier service. In the case of Executive, mailed notices shall be addressed to Executive at Executive’s home address that the Company
has on file for Executive. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
 11. Confidentiality; Non-Solicitation. 
 (a) Confidentiality. While Executive is employed by the Company, and thereafter while Executive receives severance benefits hereunder, Executive shall not directly or indirectly disclose or make
available to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, any Confidential Information (as defined below). Upon termination of Executive’s employment with the Company, all Confidential
Information in Executive’s possession that is in written or other tangible form (together with all copies or duplicates thereof, including computer files) shall be returned to the Company and shall not be retained by Executive or furnished to
any third party, in any form except as provided herein; provided, however, that Executive shall not be obligated to treat as confidential, or return to the Company copies of any Confidential Information that (i) was publicly known at the
time of disclosure to Executive, (ii) becomes publicly known or available thereafter other than by any means in violation of this Agreement or any other duty owed to the Company by any person or entity, or (iii) is lawfully disclosed to
Executive by a third party. For purposes of this Agreement, the term “Confidential Information” shall mean information disclosed to Executive or known by Executive as a consequence of or through his or her relationship with the Company,
about the customers, employees, business methods, public relations methods, organization, procedures or finances, including, without limitation, information of or relating to customer lists, of the Company and its affiliates. In addition, Executive
shall continue to be subject to the Confidential Information, Secrecy, and Invention Agreement entered into between Executive and the Company (the “Confidential Information Agreement”). 
 (b) Non-Solicitation. In addition to each Executive’s obligations under the Confidential Information Agreement, Executive shall
not for a period of one (1) year following Executive’s termination of employment for any reason, either on Executive’s own account or jointly with or as a manager, agent, officer, employee, consultant, partner, joint venturer, owner
or stockholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit or attempt to solicit away from the Company any of its officers or employees or offer employment to any person who is an officer or
employee of the Company; provided, however, that a general advertisement to which an employee of the Company responds shall in no event be deemed to result in a breach of this Section 11(b). Executive also agrees not to harass or
disparage the Company or its employees, clients, directors or agents or divert or attempt to divert any actual or potential business of the company. 
  

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 (c) Survival of Provisions. The provisions of this Section 11 shall survive the
termination or expiration of the applicable Executive’s employment with the Company and shall be fully enforceable thereafter. If it is determined by a court of competent jurisdiction in any state that any restriction in this Section 11 is
excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent
permitted by the law of that state. 
 12. Dispute Resolution. 
 (a) To ensure the timely and economical resolution of disputes that arise in connection with this Agreement, Executive and the Company agree
that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance or interpretation of this Agreement, Executive’s employment, or the termination of Executive’s employment, shall be
resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in San Mateo County, California, conducted by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) under the
applicable JAMS employment rules. By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The arbitrator shall:
(i) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (ii) issue a written arbitration decision, to include the arbitrator’s
essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS’
arbitration fees in excess of the amount of court fees that would be required if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court
to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, Executive and the Company each have the right to resolve any issue or dispute over intellectual property rights by Court action instead of
arbitration. 
 13. Miscellaneous Provisions. 
 (a) Section 409A. Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company at the
time of his Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this
Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the
six-month period measured from the date of the Executive’s Covered Termination or termination of employment due to Disability or (ii) the date of Executive’s death. Upon the first business day following the expiration of the
applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 13(a) shall be paid in a lump sum to Executive, and any remaining payments due under the Agreement shall be paid as otherwise provided herein.

 (b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of

  

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any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time. 
 (c) Whole Agreement. This Agreement and the Confidential Information Agreement represent
the entire understanding of the parties hereto with respect to the subject matter hereof and supersede all prior arrangements and understandings regarding same including, without limitation, that certain Change of Control Agreement between Executive
and the Company dated as of September 12, 2008. 
 (d) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California. 
 (e) Severability. The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (f) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument. 
 [Signature page follows] 
  

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year set forth below. 
  

			
	CODEXIS, INC.
		
	 By:
	 	  

		
	 Name:
	 	
		
	 Title:
	 	
		
	 Date:
	 	  

	
	EXECUTIVE
	  

	 <Name of Executive>

		
	 Date:
	 	  

  

 -9-EX-10.1

Exhibit 10.1

SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of January 29, 2010

Between

ALLIED CAPITAL CORPORATION

The LENDERS Party Hereto

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

$250,000,000

__________________

JPMORGAN SECURITIES INC.

as Sole Lead Arranger and Sole BookrunnerTABLE OF CONTENTS

Page

	 	 	 
	SECTION 1.DEFINITIONS AND TERMS.
	1.1

1.2

1.3

SECTION 2.COMMITMENTS.

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8
	 	Definitions

General; References to Times

Accounting Principles

Loans

Rates and Payment of Interest on Loans.

Number of Interest Periods

Repayment of Loans

Prepayments.

Continuation

Conversion

Loan Accounts, Promissory Notes.

	SECTION 3.PAYMENTS, FEES AND OTHER GENERAL PROVISIONS.
	3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12
	 	Payments

Pro Rata Treatment

Sharing of Payments, Etc

Offset

Booking Borrowings

Several Obligations

Minimum Amounts.

Fees

Computations

Maximum Rate

Interest Recapture

Agreement Regarding Interest and Charges

	SECTION 4.YIELD PROTECTION, ETC.
	4.1

4.2

4.3

4.4

4.5

4.6

4.7
	 	Increased Cost and Reduced Return.

Inability to Determine Rates

Illegality

Treatment of Affected Loans

Compensation

Taxes.

Removal of Lenders

	SECTION 5.CONDITIONS PRECEDENT.
	SECTION 6.REPRESENTATIONS AND WARRANTIES.
	6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

6.10

6.11

6.12

6.13

6.14

6.15

6.16

6.17

6.18

6.19

6.20

6.21

6.22

6.23

6.24

6.25

6.26
	 	Organization; Power; Qualification

Ownership Structure

Authorization; Governmental Authorization; Other Consents

No Contravention

Compliance with Law; Governmental Approvals

Ownership of Assets; Leases

Existing Indebtedness; Future Liens.

Litigation

Taxes

Financial Statements; Material Liabilities

ERISA

Absence of Defaults; Observance of Agreements, Statutes, and Orders.

Environmental Matters.

Investment Company

Margin Stock

Affiliate Transactions

Licenses and Permits

Disclosure

RIC Status

Foreign Assets Control Regulations, Etc.

Business

Insurance.

Collateral Documents

Solvency

Binding Effect

Survival of Representations and Warranties, Etc

	SECTION 7.AFFIRMATIVE COVENANTS.
	7.1

7.2

7.3

7.4

7.5

7.6

7.7

7.8

7.9

7.10

7.11

7.12

7.13

7.14

SECTION 8.INFORMATION.

8.1

8.2

8.3

8.4

8.5

8.6

SECTION 9.NEGATIVE COVENANTS.

9.1

9.2

9.3

9.4

9.5

9.6

9.7

9.8

9.9

9.10

9.11

9.12

9.13

SECTION 10.DEFAULT.

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.8

10.9
	 	Preservation of Existence and Similar Matters

Compliance with Applicable Law

Maintenance of Property

Insurance

Payment of Taxes and Claims

Visits and Inspections

Books and Records

Conduct of Business

ERISA Exemptions

Collateral Requirements.

Obligations

Further Assurances

Use of Proceeds

Post-Closing Covenants

Quarterly Financial Statements

Annual Statements

Compliance Certificate; Investments Reports; Borrowing Base Certificates.

Other Information.

Borrowing Base and Valuation

Platform; Public/Private Information

Financial Covenants.

Swap Contracts

Limitation on Liens

Restricted Payments

Merger, Consolidation, Sales of Assets, Change of Control.

Fiscal Year

Transactions with Affiliates

Employee Benefit Plans

Prepayment of Other Debt.

Nature of Business

Investments

Section 18(a)(1)(A) of the Investment Company Act

Terrorism Sanctions Regulations

Events of Default

Remedies Upon Event of Default

Allocation of Proceeds

Performance by Administrative Agent

Rights Cumulative

Borrower Waivers

Delegation of Duties and Rights

Not in Control

Course of Dealing

	SECTION 11.APPOINTMENT OF ADMINSTRATIVE AGENT.
	SECTION 12.MISCELLANEOUS.

12.1

12.2

12.3

12.4

12.5

12.6

12.7

12.8

12.9

12.10

12.11

12.12

12.13

12.14

12.15

12.16

12.17

12.18

12.19
	 	

Notices.

Expenses.

Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.

Successors and Assigns.

Amendments, Etc.

Nonliability of Agent and Lenders

Confidentiality

INDEMNIFICATION.

Severability of Provisions

Reserved.

Reserved.

Governing Law

Counterparts

Entirety

Construction

Discharge Only Upon Payment in Full

Payments Set Aside

USA Patriot Act

Intercreditor Agreement

	 	 	 	 	 
	SCHEDULES AND EXHIBITS	 	 
	Schedule 1

Schedule 2

Schedule 3

Schedule 5

Schedule 6.2

Schedule 6.2(c)

Schedule 6.3

Schedule 6.7

Schedule 6.8

Schedule 6.10

Schedule 6.22

Schedule 7.14

Schedule 9.3

	 	-

-

-

-

-

-

-

-

-

-

-

-

-
	 	Approved Dealers and Approved Pricing Services

Lenders and Commitments

Designated Officers

Control Agreements

Ownership Structure

Specified Agreements

Consents/Filings

Indebtedness

Litigation

Financial Statements

Insurance

Post-Closing Deliverables

Permitted Liens
	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

Exhibit J

	 	-

-

-

-

-

-

-

-

-

-
	 	Form of Assignment and Assumption

Form of Notice of Continuation

Form of Notice of Conversion

Form of Promissory Note

Form of Notice of Borrowing

Form of Compliance Certificate

Reserved

Reserved

Form of Subsidiary Guaranty

Form of Borrowing Base Certificate

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of January 29, 2010, by
and among ALLIED CAPITAL CORPORATION, a corporation organized under the laws of the State of
Maryland (“Borrower”), the Lenders (hereinafter defined), and JPMORGAN CHASE BANK, N.A., as a
Lender and as Administrative Agent (hereinafter defined) for itself and the other Lenders.

RECITALS

A. Borrower desires to refinance and repay the indebtedness outstanding pursuant to that
certain Amended and Restated Credit Agreement dated as of August 28, 2009 between Borrower, Bank of
America, N.A., as administrative agent thereunder (the “Former Agent”) and the lenders party
thereto (the “Existing Credit Agreement”).

B. Borrower has requested that the Lenders make term loans to it in an aggregate principal
amount of $250,000,000 to (i) refinance certain indebtedness owing to JPMorgan Chase Bank, N.A.
outstanding pursuant to the Existing Credit Agreement, (ii) repay indebtedness owed to the lenders
(other than JPMorgan Chase Bank, N.A.) pursuant to the Existing Credit Agreement and (iii) repay
the outstanding Senior Notes.

C. Simultaneously with the refinancing and repayment of the Existing Credit Agreement
indebtedness and the Senior Notes, Borrower, Administrative Agent and the Lenders desire to amend
and restate the Existing Credit Agreement.

Accordingly, in consideration of the mutual covenants contained herein, Borrower,
Administrative Agent and the Lenders agree that the Existing Credit Agreement shall be amended and
restated in its entirety as follows:

	 	 	 
	SECTION 1.

	 	DEFINITIONS AND TERMS.
	 

	 	

	1.1

	 	

Definitions. As used herein:

“Adequate Rating” means a senior unsecured debt rating of A- or higher by S&P or Fitch
Ratings, or a rating of A3 or higher by Moody’s.

“Adjusted EBIT” means, for any period with respect to Borrower and its Consolidated
Subsidiaries on a consolidated basis, income after deduction of all expenses and other proper
charges other than Taxes, Interest Expense, non-cash employee stock options expense and
Non-Recurring Expenses and excluding (a) net realized gains or losses, (b) net change in unrealized
appreciation or depreciation, (c) gains on re-purchases of Debt and losses attributable to the
extinguishment of Debt, and (d) the amount of interest paid-in-kind (“PIK”) to the extent such
amount exceeds the sum of (i) PIK interest collected in cash and (ii) realized gains collected in
cash (net of realized losses); provided that the amount determined pursuant to this clause (d)(ii)
shall not be less than 0, all as determined in accordance with GAAP.

“Adjusted Eurodollar Rate” means, for any Eurodollar Loan for any Interest Period therefor,
the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined by
Administrative Agent to be equal to the quotient obtained by dividing (a) the Eurodollar Rate for
such Eurodollar Loan for such Interest Period by (b) one minus the Reserve Requirement for such
Eurodollar Loan for such Interest Period.

“Adjusted Interest Expense” means, for any period with respect to Borrower and its
Consolidated Subsidiaries on a consolidated basis, cash interest paid in respect of the stated rate
of interest (including any default rate of interest, if applicable) applicable to any Debt. For
the avoidance of doubt, “Adjusted Interest Expense” shall not include the fees referred to in
Section 3.8 to the extent paid on the Closing Date or any other expenses incurred by Borrower or
any of its Consolidated Subsidiaries in connection with the closing of this Agreement, in each case
to the extent included in the calculation of “Interest Expense” as such term is used in the
definition of “Adjusted EBIT”. 

“Administrative Agent” means JPMorgan Chase Bank, N.A. as successor to the Former Agent, and
JPMorgan Chase Bank, N.A.’s permitted successors or assigns as “Administrative Agent” for the
Lenders under this Agreement.

“Administrative Agent’s Account” means the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Borrower and the Lenders.

“Administrative Questionnaire” means an Administrative Questionnaire in a form approved by
Administrative Agent.

“Advance Rate” has the meaning assigned to such term in Section 8.5.

“Affected Lender” has the meaning given that term in Section 4.7.

“Affiliate” means, (a) as to Borrower or any Consolidated Subsidiary, any Person (other than a
Consolidated Subsidiary or Portfolio Company) which directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with, Borrower or such
Consolidated Subsidiary; and (b) as to any other Person, any Person which (i) directly or
indirectly, or through one or more intermediaries controls, or is controlled by, or is under common
control with, such Person, (ii) beneficially owns or holds 5.0% or more of any class of the Voting
Stock of such Person, or (iii) 5.0% or more of the Voting Stock (or in the case of a Person which
is not a corporation, 5.0% or more of the Equity Interest) of which is beneficially owned by such
Person. For purposes of this definition, (x) “control” (including with correlative meanings, the
terms “controlling,” “controlled by,” and “under common control with”) means the possession
directly or indirectly of the power to direct or cause the direction of the management and policies
of a Person, whether through the ownership of Voting Stock, by contract, or otherwise, other than
by investment advisory contracts entered into in the ordinary course of business of Borrower or a
Consolidated Subsidiary of Borrower, and (y) neither Administrative Agent nor any Lender shall be
deemed to be an “Affiliate” of Borrower.

“Agreement” means this Second Amended and Restated Credit Agreement (as the same may hereafter
be amended, modified, supplemented, or restated from time to time).

“Agreement Date” means the date as of which this Agreement is dated.

“Alternate Base Rate” means, for any day, a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate for such day plus one-half of one percent (0.5%), (b) the rate of
interest in effect for such day as publicly announced from time to time by JPMCB as its “prime
rate”, and (c) the daily 1-month Eurodollar Rate plus 2.5%.

“Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

“Applicable Debt” means (a) Outstanding Public Debt, and (b) any Debt in an aggregate
principal amount of $25,000,000 or more.

“Applicable Law” means all applicable provisions of constitutions, statutes, rules,
regulations, and orders of all governmental bodies and all applicable orders and decrees of all
courts, tribunals, and arbitrators.

“Applicable Rate” means 4.50% per annum for Eurodollar Borrowings and 2.00% per annum for Base
Rate Borrowings.

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

“Approved Dealer” means (a) in the case of any Portfolio Investment that is not a U.S.
Government Security, a bank or a broker-dealer registered under the Securities Exchange Act of 1934
of nationally recognized standing or an Affiliate thereof, (b) in the case of a U.S. Government
Security, any primary dealer in U.S. Government Securities, (c) in the case of any foreign
Portfolio Investment, any foreign broker-dealer of internationally recognized standing or an
Affiliate thereof, (d) in the case of each of clauses (a), (b) and (c) above, any dealer set forth
on Schedule 1 or (e) any other bank or broker-dealer acceptable to the Administrative Agent in its
reasonable determination.

“Approved Pricing Service” means a pricing or quotation service as set forth in Schedule 1 or
any other pricing or quotation service approved by the Board of Directors of Borrower and
designated in writing to the Administrative Agent (which designation shall be accompanied by a copy
of a resolution or minutes of a meeting of the Board of Directors of Borrower evidencing that such
pricing or quotation service has been approved by Borrower).

“Ares Acquisition” means the acquisition by Ares Capital Corporation of 100% of the
outstanding capital stock of Borrower in accordance with the Agreement and Plan of Merger dated as
of October 26, 2009, among Ares Capital Corporation, ARCC Odyssey Corp. and Borrower.

“Arm’s-Length Transaction” means, at any time and with respect to any property, an
arm’s-length sale at such time between an informed and willing buyer and an informed and willing
seller.

“Arranger” means J.P. Morgan Securities Inc. and its successors and assignees in its capacity
as “Sole Lead Arranger” and “Sole Bookrunner.”

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or
two or more Approved Funds managed by the same investor advisor.

“Assignment and Assumption” means an Assignment and Assumption agreement among a Lender, an
Eligible Assignee, and Administrative Agent, substantially in the form of Exhibit A or such other
form as may be agreed to by such Lender, such Eligible Assignee, and Administrative Agent.

“Assignment Fee” means a processing and recordation fee charged by Administrative Agent for
each assignment in the amount of $3,500.

“Attorney Costs” means and includes all reasonable fees, expenses, and disbursements of any
law firm or other external counsel.

“BAC Deposit Accounts” means each deposit account of Borrower or any Consolidated Subsidiary
maintained with Bank of America, N.A. as of the Closing Date.

“Base Rate” when used in reference to any Loan or Borrowing, refers to whether such Loan, or
the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

“Book Value” means, at any date of determination with respect to any asset, the value thereof
as the same would be reflected on a consolidated balance sheet of Borrower and its Consolidated
Subsidiaries as at such time prepared in accordance with GAAP.

“Borrower” is defined in the preamble to this Agreement and includes any permitted successors
or assigns of Borrower.

“Borrower Materials” has the meaning assigned to such term in Section 8.6.

“Borrower’s Knowledge” means the actual knowledge of the senior officers set forth on Schedule
3 hereto.

“Borrowing” means Loans of the same 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.

“Borrowing Base” has the meaning assigned to such term in Section 8.5.

“Borrowing Base Certificate” means a certificate of a Senior Financial Officer of Borrower,
substantially in the form of Exhibit J and appropriately completed.

“Borrowing Base Deficiency” means, at any date on which the same is determined, the amount, if
any, by which (a) the aggregate outstanding principal amount of Loans as of such date exceeds (b)
the Maximum Permitted Loans.

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank market.

“Capitalized Lease” shall mean any lease the obligation for Rentals with respect to which is
required to be capitalized on a consolidated balance sheet of the lessee and its Consolidated
Subsidiaries in accordance with GAAP.

“Capitalized Rentals” of any Person shall mean as of the date of any determination thereof the
amount at which the aggregate Rentals due and to become due under all Capitalized Leases under
which such Person is a lessee would be reflected as a liability on a consolidated balance sheet of
such Person.

“Cash” means any immediately available funds in Dollars.

“Cash Equivalents” means investments (other than Cash) that are one or more of the following
obligations:

(a) U.S. Government Securities, in each case maturing within one year from the date of
acquisition thereof;

(b) investments in commercial paper maturing within 180 days from the date of
acquisition thereof and having, at such date of acquisition, a credit rating of at least A-1
from S&P and at least P-1 from Moody’s; and

(c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof (i) 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 of America or any State
thereof, provided that such certificates of deposit, banker’s acceptances and time deposits
are held in a securities account (as defined in the Uniform Commercial Code) through which
the Collateral Agent can perfect a security interest therein and (ii) having, at such date
of acquisition, a credit rating of at least A-1 from S&P and at least P-1 from Moody’s;

provided, that (i) in no event shall Cash Equivalents include any obligation that provides
for the payment of interest alone (for example, interest-only securities or “IOs”); (ii) if
any of Moody’s or S&P changes its rating system, then any ratings included in this
definition shall be deemed to be an equivalent rating in a successor rating category of
Moody’s or S&P, as the case may be; (iii) Cash Equivalents (other than U.S. Government
Securities) shall not include any such investment of more than 10% of total assets of the
Loan Parties in any single issuer; and (iv) in no event shall Cash Equivalents include any
obligation that is not denominated in Dollars.

“Cash Management Bank” means JPMorgan Chase Bank, N.A., and any other Person that, at the time
it enters into a Cash Management Services Agreement, is a Lender or an Affiliate of a Lender
hereunder, in its capacity as a party to such Cash Management Services Agreement.

“Cash Management Services Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, controlled disbursement, automated clearinghouse
transactions, return items, electronic funds transfer, and other cash management arrangements, that
is entered into by and between Borrower or any Consolidated Subsidiary and a Cash Management Bank.

“Change of Control” means if any Person or Persons acting in concert, together with affiliates
thereof, shall in the aggregate, directly or indirectly, control or own (beneficially or otherwise)
more than 50% (by number of shares) of the issued and outstanding Voting Stock of Borrower;
provided, that the Ares Acquisition shall not constitute a Change of Control if Borrower causes a
Special Acquisition Subsidiary to assume the Obligations in a transaction complying with the
provisions of Section 9.5(e)(ii).

“Change in Law” has the meaning given such term in Section 4.1(a).

“Closing” means consummation of the transactions contemplated by this Agreement upon the
execution and delivery of this Agreement by Borrower and the Lenders hereto and the payment of all
amounts required to be paid pursuant to Section 5.

“Closing Date” means the date on which the conditions specified in Section 5 are satisfied (or
waived in accordance with this Agreement).

“Collateral” means “Collateral” as described in the Security Agreement, together with any
other property and collateral in which a Lien in favor of Collateral Agent may now or hereafter be
created under the Collateral Documents.

“Collateral Agent” means U.S. Bank National Association, in its capacity as collateral agent
under the Collateral Documents, together with its successors and assigns in such capacity appointed
pursuant to the terms hereof.

“Collateral Documents” has the meaning set forth in the Security Agreement.

“Commercial Mortgage Loan” means a loan secured by a Lien on improved real estate used for
commercial purposes.

“Commitment” means, as to each Lender, the commitment of such Lender to make or continue loans
hereunder on the Closing Date in the amount set forth for such Lender on Schedule 2 as such
Lender’s “Commitment Amount”.

“Compliance Certificate” means a certificate signed by a Senior Financial Officer of Borrower,
substantially in the form of Exhibit F.

“Consolidated Debt” shall mean as of the date of any determination thereof, the aggregate
unpaid principal amount of all Debt of Borrower and its Consolidated Subsidiaries determined on a
consolidated basis in accordance with GAAP.

“Consolidated Subsidiary” and “Consolidated Subsidiaries” shall mean any and all Subsidiaries
(other than Allied Capital Beteiligungsberatung GmbH, a dormant Consolidated Subsidiary being
liquidated) which are required to be consolidated on financial statements of Borrower prepared in
accordance with GAAP.

“Contingent Obligation” by any Person means all obligations (other than endorsements in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing, or in effect guaranteeing, any Indebtedness, dividend or other obligation of any
other Person (the “primary obligor”) in any manner, whether directly or indirectly, including,
without limitation, all obligations incurred through an agreement, contingent or otherwise, by such
Person: (a) to purchase such Indebtedness or obligation or any property or assets constituting
security therefor, (b) to advance or supply funds (i) for the purchase or payment of such
Indebtedness or obligation, or (ii) to maintain working capital or other balance sheet condition or
otherwise to advance or make available funds for the purchase or payment of such Indebtedness or
obligation, (c) to lease property or to purchase Securities or other property or services primarily
for the purpose of assuring the owner of such Indebtedness or obligation of the ability of the
primary obligor to make payment of the Indebtedness or obligation, or (d) otherwise to assure the
owner of the Indebtedness or obligation of the primary obligor against loss in respect thereof.
For the purposes of all computations made under this Agreement, a Contingent Obligation in respect
of any Indebtedness for borrowed money shall be deemed to be Indebtedness equal to the principal
amount of such Indebtedness for borrowed money which has been guaranteed, and a Contingent
Obligation in respect of any other obligation or liability or any dividend shall be deemed to be
Indebtedness equal to the maximum aggregate amount of such obligation, liability or dividend.

“Continue,” “Continuation,” and “Continued” each refers to the continuation of a Eurodollar
Loan from one Interest Period to another Interest Period pursuant to Section 2.6.

“Control Agreement” means each Amended and Restated Securities Account Control Agreement,
Custody Control Agreement and Deposit Account Control Agreement, as applicable, listed on Schedule
5 hereto.

“Control Event” means (i) the execution by Borrower or any of its Consolidated Subsidiaries or
Affiliates of any agreement or letter of intent with respect to any proposed transaction or event
or series of transactions or events which, individually or in the aggregate, may reasonably be
expected to result in a Change of Control, (ii) the execution of any written agreement which, when
fully performed by the parties thereto, would result in a Change of Control, or (iii) the making of
any written offer by any person (as such term is used in section 13(d) and section 14(d)(2) of the
Exchange Act as in effect on the date of the Closing) or related persons constituting a group (as
such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the Closing) to
the holders of the common stock of Borrower, which offer, if accepted by the requisite number of
holders, would result in a Change of Control.

“Controlled Foreign Corporation” has the meaning set forth in the Security Agreement.

“Convert,” “Conversion,” and “Converted” each refers to the conversion of a Loan of one Type
into a Loan of another Type pursuant to Section 2.7.

“Credit Rating” means, at any time as to any Person, the lowest rating assigned by a Rating
Agency to each series of rated senior unsecured long term indebtedness of such Person.

“Custody Control Agreement” has the meaning set forth in the Security Agreement.

“Debt” means, with respect to any Person, at the time of computation thereof, all of the
following (without duplication); provided that solely for the purposes of calculating compliance
with the financial covenants in Section 9.1, “Debt” shall not include clause (f) below:

(a) its liabilities for borrowed money and under repurchase agreements (whether on a
recourse or non-recourse basis);

(b) its liabilities, whether or not for money borrowed (i) represented by notes payable
or drafts accepted, in each case representing extensions of credit or (ii) evidenced by
bonds, debentures, notes, or similar instruments;

(c) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business, but including all
liabilities created or arising under any conditional sales contracts or other title
retention agreement with respect to any property, and any or other similar instruments upon
which interest charges are customarily paid or that are issued or assumed as full or partial
payment for such property);

(d) its Capitalized Rentals;

(e) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

(f) all reimbursement obligations of such Person under any letters of credit or
acceptances or instruments serving a similar function issued or accepted for its account by
banks and other financial institutions (whether or not the same have been presented for
payment), and all obligations of such Person as the issuer of any letters of credit,
acceptances or such other instruments (whether or not the same have been presented for
payment);

(g) its liabilities under Swap Contracts entered into for the purpose of hedging
interest rate or currency risks with respect to Debt; and

(h) any Contingent Obligation of such Person with respect to liabilities of a type
described in any of clauses (a) through (g) hereof;

provided that any amount receivable by Borrower or any of its Consolidated Subsidiaries
under a Swap Contract referred to in the preceding clause (g), as determined in accordance
with the definition of Swap Contract, shall apply as an offset in the calculation of the
total amount of Debt if and only if (i) the counterparty in such Swap Contract has an
Adequate Rating or (ii) in the event such counterparty ceases to maintain an Adequate
Rating, such counterparty has posted collateral to the benefit of Borrower or the relevant
Consolidated Subsidiary to secure such receivable, in which case, the amount of such
receivable that shall apply as an offset in the calculation of the total amount of Debt
shall be limited to the fair market value of such collateral.

“Debt” of any Person shall include all obligations of such Person of the character described
in clauses (a) through (h) to the extent such Person remains legally liable in respect
thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

“Default” means an event or condition the occurrence or existence of which would, with the
giving of notice, the lapse of time, or both, become an Event of Default.

“De Minimis Employee Buybacks” means the acquisition for a de minimis purchase price by
Borrower from employees or directors of Borrower of unexercised options issued under Borrower’s
Amended Stock Option Plan; provided (a) such acquisition is made to facilitate the refinancing of a
substantial portion of the Obligations and (b) the aggregate purchase price for all such
acquisitions at any time while the Obligations are outstanding does not exceed $500,000.

“Deposit Account Control Agreement” has the meaning set forth in the Security Agreement.

“Disclosure Documents” means Borrower’s Form 10-K for the fiscal year ended December 31, 2008,
Borrower’s Form 10-Qs for the fiscal quarterly periods ended March 31, 2009, June 30, 2009 and
September 30, 2009, respectively, and its current reports filed on Form 8-K subsequent to
November 6, 2009.

“Disposition” or “Dispose” means the sale, transfer, license, lease, or other disposition
(including any sale and leaseback transaction) of any property by any Person (or the granting of
any option or other right to do any of the foregoing), including any sale, assignment, transfer or
other disposal, with or without recourse, of any notes or accounts receivable or any rights or
claims associated therewith. For the avoidance of doubt, (a) the bona fide repayment or prepayment
in the customary course of business of any Indebtedness owing from a Portfolio Company to Borrower
or any Consolidated Subsidiary (and the transfer, assignment, sale, or release of any instrument or
other asset relating thereto) shall not be considered a Disposition of such asset and (b) the sale
of Borrower’s or any Consolidated Subsidiary’s machinery, equipment, vehicles, furniture, or
fixtures shall not be considered a “Disposition” of an asset.

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

“Eligible Assignee” means (a) a Lender; (b) an Affiliate of any Lender; (c) an Approved Fund;
and (d) any other Person approved by Administrative Agent and (unless an Event of Default has
occurred and is continuing at the time any assignment is effected in accordance with Section 12.4)
Borrower, such approval not to be unreasonably withheld or delayed by Borrower or Administrative
Agent and such approval to be deemed given by Borrower if no objection is received by the assigning
Lender and Administrative Agent from Borrower within five Business Days after notice of such
proposed assignment has been provided by the assigning Lender to Borrower; provided, however, that
neither Borrower nor an Affiliate of Borrower nor any Portfolio Company shall qualify as an
Eligible Assignee.

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of Hazardous Materials, but only to the extent
applicable to Borrower or any other Grantor.

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of
(or other ownership or profit interests in) such Person, all of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, together with the regulations thereunder, in each case as in
effect from time to time. References to sections of ERISA shall be construed to also refer to any
successor sections.

“ERISA Affiliate” shall mean any corporation, trade, or business (other than any Portfolio
Company) that is, along with Borrower, a member of a controlled group of corporations or a group of
trades or businesses under common control, as described in sections 414(b) and 414(c),
respectively, of the Code or section 4001(14) of ERISA.

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

“Eurodollar Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the
rate appearing on Reuters Page LIBOR01 (or on any successor or substitute page or service providing
quotations of interest rates applicable to dollar deposits in the London interbank market
comparable to those currently provided on such page, as determined by the Administrative Agent from
time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement
of such Interest Period, as the rate for dollar deposits with a maturity comparable to such
Interest Period. In the event that such rate is not available at such time for any reason, then
the “Eurodollar Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be
the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest
Period are offered by the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period.

“Event of Default” means any of the events specified in Section 10.1; provided that, any
requirement for notice or lapse of time or any other condition has been satisfied.

“Excess Collateral” has the meaning set forth in the Security Agreement.

“Exchange Act” has the meaning given that term in Section 6.15.

“Excluded Assets” has the meaning set forth in the Security Agreement.

“Excluded Taxes” means, with respect to Administrative Agent, any Lender, or any other
recipient of any payment to be made by or on account of any obligation of Borrower hereunder,
(a) taxes imposed on or measured by its overall net income (however denominated), and franchise
taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable Lending Office is located,
(b) any branch profits taxes imposed by the United States or any similar tax imposed by any other
jurisdiction in which Borrower is located, and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by Borrower under Section 4.7), any withholding tax that is imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto
(or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law having the force of law) to comply with
Section 4.6(e), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment), to receive additional
amounts from Borrower with respect to such withholding tax pursuant to Section 4.6.

“Existing Credit Agreement” has the meaning specified in the Recitals.

“Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded upwards, if necessary,
to the nearest 1/100 of 1%) charged to JPMCB on such day on such transactions as determined by
Administrative Agent.

“Fee Letter” means the amended and restated fee letter agreement dated as of January 27, 2010,
between Borrower, JPMCB and the Arranger (as amended, modified or restated from time to time).

“Fees” means the fees and commissions provided for or referred to in the Fee Letter and any
other fees payable by Borrower to the Administrative Agent, the Arranger or any Lender hereunder or
under any other Loan Document.

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other
than that in which Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

“Former Agent” has the meaning specified in the Recitals.

“Fund” means 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.

“GAAP” means generally accepted accounting principles at the time in the United States.

“Governmental Approvals” means all authorizations, consents, approvals, licenses, and
exemptions of, registrations and filings with, and reports to, all Governmental Authorities.

“Governmental Authority” means (a) the government of (i) the United States of America or any
state or other political subdivision thereof, or (ii) any jurisdiction in which Borrower or any
Consolidated Subsidiary conducts all or any part of its business, or which asserts jurisdiction
over any properties of Borrower or any Consolidated Subsidiary, or (b) any entity exercising
executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any
such government.

“Grantors” means, collectively, Borrower, the Subsidiary Grantors, and any other Person that
now or hereafter grants a Lien on its property or assets to secure the Obligations, and
individually, any of the foregoing.

“Hazardous Materials” means any and all pollutants, toxic, or hazardous wastes or other
substances that pose a hazard to health and safety, the removal of which are required by Applicable
Law, or the generation, manufacture, refining, production, processing, treatment, storage,
handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or
filtration of which is or shall be restricted, prohibited, or penalized by any Applicable Law
including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, petroleum, petroleum products, lead based paint, radon gas, or similar restricted,
prohibited or penalized substances.

“Indebtedness” with respect to any Person means, at any time, without duplication,

(a) its liabilities for borrowed money and its redemption obligations in respect of
mandatorily redeemable preferred stock;

(b) its liabilities for the deferred purchase price of property acquired by such
Person (excluding accounts payable arising in the ordinary course of business but including
all liabilities created or arising under any conditional sale or other title retention
agreement with respect to any such property);

(c) all liabilities appearing on its balance sheet in accordance with GAAP in respect
of Capitalized Leases;

(d) all liabilities for borrowed money secured by any Lien with respect to any
property owned by such Person (whether or not it has assumed or otherwise become liable for
such liabilities);

(e) all its liabilities in respect of unreimbursed drawings under letters of credit or
instruments serving a similar function issued or accepted for its account by banks and
other financial institutions (whether or not representing obligations for borrowed money);

(f) Swap Contracts of such Person; and

(g) any Contingent Obligation of such Person with respect to liabilities of a type
described in any of clauses (a) through (f) hereof.

Indebtedness of any Person shall include all obligations of such Person of the character
described in clauses (a) through (g) to the extent such Person remains legally liable in respect
thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Intercreditor Agreement” means that certain Amended and Restated Intercreditor and Collateral
Agency Agreement dated as of the date hereof by and between the Administrative Agent and the
Collateral Agent, and consented and agreed to by Borrower, each of the Subsidiary Grantors and
Pledge LLC, as the same may be amended, modified, restated, supplemented or replaced from time to
time in accordance with the terms thereof.

“Interest Expense” means, with respect to a Person and for any period, the total consolidated
interest expense (including capitalized interest expense and interest expense attributable to
Capitalized Leases) of such Person and in any event shall include all interest expense with respect
to any Debt in respect of which such Person is wholly or partially liable.

“Interest Period” means, with respect to any Eurodollar Borrowing, the period commencing on
the date of such Borrowing and ending on the numerically corresponding day in the calendar month
that is one, two, three or six months thereafter, as Borrower may elect; provided that (i) if any
Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only,
such next succeeding Business Day would fall in the next calendar month, in which case such
Interest Period shall end on the next preceding Business Day and (ii) any Interest Period
pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the last calendar month of such
Interest Period) shall end on the last Business Day of the last calendar month of such Interest
Period.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, together with the
rules and regulations promulgated thereunder.

“Investment” means, with respect to any Person and whether or not such investment constitutes
a controlling interest in such Person (a) the purchase or other acquisition of any share of capital
stock, evidence of Debt, or other security issued by any other Person; (b) any loan, advance, or
extension of credit to, or contribution (in the form of money or goods) to the capital of, or the
acquisition of a sale leaseback asset from and the lease thereof to, any other Person; (c) any
guaranty of the Debt of any other Person; (d) any other investment in any other Person; and (e) any
commitment or option to make an Investment in any other Person.

“Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules
and regulations promulgated thereunder.

“Investment Grade Rating” means a Credit Rating of BBB– or higher by S&P, Baa3 or higher by
Moody’s, or the equivalent or higher of either such rating by another Rating Agency.

“JPMCB” means JPMorgan Chase Bank, N.A. and its permitted successors and assigns.

“Lenders” means the Lenders from time to time party hereto. As of the Closing Date, the
Lenders are the Persons named as Lenders on Schedule 2 hereto.

“Lending Office” means, as to any Lender, the office or offices of such Lender described as
such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify Borrower and Administrative Agent.

“Lien” has the meaning set forth in the Security Agreement.

“Loan Documents” means (a) this Agreement, the Promissory Notes, the Intercreditor Agreement,
each Subsidiary Guaranty, the Collateral Documents, and the Fee Letter, (b) all agreements,
documents, or instruments in favor of Administrative Agent, or Lenders executed and delivered by
Borrower or any Consolidated Subsidiary pursuant to this Agreement or otherwise delivered by
Borrower or any Consolidated Subsidiary in connection with all or any part of the Obligations on
and after the Closing Date, and (c) any and all future renewals, extensions, restatements,
reaffirmations, amendments of, or supplements to, all or any part of the foregoing.

“Loan Parties” means, collectively, Borrower, each Subsidiary Guarantor, and each Grantor.

“Loans” means the term loans made (or continued) by Lenders to Borrower in accordance with
Sections 2.1(a) and (b) of this Agreement.

“Material” means material in relation to the business, operations, affairs, financial
condition, assets, or properties of Borrower and its Consolidated Subsidiaries taken as a whole.

“Material Adverse Effect” means a material adverse effect on (a) the business, affairs,
financial condition, operations, assets, or properties, of Borrower and its Consolidated
Subsidiaries taken as a whole, (b) the ability of Borrower to perform its material obligations
under (i) this Agreement, (ii) the Security Agreement, (iii) the Intercreditor Agreement, or (iv)
the remaining Loan Documents (taken as a whole, for all such remaining Loan Documents), (c) the
validity or enforceability of (i) this Agreement, (ii) the Security Agreement, (iii) the
Intercreditor Agreement, or (iv) the remaining Loan Documents (taken as a whole for all such
remaining Loan Documents), or (d) the rights and remedies of Lenders and Administrative Agent under
(i) this Agreement, (ii) the Security Agreement, (iii) the Intercreditor Agreement, or (iv) the
remaining Loan Documents (taken as a whole for all such remaining Loan Documents). Except with
respect to representations made or deemed made by Borrower or any Consolidated Subsidiary in this
Agreement or in any of the other Loan Documents to which it is a party, all determinations of
materiality shall be made by the Requisite Lenders in their reasonable judgment unless expressly
provided otherwise.

“Material Default” means any Default pursuant to Sections 10.1(b) or (g).

“Material Plan” means at any time a Plan or Plans having aggregate Unfunded Liabilities in
excess of $25,000,000.

“Material Subsidiary” means, as of the date of any determination thereof, any Consolidated
Subsidiary which has total assets having a value (determined from time to time in accordance with
the market valuation method pursuant to GAAP) greater than or equal to 5% of the consolidated total
assets of Borrower and its Consolidated Subsidiaries.

“Maturity Date” means the earlier of (a) February 28, 2011, or (b) such earlier date upon
which the Obligations are declared due and payable in accordance with the terms hereof.

“Maximum Amount” and “Maximum Rate” respectively mean, for each Lender, the maximum
non-usurious amount and the maximum non-usurious rate of interest which, under Applicable Law, such
Lender is permitted to contract for, charge, take, reserve, or receive on the Obligations.

“Maximum Permitted Loans” means (a) for any date on which the aggregate outstanding Loans
exceed $175,000,000, an amount equal to the Borrowing Base as of such date divided
by 2.5 and (b) for any date on which the aggregate outstanding Loans is less than or equal
to $175,000,000, an amount equal to the Borrowing Base as of such date divided by
2.0.

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

“Multiemployer Plan” has the meaning as in ERISA.

“Net Proceeds” means, with respect to any Disposition by Borrower or any Consolidated
Subsidiary, the excess, if any, of (a) the sum of cash and cash equivalents received in connection
with, and which relate to, such transaction (including any cash or cash equivalents received by way
of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as
and when so received) over (b) the sum of (i) the principal amount of any Debt that is secured by
the applicable asset and that is required to be repaid in connection with such transaction (other
than Debt under the Loan Documents), (ii) the reasonable and customary out-of-pocket expenses
incurred by Borrower or such Consolidated Subsidiary in connection with such transaction, including
selling expenses such as reasonable brokers’ or finders’ fees or commissions, incentive bonuses or
compensation paid to third parties, legal, accounting and other professional and transactional fees
and transfer and similar taxes reasonably estimated to be paid within three months after the date
of the relevant transaction, (iii) income taxes reasonably estimated to be actually payable within
two years after the date of the relevant transaction as a result of any gain recognized in
connection therewith; provided that, if the amount of any estimated taxes pursuant to subclause
(iii) exceeds the amount of taxes actually required to be paid in cash in respect of such
Disposition, the aggregate amount of such excess shall constitute Net Proceeds, (iv) amounts
provided as a reserve, in accordance with GAAP, against (A) any liabilities under any
indemnification obligations associated with such Disposition or (B) any other liabilities retained
by Borrower or any of its Consolidated Subsidiaries associated with the properties sold in such
Disposition (provided that, to the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Proceeds), (v) Borrower’s good faith estimate of
payments required to be made within 180 days of such Disposition with respect to unassumed
liabilities relating to the properties sold (provided that, to the extent such cash proceeds are
not used to make payments in respect of such unassumed liabilities within 180 days after such
Disposition, such cash proceeds shall constitute Net Proceeds), and (vi) Borrower’s good faith
estimate of all reserves necessary or prudent to be held with respect to earn-outs or similar
contingent or future liabilities related to such Disposition (provided that, to the extent and at
the time any such amounts are released from such reserve, such amounts shall constitute Net
Proceeds).

“Non-Consenting Lender” has the meaning given that term in Section 12.5.

“Non-Recurring Expenses” means expenses incurred in connection with (i) the Ares Acquisition
(whether or not consummated), (ii) the refinancing of Debt outstanding under the Existing Credit
Agreement and the Senior Notes (other than Interest Expense) and (iii) employee severance.

“Notice of Borrowing” means a notice in the form of Exhibit E to be delivered to
Administrative Agent pursuant to Section 5.

“Notice of Continuation” means a notice in the form of Exhibit B to be delivered to
Administrative Agent pursuant to Section 2.6, evidencing Borrower’s request for the Continuation of
a Eurodollar Loan.

“Notice of Conversion” means a notice in the form of Exhibit C to be delivered to
Administrative Agent pursuant to Section 2.7, evidencing Borrower’s request for the Conversion of a
Loan from one Type to another Type.

“Obligations” means, individually and collectively: (a) the aggregate principal balance of and
all accrued and unpaid interest on, all Loans, and (b) all other indebtedness, liabilities,
obligations, covenants and duties of Borrower or any other Loan Party owing to Administrative
Agent, or any Lender of every kind, nature and description, under or in respect of this Agreement
or any of the other Loan Documents, and all indebtedness and obligations of Borrower or any of its
Consolidated Subsidiaries under any Cash Management Services Agreement owing to a Cash Management
Bank, in each case including all Fees and indemnification obligations, whether direct or indirect,
absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and
whether or not evidenced by any promissory note.

“Organization Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws and any amendments thereto (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited
liability company, the certificate or articles of formation or organization and operating agreement
and any amendments thereto; and (c) with respect to any partnership, joint venture, trust, or other
form of business entity, the partnership, joint venture, or other applicable agreement of formation
or organization and any amendments thereto, and any agreement, instrument, filing, or notice with
respect thereto filed in connection with its formation or organization with the applicable
Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

“Other Taxes” means 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.

“Outstanding Public Debt” means, at any time, the then outstanding principal amount of
Indebtedness issued under the Indenture by and between Borrower and The Bank of New York, dated as
of June 16, 2006, as supplemented by (a) the First Supplemental Indenture by and between Borrower
and The Bank of New York, dated as of July 25, 2006, pursuant to which Borrower has issued its
$400,000,000 6.625% Notes due July 15, 2011, (b) the Second Supplemental Indenture by and between
Borrower and The Bank of New York, dated as of December 8, 2006, pursuant to which Borrower has
issued its $250,000,000 6.0% Notes due April 1, 2012, and (c) the Third Supplemental Indenture by
and between Borrower and The Bank of New York, dated as of March 28, 2007, pursuant to which
Borrower has issued its $230,000,000 6.875% Notes due April 15, 2047.

“Participant” has the meaning given that term in Section 12.4(d).

“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.

“Perfection Requirement” has the meaning set forth in the Security Agreement.

“Permitted Liens” has the meaning given that term in Section 9.3.

“Permitted Preferred Stock” means preferred stock that is issued from time to time by a
Consolidated Subsidiary for the purpose of qualifying such Consolidated Subsidiary as a real estate
investment trust under Sections 856 through 860 of the Internal Revenue Code and having an
aggregate stated value not exceeding $500,000 at any one time outstanding; provided that, in any
event Permitted Preferred Stock shall not include any Voting Stock.

“Person” means an individual, corporation, partnership, limited liability company,
association, trust or unincorporated organization, or a government or any agency or political
subdivision thereof.

“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan)
which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412
and 430 of the Internal Revenue Code and either (a) is maintained, or contributed to, by Borrower
or any ERISA Affiliate for employees of Borrower or any ERISA Affiliate or (b) has at any time
within the preceding five years been maintained, or contributed to, by Borrower or any Person which
was at such time an ERISA Affiliate for employees of Borrower or any Person which was at such time
an ERISA Affiliate.

“Platform” has the meaning given that term in Section 8.6.

“Pledge LLC” means one or more Wholly-Owned Consolidated Subsidiaries, each of which (a) has
title to personal or real property which would constitute Collateral but for limitations in the
documents which govern such personal or real property which restrict the grant of a Lien in respect
thereof, (b) has no Debt outstanding other than (i) Debt owing to Borrower which has been evidenced
by a promissory note and the holder thereof has pledged the same to the Collateral Agent pursuant
to the Collateral Documents, and (ii) Debt arising under the Subsidiary Guaranty executed by Pledge
LLC, and (c) has had all of its Voting Stock and Debt owing to Borrower pledged to the Collateral
Agent as Collateral.

“Portfolio Company” means any Person that is accounted for under GAAP as a portfolio
Investment of either Borrower or a Subsidiary of Borrower.

“Portfolio Investment” means any Investment held by the Loan Parties in their asset portfolio
(and solely for purposes of determining the Borrowing Base, Cash and Cash Equivalents), including
Investments in Portfolio Companies. Without limiting the generality of the foregoing, it is
understood and agreed that any Portfolio Investments held by any Subsidiary that is not a
Subsidiary Guarantor or in which the Collateral Agent does not have a first-priority perfected Lien
in as security for the Obligations shall not be treated as Portfolio Investments.

“Post-Default Rate” means an interest rate equal to the sum of (a) the Alternate Base Rate
plus the Applicable Rate and (b) 2% per annum; provided, however, that with respect to a Eurodollar
Loan, the Post-Default Rate shall be an interest rate equal to the interest rate applicable to such
Loan as specified in Section 2.2(a)(ii) plus 2% per annum.

“Principal Debt” means, at any time of determination thereof (but without duplication), the
aggregate unpaid principal balance of all Loans.

“Principal Office” means the principal office of the Administrative Agent.

“Priority Debt” means (without duplication) (a) all Debt of Borrower and its Consolidated
Subsidiaries secured by a Lien, (b) all liabilities of Borrower and its Consolidated Subsidiaries
in respect of Swap Contracts if such liabilities are secured by a Lien or are obligations of a
Consolidated Subsidiary, and (c) all unsecured Debt of Consolidated Subsidiaries (excluding in each
case, any Debt or liability owing to Borrower or a Subsidiary Guarantor).

“Promissory Note” means a promissory note substantially in the form of Exhibit D, and all
renewals and extensions of all or any part thereof.

“Rating Agency” means S&P, Moody’s, or any other nationally recognized securities rating
agency selected by Borrower and acceptable to Administrative Agent.

“Reference 10-K” means the Form 10-K filed by Borrower with the Securities and Exchange
Commission for the fiscal year ending December 31, 2008.

“Register” has the meaning given that term in Section 12.4(c).

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees and advisors of such Person and of such
Person’s Affiliates.

“Rentals” shall mean and include as of the date of any determination thereof all fixed
payments (including as such all payments which the lessee is obligated to make to the lessor on
termination of the lease or surrender of the property) payable by Borrower or any Consolidated
Subsidiary, as lessee or sublessee under a lease of real or personal property, but shall be
exclusive of any amounts required to be paid by Borrower or any Consolidated Subsidiary (whether or
not designated as rents or additional rents) on account of maintenance, repairs, insurance, taxes
and similar charges. Fixed rents under any so-called “percentage leases” shall be computed solely
on the basis of the minimum rents, if any, required to be paid by the lessee regardless of sales
volume or gross revenues.

“Reportable Event” means a reportable event within the meaning of Section 4043 of ERISA for
which the reporting to the PBGC is not waived.

“Requisite Lenders” means on any date of determination those Lenders holding more than 51% of
the outstanding Loans.

“Reserve Requirement” means, at any time, the maximum rate at which reserves (including any
marginal, special, supplemental, or emergency reserves) are required to be maintained under
regulations issued from time to time by the Board of Governors of the Federal Reserve System (or
any successor) by member banks of the Federal Reserve System against, in the case of Eurodollar
Loans, “Eurocurrency liabilities” (as such term is used in Regulation D of the Board of Governors
of the Federal Reserve System, as amended). Without limiting the effect of the foregoing, the
Reserve Requirement shall reflect any other reserves required to be maintained by such member banks
with respect to (i) any category of liabilities which includes deposits by reference to which the
Adjusted Eurodollar Rate is to be determined, or (ii) any category of extensions of credit or other
assets which includes Eurodollar Loans. The Adjusted Eurodollar Rate shall be adjusted
automatically on and as of the effective date of any change in the Reserve Requirement.

“Responsible Officer” means the chief executive officer, president, chief financial officer,
chief accounting officer, treasurer, assistant treasurer or controller of Borrower. Any document
delivered hereunder that is signed by a Responsible Officer of Borrower shall be conclusively
presumed to have been authorized by all necessary corporate, partnership and/or other action on the
part of Borrower and such Responsible Officer shall be conclusively presumed to have acted on
behalf of Borrower.

“RIC” means a Person qualifying for treatment as a “regulated investment company” under the
Internal Revenue Code.

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

“Second Tier Collateral” has the meaning set forth in the Security Agreement.

“Secured Cash Management Obligations” means obligations of Borrower or any Consolidated
Subsidiary owed to a Cash Management Bank under a Cash Management Services Agreement; provided,
however, that if such Cash Management Bank ceases to be a Lender or an Affiliate of a Lender, such
obligations will be “Secured Cash Management Obligations” as herein defined only to the extent that
they constitute “Bank Obligations” as defined in the Intercreditor Agreement.

“Secured Party” has the meaning set forth in the Intercreditor Agreement.

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

“Security” shall have the same meaning as in Section 2(1) of the Securities Act.

“Security Agreement” means that certain Amended and Restated Pledge, Assignment, and Security
Agreement dated as of the date hereof, by and among Borrower, each Subsidiary Grantor, and the
Collateral Agent for the benefit of the Secured Parties, the form and substance of which is
acceptable to the Requisite Lenders, as such agreement may be amended, restated, joined, and
supplemented from time to time.

“Security Interest” has the meaning set forth in the Security Agreement.

“Senior Financial Officer” means the chief financial officer, chief executive officer, chief
operating officer, chief accounting officer, treasurer, or controller of Borrower or any
Consolidated Subsidiary, as applicable; provided, that the term “Senior Financial Officer”, when
used in this Agreement without reference to any particular entity, shall mean a Senior Financial
Officer of Borrower.

“Senior Note Agreement” means that certain Amended, Restated and Consolidated Note Agreement,
dated as of August 28, 2009 by and among Borrower and the Noteholders, which amends, restates, and
consolidates the terms and provisions of certain note agreements therein referenced and provides
for the issuance by Borrower of the Senior Notes, as the same may be amended in accordance with the
Intercreditor Agreement.

“Senior Notes” means Borrower’s notes issued pursuant to the Senior Note Agreement, as
follows: Borrower’s Series A-1 Senior Notes due June 15, 2010, Borrower’s Series A-2 Senior Notes
due June 15, 2010, Borrower’s Series B-1 Senior Notes due June 15, 2011, Borrower’s Series B-2
Senior Notes due June 15, 2011, Borrower’s Series C-1 Senior Notes due March 31, 2012, Borrower’s
Series C-2 Senior Notes due March 31, 2012, and Borrower’s Series CMW Senior Notes due April 1,
2012.

“Special Acquisition Subsidiary” means a Wholly-Owned Subsidiary of Borrower and, following
the consummation of the Ares Acquisition, a Wholly-Owned Subsidiary of Ares Capital Corporation,
formed for the purpose of assuming or incurring the Obligations in a transaction complying with the
requirements of Section 9.5(e)(ii) and that will, following the date of the Ares Acquisition,
satisfy each other applicable requirement of a “Special Acquisition Subsidiary” under Ares Capital
Corporation’s senior bank facility.

“Subsidiary” with respect to any Person shall mean (a) any corporation, partnership,
association, or other business entity at least 50% of the outstanding shares of Voting Stock or
similar interests of which are owned, directly or indirectly, by such Person (including, without
limitation, any limited partnership in which such Person, directly or indirectly, shall have at
least a 50% vote on matters as to which limited partners may vote), (b) any general or limited
partnership of which such Person shall be a general partner or as to which such Person otherwise
shall have unlimited liability, (c) any general or limited partnership a general partner of which
can be changed or removed by such Person (other than removals that could be accomplished by
voluntary withdrawal of such general partner only), or (d) any general or limited partnership in
which (i) the amount represented by such Person’s capital account shall be equal to at least 50% of
the aggregate amount represented by the total of all partners’ capital accounts or (ii) such Person
shall be allocated at least 50% of the profit (or loss) or distributable cash of the partnership;
provided, however, that the term “Subsidiary”, when used in this Agreement without reference to any
particular Person, shall mean a Subsidiary of Borrower; and provided further that no Portfolio
Company shall be deemed a Subsidiary of Borrower or any of its Subsidiaries.

“Subsidiary Grantors” means, collectively, all Consolidated Subsidiaries (other than a Pledge
LLC) and, individually, any of the foregoing.

“Subsidiary Guarantors” means, collectively, all Consolidated Subsidiaries and, individually,
any of the foregoing.

“Subsidiary Guaranty” means any agreement pursuant to which a Subsidiary Guarantor has
unconditionally guaranteed the payment and performance of the Obligations, which Subsidiary
Guaranty shall be in substantially the form of Exhibit I hereto and in form and substance
reasonably satisfactory to the Requisite Lenders.

“Swap Contract” means (a) any and all interest rate swap transactions, basis swap
transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap
transactions, floor transactions, currency options, spot contracts or any other similar
transactions or any of the foregoing (including any options to enter into any of the foregoing),
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. or any International Foreign Exchange Master
Agreement. For the purposes of this Agreement, the amount of the obligation (whether positive or
negative) under any Swap Contract shall be the amount payable or receivable by Borrower or any of
its Consolidated Subsidiaries determined in respect thereof as of the end of the then most recently
ended fiscal quarter of such Person, based on the assumption that such Swap Contract had terminated
at the end of such fiscal quarter, and in making such determination, if any agreement relating to
such Swap Contract provides for the netting of amounts payable by and to such Person thereunder or
if any such agreement provides for the simultaneous payment of amounts by and to such Person, then
in each such case, the amount of such obligation shall be the net amount so determined.

“Taxes” means, for any Person, taxes, assessments, duties, imposts, or other governmental
charges, deductions, withholdings, or levies imposed upon such Person, its income, or any of its
properties, franchises, or assets, and all liabilities with respect thereto.

“Type” with respect to any Loan, refers to whether such Loan is a Eurodollar Loan or Base Rate
Loan.

“Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by
which (a) the value of all benefit liabilities under such Plan, determined on a plan termination
basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds
(b) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding any accrued but unpaid contributions), all determined as of the then most recent
valuation date for such Plan.

“Uniform Commercial Code” means the Uniform Commercial Code as adopted in the applicable
jurisdiction from time to time.

“Voting Stock” shall mean Securities of any class or classes, the holders of which are
ordinarily, in the absence of contingencies, entitled to elect a majority of the corporate
directors (or Persons performing similar functions).

“Wholly-Owned” when used in connection with any Consolidated Subsidiary shall mean a
Consolidated Subsidiary of which all of the issued and outstanding shares of stock (except shares
required as directors’ qualifying shares and Permitted Preferred Stock) shall be owned by Borrower
and/or one or more of its Wholly-Owned Subsidiaries.

1.2 General; References to Times. References in this Agreement to “Sections,”
“Exhibits,” and “Schedules” are to sections, exhibits, and schedules herein and hereto unless
otherwise indicated. References in this Agreement to any document, instrument, or agreement (a)
shall include all exhibits, schedules, and other attachments thereto, (b) shall include all
documents, instruments, or agreements issued or executed in replacement thereof, to the extent
permitted hereby and (c) shall mean such document, instrument, or agreement, or replacement or
predecessor thereto, as amended, supplemented, restated, or otherwise modified from time to time to
the extent permitted hereby and in effect at any given time. Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include the singular and
plural, and pronouns stated in the masculine, feminine, or neuter gender shall include the
masculine, the feminine and the neuter. Unless explicitly set forth to the contrary, a reference
to “Subsidiary” means a Subsidiary of Borrower or a Subsidiary of such Subsidiary, and a reference
to an “Affiliate” means a reference to an Affiliate of Borrower. Titles and captions of Sections,
subsections, and clauses in this Agreement are for convenience only, and neither limit nor amplify
the provisions of this Agreement. The words “include”, “includes”, and “including” shall be deemed
to be followed by the phrase “without limitation”. Unless otherwise indicated, all references to
time are references to New York, New York, time.

1.3 Accounting Principles. All accounting and financial terms used in the Loan
Documents and the compliance with each financial covenant therein shall be determined in accordance
with GAAP, and, for such purposes, to the extent consistent with GAAP, all accounting principles
shall be applied on a consistent basis so that the accounting principles in a current period are
comparable in all material respects to those applied during the preceding comparable period. If
Borrower or any Lender determines that a change in GAAP from that in effect on the date hereof has
altered the treatment of certain financial data to its detriment under this Agreement, such party
may, by written notice to the others and Administrative Agent not later than 30 days after
Borrower’s delivery of any financial statements pursuant to Section 8.1 or 8.2 reflecting such
change in GAAP, request renegotiation of the financial covenants affected by such change. If
Borrower and Requisite Lenders have not agreed on revised covenants within 30 days after delivery
of such notice, then, for purposes of this Agreement, GAAP will mean generally accepted accounting
principles on the date immediately prior to the date on which the change that gave rise to the
renegotiation occurred. For purposes of determining compliance with the financial covenants
contained in Section 9.1 of this Agreement, any election by Borrower to measure an item of Debt or
Indebtedness using fair value (as permitted by Financial Accounting Standards Board 159 or any
similar accounting standard) shall be disregarded and such determination shall be made instead
using the outstanding amount of such Indebtedness or Debt.

	 	 	 	 	 
	SECTION 2.	 	COMMITMENTS.
	 	2.1	 	 	Loans.

	 	 	 	 	 

(a) On the Closing Date, Borrower and Administrative Agent agree that it is the
parties’ intent that $6,098,258.45 in principal amount of the loans outstanding pursuant
to the Existing Credit Agreement be recast, continued and deemed outstanding as term
loans pursuant to this Agreement.

(b) On the Closing Date, the Lenders severally agree to make additional term loans
to Borrower in an aggregate principal amount equal to $243,901,741.55 (such amount being
equal to its Commitment less the principal amount of Loans continued pursuant to Section
2.1(a)).

(c) Amounts repaid or prepaid by Borrower after the Closing Date may not be
reborrowed.

2.2 Rates and Payment of Interest on Loans.

(a) Rates. Borrower promises to pay to Administrative Agent, for the
account of each Lender, interest on the unpaid principal amount of each Loan for the
period from and including the Closing Date to but excluding the date such Loan shall be
paid in full, at the following per annum rates:

(i) in the case of Base Rate Loans, the lesser of (A) the sum of the Alternate
Base Rate (as in effect from time to time) plus the Applicable Rate, and (B) the
Maximum Rate; and

(ii) in the case of Eurodollar Loans, the lesser of (A) the sum of the Adjusted
Eurodollar Rate for such Loans (for the Interest Period therefor) plus the
Applicable Rate, and (B) the Maximum Rate.

Notwithstanding the foregoing, during the continuance of an Event of Default, at the
election of the Requisite Lenders, Borrower hereby promises to pay to Administrative Agent
(for the account of each Lender) interest at the applicable Post-Default Rate on the
aggregate outstanding principal balance under all Loans made by such Lender and on any
other amount payable by Borrower to such Lender hereunder or under any other Loan Document,
including any overdue accrued but unpaid interest to the extent permitted under Applicable
Law.

(b) Payment of Interest. Accrued interest on each Loan shall be payable as
provided in each of the following clauses which apply to such Loan: (i) in the case of
a Base Rate Loan, monthly on the fifteenth (15th) day of each calendar month,
(ii) in the case of a Eurodollar Loan, on the last day of each Interest Period therefor
and, in the case of any Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at three month intervals after
the first day of such Interest Period, and (iii) in the case of a Eurodollar Loan, upon
the payment, prepayment, or Continuation thereof, or the Conversion of such Loan to a
Loan of another Type (but only on the principal amount so paid, prepaid, Continued, or
Converted). Interest payable at the Post-Default Rate shall be payable from time to
time on demand. Promptly after the determination of any interest rate provided for
herein or any change therein, Administrative Agent shall give notice thereof (via
electronic transmission or facsimile) to Lenders to which such interest is payable and
to Borrower. All determinations by Administrative Agent of an interest rate hereunder
shall be conclusive and binding on Lenders and Borrower for all purposes, absent
manifest error.

2.3 Number of Interest Periods. There may be no more than ten (10) different Interest
Periods for Eurodollar Loans outstanding at the same time.

2.4 Scheduled Repayment of Loans. On the Maturity Date, Borrower shall repay the
entire outstanding principal amount of all Loans outstanding, together with all accrued and unpaid
interest and Fees.

2.5 Prepayments.

(a) Optional. Borrower shall have the right at any time and from time to
time to prepay the Loans, in whole or in part, without premium or penalty except for
payments under Section 4.5, subject to the requirements of this Section.

(b) Mandatory Prepayments. Subject to the requirements of Section 2.5(c):

(i) Asset Dispositions. If Borrower or any of its Consolidated
Subsidiaries Disposes of any assets which results in the realization of Net
Proceeds, Borrower shall prepay the Loans within three (3) Business Days of receipt
of such Net Proceeds in an amount equal to the greater of (A) 56% of the Net
Proceeds of such Disposition (or, if an Event of Default has occurred and is
continuing, and without limiting any other rights of the Lenders hereunder, 100% of
such Net Proceeds) and (B) such amount as shall be necessary so that no Borrowing
Base Deficiency would exist immediately after giving effect to such Disposition and
such prepayment of the Loans.

(ii) Incurrence of Unsecured Debt. Concurrently with receipt by
Borrower or any Consolidated Subsidiary of the proceeds of the incurrence of any
unsecured Debt, Borrower shall prepay the Loans in an aggregate amount equal to 100%
of the proceeds (net of underwriting discounts and commissions and reasonable and
customary out-of-pocket expenses incurred by Borrower or such Consolidated
Subsidiary in connection therewith) of the issuance of such unsecured Debt.

(iii) Borrowing Base Deficiency. In the event that at any time any
Borrowing Base Deficiency shall exist, Borrower shall prepay the Loans in such
amounts as shall be necessary so that such Borrowing Base Deficiency is cured within
five (5) Business Days of Borrower’s delivery of the Borrowing Base Certificate.

(iv) Monthly Cash Sweep. Within five (5) Business Days of the end of
each calendar month, Borrower shall prepay the Loans in the amount, if any, by which
Borrower’s unrestricted Cash and Cash Equivalents determined as of the last Business
Day of such calendar month exceeds $125,000,000.

(v) Clean-Up Payment. On any Business Day that the remaining
outstanding Loans are equal to or less than $25,000,000 and Borrower’s unrestricted
Cash and Cash Equivalents on such day are equal to or greater than $125,000,000,
Borrower shall prepay the Loans in full within five (5) Business Days of such date.

(vi) Change of Control; Sale of All or Substantially All of Borrower’s
Assets. If a Change of Control occurs or any prepayment is required under the
terms of Section 9.5(d), then concurrently with the consummation of any such Change
of Control or concurrently with the receipt of the Net Proceeds of any transaction
that constitutes (or is part of a series of transactions that constitutes) a
Disposition of all or substantially all of the assets of Borrower, Borrower shall
prepay the Loans in full.

(c) Application of Payments. Prior to any repayment or prepayment of any
Loans hereunder, Borrower shall select the Borrowing or Borrowings to be repaid or
prepaid and shall notify the Administrative Agent by telephone (confirmed by telecopy)
of such selection not later than 11:00 a.m., New York City time, three (3) Business Days
before the scheduled date of such repayment. If Borrower fails to make a timely
selection of the Borrowing or Borrowings to be repaid or prepaid, such payment shall be
applied, first, to pay any outstanding Base Rate Borrowings and, second, to other
Borrowings in the order of the remaining duration of their respective Interest Periods
(the Borrowing with the shortest remaining Interest Period to be repaid first). Each
payment of a Borrowing shall be applied ratably to the Loans included in such Borrowing.

(d) Break Funding Costs. If Borrower is required to pay any outstanding
Eurodollar Borrowings by reason of this Section 2.5 prior to the end of the applicable
Interest Period therefor, then Borrower shall pay all amounts due under Section 4.5.

(e) Interest. Any prepayment shall be accompanied by all accrued interest
on the amount prepaid and, in the case of any Eurodollar Loan, together with any
additional amounts required by Section 4.5.

2.6 Continuation. So long as no Default or Event of Default shall have occurred and
be continuing, Borrower may on any Business Day, with respect to any Eurodollar Loan, elect to
maintain such Eurodollar Loan or any portion thereof as a Eurodollar Loan, as applicable, by
selecting a new Interest Period for such Loan. Each new Interest Period selected under this
Section shall commence on the last day of the immediately preceding Interest Period. Each
selection of a new Interest Period shall be made by Borrower giving to Administrative Agent a
Notice of Continuation not later than 12:00 noon on the third Business Day prior to the date of any
such Continuation. Such notice by Borrower of a Continuation shall be by telephone or telecopy,
confirmed immediately in writing if by telephone, in the form of a Notice of Continuation,
specifying (a) the proposed date of such Continuation, (b) the Eurodollar Loan, or portion thereof,
subject to such Continuation, and (c) the duration of the selected Interest Period, all of which
shall be specified in such manner as is necessary to comply with all limitations on Loans
outstanding hereunder. Each Notice of Continuation shall be irrevocable by and binding on Borrower
once given. Promptly after receipt of a Notice of Continuation (and in any event not later than
1:00 p.m. on the date of receipt thereof), Administrative Agent shall notify each Lender by telex
or telecopy, or other similar form of transmission of the proposed Continuation. If Borrower shall
fail to select in a timely manner a new Interest Period for any Eurodollar Loan in accordance with
this Section, such Loan will automatically, on the last day of the current Interest Period
therefore, Convert into a Base Rate Loan.

2.7 Conversion. Borrower may on any Business Day, upon Borrower’s giving of a Notice
of Conversion to Administrative Agent, Convert all or a portion of a Loan of one Type into a Loan
of another Type. Any Conversion of a Eurodollar Loan into a Base Rate Loan shall be made on, and
only on, the last day of an Interest Period for such Eurodollar Loan. Each such Notice of
Conversion shall be given by Borrower not later than 12:00 noon (a) on the Business Day prior to
the date of any proposed Conversion into Base Rate Loans or (b) on third Business Day prior to the
date of any proposed Conversion into Eurodollar Loans. Promptly upon receipt of a Notice of
Conversion (and in any event not later than 1:00 p.m. on the date of receipt thereof),
Administrative Agent shall notify each Lender by telecopy or other similar form of transmission of
the proposed Conversion. Subject to the restrictions specified above, each Notice of Conversion
shall be by telephone or telecopy confirmed immediately in writing if by telephone, in the form of
a Notice of Conversion, specifying (i) the requested date of such Conversion, (ii) the Type of Loan
to be Converted, (iii) the portion of such Type of Loan to be Converted, (iv) the Type of Loan into
which such Loan is to be Converted, and (v) if such Conversion is into a Eurodollar Loan, the
requested duration of the Interest Period of such Loan. Each Notice of Conversion shall be
irrevocable by and binding on Borrower once given. Notwithstanding the foregoing, Borrower shall
not have the right to convert from a Base Rate Loan to a Eurodollar Loan, or to continue a
Eurodollar Loan, during the occurrence and continuance of a Default or an Event of Default.

2.8 Loan Accounts, Promissory Notes.

(a) Loan Accounts; Noteless Transaction. The Principal Debt owed to each
Lender shall be evidenced by one or more loan accounts or records maintained by such
Lender and by Administrative Agent in the ordinary course of business. The loan
accounts or records maintained by Administrative Agent (including the Register) and each
Lender shall be conclusive evidence absent manifest error of the amount of the Loans
made to Borrower from each Lender under this Agreement and the interest and principal
payments thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of Borrower under the Loan Documents to pay any
amount owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
Administrative Agent in respect of such matters, the accounts and records of such Lender
shall control absent manifest error.

(b) Promissory Notes. Upon the request of any Lender made through
Administrative Agent, the Principal Debt owed to such Lender may be evidenced by a
Promissory Note.

SECTION 3. PAYMENTS, FEES AND OTHER GENERAL PROVISIONS.

3.1 Payments. The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees, or of amounts payable under Section 4, or
otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available
funds, without set off or counterclaim. 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’s Account except that payments pursuant to Sections 4, 12.2 and 12.8 shall be
made directly to the Persons entitled thereto. If no Default or Event of Default exists and if no
order of application is otherwise specified herein or in the other Loan Documents, payments and
prepayments of the Obligations shall be applied first to Fees, second to accrued interest then due
and payable on the Principal Debt, and then to the remaining Obligations in the order and manner as
Borrower may direct. If a Default or Event of Default exists and if no order of application is
otherwise specified herein or in the other Loan Documents (or if Borrower fails to give direction
as permitted in the preceding sentence), any payment or prepayment shall be applied to the
Obligations in accordance with Section 10.3. Administrative Agent shall pay to each Lender any
payment or prepayment to which such Lender is entitled hereunder on the same day Administrative
Agent shall have received the same from Borrower; provided such payment or prepayment is received
by Administrative Agent prior to 12:00 noon, and otherwise before 12:00 noon on the Business Day
next following.

3.2 Pro Rata Treatment. Except to the extent otherwise provided herein: (a) each
payment or prepayment of principal of Loans shall be made for account of Lenders pro rata in
accordance with the respective unpaid principal amounts of the Loans held by them; (b) each payment
of interest on Loans shall be made for the account of Lenders pro rata in accordance with the
amounts of interest on such Loans then due and payable to the respective Lenders; and (c) the
Conversion and Continuation of Loans of a particular Type (other than Conversions provided for by
Section 4.4) shall be made pro rata among Lenders according to the amounts of their respective
outstanding Loans, and the then current Interest Period for each Lender’s portion of each Loan of
such Type shall be coterminous.

3.3 Sharing of Payments, Etc. Except as contemplated in Section 4.7, if any Lender
shall obtain any payment (whether voluntary, involuntary, or otherwise, including as a result of
exercising its rights under Section 3.4) which is in excess of its ratable share of any such
payment, such Lender shall purchase from the other Lenders such participations as shall be
necessary to cause such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender under any of the circumstances described in Section 12.17 (including
pursuant to any settlement entered into by the purchasing Lender in its discretion), the purchase
shall be rescinded and the purchase price restored to the extent of such recovery. Borrower agrees
that any Lender so purchasing a participation from another Lender pursuant to this Section 3.3 may,
to the fullest extent permitted by Applicable Law, exercise all of its rights of payment (including
the right of offset) with respect to such participation as fully as if such Lender were the direct
creditor of Borrower in the amount of such participation.

3.4 Offset. Upon the occurrence and during the continuance of an Event of Default,
each Lender shall be entitled to exercise (for the benefit of Lenders in accordance with
Section 3.3) the rights of offset and/or banker’s lien against each and every account and other
property, or any interest therein, which Borrower may now or hereafter have with, or which is now
or hereafter in the possession of, such Lender to the extent of the full amount of the Obligations
(other than special accounts, trust accounts, or escrow accounts maintained by Borrower in a
fiduciary capacity or as an agent for unrelated third parties or any Portfolio Company).

3.5 Booking Borrowings. To the extent permitted by Applicable Law, any Lender may
make, carry, or transfer its Loans at, to, or for the account of any of its branch offices or the
office of any of its Affiliates; provided that, no Affiliate shall be entitled to receive any
greater payment under Section 4 than the transferor Lender would have been entitled to receive with
respect to such Loans.

3.6 Several Obligations. The obligations of Lenders hereunder are several and not
joint. No Lender shall be responsible for the failure of any other Lender to perform any other
obligation to be made or performed by such other Lender hereunder, and the failure of any Lender to
perform any other obligation to be made or performed by it hereunder shall not relieve the
obligation of any other Lender to perform any other obligation to be made or performed by such
other Lender.

3.7 Minimum Amounts.

(a) Conversions. Each Conversion of Borrowings to Eurodollar Borrowings
shall be in an aggregate minimum amount of $1,000,000 and integral multiples of $100,000
in excess of that amount.

(b) Prepayments. Each voluntary prepayment of Loans shall be in an
aggregate minimum amount of $1,000,000.

3.8 Fees. Borrower agrees to pay to JPMCB for its own account the Fees in the amounts and
at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not
be refundable for any reason whatsoever (except as set forth therein).

3.9 Computations. Other than calculations in respect of interest at the JPMCB “prime”
rate (which shall be made on the basis of actual number of days elapsed in a 365/366 day year), all
calculations of interest and fees are made on the basis of actual number of days elapsed in a 360
day year. Each determination by Administrative Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error.

3.10 Maximum Rate. Regardless of any provision contained in any Loan Document,
neither Administrative Agent nor any Lender shall ever be entitled to contract for, charge, take,
reserve, receive, or apply, as interest on the Obligations, or any part thereof, any amount in
excess of the Maximum Rate, and, if Lenders ever do so, then such excess shall be deemed a partial
prepayment of principal and treated hereunder as such and any remaining excess shall be refunded to
Borrower. In determining if the interest paid or payable exceeds the Maximum Rate, Borrower and
Lenders shall, to the maximum extent permitted under Applicable Law, (a) treat all Loans as but a
single extension of credit (and Lenders and Borrower agree that such is the case and that provision
herein for multiple Loans is for convenience only), (b) characterize any nonprincipal payment as an
expense, fee, or premium rather than as interest, (c) exclude voluntary prepayments and the effects
thereof, and (d) amortize, prorate, allocate, and spread the total amount of interest throughout
the entire contemplated term of the Obligations; provided that, if the Obligations are paid and
performed in full prior to the end of the full contemplated term thereof, and if the interest
received for the actual period of existence thereof exceeds the Maximum Amount, Lenders shall
refund such excess, and, in such event, Lenders shall not, to the extent permitted by Applicable
Law, be subject to any penalties provided by any Applicable Laws for contracting for, charging,
taking, reserving, or receiving interest in excess of the Maximum Amount.

3.11 Interest Recapture. If the designated rate applicable to any Loan exceeds the
Maximum Rate, the rate of interest on such Loan shall be limited to the Maximum Rate, but any
subsequent reductions in such designated rate shall not reduce the rate of interest thereon below
the Maximum Rate until the total amount of interest accrued thereon equals the amount of interest
which would have accrued thereon if such designated rate had at all times been in effect. In the
event that at maturity (stated or by acceleration), or at final payment of the Principal Debt, the
total amount of interest paid or accrued is less than the amount of interest which would have
accrued if such designated rates had at all times been in effect, then, at such time and to the
extent permitted by law, Borrower shall pay an amount equal to the difference between (a) the
lesser of the amount of interest which would have accrued if such designated rates had at all times
been in effect and the amount of interest which would have accrued if the Maximum Rate had at all
times been in effect, and (b) the amount of interest actually paid or accrued on the Principal
Debt.

3.12 Agreement Regarding Interest and Charges. The parties hereto hereby agree and
stipulate that the only charge imposed upon Borrower for the use of money in connection with this
Agreement is and shall be the interest specifically described in Section 2.2(a). Notwithstanding
the foregoing, the parties hereto further agree and stipulate that all agency fees, syndication
fees, facility fees, underwriting fees, default charges, late charges, funding or “breakage”
charges, increased cost charges, attorneys’ fees and reimbursement for costs and expenses paid by
Administrative Agent, or any Lender to third parties or for damages incurred by Administrative
Agent, or any Lender, are charges made to compensate Administrative Agent, or any such Lender for
underwriting or administrative services and costs or losses performed or incurred, and to be
performed or incurred, by Administrative Agent, and Lenders in connection with this Agreement and
shall under no circumstances be deemed to be charges for the use of money.

	 	 	 	 	 
	SECTION 4.	 	YIELD PROTECTION, ETC.
	 	4.1	 	 	Increased Cost and Reduced Return.

	 	 	 	 	 

(a) If, after the date hereof, the adoption of any Applicable Law, rule, or
regulation, or any change in any Applicable Law, or any change in the interpretation or
administration thereof by any Governmental Authority, or compliance by any Lender (or
its applicable Lending Office) with any request or directive (whether or not having the
force of law) of any such Governmental Authority (each a “Change in Law”):

(i) shall impose, modify, or deem applicable any reserve, special deposit,
assessment, compulsory loan, insurance charge, or similar requirement (other than
the Reserve Requirement utilized in the determination of the Adjusted Eurodollar
Rate) relating to any extensions of credit or other assets of, or any deposits with
or other liabilities, or participations of, any Lender (or its applicable Lending
Office); or

(ii) shall impose on any Lender (or its applicable Lending Office) or on the
London interbank market any other condition, cost, or expense affecting the Loan
Documents, Eurodollar Loans made by such Lender, (excluding Taxes, which are
addressed in Section 4.6);

(iii) and the result of any of the foregoing is to increase the cost to such
Lender (or its applicable Lending Office) of Converting into, Continuing, or
maintaining any Eurodollar Loans or to reduce any sum received or receivable by such
Lender (or its applicable Lending Office) under the Loan Documents with respect to
any Eurodollar Loans, then Borrower shall pay to such Lender on demand such amount
or amounts as will compensate such Lender for such increased cost or reduction. If
any Lender requests compensation by Borrower under this Section 4.1(a), Borrower
may, by notice to such Lender (with a copy to Administrative Agent), suspend the
obligation of such Lender to Continue Loans of the Type with respect to which such
compensation is requested, or to Convert Loans of any other Type into Loans of such
Type, until the event or condition giving rise to such request ceases to be in
effect (in which case the provisions of Section 4.4 shall be applicable); provided
that, such suspension shall not affect the right of such Lender to receive the
compensation so requested.

(b) If, after the date hereof, any Lender determines that any Change in Law
affecting such Lender (or its applicable Lending Office) or such Lender’s holding
company, if any, regarding capital has or would have the effect of reducing the rate of
return on the capital of such Lender or such Lender’s holding company as a consequence
of such Lender’s obligations hereunder to a level below that which such Lender or such
Lender’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or its holding company’s policies with respect to capital
adequacy), then from time to time upon demand Borrower shall pay to such Lender or such
Lender’s holding company such additional amount or amounts as will compensate such
Lender for such reduction.

(c) Each Lender shall promptly notify Borrower and Administrative Agent of any
event of which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section 4.1 and will designate a different
applicable Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Lender, be otherwise
disadvantageous to it. Any Lender claiming compensation under this Section 4.1 shall
furnish to Borrower and Administrative Agent a statement setting forth the additional
amount or amounts to be paid to it hereunder which shall be conclusive in the absence of
manifest error. In determining such amount, such Lender may use any reasonable
averaging and attribution methods.

(d) Failure or delay on the part of any Lender to demand compensation pursuant to
this Section 4.1 shall not constitute a waiver of such Lender’s right to demand such
compensation, provided that Borrower shall not be required to compensate
a Lender pursuant to this Section 4.1 for any increased costs incurred or reductions
suffered more than nine (9) months prior to the date that such Lender notifies Borrower
of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the nine
(9)-month period referred to above shall be extended to include the period of
retroactive effect thereof).

4.2 Inability to Determine Rates. If on or prior to the first day of any Interest
Period for any Eurodollar Loan:

(a) Dollar deposits are not being offered to banks in the London interbank
Eurodollar market for the applicable amount and Interest Period of such Eurodollar Loan;

(b) Administrative Agent determines (which determination shall be conclusive) that
by reason of circumstances affecting the relevant market, adequate and reasonable means
do not exist for ascertaining the Eurodollar Rate for such Interest Period; or

(c) the Requisite Lenders determine (which determination shall be conclusive) and
notify Administrative Agent that the Adjusted Eurodollar Rate will not adequately and
fairly reflect the cost to Lenders of continuing the Eurodollar Loans for such Interest
Period;

then Administrative Agent shall give Borrower and Lenders prompt notice. Thereafter,
commencing on the last day(s) of the then current Interest Period(s) and for so long as
such condition remains in effect, the Loans shall bear interest at the Base Rate and
Lenders shall be under no obligation to Continue Eurodollar Loans or to Convert Base Rate
Loans into Eurodollar Loans, and Borrower shall, on the last day(s) of the then current
Interest Period(s) for the outstanding Eurodollar Loans, either prepay such Loans or
Convert such Loans into Base Rate Loans in accordance with the terms of this Agreement.

4.3 Illegality. Notwithstanding any other provision of this Agreement, in the event that
it becomes unlawful (or any Governmental Authority has asserted that is unlawful) for any Lender or
its applicable Lending Office to maintain Eurodollar Loans hereunder or to determine or charge
interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, then such Lender shall promptly notify Borrower thereof (through
Administrative Agent) and such Lender’s obligation to Continue Eurodollar Loans and to Convert
other Base Rate Loans into Eurodollar Loans shall be suspended until such time as such Lender may
again make, maintain, and fund Eurodollar Loans (in which case the provisions of Section 4.4 shall
be applicable).

4.4 Treatment of Affected Loans. If the obligation of any Lender to Continue, or to
Convert Base Rate Loans into, Eurodollar Loans shall be suspended pursuant to Section 4.1, 4.2, or
4.3 hereof, such Lender’s Eurodollar Loans shall be automatically Converted into Base Rate Loans on
the last day(s) of the then current Interest Period(s) for Eurodollar Loans (or, in the case of a
Conversion required by Section 4.3 hereof, on such earlier date as such Lender may specify to
Borrower with a copy to Administrative Agent) and, unless and until such Lender gives notice as
provided below that the circumstances specified in Section 4.1, 4.2, or 4.3 hereof that gave rise
to such Conversion no longer exist:

(a) to the extent that such Lender’s Eurodollar Loans have been so Converted, all
payments and prepayments of principal that would otherwise be applied to such Lender’s
Eurodollar Loans shall be applied instead to its Base Rate Loans; and

(b) all Loans that would otherwise be Continued by such Lender as Eurodollar Loans
shall be made or Continued instead as Base Rate Loans, and all Loans of such Lender that
would otherwise be Converted into Eurodollar Loans shall be Converted instead into (or
shall remain as) Base Rate Loans.

If such Lender gives notice to Borrower (with a copy to Administrative Agent) that the
circumstances specified in Section 4.1, 4.2, or 4.3 hereof that gave rise to the Conversion of such
Lender’s Eurodollar Loans pursuant to this Section 4.4 no longer exist (which such Lender agrees to
do promptly upon such circumstances ceasing to exist) at a time when Eurodollar Loans made by other
Lenders are outstanding, such Lender’s Base Rate Loans shall be automatically Converted, on the
first day(s) of the next succeeding Interest Period(s) for such outstanding Eurodollar Loans, to
the extent necessary so that, after giving effect thereto, all Loans held by Lenders holding
Eurodollar Loans and by such Lender are held pro rata (as to principal amounts, Types, and Interest
Periods) in accordance with their respective Commitments.

4.5 Compensation. Upon the request of any Lender (with a copy to Administrative
Agent) from time to time, Borrower shall pay to such Lender such amount or amounts as shall be
sufficient (in the reasonable opinion of such Lender) to compensate such Lender for, and hold such
Lender harmless from, any loss, cost, or expense incurred by it as a result of:

(a) any payment, prepayment, or Conversion of a Eurodollar Loan for any reason
(including the acceleration of the Loans pursuant to Section 10.2) on a date other than
the last day of the Interest Period for such Loan;

(b) any failure by Borrower for any reason to Convert, Continue, or prepay a
Eurodollar Loan on the date for such Conversion, Continuation, or prepayment specified
in the relevant notice of prepayment, Continuation, or Conversion under this Agreement;
or

(c) any assignment of a Eurodollar Loan on a day other than the last day of the
Interest Period therefor as a result of a request by Borrower pursuant to Section 4.7;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. Borrower shall also pay any reasonable and customary
administrative fees charged by such Lender in connection with the foregoing.

4.6 Taxes.

(a) General. Any and all payments by Borrower to or for the account of any
Lender or Administrative Agent hereunder or under any other Loan Document shall be made
free and clear of and without reduction or withholding for Indemnified Taxes or Other
Taxes; provided that, if Borrower shall be required by law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 4.6) such Lender or
Administrative Agent, as the case may be, receives an amount equal to the sum it would
have received had no such deductions been made, (ii) Borrower shall make such
deductions, and (iii) Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with Applicable Law.

(b) Payment of Other Taxes by Borrower. Without limiting the provisions of
subsection 4.6 above, Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.

(c) INDEMNIFICATION FOR TAXES. Borrower agrees to indemnify each
Lender and Administrative Agent for the full amount of any Indemnified Taxes and Other
Taxes (including any Indemnified Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section 4.6 other than Excluded
Taxes) paid by such Lender or Administrative Agent and any liability (including
penalties, interest, and expenses) arising therefrom or with respect thereto. A
certificate as to the amount of such payment or liability delivered to Borrower by a
Lender (with a copy to Administrative Agent), or by Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority, Borrower shall
deliver to 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 Administrative
Agent.

(e) Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which Borrower
is resident for tax purposes, or any treaty to which such jurisdiction is a party, with
respect to payments hereunder or under any other Loan Document shall deliver to Borrower
(with a copy to Administrative Agent), at the time or times prescribed by Applicable Law
or reasonably requested by Borrower or Administrative Agent, such properly completed and
executed documentation prescribed by Applicable Law as will permit such payments to be
made without withholding or at a reduced rate of withholding. Without limiting the
generality of the foregoing, each Lender shall deliver to Borrower and Administrative
Agent (in such number of copies as shall be requested by the recipient) on or prior to
the date on which such Lender becomes a Lender under this Agreement (and from time to
time thereafter, including upon the expiration or obsolescence of any previously
delivered form, upon the request of Borrower or Administrative Agent, but only if such
Lender is legally entitled to do so), whichever of the following is applicable:

(i) duly completed copies of Internal Revenue Service Form W-8BEN (or any
successor form), claiming eligibility for benefits of an income tax treaty to which
the United States is a party,

(ii) duly completed copies of Internal Revenue Service Form W-8ECI (or any
successor form),

(iii) duly completed copies of Internal Revenue Service Form W-8IMY (or any
successor form), together with any required attachments thereto; or

(iv) duly completed copies of Internal Revenue Service Forms W-9 (or any
successor form).

In addition, each Lender shall deliver to Borrower and Administrative Agent, upon request of
Borrower or Administrative Agent, any other form prescribed by Applicable Law as a basis for
claiming exemption from or a reduction in United States federal withholding tax, duly completed,
together with such supplementary documentation as may be prescribed by Applicable Law to permit
Borrower or Administrative Agent to determine the withholding or deduction required to be made.

(f) Failure to Provide Withholding Forms; Change in Tax Law. For any
period with respect to which a Lender has failed to provide Borrower and Administrative
Agent with the appropriate form required to be provided pursuant to Section 4.6(e), such
Lender shall not be entitled to indemnification under this Section 4.6 with respect to
Indemnified Taxes imposed by the United States; provided, however, that should a Lender,
which is otherwise exempt from or subject to a reduced rate of withholding tax, become
subject to Indemnified Taxes because of its failure to deliver a form required
hereunder, Borrower shall take such steps as such Lender shall reasonably request to
assist such Lender to recover such Indemnified Taxes. Each Lender which fails to
provide to Borrower in a timely manner such forms shall reimburse Borrower or
Administrative Agent upon demand for any penalties paid by Borrower or Administrative
Agent as a result of any failure of Borrower to withhold the required amounts that are
caused by such Lender’s failure to provide the required forms in a timely manner.

(g) Changes in Applicable Lending Office. If Borrower is required to pay
additional amounts to or for the account of any Lender pursuant to this Section 4.6,
then such Lender will use best efforts (consistent with legal and regulatory
restrictions) to change the jurisdiction of its applicable Lending Office so as to
eliminate or reduce any such additional payments or amounts which may thereafter accrue
if such change, in the judgment of such Lender, is not otherwise disadvantageous to such
Lender.

(h) Treatment of Certain Refunds. If Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of or credit for any
Indemnified Taxes or Other Taxes as to which it has been indemnified by Borrower or with
respect to which Borrower has paid additional amounts pursuant to this Section 4.6, it
shall pay to Borrower an amount equal to such refund or credit (but only to the extent
of indemnity payments made, or additional amounts paid, by Borrower under this
Section 4.6 with respect to the Indemnified Taxes or Other Taxes giving rise to such
refund or credit), net of all out-of-pocket expenses of Administrative Agent or such
Lender, as the case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund or credit), provided that,
Borrower, upon the request of Administrative Agent or such Lender, agrees to repay the
amount paid over to Borrower (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to Administrative Agent or such Lender in the event
Administrative Agent or such Lender is required to repay such refund or credit to such
Governmental Authority. This subsection (h) shall not be construed to require
Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its Taxes that it deems confidential) to Borrower or any other
Person.

(i) Survival. Without prejudice to the survival of any other agreement of
Borrower hereunder, the agreements and obligations of Borrower contained in this
Section 4.6 shall survive payment in full of the Obligations.

4.7 Removal of Lenders. If (a) a Lender or a Participant requests compensation pursuant to
Sections 4.1 or 4.5 and the Requisite Lenders are not also doing the same, (b) the obligation of a
Lender to Continue or to Convert Loans into Eurodollar Loans shall be suspended pursuant to
Section 4.1 or Section 4.3, but the obligation of the Requisite Lenders shall not have been
suspended under such Sections or (c) a Lender is a Non-Consenting Lender, Borrower may either (i)
demand that such Lender or Participant (the “Affected Lender”), and upon such demand the Affected
Lender shall promptly, assign all of its Loans to an Eligible Assignee subject to and in accordance
with the provisions of Section 12.4 for a purchase price equal to the aggregate principal balance
of Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon, accrued
but unpaid Fees, if any, owing to the Affected Lender, and any amounts owing to the Affected Lender
under Section 4, or (ii) pay to the Affected Lender the aggregate principal balance of Loans then
owing to the Affected Lender plus any accrued but unpaid interest thereon, accrued but unpaid Fees,
if any, owing to the Affected Lender, and any amounts owing to the Affected Lender under SECTION 4,
whereupon the Affected Lender shall no longer be a party hereto or have any rights or obligations
hereunder or under any of the other Loan Documents, subject to the survival of certain provisions
as set forth in Section 12.16. Each of Administrative Agent and the Affected Lender shall
reasonably cooperate in effectuating the replacement of an Affected Lender under this Section 4.7,
but at no time shall Administrative Agent, the Affected Lender, or any other Lender be obligated in
any way whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.
The exercise by Borrower of its rights under this Section 4.7 shall be at Borrower’s sole cost and
expense and at no cost or expense to Administrative Agent, the Affected Lender, or any of the other
Lenders. The terms of this Section 4.7 shall not in any way limit Borrower’s obligation to pay to
any Affected Lender compensation owing to such Affected Lender pursuant to Section 4.

SECTION 5. CONDITIONS PRECEDENT.

The effectiveness of this Agreement is subject to the satisfaction of the conditions precedent
set forth in this Section 5:

(a) Administrative Agent’s receipt of the following, each of which shall be
originals, telecopies or electronic facsimiles (followed promptly by originals) unless
otherwise specified, each properly executed by an authorized officer of Borrower and/or
the other parties thereto as applicable, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each
in form and substance reasonably satisfactory to Administrative Agent:

(i) A Notice of Borrowing executed by Borrower (which shall have been received
by the Administrative Agent no later than 12:00 noon on the date that is two
Business Days prior to the Closing Date);

(ii) Counterparts of this Agreement executed by Borrower, Administrative Agent
and the Requisite Lenders;

(iii) Counterparts of the Security Agreement executed by Borrower, each other
Grantor and the Collateral Agent, together with:

(A) counterparts of the Intercreditor Agreement executed by Borrower,
the Administrative Agent and the Collateral Agent, and consented and agreed
to by Borrower, each of the Subsidiary Grantors and Pledge LLC;

(B) counterparts of one or more Subsidiary Guaranties executed by each
Subsidiary Guarantor and the Collateral Agent;

(C) counterparts of each Control Agreement executed by each of the
applicable parties thereto;

(D) stamped receipt copies of proper financing statements, duly filed
under the Uniform Commercial Code of all jurisdictions that may be necessary
in order to perfect the Liens created under the Security Agreement, covering
the Collateral described in the Security Agreement; and

(E) evidence (satisfactory in form and substance to the Administrative
Agent) of the termination of the commitments under, and the repayment of all
obligations outstanding under the Existing Credit Agreement (other than the
outstanding loans assigned to JPMCB and continued hereunder), the repayment
in full of the Senior Notes and, without limiting the generality of the
foregoing, the Administrative Agent shall have received from each holder of
the Senior Notes, a duly executed payoff letter and, from the Former Agent,
a payoff letter, in each case, in the forms previously approved the
Administrative Agent.

(iv) Such documents and certifications as Administrative Agent may reasonably
require with respect to the Loan Parties, to evidence due organization or formation,
valid existence and good standing, and qualification to do business in its state of
organization;

(v) Such certificates of resolution or other action, incumbency certificates
and other certificates as Administrative Agent may reasonably require evidencing the
identity, authority and capacity of the Responsible Officers authorized to act on
behalf of the Loan Parties in connection with this Agreement and the other Loan
Documents;

(vi) Opinions of Sutherland Asbill & Brennan LLP and Dickstein Shapiro LLP, as
counsel to Borrower, addressed to Administrative Agent and Lenders, in form and
substance reasonably acceptable to Administrative Agent;

(vii) Opinion of Nixon Peabody LLP, as counsel to the Collateral Agent,
addressed to Administrative Agent and Lenders, in form and substance reasonably
acceptable to Administrative Agent;

(viii) A Borrowing Base Certificate as of a date not more than five days prior
to the Closing Date;

(ix) A certificate executed by a Responsible Officer of Borrower certifying
that, to such officer’s knowledge:

(A) the conditions specified in clauses (e), (f) and (g) below have
been fulfilled; and

(B) Borrower has not changed its jurisdiction of incorporation or been
a party to any merger or consolidation that has been consummated and has not
succeeded to all or any substantial part of the liabilities of any other
entity, at any time following the date of the most recent financial
statements referred to Section 6.10.

(b) Payment of the Fees then due as described in the Fee Letter;

(c) Payment of all fees, charges and disbursements of counsel to Administrative
Agent to the extent invoiced prior to or on the Closing Date, plus such additional
amounts of such fees, charges and disbursements as shall constitute its reasonable
estimate of such fees, charges and disbursements incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not thereafter
preclude a final settling of accounts between Borrower and Administrative Agent);

(d) Payment of all reasonable fees, charges, and disbursements of the Collateral
Agent and counsel to the Collateral Agent, to the extent agreed by Borrower and the
Collateral Agent;

(e) The representations and warranties of Borrower and the other Loan Parties in
this Agreement and the other Loan Documents shall be true and correct;

(f) No Default or Event of Default shall have occurred and be continuing; and

(g) There shall (i) be no actions, suits, or proceedings pending or, to Borrower’s
Knowledge, threatened in writing with respect to this Agreement or any other Loan
Document, and (ii) not exist any judgment, order, injunction, or other restraint issued
or filed, or a hearing seeking injunctive relief or other restraint pending or notified,
prohibiting, or imposing materially adverse conditions on the transactions contemplated
by this Agreement or any other Loan Document.

Without limiting the generality of the provisions of Section 12.5, for purposes of determining
compliance with the conditions specified in this Section 5, 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 thereunder 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 6. REPRESENTATIONS AND WARRANTIES.

In order to induce Administrative Agent and each Lender to enter into this Agreement, Borrower
represents and warrants to Administrative Agent and each Lender as follows:

6.1 Organization; Power; Qualification. Each Loan Party is a corporation, limited
liability company, or other legal entity, duly organized or formed, validly existing and in good
standing under the jurisdiction of its incorporation or formation, has all requisite power and
authority and all necessary licenses and permits to own or hold under lease the properties it
purports to own or hold under lease and to operate such properties and to carry on its respective
business as now being and hereafter proposed to be conducted except where the failure to obtain
such licenses or permits could not be reasonably expected to have a Material Adverse Effect, and is
duly qualified and is in good standing as a foreign corporation, limited liability company, or
other legal entity, and authorized to do business, in each jurisdiction in which the character of
its properties owned or leased by or the nature of its business requires such qualification or
authorization, except where the failure to be so qualified or authorized could not reasonably be
expected to have a Material Adverse Effect.

6.2 Ownership Structure. As of the Agreement Date, Schedule 6.2 correctly sets forth
the corporate structure and ownership interests of the Consolidated Subsidiaries including the
correct legal name of each Consolidated Subsidiary, its jurisdiction of formation, and the
percentage equity or voting interest in such Consolidated Subsidiary owned by Borrower and each
Consolidated Subsidiary. As of the Agreement Date, Pledge LLC is the only Material Subsidiary.
Except as set forth in such Schedule, and except for Permitted Preferred Stock:

(a) No Consolidated Subsidiary has issued to any third party any securities
convertible into such Consolidated Subsidiary’s capital stock or other equity interests
or any options, warrants, or other rights to acquire any securities convertible into
such capital stock or other equity interests;

(b) All of the outstanding Equity Interests of each Consolidated Subsidiary shown
on Schedule 6.2 as being owned by Borrower and its Consolidated Subsidiaries have been
validly issued, are fully paid and nonassessable, and are owned by Borrower or a
Consolidated Subsidiary free and clear of all Liens, warrants, and options (except for
Permitted Liens); and

(c) To Borrower’s Knowledge, no Consolidated Subsidiary is a party to, or otherwise
subject to any legal, regulatory, contractual or other restriction (other than this
Agreement, the agreements listed on Schedule 6.2(c), and customary limitations imposed
by corporate law or similar statutes) restricting the ability of such Consolidated
Subsidiary to pay dividends out of profits or make any other similar distributions of
profits to Borrower or any of its Consolidated Subsidiaries that owns outstanding Equity
Interests of such Consolidated Subsidiary.

6.3 Authorization; Governmental Authorization; Other Consents.

(a) Each Loan Party has the right and power, and has taken all necessary action to
authorize it to borrow and incur obligations with respect to the Loans. Each Loan Party
has the right and power, and has taken all necessary action to authorize it to execute,
deliver, and perform each of the Loan Documents to which it is a party in accordance
with their respective terms and to consummate the transactions contemplated hereby and
thereby. The Loan Documents have been duly executed and delivered by the duly
authorized officers of each Loan Party that is a party thereto, and each is a legal,
valid, and binding obligation of such Loan Party, enforceable against it in accordance
with its respective terms, subject to applicable bankruptcy, creditor’s rights, and
similar laws affecting the rights and remedies of creditors generally.

(b) Except as set forth on Schedule 6.3, to Borrower’s Knowledge, after reasonable
inquiry, no approval, consent, exemption, authorization, or other action by, or notice
to, or filing with, any Governmental Authority or any other Person is necessary or
required in connection with:

(i) the execution, delivery or performance by, or enforcement against, any Loan
Party of the Loan Documents;

(ii) the grant by any Grantor of the Liens granted by it pursuant to the
Collateral Documents;

(iii) except for the filing of appropriate Uniform Commercial Code financing
statements and delivery of control agreements with respect to the BAC Deposit
Accounts, the perfection or maintenance of the Liens created under the Collateral
Documents; or

(iv) the exercise by the Collateral Agent or Administrative Agent, or any
Lender of its rights under the Loan Documents or the remedies in respect of the
Collateral pursuant to the Collateral Documents;

except, in each case under both this Section 6.3(a) and Section 6.3(b), (x) for any such
approval, consent, exemption, authorization, action, notice or filing that has been
obtained, given or made and is in full force and effect on the Closing Date or (y) as
may be required by the terms of the contracts which are the subject of the Lien being
granted under the Collateral Documents.

6.4 No Contravention. The execution, delivery and performance by each Loan Party of each
Loan Document to which such Loan Party is or is to be a party do not and will not

(a) contravene the terms of any of such Loan Party’s Organization Documents;

(b) to Borrower’s Knowledge, conflict with or result in any material breach or
contravention of, or the creation of any material Lien (other than Liens contemplated by
the Collateral Documents), or require any material payment to be made under:

(i) any loan agreement, indenture or other similar agreement evidencing
material Indebtedness or any other Material agreement to which such Loan Party is a
party or is subject, or by which such Loan Party or the respective properties of
such entities are bound (in each case, taking into consideration any consents or
waivers obtained or given prior to the Closing Date); or

(ii) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Grantor or its property is subject; or

(c) violate any law or regulation applicable to such Loan Party which could
reasonably be expected to have a Material Adverse Effect.

6.5 Compliance with Law; Governmental Approvals. To Borrower’s Knowledge, Borrower and
each Consolidated Subsidiary is in compliance with each Governmental Approval applicable to it and
in compliance with all other Applicable Laws relating to it, except for noncompliances which, and
Governmental Approvals the failure to possess which, would not, individually or in the aggregate,
cause a violation under Section 9.12 or could reasonably be expected to have a Material Adverse
Effect.

6.6 Ownership of Assets; Leases. Borrower and its Consolidated Subsidiaries have good and
sufficient title to their respective properties that individually or in the aggregate are Material,
including all such properties reflected in the most recent audited balance sheet of Borrower listed
on Schedule 6.10 or purported to have been acquired by Borrower or any of its Consolidated
Subsidiaries after said date (except as sold or otherwise disposed of in the ordinary course of
business), in each case, to Borrower’s Knowledge, free and clear of Liens prohibited by this
Agreement. To Borrower’s Knowledge, all leases that individually or in the aggregate are Material
are valid and subsisting and are in full force and effect in all material respects.

6.7 Existing Indebtedness; Future Liens. 

(a) Except as described therein, Schedule 6.7 sets forth a complete and correct
list of all outstanding Indebtedness of Borrower and each of its Consolidated
Subsidiaries as of January 25, 2010 (including, in the case of material Indebtedness, a
description of the obligors and obligees, principal amount outstanding and collateral
therefor, if any, and Contingent Obligations in respect thereof, if any), since which
date there has been no material change in the amounts, interest rates, sinking funds,
installment payments or maturities of the Indebtedness of Borrower or its Consolidated
Subsidiaries, other than the repayment and refinancing of the Debt evidenced by the
Existing Credit Agreement and repayment of the Senior Notes as contemplated in the
Recitals hereto. After giving effect to the transactions contemplated by the Loan
Documents, neither Borrower nor any Consolidated Subsidiary is in default beyond any
applicable notice and/or grace period in the payment of principal or interest on any
material Indebtedness nor is in default beyond any applicable notice and/or grace period
under any instrument or instruments or agreements under and subject to which any such
Indebtedness has been issued and no event has occurred and is continuing under the
provisions of any such instrument or agreement, and no condition exists with respect to
any such Indebtedness, which with the lapse of time or the giving of notice, or both,
would permit one or more Persons to cause such Indebtedness to become due and payable
before its stated maturity or before its regularly scheduled dates of payment.

(b) To Borrower’s Knowledge, neither Borrower nor any Consolidated Subsidiary has
agreed or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter acquired,
to be subject to a Lien not permitted by Section 9.3.

6.8 Litigation. Except as set forth on Schedule 6.8 or as otherwise disclosed on the Form
10-Q filed by Borrower on November 6, 2009, there are no actions, suits, investigations, or
proceedings pending, or to the knowledge of Borrower, threatened) against Borrower or any
Consolidated Subsidiary or any property of Borrower or any Consolidated Subsidiary in any court or
before any arbitrator of any kind or before or by any Governmental Authority that, individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect.

6.9 Taxes. All tax returns required to be filed by Borrower or any Consolidated Subsidiary
in any jurisdiction have, in fact, been filed, and all Taxes, assessments, fees and other
governmental charges upon Borrower or any Consolidated Subsidiary or upon any of their respective
properties, income or franchises, which are shown to be due and payable in such returns have been
paid, except to the extent such failure to file or to pay would not materially and adversely affect
the properties, business, profits or condition (financial or otherwise) of Borrower and its
Consolidated Subsidiaries, taken as a whole. For all taxable years ending on or before December
31, 2004, the Federal income tax liability of Borrower has been satisfied and either the period of
limitations on assessment of additional Federal income tax has expired or Borrower has entered into
an agreement with the Internal Revenue Service closing conclusively the total tax liability for the
taxable year. Borrower does not know of any proposed additional tax assessment against it for
which adequate provision has not been made on its accounts, and no material controversy in respect
of additional Federal or state income taxes due since said date is pending or to Borrower’s
Knowledge threatened. To Borrower’s Knowledge, the provisions for Taxes in the financial
statements of Borrower and its Consolidated Subsidiaries are adequate for all open years.

6.10 Financial Statements; Material Liabilities. Borrower has furnished or made available
to each Lender copies of the financial statements of Borrower and its Consolidated Subsidiaries
listed in Schedule 6.10. All of said financial statements (including in each case the related
schedules and notes) present fairly, in all material respects, the consolidated financial position
of Borrower and its Consolidated Subsidiaries as at their respective dates and the consolidated
results of operations, changes in net assets, and cash flows for the respective periods so
specified and have been prepared in accordance with GAAP consistently applied throughout the period
involved except as set forth in the notes thereto (subject, in the case of any interim financial
statements, to normal year-end adjustments). Borrower and its Consolidated Subsidiaries do not
have any Material liabilities that are not disclosed in such financial statements or otherwise
disclosed in the Disclosure Documents.

6.11 ERISA. Borrower and each ERISA Affiliate has fulfilled its obligations under the
minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is
in compliance with the presently applicable provisions of ERISA and the Internal Revenue Code with
respect to each Plan except for noncompliances which would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Neither Borrower nor any ERISA Affiliate
has any contingent liability with respect to any post-retirement “welfare benefit plan” (as such
term is defined in ERISA) other than liability under part 6 of subtitle B of Title I of ERISA
(COBRA continuation coverage). Neither Borrower nor any ERISA Affiliate has ever contributed to,
or had any obligation to contribute to, any Plan or any Multiemployer Plan.

6.12 Absence of Defaults; Observance of Agreements, Statutes, and Orders. 

(a) To Borrower’s Knowledge, neither Borrower nor any Consolidated Subsidiary is in
default under its Organization Documents, or under any agreement or instrument to which
it is a party or by which it is bound, or any order, judgment, decree or ruling of any
court, arbitrator or Governmental Authority or is in violation of any Applicable Law,
ordinance, rule or regulation (including without limitation Environmental Laws or the
USA Patriot Act) of any Governmental Authority, which default or violation, individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

(b) No Default or Event of Default has occurred and is continuing.

6.13 Environmental Matters.

(a) To Borrower’s Knowledge, neither Borrower nor any Consolidated Subsidiary has
received any written notice of any claim, and no proceeding has been instituted raising
any claim against Borrower or any of its Consolidated Subsidiaries or any of their
respective real properties now or formerly owned, leased or operated by any of them or
other assets, alleging any damage to the environment or violation of any Environmental
Laws, except, in each case, such as could not reasonably be expected to have a Material
Adverse Effect;

(b) To Borrower’s Knowledge, no facts exist which would give rise to any claim,
public or private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now or formerly
owned, leased or operated by Borrower or any Consolidated Subsidiary, except, in each
case, such as could not reasonably be expected to have a Material Adverse Effect;

(c) Neither Borrower nor any Consolidated Subsidiary has stored any Hazardous
Materials on real properties now, or to Borrower’s Knowledge, formerly owned, leased or
operated by any of them and has not disposed of any Hazardous Materials, in each case,
in a manner contrary to any Environmental Laws and, in each case, in any manner that
could reasonably be expected to have a Material Adverse Effect; and

(d) To Borrower’s Knowledge, all buildings on all real properties now owned, leased
or operated by Borrower or any Consolidated Subsidiary thereof are in compliance with
applicable Environmental Laws, except where failure to comply could not reasonably be
expected to have a Material Adverse Effect.

6.14 Investment Company. Borrower has elected to be regulated as a “business development
company” within the meaning of the Investment Company Act. Except with respect to Borrower as a
business development company under the Investment Company Act, neither Borrower nor any
Consolidated Subsidiary is subject to regulation under the Public Utility Holding Company Act of
2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as
amended.

6.15 Margin Stock. None of the transactions contemplated in the Loan Documents will
violate or result in a violation of Section 7 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or any regulation issued pursuant thereto, including, without limitation,
Regulations U, T and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter
II. Neither Borrower nor any Consolidated Subsidiary is engaged principally, or as one of its
important activities, in the business of purchasing or carrying margin stock or extending credit
for the purpose, whether immediate, incidental, or ultimate, of buying or carrying “margin stock”
within the meaning of Regulation U (as enacted by the Board of Governors of the Federal Reserve
System, as amended).

6.16 Affiliate Transactions. To Borrower’s Knowledge, except as permitted by Section 9.7,
neither Borrower nor any Consolidated Subsidiary is a party to or bound by any agreement or
arrangement (whether oral or written) to which any Affiliate of Borrower or any Consolidated
Subsidiary is a party.

6.17 Licenses and Permits. Borrower and its Consolidated Subsidiaries own or possess all
licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service
marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others.

6.18 Disclosure. This Agreement and the documents or certificates delivered to
Administrative Agent or the Lenders (or to the professional advisors for Administrative Agent or
the Lenders) by or on behalf of any Loan Party in connection with the transactions contemplated by
the Loan Documents, the Disclosure Documents, and the financial statements listed in Schedule 6.10,
taken as a whole, do not contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein not misleading in light of the circumstances
under which they were made. Except as disclosed in the Disclosure Documents, the Loan Documents
and the documents and certificates delivered in connection herewith or the financial statements
listed in Schedule 6.10, since December 31, 2008, there has been no change in the financial
condition, operations, business, or properties of Borrower and its Consolidated Subsidiaries, taken
as whole, that could reasonably be expected to have a Material Adverse Effect. There is no fact
known to Borrower that could reasonably be expected to have a Material Adverse Effect that has not
been set forth herein, in the schedules attached hereto or in the Disclosure Documents.

	 	 	 	 	 	 	 
	6.19	 	RIC Status. Borrower qualifies for treatment as a RIC under the Internal Revenue Code.
	 	 	 
	
 
	 	 	6.20	 	 	Foreign Assets Control Regulations, Etc.
	
 
	 	 	 	 	 	 

(a) Borrower’s use of the proceeds of the Loans will not violate the Trading with
the Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any
enabling legislation or executive order relating thereto.

(b) Neither Borrower nor any Consolidated Subsidiary thereof (i) is a Person
described or designated in the Specially Designated Nationals and Blocked Persons List
of the Office of Foreign Assets Control or in Section 1 of the Anti Terrorism Order or
(ii) to Borrower’s Knowledge, engages in any dealings or transactions with any such
Person. Borrower and its Consolidated Subsidiaries are in compliance, in all material
respects, with all applicable provisions of the USA Patriot Act.

(c) No part of the proceeds from the Existing Loans has been (and will not be)
used, directly or indirectly, by Borrower or a Consolidated Subsidiary 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,
assuming in all cases that such Act applies to Borrower.

6.21 Business. As of the Agreement Date, Borrower and its Consolidated Subsidiaries are
substantially engaged in the businesses described in the Reference 10-K.

6.22 Insurance.

(a) Borrower and its Consolidated Subsidiaries maintain insurance coverage with
reputable insurers reasonably believed by Borrower to be financially sound in such forms
and amounts and against such risks as are customary for corporations and limited
liability companies of established reputation engaged in the same or a similar business
and owning and operating similar properties.

(b) Schedule 6.22 sets forth a description of all insurance maintained by or on
behalf of Borrower and the Subsidiary Guarantors as of the Closing Date. As of the
Closing Date, all premiums due in respect of such insurance have been paid.

6.23 Collateral Documents. Subject to the terms and provisions thereof, the provisions of
the Collateral Documents are effective to create in favor of the Collateral Agent for the benefit
of the Secured Parties a legal, valid and enforceable Lien on all right, title and interest of the
respective Grantors in the Collateral described therein. To Borrower’s Knowledge, after reviewing
applicable public records, the Lien created by the Collateral Documents constitutes a first
priority Lien, subject to no other Liens (other than Permitted Liens).

6.24 Solvency. To Borrower’s Knowledge, immediately after the Closing and after giving
effect to the transactions contemplated in this Agreement and each Loan Party’s contribution rights
from the other Loan Parties, (a) the fair value of the assets of each Loan Party, at a fair
valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (b) each
Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (c) no Loan Party will have
unreasonably small capital with which to conduct the business in which it is engaged as such
business is now conducted and proposed to be conducted after the Closing.

6.25 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is a party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
a party thereto in accordance with its terms, subject to applicable bankruptcy, creditor’s rights
and similar laws affecting the rights and remedies of creditors generally.

6.26 Survival of Representations and Warranties, Etc. All statements contained in any
certificate, financial statement, or other instrument delivered by or on behalf of Borrower or any
Consolidated Subsidiary to Administrative Agent or any Lender pursuant to or in connection with
this Agreement or any of the other Loan Documents (including, but not limited to, any such
statement made in or in connection with any amendment thereto or any statement contained in any
certificate, financial statement, or other instrument delivered by or on behalf of Borrower prior
to the Agreement Date and delivered to Administrative Agent or any Lender in connection with
closing the transactions contemplated hereby) shall constitute representations and warranties made
by Borrower under this Agreement, and shall survive the effectiveness of this Agreement, the
execution and delivery of the Loan Documents, and the making of the Loans. All representations and
warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and
as of the Closing Date, except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and warranties shall have been
true and accurate on and as of such earlier date) and except for changes in factual circumstances
specifically permitted hereunder. All such representations and warranties have been or will be
relied upon by Administrative Agent and each Lender, regardless of any investigation made by
Administrative Agent or any Lender or on their behalf and notwithstanding that Administrative Agent
or any Lender may have had notice or knowledge of any Default at the time of the making of any
Loan, and shall continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied.

SECTION 7. AFFIRMATIVE COVENANTS.

For so long as this Agreement is in effect and thereafter until the payment in full of the
Obligations, unless the Requisite Lenders (or, if required pursuant to Section 12.5, all Lenders)
shall otherwise consent in the manner provided for in Section 12.5, Borrower shall:

7.1 Preservation of Existence and Similar Matters. Except as otherwise permitted
under Section 9.5, preserve and maintain in full force and effect, and cause each Consolidated
Subsidiary to preserve and maintain in full and force and effect, its respective corporate
existence, and all licenses, registrations, permits, and other Governmental Approvals necessary to
the proper conduct of its business except where the failure to maintain such licenses
registrations, permits, and Governmental Approvals would not have a Material Adverse Effect.

7.2 Compliance with Applicable Law. Promptly comply, and cause each Consolidated
Subsidiary to promptly comply: (a) In all material respects with, and not violate in any material
respect the Investment Company Act so long as it is subject thereto, and (b) in all material
respects with all other Applicable Laws to which it is subject (including, without limitation, the
Occupational Safety and Health Act of 1970, as amended, ERISA, and all Environmental Laws),
including the obtaining of all Governmental Approvals, the failure with which to comply could
reasonably be expected to have a Material Adverse Effect or would result in any Lien (other than a
Permitted Lien) on a material part of the property or assets of Borrower or any Consolidated
Subsidiary.

7.3 Maintenance of Property. In addition to the requirements of any of the other Loan
Documents, (a) maintain, preserve and keep and cause each Consolidated Subsidiary to preserve and
keep, all of its material properties which are used in the conduct of its business, in good repair,
and working order, ordinary wear and tear excepted, and (b) from time to time make or cause to be
made, and cause each Consolidated Subsidiary to make or cause to be made, all necessary repairs,
renewals, and replacements, to such properties as Borrower may determine to be appropriate to the
conduct of its business.

7.4 Insurance. Maintain, and cause each Consolidated Subsidiary to maintain,
insurance coverage with reputable insurance companies reasonably believed by Borrower to be
financially sound in such form and amounts and against such risks as are (a) customary for
corporations and limited liability companies of established reputation engaged in the same or a
similar business and owning and operating similar properties, (b) otherwise contemplated by the
terms of the Loan Documents, and (c) as may be required by Applicable Law.

7.5 Payment of Taxes and Claims. Pay and discharge, and cause each Consolidated Subsidiary
to pay and discharge, all lawful Taxes, imposed upon Borrower or such Consolidated Subsidiary,
respectively, or upon or in respect of all or any part of the property or business of Borrower or
such Consolidated Subsidiary, all material trade accounts payable in accordance with usual and
customary business terms, and all claims for work, labor, or materials, which if unpaid might
become a Lien upon any property of Borrower or such Consolidated Subsidiary, provided, however,
that Borrower or such Consolidated Subsidiary shall not be required to pay any such Tax, account
payable, or claim if (i) the validity, applicability or amount thereof is being contested in good
faith by appropriate actions or proceedings which will prevent the forfeiture or sale of any
material property of Borrower or such Consolidated Subsidiary or any material interference with the
use thereof by Borrower or such Consolidated Subsidiary, and (ii) Borrower or such Consolidated
Subsidiary shall set aside on its books, reserves deemed by it to be adequate with respect thereto.

7.6 Visits and Inspections. Permit Administrative Agent or any Lender (or such
Persons as Administrative Agent or such Lender may designate) to visit and inspect, under
Borrower’s guidance, any of the properties of Borrower or any Consolidated Subsidiary, to examine
all of their books of account, records, reports and other papers, to make copies and extracts
therefrom and to discuss their respective affairs, finances, and accounts with their respective
officers, employees, and independent registered public accounting firm (and by this provision
Borrower authorizes said accountants to discuss with Administrative Agent, any Lender, or their
designated agent or representative the finances and affairs of Borrower and its Consolidated
Subsidiaries) all at such reasonable times (subject to any and all Applicable Laws, and, so long as
no Default or Event of Default shall have occurred and be continuing, upon reasonable prior
notice). Any visitation shall be at the sole expense of Administrative Agent or such Lender,
unless a Default or Event of Default shall have occurred and be continuing or Administrative Agent,
any Lender, or the holder of any other evidence of Applicable Debt of Borrower or any Consolidated
Subsidiary gives any written notice of a claimed default or takes any other action of which
Borrower is aware with respect to a claimed default, in which case, any such visitation or
inspection shall be at the sole expense of Borrower.

7.7 Books and Records. Keep, and cause each Consolidated Subsidiary to keep, proper books
of record and account in which full and correct entries will be made of all material dealings or
transactions of, or in relation to, the business and affairs of Borrower or such Consolidated
Subsidiary, in accordance with GAAP consistently applied (except for changes disclosed in the
financial statements furnished to Administrative Agent and the Lenders pursuant to SECTION 8 and
concurred with by the independent registered public accounting firm referred to in clause (b) of
Section 8.2).

7.8 Conduct of Business. At all times maintain its status as a RIC under the Internal
Revenue Code, and as a “business development company” under the Investment Company Act. Borrower
will not and will not permit any Consolidated Subsidiary to (a) become a Person described or
designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti Terrorism Order or (b) knowingly engage in any dealings
or transactions with any such Person.

7.9 ERISA Exemptions. Not, and Borrower shall not permit any Consolidated Subsidiary
to, permit any of their respective assets to become or be deemed to be “plan assets” within the
meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.

7.10 Collateral Requirements.

(a) Collateral Documents. (i) Comply with and perform, and cause each
Consolidated Subsidiary to comply with and perform, in all material respects each of the
terms, conditions, and covenants set forth in the Collateral Documents to which it is a
party, and (ii) cause the representations and warranties set forth in the Collateral
Documents to be true and correct in all material respects as of the Closing Date as
provided in the Collateral Documents.

(b) Additional Consolidated Subsidiaries. Within ten days after the time
that any Person becomes, after the Closing Date, a Consolidated Subsidiary of Borrower
as a result of the creation of such Consolidated Subsidiary, a merger, or other
consolidation permitted by Section 9.5 of this Agreement or otherwise cause (A) such
Consolidated Subsidiary to execute a joinder to the acknowledgement and consent to the
Intercreditor Agreement reasonably satisfactory to the Administrative Agent, (B) such
Consolidated Subsidiary to execute a Subsidiary Guaranty in substantially the form of
Exhibit I and reasonably satisfactory to the Administrative Agent, (C) such Consolidated
Subsidiary (other than any Pledge LLC) to become a party to the Security Agreement and
shall grant a valid and perfected, and to Borrower’s Knowledge, first priority Security
Interest (subject to any Permitted Liens) in all of its real and personal property
(other than real and personal property which constitute Excluded Assets, subject to the
terms of the Security Agreement), and, with respect to perfection, other than Second
Tier Collateral that is not subject to a Perfection Requirement, whether tangible or
intangible, pursuant to a joinder agreement in form and substance reasonably
satisfactory to the Administrative Agent, (D) 100% of such Consolidated Subsidiary’s
Equity Interests (65% in the case of any Controlled Foreign Corporation,
provided that, immediately upon the amendment of the Internal Revenue
Code to allow the pledge of a greater percentage of the voting power of capital stock in
a Controlled Foreign Corporation without adverse Tax consequences, the Collateral shall
include, and Collateral Agent’s Lien shall attach to, such greater percentage of capital
stock of each Controlled Foreign Corporation) shall be pledged under the Collateral
Documents to secure the Obligations, and (E) such Consolidated Subsidiary to deliver to
the Collateral Agent and Administrative Agent such board resolutions, officer’s
certificates, corporate and other documents, and opinions of counsel (which may be
issued by the general counsel or chief legal officer of Borrower) as Administrative
Agent shall reasonably request in connection with the actions described in clauses (A),
(B), (C), and (D) above.

(c) Additional Undertakings. Borrower will use commercially reasonable
efforts to obtain the consent or approval of all third parties required to permit
Borrower and the Subsidiary Grantors to subject all of their assets (other than the
Excluded Assets, subject to the terms of the Security Agreement) and, with respect to
perfection, Second Tier Collateral that is not subject to a Perfection Requirement) to
the Lien of the Collateral Documents. In determining whether to obtain any such consent
or approval, Borrower may take into account the cost or charges imposed by third parties
(on either Borrower or any entity in which Borrower or a Consolidated Subsidiary has an
investment) to grant any such consent or approval and/or any undue burden where the
efforts would not justify obtaining such consent or approval in view of the value of the
property proposed to be subject to such Lien as reasonably determined by Borrower. In
addition, Borrower shall not be obligated to obtain consents or approvals in respect of
assets which in the reasonable judgment of Borrower cannot be pledged, or as to which
the consent to pledge cannot be sought, without substantially impairing the value of the
asset or the ability of Borrower or a Subsidiary Grantor to manage the asset in the
ordinary course of its business. Without limiting the obligation of Borrower set forth
above, to the extent any personal property of Borrower or a Subsidiary Grantor cannot be
pledged as Collateral on account of contractual limitations applicable to such property
but may be transferred to a Pledge LLC, such personal property shall be transferred to a
Pledge LLC. Borrower shall use commercially reasonable efforts to ensure that the
documents which govern Investments made subsequent to the date of the Closing do not
restrict the ability of Borrower to subject any such Investment to the Lien of the
Collateral Documents; provided that, so long as it has used such efforts, Borrower will
not be precluded from making an Investment as to which the governing documents contain
such a restriction.

7.11 Obligations. Borrower shall pay the Obligations in accordance with the terms and
provisions of the Loan Documents.

7.12 Further Assurances. At Borrower’s cost and expense, upon the reasonable request of
Administrative Agent, duly execute and deliver (and cause each Consolidated Subsidiary to duly
execute and deliver) or cause to be duly executed and delivered, to Administrative Agent,
Collateral Agent and/or Lenders such further instruments, documents, and certificates, and do and
cause to be done such further acts that may be necessary or customary in the reasonable opinion of
Administrative Agent to carry out more effectively the provisions and purposes of this Agreement
and the other Loan Documents.

7.13 Use of Proceeds7.14 . Borrower will use the proceeds of the Loans made pursuant
to Section 2.1(b) solely for the repayment of the Indebtedness outstanding under the Existing
Credit Agreement and the repayment of the Senior Notes.

7.14 Post-Closing Covenants. Borrower agrees, on or prior to March 15, 2010, to close the
BAC Deposit Accounts or on or prior to such date to have delivered to the Administrative Agent a
Deposit Account Control Agreement duly executed by the applicable Loan Party, Bank of America, N.A.
and the Collateral Agent. In addition, Borrower agrees to furnish the items, and to take the
actions, described on Schedule 7.14, in each case within the time periods therein specified (with
such extensions of time as may be agreed to by Administrative Agent).

SECTION 8. INFORMATION.

For so long as this Agreement is in effect and thereafter until payment in full of the
Obligations, unless the Requisite Lenders (or, if required pursuant to Section 12.5, all Lenders)
shall otherwise consent in the manner set forth in Section 12.5, Borrower shall furnish or make
available to each Lender (or to Administrative Agent if so provided below) at its Lending Office:

8.1 Quarterly Financial Statements. As soon as available and in any event within 50
days (or such period that is 5 Business Days greater than the period applicable to the required
filing date of Borrower’s Quarterly Report on Form 10-Q) after the end of each of the first,
second, and third fiscal quarters of Borrower, copies of:

(a) consolidated balance sheets of Borrower and its Consolidated Subsidiaries as of
the close of such quarterly fiscal period, setting forth in comparative form the
consolidated figures for the fiscal year then most recently ended;

(b) consolidated statements of operations of Borrower and its Consolidated
Subsidiaries for such quarterly fiscal period and for the portion of the fiscal year
ending with such quarterly fiscal period, in each case setting forth in comparative form
the consolidated figures for the corresponding periods of the preceding fiscal year; and

(c) consolidated statements of changes in net assets and cash flows of Borrower and
its Consolidated Subsidiaries for the portion of the fiscal year ending with such
quarterly fiscal period, setting forth in comparative form the consolidated figures for
the corresponding period of the preceding fiscal year;

all of which shall be in reasonable detail and certified by a Senior Financial Officer of Borrower,
to be complete and correct in all material respects.

8.2 Annual Statements. As soon as available and in any event within 95 days (or such
period that is 5 Business Days greater than the period applicable to the required filing date of
Borrower’s Annual Report on Form 10-K) after the close of each fiscal year of Borrower, copies of:

(a) the consolidated balance sheets of Borrower and its Consolidated Subsidiaries
as at the close of such fiscal year;

(b) consolidated statements of operations, changes in net assets, and cash flows of
Borrower and its Consolidated Subsidiaries for such fiscal year; and

(c) consolidated statement of investments of Borrower and its Consolidated
Subsidiaries as at the close of such fiscal year;

setting forth in comparative form the consolidated figures as at the end of and for the previous
fiscal year (except in the case of such statement of investments), and in each case all in
reasonable detail and certified by (a) a Senior Financial Officer of Borrower, to be complete
and correct in all material respects, and to present fairly, in all material respects in
accordance with GAAP, the financial position of Borrower and its Consolidated Subsidiaries as at
the date thereof and the result of operations for such period and (b) independent certified
public accountants of recognized national standing acceptable to the Requisite Lenders, whose
opinion shall be unqualified and shall certify that the consolidated financial statements
present fairly, in all material respects, the consolidated financial position of Borrower and
its Consolidated Subsidiaries as of the end of the fiscal year being reported on and the
consolidated results of their operations, changes in net assets and cash flows for said year in
conformity with GAAP and that the examination by such accountants in connection with such
financial statements has been conducted in accordance with generally accepted auditing standards
and included such tests of the accounting records and such other auditing procedures as said
accountants deemed necessary in the circumstances and such accountants shall have authorized
Borrower to deliver such financial statements and opinion and certifications thereon to
Administrative Agent and Lenders pursuant to this Agreement.

8.3 Compliance Certificate; Investments Reports; Borrowing Base Certificates.

(a) At the time the financial statements are furnished pursuant to Sections 8.1 and
8.2, a Compliance Certificate: (i) setting forth in reasonable detail as at the end of
such quarterly accounting period or fiscal year, as the case may be, the calculations
required to establish whether or not Borrower and its Consolidated Subsidiaries were in
compliance with the covenant contained in Section 9.1(a) and (ii) stating that, to the
best knowledge, information, and belief of the Senior Financial Officer of Borrower, no
Default or Event of Default exists, or, if such is not the case, specifying such Default
or Event of Default and its nature, when it occurred, and whether it is continuing, and
the steps being taken by Borrower with respect to such event, condition, or failure. At
the time the financial statements are furnished pursuant to Section 8.2, Borrower will
deliver to Lenders a certificate of the independent accountants performing the audit of
such financial statements acknowledging (subject to normal and customary qualifications
and assumptions) that Borrower was in compliance with the financial covenant of
Section 9.1(a), and setting forth the procedures used to make such determination.

(b) At the time the financial statements are furnished pursuant to Sections 8.1 and
8.2, the following reports with respect to Investments of Borrower and its Consolidated
Subsidiaries, as of the end of such fiscal quarter, in form and scope acceptable to
Administrative Agent:

(i) A consolidated statement of Investments presented in Borrower’s
consolidated financial statements;

(ii) A report of unrealized and realized gains (losses) (with detail as to
unrealized gains and losses by Portfolio Company for private finance Investments and
in the aggregate for Commercial Mortgage Loans, and other Investments); and

(iii) A delinquency report of loans over 120 days past due.

(c) As soon as available and in any event not later than the 10th
Business Day of the calendar month following each monthly accounting period (ending on
the last day of each calendar month) of Borrower, a Borrowing Base Certificate as at the
last day of such monthly accounting period (provided that for any monthly accounting
period ending on the last day of a fiscal quarter, the Borrowing Base Certificate for
such month shall be updated at the time the financial statements are furnished pursuant
to Sections 8.1 and 8.2, as applicable, to reflect the quarterly valuations for the then
just completed fiscal quarter as determined in accordance with Section 8.5(b)(ii)). For
the avoidance of doubt, all Borrowing Base Certificates shall reflect the most current
internal valuations made in accordance with Section 8.5(b)(iii).

(d) Promptly but no later than five Business Days after Borrower shall at any time
have knowledge that there is a Borrowing Base Deficiency, a Borrowing Base Certificate
as at the date Borrower has knowledge of such Borrowing Base Deficiency indicating the
amount of the Borrowing Base Deficiency as at the date Borrower obtained knowledge of
such deficiency and the amount of the Borrowing Base Deficiency as of the date not
earlier than one Business Day prior to the date the Borrowing Base Certificate is
delivered pursuant to this paragraph and, in each case, make such prepayments of the
Loans required thereby in accordance with Section 2.5.

8.4 Other Information.

(a) Not later than 45 days prior to the last day of each fiscal year of Borrower, pro
forma projected consolidated financial statements for Borrower and its Consolidated
Subsidiaries reflecting the forecasted financial condition and results of operations of
Borrower and its Consolidated Subsidiaries on a quarterly basis for the next succeeding
year, accompanied by calculations establishing whether or not Borrower would be in
compliance on a pro forma basis with the covenant contained in Section 9.1(a), in each
case in form and detail reasonably acceptable to Administrative Agent;

(b) Promptly upon receipt thereof, one copy of each interim or special audit made by
an independent registered public accounting firm of the books of Borrower or any
Consolidated Subsidiary and any management letter received from such accountants;

(c) Promptly upon their becoming available (or in the case of registration
statements, promptly after their becoming effective), copies of all effective registration
statements (other than the exhibits thereto, any prospectus supplements, and any effective
registration statements on Form S-8 or its equivalent), and reports on Forms 10-K, 10-Q,
and 8-K (or their equivalents) filed by Borrower with the Securities and Exchange
Commission (or any Governmental Authority substituted therefor) or any national securities
exchange;

(d) Promptly upon the mailing thereof to the shareholders of Borrower generally,
copies of all financial statements, reports, and proxy statements so mailed;

(e) Promptly upon a Responsible Officer of Borrower becoming aware of the occurrence
thereof, written notice of (i) any Reportable Event with respect to any Plan hereafter
maintained by Borrower or any ERISA Affiliate; (ii) the institution of any steps by
Borrower, any ERISA Affiliate, the PBGC, or any other person to terminate any such Plan;
(iii) the institution of any steps by Borrower or any ERISA Affiliate to withdraw from any
such Plan; (iv) a non-exempt “prohibited transaction” within the meaning of Section 406 of
ERISA in connection with any such Plan; (v) any material contingent liability of Borrower
or any Consolidated Subsidiary with respect to any post-retirement welfare liability
hereafter existing; or (vi) the taking of any action by, or the threatening of the taking
of any action by, the Internal Revenue Service, the Department of Labor, or the PBGC with
respect to any of the foregoing;

(f) To the extent Borrower or any Consolidated Subsidiary is aware of the same,
prompt notice of the commencement of any proceeding or investigation by or before any
Governmental Authority and any action or proceeding in any court or other tribunal or
before any arbitrator against or in any other way relating adversely to, or adversely
affecting, Borrower or any Consolidated Subsidiary or any of their respective properties,
assets, or businesses which, if determined or resolved adversely to such Person, could
reasonably be expected to have a Material Adverse Effect; and prompt notice of the receipt
of notice that any United States income Tax returns of Borrower or any of its Consolidated
Subsidiaries are being audited;

(g) To the extent not previously delivered to Administrative Agent, a copy of the
articles of incorporation, bylaws, partnership agreement, or other similar organizational
documents of Borrower, any Consolidated Subsidiary, and any amendment thereto, in each
case within five (5) Business Days of the effectiveness thereof;

(h) Prompt notice of any change in the business, assets, liabilities, financial
condition, or results of operations of Borrower or any Consolidated Subsidiary which has
had or could reasonably be expected to have a Material Adverse Effect;

(i) When any Event of Default has occurred, or if the holder of any Applicable Debt
of Borrower or any other Loan Party gives any notice of a claimed default or takes any
other action with respect to a claimed default of which Borrower is aware, Borrower agrees
to give notice to Administrative Agent within three (3) Business Days of such event;

(j) Prompt notice of any order, judgment, or decree in excess of $25,000,000 having
been entered against Borrower or any Consolidated Subsidiary or any of their respective
properties or assets and promptly upon them becoming available, copies of such orders,
judgments, or decrees;

(k) Prompt notice, which notice shall, in the case of a Material Subsidiary, be
delivered no later than five (5) Business Days following the occurrence of the
acquisition, incorporation, or other creation of any Consolidated Subsidiary, the purpose
for such Consolidated Subsidiary, the nature of the assets and liabilities thereof, and
whether such Consolidated Subsidiary is a Material Subsidiary;

(l) At the time the quarterly financial statements are furnished in accordance with
Section 8.1, a list of the Persons who are Material Subsidiaries as of the date of the
balance sheet included in such quarterly financial statements;

(m) Within five (5) Business Days after any Responsible Officer has knowledge of the
occurrence of any Control Event or Change of Control, give written notice of such Control
Event or Change of Control to Administrative Agent and each Lender; and

(n) From time to time and promptly upon each request, such data, certificates,
reports, statements, opinions of counsel, documents, or further information regarding the
business, assets, liabilities, financial condition or results of operations of Borrower or
any of its Consolidated Subsidiaries as Administrative Agent or any Lender may reasonably
request.

Documents required to be delivered pursuant to Sections 8.1, 8.2, 8.4(c), or 8.4(d) (to the
extent any such documents are included in materials otherwise filed with the Securities and
Exchange Commission) may be delivered electronically and if so delivered, shall be deemed to
have been delivered on the date (i) on which Borrower posts such documents, or provides a
link thereto on Borrower’s website on the Internet at www.alliedcapital.com; or (ii) on
which such documents are posted on Borrower’s behalf on an Internet or intranet website, if
any, to which each Lender and Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by Administrative Agent); provided
that: the Borrower shall notify Administrative Agent and each Lender (by telecopier
or electronic mail) of the posting of any such documents and provide to Administrative Agent
by electronic mail electronic versions (i.e., soft copies) of such documents.
Notwithstanding anything contained herein, in every instance Borrower shall be required to
provide paper copies of the Compliance Certificates and Borrowing Base Certificates required
by Section 8.3 to Administrative Agent. Except for such Compliance Certificates and
Borrowing Base Certificates, Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any event shall
have no responsibility to monitor compliance by Borrower with any such request for delivery,
and each Lender shall be solely responsible for requesting delivery to it or maintaining its
copies of such documents.

8.5 Borrowing Base and Valuation.

(a) Valuation Policies. Borrower shall promptly advise the Administrative
Agent of any material change in its Valuation Policy (as defined below).

(b) Portfolio Valuation; Determination of Borrowing Base. Borrower will
conduct reviews of the value to be assigned to each of its Portfolio Investments for
purposes of determining the Borrowing Base under this Agreement as follows:

(i) Quoted Investments. With respect to Portfolio Investments
(including Cash Equivalents) for which current market quotations are readily
available, Borrower shall, not less frequently than once each calendar
month, determine the market value of such Portfolio Investments which shall,
in each case, be determined in accordance with one of the following
methodologies (as selected by Borrower):

(w) in the case of public and 144A securities, the average of
the mean prices as determined by two Approved Dealers selected by
Borrower,

(x) in the case of bank loans, the mean price as determined by
one Approved Dealer or Approved Pricing Service selected by Borrower,

(y) in the case of any Portfolio Investment traded on an
exchange, the closing price for such Portfolio Investment most
recently posted on such exchange, and

(z) in the case of any other Portfolio Investment, the fair
market value thereof as determined by an Approved Pricing Service
selected by Borrower; and

(ii) Unquoted Investments. With respect to Portfolio
Investments for which market quotations are not readily available, Borrower
shall value such Portfolio Investments quarterly in a manner consistent with
its existing valuation policy described in the Disclosure Documents (the
“Valuation Policy”).

(iii) Internal Review. Borrower shall conduct an internal
review of the aggregate value of the Portfolio Investments, and of the
Borrowing Base, at least once each calendar week which shall take into
account any events of which Borrower has knowledge that materially affects
the aggregate value of the Portfolio Investments or the Borrowing Base,
including, as applicable, the occurrence of any “default” or similar event
by the obligor thereunder. If, based upon such weekly internal review,
Borrower determines that a Borrowing Base Deficiency exists, then Borrower
shall, within five (5) Business Days, deliver a Borrowing Base Certificate
reflecting the new amount of the Borrowing Base and shall take the actions,
and make the payments and prepayments, all as more specifically set forth in
Section 2.5.

(iv) Failure to Determine Values. If Borrower shall fail to
determine the value of any Portfolio Investment as at any date pursuant to
the requirements of the foregoing sub-clauses (i) through (iii), the
“Value” of such Portfolio Investment as at such date shall be deemed to be
zero;

provided that, in no event shall any Portfolio Investment be valued pursuant to the
foregoing requirements less frequently than annually.

(c) Determination of Borrowing Base. For purposes of this Agreement, the
“Borrowing Base” shall be determined, as at any date of determination, as the sum of the
Advance Rates of the Value of each Portfolio Investment, provided that the Advance
Rate applicable to that portion of the aggregate Value of Borrower’s investments in Non-Core
Investments shall be zero to the extent necessary so that no more than 25% of the aggregate
outstanding Loans is attributable to such investments. No Portfolio Investment may be
included in the Borrowing Base until such time as the Collateral Agent has a first-priority
perfected security interest in such Portfolio Investment pursuant to the Security Agreement
(subject to Permitted Liens).

(d) Certain Definitions. As used herein, the following terms have the
following meanings:

“Advance Rate” means, as to any Portfolio Investment and subject to adjustment as provided in
this Section above, the following percentages with respect to such Portfolio Investment:

	 	 	 	 	 
	Portfolio Investment	 	Quoted	 	Unquoted
	Cash, Cash Equivalents and

Short-Term U.S. Government Securities

Long-Term U.S. Government Securities

Performing First Lien Bank Loans

Performing Second Lien Bank Loans

Performing Cash Pay High Yield Securities

Investment Grade CDO Securities

Performing Cash Pay Mezzanine Investments

Performing Non-Cash Pay High Yield Securities

Non-Investment Grade CDO Securities

Performing Non-Cash Pay Mezzanine Investments

Non-Performing First Lien Bank Loans

Non-Performing Second Lien Bank Loans

Non-Performing High Yield Securities

Non-Performing Mezzanine Investments

Performing Common Equity

Other Category CDO Securities

Non-Performing Common Equity

	 	

100%

95%

85%

75%

70%

65%

65%

60%

55%

55%

50%

40%

35%

35%

40%

25%

0%
	 	

n.a.

n.a.

75%

65%

60%

55%

55%

50%

45%

45%

50%

40%

35%

35%

40%

25%

0%

“Bank Loans” means debt obligations (including, without limitation, term loans, revolving
loans, debtor-in-possession financings, the funded and unfunded portion of revolving credit lines
and letter of credit facilities and other similar loans and investments including interim loans and
senior subordinated loans) which are generally under a syndicated loan or credit facility.

“Capital Stock” of any Person means any and all shares of corporate stock (however designated)
of, and any and all other equity interests and participations representing ownership interests
(including membership interests and limited liability company interests) in, such Person.

“Cash” has the meaning assigned to such term in Section 1.1.

“Cash Equivalents” has the meaning assigned to such term in Section 1.1.

“Cash Pay Bank Loans” means First Lien Bank Loans and Second Lien Bank Loans as to which, at
the time of determination, all of the interest on which is payable not less frequently than
quarterly and for which not less than 2/3rds of the interest (including accretions and
“pay-in-kind” interest) for the current monthly or quarterly period (as applicable) is payable in
cash.

“CDO Securities” means debt securities, equity securities or composite or combination
securities (i.e. securities consisting of a combination of debt and equity securities that are
issued in effect as a unit), including synthetic securities that provide synthetic credit exposure
to debt securities, equity securities or composite or combination securities, that entitle the
holders thereof to receive payments that (i) depend on the cash flow from a portfolio consisting
primarily of ownership interests in debt securities, corporate loans or asset-backed securities or
(ii) are subject to losses owing to credit events (howsoever defined) under credit derivative
transactions with respect to debt securities, corporate loans or asset-backed securities.

“First Lien Bank Loan” means a Bank Loan that is entitled to the benefit of a first lien and
first priority perfected security interest on a substantial portion of the assets of the respective
borrower and guarantors obligated in respect thereof.

“High Yield Securities” means debt Securities and Preferred Stock, in each case (a) issued by
public or private issuers, (b) issued pursuant to an effective registration statement or pursuant
to Rule 144A under the Securities Act (or any successor provision thereunder) and (c) that are not
Cash Equivalents, Mezzanine Investments or Bank Loans.

“Investment Grade CDO Securities” means Rated CDO Securities that are direct or synthetic debt
securities (and not composite or combination securities) and are (a) Performing and (b) rated as
follows by two of the following three rating agencies: “BBB-” or higher by S&P, “BBB-” or higher by
Fitch and “Baa3” or higher by Moody’s.

“Long-Term U.S. Government Securities” means U.S. Government Securities maturing more than one
month from the applicable date of determination.

“Mezzanine Investments” means debt Securities (including convertible debt Securities (other
than the “in-the-money” equity component thereof)) and Preferred Stock in each case (a) issued by
public or private issuers, (b) issued without registration under the Securities Act, (c) not issued
pursuant to Rule 144A under the Securities Act (or any successor provision thereunder), (d) that
are not Cash Equivalents and (e) contractually subordinated in right of payment to other debt of
the same issuer.

“Non-Core Investments” means, collectively, Portfolio Investments in common equity, warrants,
Non-Performing Bank Loans, Non-Performing High Yield Securities, Non-Performing Mezzanine
Investments, Other Category CDO Securities and any Obligor’s investment in any Subsidiary that is
not a Subsidiary Guarantor.

“Non-Investment Grade CDO Securities” means Rated CDO Securities that are direct or synthetic
debt securities (and not composite or combination securities) and that are (a) Performing and
(b) neither Investment Grade CDO Securities nor Other Category CDO Securities.

“Non-Performing Common Equity” means Capital Stock (other than Preferred Stock) and warrants
of an issuer having any debt outstanding that is non-Performing.

“Non-Performing First Lien Bank Loans” means First Lien Bank Loans other than Performing First
Lien Bank Loans.

“Non-Performing High Yield Securities” means High Yield Securities other than Performing High
Yield Securities.

“Non-Performing Bank Loans” means, collectively, Non-Performing First Lien Bank Loans and
Non-Performing Second Lien Bank Loans.

“Non-Performing Mezzanine Investments” means Mezzanine Investments other than Performing
Mezzanine Investments.

“Non-Performing Second Lien Bank Loans” means Second Lien Bank Loans other than Performing
Second Lien Bank Loans.

“Other Category CDO Securities” means (a) CDO Securities that are direct or synthetic debt
securities (and not composite or combination securities) and that are (i) Performing and
(ii) either (x) not-secured or (y) not Rated CDO Securities and (b) CDO Securities that are direct
or synthetic equity securities or direct or synthetic composite or combination securities and that
are Performing.

“Performing” means (a) with respect to any Portfolio Investment that is debt, the issuer of
such Portfolio Investment is not in default of any payment obligations in respect thereof, after
the expiration of any applicable grace period and (b) with respect to any Portfolio Investment that
is Preferred Stock or Other Category CDO Securities, the issuer of such Portfolio Investment has
not failed to meet any scheduled redemption obligations or to pay its latest declared cash
dividend, after the expiration of any applicable grace period.

“Performing Cash Pay High Yield Securities” means High Yield Securities (a) as to which, at
the time of determination, not less than 2/3rds of the interest (including accretions and
“pay-in-kind” interest) for the current monthly, quarterly, semi-annual or annual period (as
applicable) is payable in cash and (b) which are Performing.

“Performing Cash Pay Mezzanine Investments” means Mezzanine Investments (a) as to which, at
the time of determination, not less than 2/3rds of the interest (including accretions and
“pay-in-kind” interest) for the current monthly, quarterly, semi-annual or annual period (as
applicable) is payable in cash and (b) which are Performing.

“Performing Common Equity” means Capital Stock (other than Preferred Stock) and warrants of an
issuer all of whose outstanding debt is Performing.

“Performing First Lien Bank Loans” means First Lien Bank Loans which are Cash Pay Bank Loans
and are Performing.

“Performing Non-Cash Pay High Yield Securities” means Performing High Yield Securities other
than Performing Cash Pay High Yield Securities.

“Performing Non-Cash Pay Mezzanine Investments” means Performing Mezzanine Investments other
than Performing Cash Pay Mezzanine Investments.

“Performing Second Lien Bank Loans” means Second Lien Bank Loans which are Cash Pay Bank Loans
and are Performing.

“Preferred Stock,” as applied to the Capital Stock of any Person, means Capital Stock of such
Person of any class or classes (however designated) that ranks prior, as to the payment of
dividends or as to the distribution of assets upon any voluntary or involuntary liquidation,
dissolution or winding up of such Person, to any shares (or other interests) of other Capital Stock
of such Person, and shall include, without limitation, cumulative preferred, non-cumulative
preferred, participating preferred and convertible preferred Capital Stock.

“Rated CDO Securities” means CDO Securities that are rated by at least two of S&P, Fitch and
Moody’s.

“Second Lien Bank Loan” means a Bank Loan that is entitled to the benefit of a second lien and
second priority perfected security interest on a substantial portion of the assets of the
respective borrower and guarantors obligated in respect thereof.

“Securities” means, as used in respect of the determination of the Borrowing Base, common and
preferred stock, units and participations, member interests in limited liability companies,
partnership interests in partnerships, notes, bonds, debentures, trust receipts and other
obligations, instruments or evidences of indebtedness, including debt instruments of public and
private issuers and tax-exempt securities (including warrants, rights, put and call options and
other options relating thereto, representing rights, or any combination thereof) and other property
or interests commonly regarded as securities or any form of interest or participation therein, but
not including Bank Loans.

“Short-Term U.S. Government Securities” means U.S. Government Securities maturing within one
month of the applicable date of determination.

“U.S. Government Securities” means securities that are direct obligations of, and obligations
the timely payment of principal and interest on which is fully guaranteed by, the United States or
any agency or instrumentality of the United States the obligations of which are backed by the full
faith and credit of the United States and in the form of conventional bills, bonds, and notes.

“Value” means, with respect to any Portfolio Investment, the lower of the most recent value as
determined pursuant to Section 8.5(b)(iii) and the most recent value as determined pursuant to
Section 8.5(b)(i) or (ii).

8.6 Platform; Public/Private Information. Borrower hereby acknowledges that (a)
Administrative Agent and/or Arranger will make available to Lenders materials and/or information
provided by or on behalf of Borrower hereunder (collectively, “Borrower Materials”) by posting
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b)
certain of Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material
non-public information with respect to Borrower or its Affiliates, or the respective securities of
any of the foregoing, and who may be engaged in investment and other market-related activities with
respect to such Persons’ securities. Borrower hereby agrees that so long as Borrower is the issuer
of any outstanding debt or equity securities that are registered or issued pursuant to a private
offering or is actively contemplating issuing any such securities (w) all Borrower Materials that
are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof; (x) by marking Borrower Materials “PUBLIC,” Borrower shall be deemed to have authorized
Administrative Agent, Arranger, and Lenders to treat such Borrower Materials as not containing any
material non-public information with respect to Borrower or its securities for purposes of United
States Federal and state securities laws (provided, however, that to the extent such Borrower
Materials constitute Information, they shall be treated as set forth in Section 12.7); (y) all
Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Side Information;” and (z) Administrative Agent and the Arranger shall
be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Side Information.” Notwithstanding the
foregoing, Borrower shall be under no obligation to mark any Borrower Materials “PUBLIC.”

SECTION 9. NEGATIVE COVENANTS.

For so long as this Agreement is in effect and thereafter until the payment in full of the
Obligations, unless the Requisite Lenders (or, if required pursuant to Section 12.5, all Lenders)
shall otherwise consent in the manner set forth in Section 12.5, Borrower shall not (and shall not
permit any Consolidated Subsidiary to), directly or indirectly:

9.1 Financial Covenants. 

(a) Ratio of Adjusted EBIT to Interest Expense. Permit the ratio of
Adjusted EBIT to Adjusted Interest Expense of Borrower and its Consolidated Subsidiaries,
determined on a consolidated basis as of the last day of each fiscal quarter, to be less
than 0.7 to 1.0. The period or periods to be used in calculating this ratio as of a
particular fiscal quarter will be as follows: (i) as of March 31, 2010 — the fiscal
quarter ended as of such date; (ii) as of June 30, 2010 — the two successive fiscal
quarters ended as of such date; (iii) as of September 30, 2010 — the three successive
fiscal quarters ended as of such date; (iv) as of December 31, 2010 and as of the last
day of each fiscal quarter thereafter — the four successive fiscal quarters ended on
such date. For purposes of determining the ratio set forth herein, “Adjusted Interest
Expense” shall be determined on a pro forma basis, assuming that the refinancing of the
loans outstanding pursuant to the Existing Credit Facility and the Senior Notes had
occurred on January 1, 2010, and that the interest payable on the Loans for each day from
January 1, 2010 to the Closing Date was equal to $32,902.78 per day.

(b) Priority Debt; Limitation on Debt.

(i) Any Priority Debt to be outstanding, other than: (A) the Obligations, (B)
Capitalized Leases for equipment used in the ordinary course of business of Borrower
and its Consolidated Subsidiaries in an aggregate principal amount not in excess of
$5,000,000, (C) Swap Contracts entered into in the ordinary course of business of
Borrower and its Consolidated Subsidiaries as permitted by Sections 9.2 and 9.3, and
(D) unsecured Debt of a Consolidated Subsidiary owing to Borrower or to another
Consolidated Subsidiary that is a Subsidiary Grantor, so long as such Debt is
evidenced by a promissory note which is pledged to the Collateral Agent in
accordance with and pursuant to the Collateral Documents. Notwithstanding the
foregoing, in no event shall any Pledge LLC have outstanding Debt other than (x)
pursuant to the Subsidiary Guaranty executed by such Pledge LLC in favor of the
Collateral Agent for the benefit of the Secured Parties and (y) unsecured Debt owing
to Borrower; it being understood that any such Debt and/or evidence of such Debt
shall only be held by Borrower and pledged to the Collateral Agent and may not be
transferred, assigned, sold or otherwise conveyed to any other party.

(ii) After the Agreement Date, incur any unsecured Debt unless (A) such
unsecured Debt has no amortization prior to, and a stated maturity on or after,
February 28, 2012, (B) such unsecured Debt is incurred pursuant to documentation
containing other terms (including interest, amortization, covenants and events of
default) that, in each case, are no more restrictive in any material respect upon
Borrower and its Consolidated Subsidiaries than those set forth in this Agreement
and (C) all of the proceeds (net of underwriting discounts and commissions and
reasonable and customary out-of-pocket expenses incurred in connection therewith) of
the issuance of such unsecured Debt are used to prepay the Loans in accordance with
Section 2.5(b).

9.2 Swap Contracts. Enter into, or permit any Consolidated Subsidiary to enter into,
any Swap Contract except in the ordinary course of business with a nationally recognized financial
institution then having an Investment Grade Rating pursuant to transactions that are entered into
for bona fide purposes of managing Borrower’s interest rate and currency risk and not for
speculation.

9.3 Limitation on Liens. Permit, or permit any Consolidated Subsidiary to, create or
incur, or suffer to be incurred or to exist, any Lien on its or their property or assets, whether
now owned or hereafter acquired, or upon any income or profits therefrom, or transfer any property
for the purpose of subjecting the same to the payment of obligations in priority to the payment of
its or their general creditors, or acquire or agree to acquire any property or assets upon
conditional sales agreements or other title retention devices, except the following (such Liens,
collectively, “Permitted Liens”):

(a) Liens for property taxes and assessments or governmental charges or levies and
Liens securing claims or demands of mechanics and materialmen, provided payment thereof is
not at the time required by Section 7.5;

(b) Liens of or resulting from any judgment or award, the time for the appeal or
petition for rehearing of which shall not have expired, or in respect of which Borrower or
a Consolidated Subsidiary shall at any time in good faith be prosecuting an appeal or
proceeding for a review and in respect of which a stay of execution pending such appeal or
proceeding for review shall have been obtained;

(c) Liens that are normal, customary and/or incidental to the conduct of business or
the ownership of properties and assets (including Liens in connection with the making of
loans to customers, worker’s compensation, unemployment insurance and other like laws,
warehousemen’s and attorneys’ liens, banker’s liens and statutory landlords’ liens) and
Liens to secure the performance of bids, tenders or trade contracts, or to secure statutory
obligations, surety or appeal bonds or other Liens of like general nature incurred in the
ordinary course of business and not in connection with (i) the borrowing of money or (ii)
obligations pursuant to ERISA, provided in each case, the obligation secured is not overdue
or, if overdue, is being contested in good faith by appropriate actions or proceedings and
adequate reserves have been established;

(d) minor survey exceptions or minor encumbrances, easements or reservations, or
rights of others for rights-of-way, utilities and other similar purposes, or zoning or
other restrictions as to the use of real properties, which are necessary for the conduct of
the activities of Borrower and its Consolidated Subsidiaries or which customarily exist on
properties of corporations engaged in similar activities and similarly situated and which
do not in any event materially impair their use in the operation of the business of
Borrower and its Consolidated Subsidiaries;

(e) Liens securing Indebtedness of a Consolidated Subsidiary to Borrower or to another
Wholly-Owned Consolidated Subsidiary;

(f) Liens securing Capitalized Leases permitted by Section 9.1(b)(i) (provided that
such Liens do not extend to any other property or assets of Borrower or its Consolidated
Subsidiaries except to the relevant equipment for which the corresponding Debt was
incurred;

(g) Liens set forth on Schedule 9.3; and

(h) Liens created under, or expressly permitted by, the Collateral Documents, and
Liens securing Indebtedness arising out of Swap Contracts permitted under Section 9.2 in an
amount not to exceed in the aggregate $10,000,000, so long as the Obligations shall at all
times be equally and ratably secured thereby.

9.4 Restricted Payments. Except as hereafter provided:

(a) Declare or pay any dividends, either in cash or property, on any of its Equity
Interests of any class to a Person other than Borrower or a Consolidated Subsidiary (except
(i) dividends in the minimum amount as Borrower reasonably estimates to be required to
maintain its status as a RIC; provided, that during the continuance of any Event of Default
no more than ten percent (10%) of such dividend may be paid in cash and (ii) dividends paid
by Allied Capital REIT, Inc. to its preferred stockholders (other than Borrower) in an
aggregate amount not to exceed $10,000 annually).

(b) Directly or indirectly, or through any Consolidated Subsidiary, purchase, redeem
or retire any of its Equity Interests (other than De Minimis Employee Buybacks) of any
class held by any Person other than Borrower or a Consolidated Subsidiary; or

(c) Make any other payment or distribution, either directly or indirectly or through
any Consolidated Subsidiary, in respect of its capital stock held by any Person other than
Borrower or a Subsidiary Guarantor;

(such declarations or payments of dividends, purchases, redemptions, or retirements of
capital stock and warrants, rights, or options and all such other payments or distributions
being herein collectively called “Restricted Payments”).

Borrower will not, nor will it permit any Consolidated Subsidiary to, declare any dividend
which constitutes a Restricted Payment payable more than 80 days after the date of
declaration thereof; provided that dividends payable in the fourth quarter and any year-end
extra dividend which constitute a Restricted Payment may be payable up to 120 days after
the date of declaration thereof.

For purposes of this Section 9.4, the amount of any Restricted Payment declared, paid or
distributed in property shall be deemed to be the greater of the Book Value or fair market
value (as determined in good faith by the board of directors of Borrower) of such property
at the time of the making of the Restricted Payment in question.

9.5 Merger, Consolidation, Sales of Assets, Change of Control.

(a) Except as provided in clauses 9.5(b), (c), (d) and (e) below: (i) Consolidate
with or be a party to a merger with any other Person; (ii) liquidate, wind-up, or
dissolve (or suffer any liquidation or dissolution); or (iii) Dispose of, in one
transaction or a series of transactions, all or substantially all of its assets,
including the capital stock of or other Equity Interests in any Consolidated Subsidiary,
in each case whether now owned or hereafter acquired.

(b) So long as no Default or Event of Default then exists or arises, any
Consolidated Subsidiary may merge or consolidate with or into, or effect a Disposition
of all or substantially all of its assets to, Borrower or any Wholly-Owned Consolidated
Subsidiary that is a Guarantor, so long as (i) (x) in any merger or consolidation
involving Borrower, Borrower shall be the surviving or continuing corporation and (y) in
any merger or consolidation involving a Wholly-Owned Consolidated Subsidiary (and not
Borrower), a Wholly-Owned Consolidated Subsidiary that is a Guarantor and Grantor shall
be the surviving or continuing corporation; and (ii) Administrative Agent shall have
received copies of such documents of assumption and legal opinions (which may be issued
by the general counsel or chief legal officer of Borrower) as it may reasonably request
to confirm that the obligations of, and Liens in favor of the Collateral Agent on the
property of, the parties to such transaction are not adversely affected thereby.

(c) So long as no Default or Event of Default then exists or arises, any
Consolidated Subsidiary that is not a Material Subsidiary may liquidate, wind-up or
dissolve;

(d) Dispose of its assets (including, but not limited to, Investments), except to
the extent that, and subject to the provisions of clause (f) below: (i) no Material
Default or Event of Default has occurred and is continuing at the time of such
Disposition (unless (1) otherwise agreed by the Administrative Agent or (2) such
Disposition occurs pursuant to a pre-existing contractual obligation of the Borrower or
a Consolidated Subsidiary), (ii) each such Disposition shall be an Arm’s-Length
Transaction, (iii) any and all rights of Borrower or any Consolidated Subsidiary in any
and all Net Proceeds and other consideration (other than Excluded Assets, subject to the
terms of the Security Agreement) received in connection with such sale shall (subject to
the provisions of the Security Agreement regarding Second Tier Collateral) become
subject to a perfected and, to Borrower’s Knowledge, first priority, Security Interest
or Lien (subject to Permitted Liens) in favor of the Collateral Agent on the date
received by Borrower or such Consolidated Subsidiary, (iv) immediately after giving
effect to such Disposition and the prepayment of the Loans required thereby, no
Borrowing Base Deficiency shall have occurred and be continuing; and (v) the portion of
the Net Proceeds from such Disposition that is required to be prepaid under Section 2.5
of this Agreement shall be applied to the prepayment of the Loans in accordance with
such Section 2.5. Transfers between and among Borrower and Subsidiary Guarantors shall
be excluded from the operation of this clause (d) so long as (x) the Collateral Agent
has a valid, fully perfected, enforceable, and to Borrower’s Knowledge, first priority
Security Interest in all right, title, and interest of Borrower and the Subsidiary
Grantors in the property subject to such Disposition and (y) the obligations under the
applicable Subsidiary Guaranty are fully enforceable against such Subsidiary Guarantor.
Transfers to a Special Acquisition Subsidiary in accordance with clause (e) below shall
be excluded from this clause (d). Any Liens in favor of the Collateral Agent on assets
which are the subject of a permitted Disposition shall be released as provided in the
Intercreditor Agreement.

(e) Borrower may consummate the Ares Acquisition; provided, that (i) if an Event of
Default has occurred and is continuing at such time, contemporaneously with the Ares
Acquisition, the Loans are repaid in full, and (ii) if no Event of Default has occurred
and is continuing at such time, contemporaneously with the Ares Acquisition either (a)
the Loans are repaid in full or (b) all rights and obligations of Allied Capital
Corporation under the Loan Documents, and all Collateral, are assigned to, and assumed
by, a Special Acquisition Subsidiary pursuant to documentation in form and substance
reasonably acceptable to the Administrative Agent, including receipt by the
Administrative Agent of confirmation of the continuing validity and perfection of the
Liens of the Collateral Agent securing the Obligations, customary legal opinions and
such other customary documentation as may be reasonably requested by Administrative
Agent in connection with such assignment and assumption of the Obligations. Upon any
such assumption by a Special Acquisition Subsidiary of the Obligations, Allied Capital
Corporation shall be released as an obligor in respect of the Obligations, such Special
Acquisition Subsidiary shall become the “Borrower” hereunder and shall accede to all
rights and obligations of Allied Capital Corporation under this Agreement and the other
Loan Documents.

(f) Except as provided in clause (e) above, in no event will Borrower Dispose of
all or substantially all of its assets unless contemporaneously therewith the Loans are
repaid in full.

(g) Permit any Consolidated Subsidiary to issue any Voting Stock of such
Consolidated Subsidiary except to satisfy the rights of minority shareholders to receive
issuances of stock which are non-dilutive to Borrower and/or any Consolidated
Subsidiary; provided that, the foregoing restrictions do not apply to issuances of
Voting Stock to Borrower or to a Wholly-Owned Consolidated Subsidiary or the issuance of
directors’ qualifying shares.

(h) Take any action, or permit any officer to take any action, to effect or
participate in the completion of a Change of Control unless the Change of Control (i) is
pursuant to clause (e) above or (ii) is consummated contemporaneously with the
prepayment of the Obligations pursuant to Section 2.5.

9.6 Fiscal Year. Change its fiscal year from that in effect as of the Agreement Date.

9.7 Transactions with Affiliates. Permit to exist or enter into, and will not permit
any of its Consolidated Subsidiaries to permit to exist or enter into, any transaction or
arrangement with any Affiliate (including the purchase, sale, lease, or exchange of any property or
the rendering of any service) or with any director, officer, or employee of Borrower, any
Consolidated Subsidiary, or any other Affiliate, except transactions in the ordinary course of, and
pursuant to the reasonable requirements of the, business of Borrower or such Consolidated
Subsidiary and upon fair and reasonable terms which are no less favorable to Borrower or such
Consolidated Subsidiary than would be obtained in a comparable arm’s length transaction with a
Person that is not an Affiliate.

9.8 Employee Benefit Plans. Withdraw, or permit any Consolidated Subsidiary to
withdraw, from any Multiemployer Plan to which it may hereafter contribute or permit any employee
benefit plan hereafter maintained by it to be terminated if such withdrawal or termination could
result in Material withdrawal liability (as described in Part 1 of Subtitle E of Title IV of ERISA)
or the imposition of a Material Lien on any property of Borrower or any Consolidated Subsidiary
pursuant to section 4068 of ERISA.

9.9 Prepayment of Other Debt.

Directly or indirectly, prepay, redeem, purchase, defease, satisfy, or acquire prior to the
stated maturity thereof, in any manner, any Debt (other than the Obligations in accordance with the
terms of this Agreement and the repayment of the Debt governed or evidenced by the Existing Credit
Agreement and Senior Notes contemplated to occur concurrently with the effectiveness of this
Agreement), whether subordinated or not, or make any offer or tender to do any of the foregoing.

9.10 Nature of Business. Neither Borrower nor any Consolidated Subsidiary will engage
in any business if, as a result, the general nature of the business, taken on a consolidated basis,
which would then be engaged in by Borrower and its Consolidated Subsidiaries would be substantially
changed from the general nature of the business engaged in by Borrower and its Consolidated
Subsidiaries on the date of this Agreement as described in the Reference 10-K.

9.11 Investments. Borrower will not, nor will it permit any Consolidated Subsidiary
to, acquire, make or enter into, or hold, any Investments except:

(a) operating deposit accounts with banks and investments in Cash and Cash Equivalents;

(b) Investments by Borrower and the Subsidiary Guarantors in Borrower and the
Subsidiary Guarantors;

(c) Swap Agreements entered into in the ordinary course of Borrower’s financial
planning and not for speculative purposes and permitted under Section 9.2;

(d) Portfolio Investments existing as of the Closing Date;

(e) Investments in Subsidiaries (other than Subsidiary Guarantors) existing as of the
Closing Date;

(f) any Investments required pursuant to unfunded commitments or any other contractual
commitments of Borrower or its Consolidated Subsidiaries to Portfolio Companies existing as
of the Closing Date (including any commitments being offered as of the Closing Date to
provide acquisition financing in connection with the sale of any Portfolio Company); and

(g) additional Investments (excluding Investments made pursuant to clause (f) above) in
existing Portfolio Companies not to exceed $25,000,000 in the aggregate.

9.12 Section 18(a)(1)(A) of the Investment Company Act. Borrower will not, for so
long as any of the Principal Debt remains outstanding, violate Section 18(a)(1)(A) of the
Investment Company Act, as modified by Section 61(a)(1) of the Investment Company Act, whether or
not it is subject to those sections or any successor provisions thereto of the Investment Company
Act.

9.13 Terrorism Sanctions Regulations. Not permit any Consolidated Subsidiary to (a)
become a Person described or designated in the Specially Designated Nationals and Blocked Persons
List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (b)
knowingly engage in any dealings or transactions with any such Person.

SECTION 10. DEFAULT.

10.1 Events of Default. Each of the following shall constitute an Event of Default,
whatever the reason for such event and whether it shall be voluntary or involuntary or be effected
by operation of Applicable Law or pursuant to any judgment or order of any Governmental Authority:

(a) Default in Payment of Principal. Borrower shall fail to pay when due
(whether upon demand, at maturity, by reason of acceleration, or otherwise) the principal
of any of the Loans.

(b) Default in Payment of Other Amounts. Borrower shall fail to pay when due
any interest on any of the Loans or any of the other payment Obligations (other than the
principal of any Loan) owing by Borrower under this Agreement (including, without
limitation, pursuant to Section 7.11) or any other Loan Document and such failure shall
continue for a period of three (3) Business Days after the earlier of (i) the date on
which a Senior Financial Officer first obtains personal knowledge of such default or (ii)
the date upon which Borrower has received written notice of such failure from
Administrative Agent.

(c) Default in Performance. (i) Borrower shall fail to comply with the use
of proceeds covenant in Section 7.13, or (ii) Borrower shall fail (or, where applicable,
shall fail to cause any Consolidated Subsidiary) to perform or observe any term, covenant,
condition, or agreement on its part to be performed or observed contained in Sections 7.8,
7.9, 8.3(c), 8.3(d), 8.4(i), 8.5, 9.1, 9.2, 9.3, 9.4, 9.5, 9.9, or 9.12 and such default
shall continue for more than five (5) Business Days, or (iii) Borrower or any other Loan
Party, shall fail (or, where applicable, shall fail to cause any Consolidated Subsidiary)
to perform or observe any other term, covenant, condition, or agreement contained in this
Agreement, and in the case of this clause (iii) such failure shall continue for a period
of 30 days after the earlier of (x) the date upon which a Senior Financial Officer first
obtains actual personal knowledge of such failure or (y) the date upon which Borrower has
received written notice of such failure from Collateral Agent or Administrative Agent.

(d) Misrepresentations. Any representation, or warranty made or deemed made
by or on behalf of Borrower or any other Loan Party in this Agreement or any other Loan
Document, or in any certificate at any time furnished to Administrative Agent or any
Lender in connection with this Agreement or the other Loan Documents, shall at any time
prove to have been untrue in any material respect when furnished or made.

(e) Cross-Default.

(i) Borrower or any Consolidated Subsidiary shall fail to pay when due (whether
by lapse of time, by declaration, by call for redemption, or otherwise) the
principal of, or interest on, any Consolidated Debt (other than the Principal Debt)
having an aggregate unpaid principal amount in excess of $25,000,000, and such
default shall continue beyond the period of grace, if any, allowed with respect
thereto; or

(ii) Default or the happening of any event shall occur under any indenture,
agreement or other instrument under which Consolidated Debt (other than the
Obligations) of Borrower or any Consolidated Subsidiary having an aggregate unpaid
principal amount in excess of $25,000,000 may be issued and the holder or holders of
such Consolidated Debt (or a trustee or agent acting on their behalf) shall cause,
or shall be lawfully or contractually entitled to cause, the acceleration of the
maturity of such Consolidated Debt or Borrower or a Consolidated Subsidiary has
become obligated to purchase, prepay, or redeem such Consolidated Debt or one or
more Persons have the right to require Borrower or any Consolidated Subsidiary to
purchase, prepay or redeem such Consolidated Debt; or

(iii) the occurrence under any Swap Contract of a termination date prior to the
stated or contracted termination date as a result of defaults by Borrower or any
Consolidated Subsidiary and the liability of Borrower or any Consolidated Subsidiary
as a result thereof (determined consistently with the definition of Swap Contract),
individually or in the aggregate, is greater than $25,000,000.

(f) Voluntary Bankruptcy Proceeding. Borrower or any Material Subsidiary
shall: (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended or any
other federal Debtor Relief Law; (ii) file a petition seeking to take advantage of any
other Debtor Relief Law; (iii) consent to, or fail to contest in a timely manner, any
petition filed against it in an involuntary case under any Debtor Relief Law or consent to
any proceeding or action described in the immediately following clause (g); or (iv) apply
for or consent to, or fail to contest in a timely manner, the appointment of, or the
taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of the
major part of its property;

(g) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be
commenced against Borrower or any Material Subsidiary in any court of competent
jurisdiction seeking relief under the Bankruptcy Code of the United States of 1978, as
amended or any other Debtor Relief Laws and such case or proceeding is not dismissed
within 60 days; or the appointment of a trustee, receiver, custodian, liquidator or
similar officer for Borrower or any Material Subsidiary or for the major part of its
property and such appointment is not discharged within 60 days; or Borrower or any
Material Subsidiary becomes insolvent or bankrupt, is generally not paying its debts as
they become due or makes an assignment for the benefit of creditors.

(h) Contest of Loan Documents. Any Loan Party contests in any manner the
validity or enforceability of any provision of any Loan Document; or any Loan Party denies
that it has any or further liability or obligation under any provision of any Loan
Document, or purports to revoke, terminate or rescind any provision of any Loan Document;
or any material provision of any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and effect, and
such material provision is not restored or otherwise remedied within thirty (30) days
after the earlier of (i) a Responsible Officer obtaining actual knowledge of such
occurrence and (ii) Borrower receiving written notice of such occurrence from
Administrative Agent or Collateral Agent.

(i) Judgment. A final judgment or order for the payment of money shall be
entered against Borrower or any Material Subsidiary or against any property or assets of
Borrower or any Material Subsidiary by any court or other tribunal which exceeds,
individually or together with all other such judgments or orders entered against Borrower
and its Material Subsidiaries at the time remaining unpaid, $25,000,000 in amount and such
judgment or order shall continue unpaid for a period of 60 days without being stayed,
vacated, or bonded through appropriate appellate proceedings.

(j) Attachment. A warrant, writ of attachment, execution, or similar process
shall be issued against any property of Borrower or any Consolidated Subsidiary which
exceeds, individually or together with all other such warrants, writs, executions, and
processes, $25,000,000 in amount and such warrant, writ, execution, or process shall not
be discharged, vacated, stayed, or bonded for a period of 30 days; provided, however, that
if a bond has been issued in favor of the claimant or other Person obtaining such warrant,
writ, execution, or process, the issuer of such bond shall execute a waiver or
subordination agreement in form and substance satisfactory to Administrative Agent
pursuant to which the issuer of such bond subordinates its right of reimbursement,
contribution, or subrogation to the Obligations and waives or subordinates any Lien it may
have on the assets of Borrower or any of its Consolidated Subsidiaries.

(k) ERISA. Borrower or any ERISA Affiliate shall fail to pay when due an
amount or amounts aggregating in excess of $25,000,000 which it shall have become liable
to pay under Title IV of ERISA; or notice of intent to terminate a Material Plan shall be
filed under Title IV of ERISA by Borrower or any ERISA Affiliate, any plan administrator,
or any combination of the foregoing; or the PBGC shall institute proceedings under Title
IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007
of ERISA) in respect of, or to cause a trustee to be appointed to administer any Material
Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a
decree adjudicating that any Material Plan must be terminated; or there shall occur a
complete or partial withdrawal from, or a default, within the meaning of
Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could
cause Borrower or any ERISA Affiliate to incur a current payment obligation in excess of
$25,000,000.

(l) Loan Documents. A default shall occur in the observance or performance
of any other provision of any of the other Loan Documents which is not remedied within the
grace period specified for such default in the applicable Loan Document or, if no grace
period is specified, within thirty (30) days after the earlier of (i) the day on which a
Senior Financial Officer first obtains actual personal knowledge of such default, or (ii)
the day on which written notice thereof is given to Borrower by the Collateral Agent,
Administrative Agent, or any Lender.

(m) Collateral Documents. Any Lien on Collateral granted and perfected under
any Collateral Document executed and/or delivered pursuant to Section 6.23 or Section 7.10
shall for any reason (other than pursuant to the terms thereof or as a result of any or
inaction by any Secured Party) cease to constitute a valid and perfected Lien with the
same priority as in effect on the first date such Lien shall have been perfected in such
Collateral (other than non-material items), and such Lien is not restored or otherwise
remedied within thirty (30) days after the earlier of (A) a Responsible Officer obtaining
actual knowledge of such occurrence and (B) Borrower receiving written notice of such
occurrence from Administrative Agent or Collateral Agent.

10.2 Remedies Upon Event of Default. Upon the occurrence and continuance of an Event
of Default the following provisions shall apply:

(a) Acceleration; Termination of Facilities.

(i) Automatic. Upon the occurrence of an Event of Default specified in
Sections 10.1(f) or 10.1(g), the entire unpaid balance of the Obligations of
Borrower under the Loan Documents shall become immediately and automatically due and
payable by Borrower without presentment, demand, protest, or other notice of any
kind, all of which are expressly waived by Borrower.

(ii) Optional. If any Event of Default (other than pursuant to Section
10.1(f) or 10.1(g)) shall have occurred and be continuing, Administrative Agent may,
and at the direction of the Requisite Lenders shall (subject to the terms of Section
11), declare the entire unpaid balance of the Obligations under the Loan Documents,
or any part thereof, immediately due and payable; whereupon the same shall
immediately become due and payable without presentment, demand, protest, or other
notice of any kind, all of which are expressly waived by Borrower.

(b) Loan Documents. The Requisite Lenders may direct Administrative Agent
to, and Administrative Agent if so directed shall (subject to the terms of Section 11),
exercise any and all of its rights under any and all of the other Loan Documents, subject
to the Intercreditor Agreement.

(c) Applicable Law. Subject to the terms of the Intercreditor Agreement, the
Requisite Lenders may direct Administrative Agent to, and Administrative Agent if so
directed shall, exercise all other rights and remedies it may have under any Applicable
Law to (i) reduce any claim to judgment; (ii) to the extent permitted by Applicable Law,
exercise (or request each Lender and each of their respective Affiliates to, and each
Lender and each of their respective Affiliates shall be entitled to, exercise) the rights
of offset or banker’s Lien against the interest of Borrower and each Subsidiary Guarantor
in and to every account (general or special, time or demand, provisional or final, in
whatever currency (other than special accounts, trust accounts, or escrow accounts
maintained by Borrower in a fiduciary capacity or as an agent for unrelated third parties
or any Portfolio Company)) and other property of Borrower and each Subsidiary Guarantor
which are in the possession of Administrative Agent or any Lender or any of their
respective Affiliates to the extent of the full amount of the Obligations (to the extent
permitted by Applicable Law, Borrower and each Subsidiary Guarantor being deemed directly
obligated to each Lender in the full amount of the Obligations for such purposes),
irrespective of whether or not Administrative Agent or such Lender shall have made any
demand under this Agreement or any other Loan Documents and although such obligations of
Borrower or any Subsidiary Guarantor may be contingent or unmatured or are owed to a
branch or office of Administrative Agent or such Lender different from the branch or
office holding such deposit or obligated under such indebtedness; and (iii) exercise any
and all other legal or equitable rights afforded by the Loan Documents, the Applicable
Laws of the State of New York, or any other applicable jurisdiction as Administrative
Agent shall deem appropriate, or otherwise, including, but not limited to, the right to
bring suit or other proceedings before any Governmental Authority either for specific
performance of any covenant or condition contained in any of the Loan Documents or in aid
of the exercise of any right granted to Administrative Agent or any Lender in any of the
Loan Documents.

10.3 Allocation of Proceeds. If a Default or Event of Default shall have occurred and
be continuing (and if no order of application is otherwise specified herein or in any other Loan
Document for payments received after a Default or Event of Default), all payments received by
Administrative Agent, or any Lender under any of the Loan Documents, in respect of the Obligations
(including proceeds from the exercise of any rights), shall be applied by Administrative Agent in
the following order and priority:

(a) to payment of fees, indemnities, expenses and other amounts due to Administrative
Agent in its capacity as such;

(b) to payment of fees, indemnities, expenses and other amounts (other than principal
of and interest on the Loans) due to the Lenders, ratably among them in proportion to the
respective amounts described in this clause (b) payable to them;

(c) to payment of accrued and unpaid interest on the Loans and other Obligations,
ratably among the Lenders in proportion to the respective amounts described in this clause
(c) payable to them;

(d) to payment of unpaid principal of Loans, ratably among the Lenders in proportion
to the respective amounts described in this clause (d) payable to them;

(e) to payment of unpaid Secured Cash Management Obligations then owing; and

(f) the balance, if any, after all Obligations have been paid in full, to Borrower or
as otherwise required by the Intercreditor Agreement or by law.

Notwithstanding the foregoing, Obligations arising under Cash Management Services Agreements shall
be excluded from the application described above if Administrative Agent has not received written
notice thereof, together with such supporting documentation as Administrative Agent may request,
from the applicable Cash Management Bank.

10.4 Performance by Administrative Agent. If Borrower shall fail to perform any
covenant, duty, or agreement contained in any of the Loan Documents, Administrative Agent may
perform or attempt to perform such covenant, duty, or agreement on behalf of Borrower after the
expiration of any cure or grace periods set forth herein. In such event, Borrower shall, at the
request of Administrative Agent, promptly pay any amount reasonably expended by Administrative
Agent in such performance or attempted performance to Administrative Agent, together with interest
thereon at the applicable Post-Default Rate from the date of such expenditure until paid.
Notwithstanding the foregoing, neither Administrative Agent nor any Lender shall have any liability
or responsibility whatsoever for the performance of any obligation of Borrower under this Agreement
or any other Loan Document.

10.5 Rights Cumulative. The rights, remedies, powers, and privileges of
Administrative Agent and Lenders under this Agreement and each of the other Loan Documents shall be
cumulative and not exclusive of any rights, remedies, powers, or privileges which any of them may
otherwise have under Applicable Law.

10.6 Borrower Waivers. To the extent permitted by Applicable Law, Borrower and each
other Loan Party, hereby waive presentment and demand for payment, protest, notice of intention to
accelerate, notice of acceleration, and notice of protest and nonpayment, and agree that their
respective liability with respect to the Obligations (or any part thereof) shall not be affected by
any renewal or extension in the time of payment of the Obligations (or any part thereof), by any
indulgence, or by any release or change in any security for the payment of the Obligations (or any
part thereof).

10.7 Delegation of Duties and Rights. Lenders and Administrative Agent may perform
any of their duties or exercise any of their rights under the Loan Documents by or through their
respective representatives.

10.8 Not in Control. Nothing in any Loan Document shall, or shall be deemed to (a)
give Administrative Agent or any Lender the right to exercise control over the assets (including
real property), affairs, or management of Borrower or any Subsidiary, (b) preclude or interfere
with compliance by Borrower or any Subsidiary with any Applicable Law, or (c) require any act or
omission by Borrower or any Subsidiary that may be harmful to Persons or property. Any “Material
Adverse Effect” or other materiality qualifier in any representation, warranty, covenant, or other
provision of any Loan Document is included for credit documentation purposes only and shall not,
and shall not be deemed to, mean that Administrative Agent or any Lender acquiesces in any
non-compliance by Borrower or any Subsidiary with any Applicable Law or document, or that
Administrative Agent or any Lender does not expect Borrower or any Subsidiary to promptly,
diligently, and continuously carry out all appropriate removal, remediation, and termination
activities required or appropriate in accordance with all Environmental Laws. Administrative Agent
and Lenders have no fiduciary relationship with or fiduciary duty to Borrower or any Subsidiary
arising out of or in connection with the Loan Documents, and the relationship between
Administrative Agent and Lenders, on the one hand, and Borrower and its Consolidated Subsidiaries,
on the other hand, in connection with the Loan Documents is solely that of debtor and creditor. The
power of Administrative Agent and Lenders under the Loan Documents is limited to the rights
provided in the Loan Documents, which rights exist solely to assure payment and performance of the
Obligations and may be exercised in a manner calculated by Administrative Agent and Lenders in
their respective good faith business judgment.

10.9 Course of Dealing. The acceptance by Administrative Agent or Lenders at any time
and from time to time of partial payment on the Obligations shall not be deemed to be a waiver of
any Default or Event of Default then existing. No waiver by Administrative Agent, Requisite
Lenders, or Lenders of any Default or Event of Default shall be deemed to be a waiver of any other
then-existing or subsequent Default or Event of Default. No delay or omission by Administrative
Agent, Requisite Lenders, or Lenders in exercising any right under the Loan Documents shall impair
such right or be construed as a waiver thereof or any acquiescence therein, nor shall any single or
partial exercise of any such right preclude other or further exercise thereof, or the exercise of
any other right under the Loan Documents or otherwise.

SECTION 11. APPOINTMENT OF ADMINSTRATIVE AGENT.

Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent
hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by
the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. The Person serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same as though it were
not the Administrative Agent, and such Person 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 other
Affiliate thereof as if it were not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein and in 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 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
discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that
the Administrative Agent is required to exercise in writing by the Requisite Lenders, and (c)
except as expressly set forth herein and in the other 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 bank serving as 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 with the consent
or at the request of the Requisite Lenders or in the absence of its own gross negligence or willful
misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the Borrower or a 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 this Agreement or
any other 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 or conditions set forth herein or therein, (iv)
the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, or (v) the satisfaction of any condition
set forth in Section 5 or elsewhere herein or therein, other than to confirm receipt of items
expressly required to be delivered to the 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, Internet or intranet website posting or other
distribution) believed by it to be genuine and to have been signed or sent by the proper Person.
The Administrative Agent also may 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 (who may be counsel for the
Borrower), independent 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 any such counsel, accountants
or experts.

The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub agents appointed by the Administrative Agent. The Administrative
Agent and any such sub agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub agent and to the Related Parties of the Administrative Agent and any
such sub agent, 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.

The Administrative Agent may resign at any time by notifying the Lenders and the Borrower.
Upon any such resignation, the Requisite Lenders shall have the right, with the consent of the
Borrower not to be unreasonably withheld (or, if an Event of Default has occurred and is continuing
in consultation with the Borrower), to appoint a successor. If no successor shall have been so
appointed by the Requisite Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent’s resignation shall nonetheless become effective and (1) the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder and (2) the Requisite Lenders shall
perform the duties of the Administrative Agent (and all payments and communications provided to be
made by, to or through the Administrative Agent shall instead be made by or to each Lender
directly) until such time as the Requisite Lenders appoint a successor agent as provided for above
in this paragraph. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent and the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder (if not already
discharged therefrom as provided above in this paragraph). The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Section and Sections 12.2 and 12.8 shall continue in
effect for its benefit in respect of any actions taken or omitted to be taken by it while it was
acting as Administrative Agent.

Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent 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
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

Except as otherwise provided in Section 12.5, the Administrative Agent may, with the prior
consent of the Requisite Lenders (but not otherwise), consent to any modification, supplement or
waiver under any of the Loan Documents, provided that, without the prior consent of each Lender,
the Administrative Agent shall not (except as provided herein or in the Security Documents) release
all or substantially all of the Collateral or otherwise terminate all or substantially all of the
Liens under any Security Document providing for collateral security, agree to additional
obligations being secured by all or substantially all of such collateral security, alter the
relative priorities of the obligations entitled to the benefits of the Liens created under the
Security Documents with respect to all or substantially all of the Collateral, except that no such
consent shall be required, and the Administrative Agent is hereby authorized (i) to release any
Lien covering property that is the subject of either a Disposition of property permitted hereunder
or a Disposition to which the Requisite Lenders have consented and (ii) to grant any release in
connection with the repayment or prepayment in the customary course of business of any indebtedness
owing from a Portfolio Company to Borrower or any Consolidated Subsidiary (and the transfer,
assignment, sale or release of any instrument or other asset evidencing or securing such
indebtedness) provided that the proceeds of the repayment or prepayment of such indebtedness are
not required to be applied to the Obligations pursuant to the terms of this Agreement.

	 	 	 	 	 
	SECTION 12.	 	MISCELLANEOUS.
	 	12.1	 	 	Notices.

	 	 	 	 	 

(a) General. Unless otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including by facsimile
transmission). All such written notices shall be mailed, faxed, or delivered to the
applicable address, facsimile number, or (subject to clause (b) below) electronic mail
address, and all notices and other communications expressly permitted hereunder to be
given by telephone shall be made to the applicable telephone number, as follows (or, as to
each party at such other address as shall be designated by such party in a written notice
to the other parties delivered in compliance with this Section 12.1):

(i) If to Borrower:

Allied Capital Corporation

1919 Pennsylvania Avenue, N.W.

Washington, DC 20006-3434

Attention: Penni F. Roll, Chief Financial Officer

Telephone/Telecopy: (202) 721-6192

With a copy to:

Dickstein Shapiro LLP

1825 Eye Street, N.W.

Washington, DC 20006

Attention: Howard S. Jatlow

Telecopy: (202) 420-2201

with a copy to:

	 	 	 
	 	 	Allied Capital Corporation

1919 Pennsylvania Avenue, N.W.

Washington, DC 20006-3434

Attention: Alexander D. Fine, Executive Vice President

Telephone:(202) 721-6166

Telecopy:(202) 721-6101

	(ii)
	 	If to Administrative Agent:

JPMorgan Chase Bank, N.A.

1111 Fannin St , 10th Fl

Houston , TX 77002

Attn : Maria Benumea

Tel 713-750-2535

Fax 713-374-4312

(iii) If to any other Lender, to the address, telecopier number, electronic
mail address or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of business on the next
Business Day for the recipient). Notices delivered through electronic communications to the
extent provided in clause (b) below, shall be effective as provided in such clause (b).

(b) Electronic Communications. Notices and other communications to Lenders
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 pursuant to Section 2
if such Lender has notified Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. 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.

Unless 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.

(c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN
OR OMISSIONS FROM BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS
MADE BY ANY AGENT PARTY IN CONNECTION WITH BORROWER MATERIALS OR THE PLATFORM. In no
event shall Administrative Agent or any of its Related Parties (collectively, the “Agent
Parties”) have any liability to Borrower, any Lender, or any other Person for losses,
claims, damages, liabilities or expenses of any kind (whether in tort, contract or
otherwise) arising out of Borrower’s or Administrative Agent’s transmission of Borrower
Materials through the Internet, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of
such Agent Party; provided, however, that in no event shall any Agent Party have any
liability to Borrower, any Lender, Or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

(d) Change of Address, Etc. Each of Borrower and Administrative Agent may
change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by
notice to Borrower, and Administrative Agent. In addition, each Lender agrees to notify
Administrative Agent from time to time to ensure that Administrative Agent has on record
(i) an effective address, contact name, telephone number, telecopier number, and
electronic mail address to which notices and other communications may be sent and (ii)
accurate wire instructions for such Lender.

(e) Reliance by Administrative Agent and Lenders. Administrative Agent and
Lenders shall be entitled to rely and act upon any notices (including telephonic Notices
of Borrowing) purportedly given by or on behalf of Borrower even if (i) such notices were
not made in a manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. Borrower shall indemnify Administrative
Agent, each Lender, and the Related Parties or each of them from all losses, costs,
expenses, and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of Borrower. Notwithstanding the foregoing, nothing
contained in this Section 12.1(e) shall exculpate Administrative Agent, any Lender, or any
Related Party of any of them from its gross negligence or willful misconduct or require
Borrower to indemnify Administrative Agent or any Lender, or any Related Party of any of
them to the extent that the losses, costs, expenses, and liabilities referred to in the
preceding sentence are determined by a court of competent jurisdiction to have resulted
from such Person’s own gross negligence or willful misconduct. All telephonic notices to
and other communications with Administrative Agent may be recorded by Administrative
Agent, and each of the parties hereto hereby consents to such recording.

12.2 Expenses.

(a) Costs and Expenses. Borrower shall pay (i) all reasonable out-of-pocket
expenses actually incurred by Administrative Agent and its Affiliates (including the
reasonable fees, charges and disbursements of counsel and any financial advisor or
consultant for Administrative Agent), in connection with the arrangement and structuring
of the credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated) and (ii) all
out-of-pocket expenses actually incurred by Administrative Agent or any Lender (including
the fees, charges and disbursements of any counsel for, and any financial and other
consultants and advisors for, Administrative Agent or any Lender), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section 12.2, or (B) in connection
with the Loans, including all such out-of-pocket expenses actually incurred during any
workout or restructuring or negotiations in respect of such Loans. Borrower shall also
pay the reasonable attorneys’ fees and expenses of counsel to Administrative Agent in
connection with the negotiation and review of the Collateral Documents and the
Intercreditor Agreement, including, in each case, any amendments thereto.

(b) Reimbursement by Lenders. To the extent that Borrower for any reason
fails to indefeasibly pay any amount required under clause (a) of this Section 12.2 or
clause (a) of Section 12.8 to be paid by it to Administrative Agent (or any sub-agent
thereof), or any Related Party of any of the foregoing, each Lender severally agrees to
pay to Administrative Agent (or any such sub-agent), or such Related Party, as the case
may be, such Lender’s pro rata share of such unpaid amount (determined based on the then
current or most recently outstanding Loans held by such Lender); provided that the
unreimbursed expense or indemnified loss, claim, damage, liability, or related expense, as
the case may be, was incurred by or asserted against Administrative Agent (or any such
sub-agent) in its capacity as such, or against any Related Party of any of the foregoing
acting for Administrative Agent (or any such sub-agent) in connection with such capacity.
The obligations of Lenders under this clause (b) are subject to the provisions of
Section 3.6.

(c) Payment of Collateral Agent’s Fees and Expenses. Without limiting the
foregoing, Borrower agrees to pay all reasonable fees of the Collateral Agent in
connection with the preparation, execution, and delivery of the Intercreditor Agreement
and the Collateral Documents and the transactions contemplated thereby, including but not
limited to reasonable attorneys’ fees and to pay to the Collateral Agent from time to time
all reasonable fees, and documented out-of-pocket expenses and other amounts as shall be
required to be paid by Borrower to the Collateral Agent in accordance with the terms of
the Intercreditor Agreement and the Collateral Documents.

(d) Payments. All amounts payable under this Section 12.2 (other than clause
(c)) shall be due 30 days after demand or invoicing therefor.

(e) Survival. The agreements in this Section 12.2 shall survive the
resignation of Administrative Agent, the replacement of any Lender, and the repayment,
satisfaction or discharge of all the other Obligations.

12.3 Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.

(a) Borrower hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court or Federal
court of the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this Agreement
or the other Loan Documents, 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 law, in 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 shall affect any right that any
Agent or any Lender may otherwise have to bring any action or proceeding relating to this
Agreement or the other Loan Documents against Borrower or its properties in the courts of
any jurisdiction.

(b) Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or the other Loan Documents in any New York State or Federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

(c) Borrower and each other party hereto consents to service of process
in the manner provided for notices in Section 12.1(a). Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other manner
permitted by law.

(d) Each party hereto hereby 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 or relating to 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 person has represented, expressly or
otherwise, that such other person 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 12.3.

12.4 Successors and Assigns.

(a) Successors and Assigns Generally. 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 Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of
Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with
the provisions of clause (b) of this Section 12.4, (ii) by way of participation in
accordance with the provisions of clause (d) of this Section 12.4, or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of clause (f) of
this Section 12.4 (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 clause (d)
of this Section 12.4 and, to the extent expressly contemplated hereby, the Related Parties
of each of Administrative Agent and Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

(b) Assignments by Lenders. Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its Loans, rights and obligations under this
Agreement; provided that

(i) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Loans at the time owing to it or in the case of an assignment to
a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender,
the principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to Administrative Agent or, if “Trade Date”
is specified in the Assignment and Assumption, as of the Trade Date, shall not be
less than $1,000,000 unless each of Administrative Agent and, so long as no Event of
Default has occurred and is continuing, Borrower otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent assignments
from members of an Assignee Group to a single Eligible Assignee (or to an Eligible
Assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met;

(ii) 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 assigned;

(iii) any assignment must be approved by Administrative Agent, and, so long as
no Event of Default is continuing hereunder, Borrower, unless the Person that is the
proposed assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); provided that, each such consent shall
not be unreasonably withheld or delayed; and

(iv) the parties to each assignment shall execute and deliver to Administrative
Agent an Assignment and Assumption, together with the Assignment Fee, unless such
fee is waived by Administrative Agent in its sole discretion, and the Eligible
Assignee, if it shall not be a Lender, shall deliver to Administrative Agent an
Administrative Questionnaire.

Subject to acceptance and recording thereof by Administrative Agent pursuant to clause (c)
of this Section 12.4, from and after the effective date specified in each Assignment and
Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, 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 Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and Assumption 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
Sections 4.1, 4.5, 4.6, and 12.8 with respect to facts and circumstances occurring prior to
the effective date of such assignment. Upon request, Borrower (at its expense) shall
execute and deliver a Promissory Note to the assignee Lender. Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with this
clause (b) 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 clause (d) of this Section
12.4.

(c) Register. Administrative Agent, acting solely for this purpose as an
agent of Borrower, shall maintain at Administrative Agent’s office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names
and addresses of Lenders, and the Commitments of, and principal amounts of Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive as to the identity of Lenders and their respective
Commitments, and Borrower, Administrative Agent and Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by Borrower, or any Lender at any reasonable time and
from time to time upon reasonable prior notice. In addition, at any time that a request
for a consent for a material or substantive change to the Loan Documents is pending, any
Lender may request and receive from Administrative Agent a copy of the Register.

(d) Participations. Any Lender may at any time, without the consent of, or
notice to, Borrower or Administrative Agent, sell participations to any Person (other than
a natural person or Borrower or any of 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; 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) Borrower, Administrative Agent and Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.

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, waiver or other modification which
decreases the amount of principal of, or the rate at which interest is payable on such
Loans or Promissory Note or extends any scheduled principal payment date or date fixed for
the payment of interest on such Loans or Promissory Note, or extends the Commitment of such
Lender in a manner that affects such Participant. Subject to clause (e) of this
Section 12.4, Borrower agrees that each Participant shall be entitled to the benefits of
Sections 4.1, 4.5 and 4.6 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to clause (b) of this Section 12.4. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 3.4 as
though it were a Lender, provided such Participant agrees to be subject to Section 3.3 as
though it were a Lender.

(e) Limitations upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Section 4.1, 4.5 or 4.6 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
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 4.6 unless Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit
of Borrower, to comply with Section 4.6(e) as though it were a Lender.

(f) Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including under its
Promissory Note, if any) to secure obligations of such Lender, including 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.

(g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form, each of which
shall be of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any Applicable Law, including the Federal Electronic
Signatures in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

12.5 Amendments, Etc. No amendment or waiver of any provision of this Agreement or
any other Loan Document, and no consent to any departure by Borrower or any Subsidiary Guarantor
therefrom, shall be effective unless in writing signed by the Requisite Lenders and Borrower or the
applicable Subsidiary Guarantor, as the case may be, and acknowledged by Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided however, that no such amendment, waiver or consent shall:

(a) [Reserved];

(b) extend or increase the Commitment of any Lender without the written consent of
such Lender;

(c) postpone the Maturity Date or any date fixed by this Agreement or any other Loan
Document for any payment (other than prepayments) of principal, interest, fees or other
amounts due to Lenders (or any of them) hereunder or under any other Loan Document,
without the written consent of each Lender directly affected thereby;

(d) reduce the principal of, or the rate of interest specified herein on, any Loan,
or any fees or other amounts payable hereunder or under any other Loan Document without
the written consent of each Lender; provided, however, that only the consent of the
Requisite Lenders shall be necessary to amend the definition of “Post-Default Rate” or to
waive any obligation of Borrower to pay interest at the Post-Default Rate;

(e) change Section 3.2 or Section 10.3 in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each Lender;

(f) change any provision of this Section 12.5 or the definition of “Requisite
Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder without the written consent of each Lender,

(g) release any Subsidiary Guarantor from any Subsidiary Guaranty, without the
written consent of each Lender; or

(h) release all or substantially all of the Collateral in any transaction or series
of related transactions, without the written consent of each Lender.

and; provided further, that (i) no amendment, waiver or consent shall, unless in writing and
signed by Administrative Agent in addition to the Lenders required above, affect the rights
or duties of Administrative Agent under this Agreement or any other Loan Document; and (ii)
the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto.

If, in connection with any proposed change, waiver, discharge or termination to any of the
provisions of this Agreement as contemplated by this Section 12.5, the consent of one or more
Lenders whose consent is required for such proposed change, waiver, discharge or termination is not
obtained (a “Non-Consenting Lender”), then (so long as no Event of Default has occurred and is
continuing) the Borrower shall have the right, at its sole cost and expense, to replace each such
Non-Consenting Lender or Lenders with one or more replacement Lenders pursuant to Section 4.7 so
long as at the time of such replacement, each such replacement Lender consents to the proposed
change, waiver, discharge or termination.

12.6 Nonliability of Agent and Lenders. The relationship between Borrower and Lenders
and Administrative Agent shall be solely that of borrower and lender. Administrative Agent and
Lenders shall have no fiduciary responsibilities to Borrower; and no provision in this Agreement or
in any of the other Loan Documents, and no course of dealing between or among any of the parties
hereto, shall be deemed to create any fiduciary duty owing by Administrative Agent or any Lender to
any Lender, Borrower, or any Subsidiary. Neither Administrative Agent nor any Lender undertakes
any responsibility to Borrower to review or inform Borrower of any matter in connection with any
phase of Borrower’s business or operations.

12.7 Confidentiality. Each of Administrative Agent, and Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees, trustees and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential); (b) to the extent requested by any regulatory authority;
(c) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal
process; (d) to any other party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder; (f) subject to an agreement containing provisions substantially the same as
those of this Section 12.7 to (i) any Eligible Assignee of or Participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any direct or indirect contractual counterparty or prospective counterparty (or such
contractual counterparty’s or prospective counterparty’s professional advisor) to any credit
derivative transaction relating to obligations of Borrower; (g) with the consent of Borrower;
(h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to Administrative Agent, or any Lender on a
nonconfidential basis from a source other than Borrower; or (i) to the National Association of
Insurance Commissioners or any other similar organization or any nationally recognized rating
agency that requires access to information about a Lender’s or its Affiliates’ investment portfolio
in connection with ratings issued with respect to such Lender or its Affiliates.

For the purposes of this Section, “Information” means all information received from Borrower
relating to Borrower or its business, other than any such information that is available to
Administrative Agent, or any Lender on a nonconfidential basis prior to disclosure by Borrower;
provided that, in the case of information received from Borrower after the date hereof, such
information is clearly identified in writing at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this Section 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 to
its own confidential information. Each of Administrative Agent and the Lenders acknowledges that
(a) the Information may include material non-public information concerning Borrower or a
Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of
material non-public information and (c) it will handle such material non-public information in
accordance with Applicable Law, including federal and state securities laws.

12.8 INDEMNIFICATION.

(a) Whether or not the transactions contemplated hereby are consummated,
Borrower agrees to indemnify and hold harmless, Administrative Agent (and any sub-agent
thereof), Arranger, each Lender, and the Related Parties of any of the foregoing persons
(each such person being called an “Indemnified Party”) from and against any and
all liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses, and disbursements (including Attorney Costs) that may
be incurred by or asserted or awarded against any Indemnified Party, by any third party in
each case arising out of or in connection with or by reason of (including in connection
with any investigation, litigation, or proceeding or preparation of defense in connection
therewith) (a) the execution, delivery, enforcement, performance, or administration of any
Loan Document or any other agreement, letter, or instrument delivered in connection with
the transactions contemplated thereby or the consummation of the transactions contemplated
thereby, (b) any Loan or the use or proposed use of the proceeds therefrom, (c) any actual
or alleged presence or release of hazardous materials on or from any property owned or
operated by borrower or any of its subsidiaries or any environmental liability related in
any way to borrower or any of its subsidiaries, or (d) any actual or prospective claim,
litigation, investigation, or proceeding relating to any of the foregoing, whether based
on contract, tort, or any other theory and regardless of whether any Indemnified Party is
a party thereto, IN all cases, whether or not caused by or arising, in whole or in part,
out of the comparative, contributory, or sole negligence of the indemnified party;
provided that such indemnity shall not, as to any Indemnified Party, be available to the
extent that such liabilities, obligations, losses, damages, penalties, claims, demands,
actions, judgments, suits, costs, expenses, or disbursements are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from such
Indemnified Party’s gross negligence or willful misconduct. All amounts due under this
Section 12.8 shall be payable within ten Business Days after demand therefor.

(b) to the fullest extent permitted by Applicable Law, 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 direct
or actual damages) arising out of, in connection with, or as a result of, this agreement
and any other loan document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any loan or the use of the proceeds
thereof.

(c) Without prejudice to the survival of any other agreement of Borrower
hereunder, the agreements and Obligations of Borrower contained in this Section 12.8 shall
survive the payment in full of the Loans and all other amounts payable under this
Agreement.

12.9 Severability of Provisions. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability without invalidating the remainder of such provision
or the remaining provisions or affecting the validity or enforceability of such provision in any
other jurisdiction.

12.10 Reserved.

12.11 Reserved.

12.12 Governing Law. The Loan Documents have been entered into pursuant to Sections
5-1401 and 5-1402 of the New York General Obligations Law, and the laws of the State of New York
and of the United States of America shall govern the rights and duties of the parties to the Loan
Documents and the validity, construction, enforcement, and interpretation of the Loan Documents.

12.13 Counterparts. This Agreement and any amendments, waivers, consents or
supplements may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered by telecopy or other electronic
imaging means shall be deemed an original, but all of which counterparts together shall constitute
but one and the same instrument. A facsimile or electronic transmission of the signature page of
any party on any counterpart shall be effective as the signature page of the party executing such
counterpart and shall be deemed to constitute an original signature of such party to this Agreement
and shall be admissible into evidence for all purposes.

12.14 Entirety. The rights and Obligations of Borrower and its Consolidated
Subsidiaries, Lenders, and Administrative Agent shall be determined solely from written agreements,
documents, and instruments, and any prior oral agreements between such parties are superseded by
and merged into such writings. This Agreement (as amended in writing from time to time in
accordance with the terms hereof) and the other written Loan Documents executed by Borrower or any
of its Consolidated Subsidiaries, any Lender, and/or Administrative Agent, (together with all
commitment letters and fee letters only as they relate to the payment of fees after the Closing
Date) represent the final agreement between Borrower and its Consolidated Subsidiaries, Lenders,
and Administrative Agent, and may not be contradicted by evidence of prior, contemporaneous, or
subsequent oral agreements by such parties, it being expressly understood and agreed that it is the
parties intent that this Agreement is a complete amendment and restatement of the Existing Credit
Agreement, the terms and conditions of which have been superseded and replaced in their entirety by
the terms and provisions of this Agreement. There are no unwritten oral agreements between such
parties. The parties hereto agree that this Agreement is given as a continuation, modification and
extension of the Existing Credit Agreement and is not intended as a novation of the Existing Credit
Agreement, nor shall they be deemed to have terminated, extinguished or discharged the indebtedness
under the Existing Credit Agreement, all of which indebtedness shall continue under and be governed
by this Agreement and the other Loan Documents, except as expressly provided otherwise herein.

12.15 Construction. Administrative Agent, Borrower, and each Lender acknowledge that
each of them has had the benefit of legal counsel of its own choice and has been afforded an
opportunity to review this Agreement and the other Loan Documents with its legal counsel and that
this Agreement and the other Loan Documents shall be construed as if jointly drafted by
Administrative Agent, the other Agents, Borrower, and each Lender.

12.16 Discharge Only Upon Payment in Full. The obligations of Borrower and each
Consolidated Subsidiary under the Loan Documents shall remain in full force and effect until
payment in full of the Loans and of all interest, fees, and other amounts of the Obligations then
due and owing, except that SECTION 4, SECTION 11 and SECTION 12, and any other provisions under the
Loan Documents expressly intended to survive by the terms hereof or by the terms of the applicable
Loan Documents, shall survive such termination.

12.17 Payments Set Aside. To the extent that any payment by or on behalf of Borrower
is made to Administrative Agent or any Lender, or Administrative Agent or any Lender exercises its
right of set-off, and such payment or the proceeds of such set-off or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any receivership, liquidation, or bankruptcy proceeding or otherwise, then (a) to
the extent of such recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or
such set-off had not occurred, and (b) each Lender severally agrees to pay to Administrative Agent
upon demand its applicable share of any amount so recovered from or repaid by Administrative Agent,
plus interest thereon from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.

12.18 USA Patriot Act. Each Lender that is subject to the Act (as hereinafter
defined) and Administrative Agent (for itself and not on behalf of any Lender) hereby notifies
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies Borrower, which information includes the name and address of Borrower
and other information that will allow such Lender or Administrative Agent, as applicable, to
identify Borrower in accordance with the Act. Borrower shall, promptly following a request for
information by Administrative Agent or any Lender, provide all documentation and other information
that Administrative Agent or such Lender reasonably requests in order to comply with its ongoing
obligations under applicable “know your customer” and anti-money laundering rules and regulations,
including the Act.

12.19 Intercreditor Agreement.

(A) EACH LENDER (I) CONSENTS TO THE TERMS OF THE INTERCREDITOR AGREEMENT AND AGREES
TO BE BOUND THEREBY, AND (II) AUTHORIZES AND INSTRUCTS ADMINISTRATIVE AGENT TO (A) ENTER
INTO THE INTERCREDITOR AGREEMENT ON BEHALF OF THE LENDERS, AND (B) TAKE ALL ACTIONS AND
EXECUTE ALL DOCUMENTS REQUIRED OR DEEMED ADVISABLE BY ADMINISTRATIVE AGENT IN CONNECTION
THEREWITH. THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL BE BINDING ON ALL LENDERS, AND
THEIR RESPECTIVE SUCCESSORS AND ASSIGNS.

(B) SUBJECT TO SECTION 12.5, THE LENDERS AUTHORIZE ADMINISTRATIVE AGENT TO DIRECT THE
COLLATERAL AGENT TO TAKE ACTION (OR REFRAIN FROM TAKING ACTION) UNDER THE COLLATERAL
DOCUMENTS AND TO INSTRUCT THE COLLATERAL AGENT TO TAKE (OR REFRAIN FROM TAKING) ANY AND
ALL ACTIONS THAT ADMINISTRATIVE AGENT IS AUTHORIZED TO TAKE PURSUANT TO THE CREDIT
AGREEMENT WITH RESPECT TO COLLATERAL AND MATTERS INCIDENTAL THERETO.

REMAINDER OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGES FOLLOWIN 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.

ALLIED CAPITAL CORPORATION

By: /s/ Penni F. Roll

Name: Penni F. Roll

Title: Chief Financial Officer

1

JPMORGAN CHASE BANK, N.A., as Administrative Agent

and a Lender

By: /s/ Richard J. Poworoznek 

Name: Richard J. Poworoznek

Title: Executive Director

2

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