Document:

exv10w3

Exhibit
10.3

 

 

 

 

 

 

 

 

 

 

 

 

SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

Dated July 22, 2009

By and among

MISTRAS GROUP, INC.,

as the Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent, Lead Arranger

and L/C Issuer,

JPMORGAN CHASE BANK, N.A.,

as Co-Lead Arranger

and

The Lenders Party Hereto

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	 

	 	 	1.01	 	 	Defined Terms
	 	 	1	 
	 

	 	 	1.02	 	 	Other Interpretive Provisions
	 	 	21	 
	 

	 	 	1.03	 	 	Accounting Terms
	 	 	21	 
	 

	 	 	1.04	 	 	Rounding
	 	 	22	 
	 

	 	 	1.05	 	 	Times of Day
	 	 	22	 
	 

	 	 	1.06	 	 	Letter of Credit Amounts
	 	 	22	 
	 

	 	 	1.07	 	 	Interpretation and Construction of Exceptions/Carveouts to Article VII
Negative Covenants
	 	 	22	 
	 

	 	 	1.08	 	 	Exchange Rates; Currency Equivalents
	 	 	22	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS	 	 	23	 
	 

	 	 	2.01	 	 	Loans
	 	 	23	 
	 

	 	 	2.02	 	 	Borrowings, Conversions and Continuations of Committed Loans
	 	 	23	 
	 

	 	 	2.03	 	 	Letters of Credit
	 	 	25	 
	 

	 	 	2.04	 	 	Repayment of Loans
	 	 	32	 
	 

	 	 	2.05	 	 	Prepayments
	 	 	33	 
	 

	 	 	2.06	 	 	Termination or Reduction of Commitments
	 	 	33	 
	 

	 	 	2.07	 	 	Interest
	 	 	34	 
	 

	 	 	2.08	 	 	Fees
	 	 	35	 
	 

	 	 	2.09	 	 	Computation of Interest and Fees
	 	 	35	 
	 

	 	 	2.10	 	 	Evidence of Debt
	 	 	35	 
	 

	 	 	2.11	 	 	Payments Generally; Agent’s Clawback
	 	 	36	 
	 

	 	 	2.12	 	 	Sharing of Payments
	 	 	38	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY	 	 	38	 
	 

	 	 	3.01	 	 	Taxes
	 	 	38	 
	 

	 	 	3.02	 	 	Illegality
	 	 	39	 
	 

	 	 	3.03	 	 	Inability to Determine Rates
	 	 	40	 
	 

	 	 	3.04	 	 	Increased Costs
	 	 	40	 
	 

	 	 	3.05	 	 	Compensation for Losses
	 	 	41	 
	 

	 	 	3.06	 	 	Mitigation Obligations
	 	 	42	 
	 

	 	 	3.07	 	 	Survival
	 	 	42	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	 	 	42	 
	 

	 	 	4.01	 	 	Conditions of Initial Credit Extension
	 	 	42	 
	 

	 	 	4.02	 	 	Conditions to all Credit Extensions
	 	 	43	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES	 	 	44	 
	 

	 	 	5.01	 	 	Existence, Qualification and Power
	 	 	44	 
	 

	 	 	5.02	 	 	Authorization; No Contravention
	 	 	44	 
	 

	 	 	5.03	 	 	Governmental Authorization; Other Consents
	 	 	44	 
	 

	 	 	5.04	 	 	Binding Effect
	 	 	44	 
	 

	 	 	5.05	 	 	Financial Statements; No Material Adverse Effect; No Internal Control Event
	 	 	45	 
	 

	 	 	5.06	 	 	Litigation
	 	 	45	 
	 

	 	 	5.07	 	 	No Default
	 	 	45	 
	 

	 	 	5.08	 	 	Ownership of Property; Liens
	 	 	46	 
	 

	 	 	5.09	 	 	Environmental Compliance
	 	 	46	 
	 

	 	 	5.10	 	 	Insurance
	 	 	46	 
	 

	 	 	5.11	 	 	Taxes
	 	 	46	 
	 

	 	 	5.12	 	 	ERISA Compliance
	 	 	46	 

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	 	 	 	 	 	 	 	 	Page
	 

	 	 	5.13	 	 	Subsidiaries
	 	 	47	 
	 

	 	 	5.14	 	 	Margin Regulations; Investment Company Act; Public Utility Holding Company Act
	 	 	47	 
	 

	 	 	5.15	 	 	Disclosure
	 	 	47	 
	 

	 	 	5.16	 	 	Compliance with Laws
	 	 	47	 
	 

	 	 	5.17	 	 	Taxpayer Identification Number
	 	 	47	 
	 

	 	 	5.18	 	 	Intellectual Property; Licenses, Etc.
	 	 	47	 
	 

	 	 	5.19	 	 	Rights in Collateral; Priority of Liens
	 	 	48	 
	ARTICLE VI. AFFIRMATIVE COVENANTS	 	 	48	 
	 

	 	 	6.01	 	 	Financial Statements
	 	 	48	 
	 

	 	 	6.02	 	 	Certificates; Other Information
	 	 	49	 
	 

	 	 	6.03	 	 	Notices
	 	 	50	 
	 

	 	 	6.04	 	 	Payment of Obligations
	 	 	50	 
	 

	 	 	6.05	 	 	Preservation of Existence, Etc.
	 	 	50	 
	 

	 	 	6.06	 	 	Maintenance of Properties
	 	 	50	 
	 

	 	 	6.07	 	 	Maintenance of Insurance
	 	 	50	 
	 

	 	 	6.08	 	 	Compliance with Laws
	 	 	51	 
	 

	 	 	6.09	 	 	Books and Records
	 	 	51	 
	 

	 	 	6.10	 	 	Inspection Rights
	 	 	51	 
	 

	 	 	6.11	 	 	Use of Proceeds
	 	 	51	 
	 

	 	 	6.12	 	 	Financial Covenants
	 	 	52	 
	 

	 	 	6.13	 	 	Additional Guarantors; Pledges of Stock
	 	 	53	 
	 

	 	 	6.14	 	 	Collateral Records
	 	 	53	 
	 

	 	 	6.15	 	 	Security Interests
	 	 	53	 
	 

	 	 	6.16	 	 	Deposits
	 	 	54	 
	 

	 	 	6.17	 	 	2009 Acquisitions
	 	 	54	 
	ARTICLE VII. NEGATIVE COVENANTS	 	 	54	 
	 

	 	 	7.01	 	 	Liens
	 	 	54	 
	 

	 	 	7.02	 	 	Investments
	 	 	55	 
	 

	 	 	7.03	 	 	Indebtedness
	 	 	56	 
	 

	 	 	7.04	 	 	Fundamental Changes
	 	 	57	 
	 

	 	 	7.05	 	 	Dispositions
	 	 	57	 
	 

	 	 	7.06	 	 	Restricted Payments
	 	 	57	 
	 

	 	 	7.07	 	 	Change in Nature of Business
	 	 	58	 
	 

	 	 	7.08	 	 	Transactions with Affiliates
	 	 	58	 
	 

	 	 	7.09	 	 	Burdensome Agreements
	 	 	58	 
	 

	 	 	7.10	 	 	Use of Proceeds
	 	 	58	 
	 

	 	 	7.11	 	 	Subordinated Debt to 2008 Asset Sellers
	 	 	58	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES	 	 	59	 
	 

	 	 	8.01	 	 	Events of Default
	 	 	59	 
	 

	 	 	8.02	 	 	Remedies Upon Event of Default
	 	 	61	 
	 

	 	 	8.03	 	 	Application of Funds
	 	 	61	 
	ARTICLE IX. AGENT	 	 	62	 
	 

	 	 	9.01	 	 	Appointment and Authorization of Agent
	 	 	62	 
	 

	 	 	9.02	 	 	Rights as a Lender
	 	 	62	 
	 

	 	 	9.03	 	 	Exculpatory Provisions
	 	 	62	 
	 

	 	 	9.04	 	 	Reliance by Agent
	 	 	63	 
	 

	 	 	9.05	 	 	Delegation of Duties
	 	 	63	 
	 

	 	 	9.06	 	 	Resignation of Agent
	 	 	64	 
	 

	 	 	9.07	 	 	Non-Reliance on Agent and Other Lenders
	 	 	64	 
	 

	 	 	9.08	 	 	No Other Duties, Etc
	 	 	64	 

- ii -

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 

	 	 	9.09	 	 	Agent May File Proofs of Claim
	 	 	65	 
	 

	 	 	9.10	 	 	Guaranty Matters
	 	 	65	 
	 

	 	 	9.11	 	 	Collateral Matters
	 	 	65	 
	ARTICLE X. MISCELLANEOUS	 	 	67	 
	 

	 	 	10.01	 	 	Amendments, Etc.
	 	 	67	 
	 

	 	 	10.02	 	 	Notices; Effectiveness; Electronic Communications
	 	 	68	 
	 

	 	 	10.03	 	 	No Waiver; Cumulative Remedies
	 	 	69	 
	 

	 	 	10.04	 	 	Expenses; Indemnity; Damage Waiver
	 	 	69	 
	 

	 	 	10.05	 	 	Payments Set Aside
	 	 	71	 
	 

	 	 	10.06	 	 	Successors and Assigns
	 	 	71	 
	 

	 	 	10.07	 	 	Treatment of Certain Information; Confidentiality
	 	 	74	 
	 

	 	 	10.08	 	 	Right of Setoff
	 	 	75	 
	 

	 	 	10.09	 	 	Interest Rate Limitation
	 	 	75	 
	 

	 	 	10.10	 	 	Counterparts; Integration; Effectiveness
	 	 	75	 
	 

	 	 	10.11	 	 	Survival of Representations and Warranties
	 	 	76	 
	 

	 	 	10.12	 	 	Severability
	 	 	76	 
	 

	 	 	10.13	 	 	Governing Law; Jurisdiction; Etc.
	 	 	76	 
	 

	 	 	10.14	 	 	Waiver of Jury Trial
	 	 	77	 
	 

	 	 	10.15	 	 	No Advisory or Fiduciary Responsibility
	 	 	77	 
	 

	 	 	10.16	 	 	USA PATRIOT Act Notice
	 	 	78	 
	 

	 	 	10.17	 	 	Time of the Essence
	 	 	78	 
	 

	 	 	10.18	 	 	Judgment Currency
	 	 	78	 

SCHEDULES

	 	 	 
	2.01
	 	Commitments and Applicable Percentages
	5.06
	 	Litigation
	5.09
	 	Environmental Matters
	5.13
	 	Subsidiaries and Other Equity Investments
	7.01
	 	Existing Liens
	7.03
	 	Existing Indebtedness
	10.02
	 	Administrative Agent’s Office, Certain Addresses for Notices
	10.06
	 	Processing and Recordation Fees

EXHIBITS

Form of:

	 	 	 
	A
	 	Committed Loan Notice
	B
	 	First Amended and Restated Revolving Credit Loan Note
	C
	 	First Amended and Restated Term Loan Note
	D
	 	Compliance Certificate
	E
	 	Assignment and Assumption
	F
	 	Free Cash Flow Certificate
	G
	 	Canadian Dollar Loan Note

- iii -

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter, as it may be from
time to time amended, modified, extended, renewed, substituted, and/or supplemented, referred to as
this “Agreement”) is entered into this 22nd day of July, 2009 by and among MISTRAS GROUP,
INC., a Delaware corporation (hereinafter referred to as the “Borrower”), BANK OF AMERICA,
N.A., as Agent, Lead Arranger, and L/C Issuer, JPMORGAN CHASE BANK, N.A., as Co-Lead Arranger, and
each lender from time to time party hereto (hereinafter individually referred to as a
“Lender” and collectively referred to as the “Lenders”).

     Borrower has requested that Lenders amend and restate in their entirety a certain revolving
credit loan facility, term loan facility, and acquisition loan facility, each previously made
available to Borrower by Bank of America, N.A. and JPMorgan Chase Bank, N.A. with the amended and
restated revolving credit loan facility, the amended and restated term loan facility, and the
revolving credit loan facility for borrowings in Canadian dollars described in this Agreement, and
Lenders are willing to do so on the terms and conditions set forth herein.

     This Agreement amends and restates in its entirety that certain Amended and Restated Credit
Agreement dated as of April 23, 2007, effective as of October 31, 2006, executed by and among
Borrower, Bank of America, N.A., and JPMorgan Chase Bank, N.A., as amended and modified.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms. As used in this Agreement, the following terms shall have the
meanings set forth below:

     “2008 Asset Sellers” means a collective reference to (a) Integrated Technologies,
Inc., a Connecticut corporation, (b) H&G Inspection Company, (c) Gonzales Industrial X-Ray, Inc., a
Louisiana corporation, and (d) South Bay Inspection, Inc., a California corporation.

     “2008 Subordinated Target Notes” means a collective reference to (a) that certain
Subordinated Promissory Note dated March 13, 2008, executed by Conam Inspection and Engineering
Services, Inc., as maker, in favor of Integrated Technologies, Inc., as payee, in the original
principal amount of $4,500,000.00, together with any amendments or modifications thereto, (b) that
certain Subordinated Promissory Note dated April 17, 2008, executed by Conam Inspection and
Engineering Services, Inc., as maker, in favor of G. Marcina Wilkinson, as payee, in the original
principal amount of $1,600,000.00, together with any amendments or modifications thereto, (c) that
certain Subordinated Promissory Note dated May 15, 2008, executed by Conam Inspection and
Engineering Services, Inc., as maker, in favor of Gonzales Industrial X-Ray, Inc., as payee, in the
original principal amount of $400,000.00, together with any amendments or modifications thereto,
and (d) that certain Subordinated Promissory Note dated May 16, 2008, executed by Conam Inspection
and Engineering Services, Inc., as maker, in favor of South Bay Inspection Inc., as payee, in the
original principal amount of $1,700,000.00, together with any amendments or modifications thereto.

     “Add Back Amounts” means (a) for the purposes of calculating EBITDA for the fiscal
quarter in which the Borrower or one of its Subsidiaries acquires the assets of IMPro Technologies,
LP and for the two immediately succeeding fiscal quarters thereafter, the following amounts (i)
with respect to such

- 1 -

 

fiscal quarter, $3,200,000.00; (ii) with respect to the first such succeeding fiscal quarter,
$2,400,000.00; and (iii) with respect to the second such succeeding fiscal quarter, $1,600,000.00,
and (b) for the purposes of calculating EBITDA for the fiscal quarter in which the Borrower or one
of its Subsidiaries acquires the assets of Arminus, Inc., d/b/a Pacific Technical Services and for
the two immediately succeeding fiscal quarters thereafter, the following amounts: (i) with respect
to such fiscal quarter, $2,000,000.00; (ii) with respect to the first such succeeding fiscal
quarter, $1,500,000.00; and (iii) with respect to the second such succeeding fiscal quarter,
$1,000,000.00; provided, however, that the Add Back Amounts with respect to the
fiscal quarter in which each such closing occurs may be adjusted by the Administrative Agent, in
its sole discretion, in the event any such closing does not occur on the first day of such fiscal
quarter.

     “Administrative Agent” or “Agent” means Bank of America, N.A., in its capacity
as administrative agent under any of the Loan Documents, or any successor administrative agent.

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

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

     “Agent Fee Letter” means a collective reference to (a) the letter agreement, dated
July 9, 2009, between the Borrower and the Agent and (b) the letter agreement, dated May 18, 2009,
between the Borrower and the Agent.

     “Agent’s Office” means Agent’s address and, as appropriate, account as set forth on
Schedule 10.02 attached hereto and made a part hereof, or such other address or account as
Agent may from time to time notify Borrower and Lenders.

     “Aggregate Commitments” means, collectively, (a) the Aggregate Revolving Loan
Commitments, (b) the Aggregate Term Loan Commitments, and (c) the Canadian Dollar Loan Commitment.

     “Aggregate Revolving Loan Commitments” means the Revolving Loan Commitments of all
Lenders.

     “Aggregate Term Loan Commitments” means the Term Loan Commitments of all Lenders.

     “Agreement” has the meaning assigned and ascribed to such term as set forth in the
preamble to this Agreement.

     “Applicable Percentage” means, with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of (i) the Aggregate Revolving Loan Commitments
represented by such Lender’s Revolving Loan Commitment at such time and (ii) the Aggregate Term
Loan Commitments represented by such Lender’s Term Loan Commitment at such time. If the commitment
of each Lender to make Revolving Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Revolving Loan
Commitments have expired, then the Applicable Percentage of each Lender with respect to the
Revolving Loans shall be determined based on the Applicable Percentage of such Lender most recently
in effect, giving effect to any subsequent assignments. The initial Applicable Percentage of each
Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment
and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

- 2 -

 

     “Applicable Rate” means, from time to time, the following percentages per annum, based
upon the Funded Debt Leverage Ratio, as set forth in the most recent Compliance Certificate
received by Agent pursuant to Section 6.02(a):

	 	 	 	 	 	 	 	 	 	 	 
	Pricing	 	Funded Debt	 	Eurodollar	 	 	 	Commitment	 	 
	Level	 	Leverage Ratio	 	Rate	 	Base Rate	 	Fee	 	SBLC Fee
	1

	 	<1.75:1
	 	225.0 bps
	 	0.0 bps
	 	37.5 bps
	 	225.0 bps
	2

	 	≥1.75:1 but <2.50:1
	 	275.0 bps
	 	25.0 bps
	 	50.0 bps
	 	275.0 bps
	3

	 	≥2.50:1 but <3.00:1
	 	325.0 bps
	 	50.0 bps
	 	50.0 bps
	 	325.0 bps

     Any increase or decrease in the Applicable Rate resulting from a change in the Funded Debt Leverage
Ratio shall become effective as of the first Business Day of the month immediately following the
date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided,
however, that if a Compliance Certificate is not delivered when due in accordance with
Section 6.02(a), then Pricing Level 3 shall apply as of the first Business Day of the month
following the date such Compliance Certificate was required to have been delivered until the first
Business Day of the month immediately following the delivery of such Compliance Certificate. The
Applicable Rate in effect from the Closing Date until receipt of the Compliance Certificate for the
period ended May 31, 2009 shall be determined based upon Pricing Level 2.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
10.06(b)), and accepted by Agent, in substantially the form of Exhibit “E” attached
hereto and made a part hereof, or any other form approved by Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

     “Audited Financial Statements” means the audited consolidated balance sheet of
Borrower and its Consolidated Subsidiaries for the fiscal year ended May 31, 2008 and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of Borrower and its Consolidated Subsidiaries, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.06, or (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

- 3 -

 

     “Base Rate” means for any day a fluctuating rate per annum equal to the sum
of (a) the highest of (i) the Prime Rate for such day and (ii) the sum of the Federal Funds Rate
for such day plus fifty basis points (0.50%), plus (b) the Market Disruption
Spread, if any.

     “Base Rate Loan” means a Committed Loan that bears interest at a rate based on the
Base Rate.

     “Borrower” has the meaning assigned and ascribed to such term as set forth in the
preamble to this Agreement.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrowing” means a Committed Borrowing.

     “Business Day” means:

     (a) with respect to any Letter of Credit or any Loan (other than a Canadian Loan), any day
other than a Saturday, Sunday or other day on which commercial banks are authorized to close under
the Laws of, or are in fact closed in, the state where the Agent’s Office is located and, if such
day relates to any Eurodollar Rate Loan (other than a Canadian Loan), means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar
market; and

     (b) with respect to any Canadian Loan, any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the Laws of, or are in fact closed in, the
state where the Canadian Lender’s office with respect to Canadian Loans is located and (i) if such
day relates to any interest rate settings as to a Eurodollar Rate Loan denominated in Canadian
Dollars, means any such day on which dealings in deposits in the relevant currency are conducted by
and between banks in the London or other applicable offshore interbank market for such currency,
and (ii) if such day relates to any fundings, disbursements, settlements and payments in Canadian
Dollars in respect of a Eurodollar Rate Loan denominated in Canadian Dollars, or any other dealings
in Canadian Dollars to be carried out pursuant to this Agreement in respect of any such Eurodollar
Rate Loan (other than any interest rate settings), means any such day on which banks are open for
foreign exchange business in the principal financial center of Canada.

     “Canadian Dollar”, “Canadian Dollars”, and “C$” mean lawful money of
Canada.

     “Canadian Dollar Equivalent” means, at any time, with respect to any amount
denominated in U.S. Dollars, the equivalent amount thereof in Canadian Dollars at such time on the
basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase
of Canadian Dollars with U.S. Dollars.

     “Canadian Dollar Loan” and “Canadian Dollar Loans” have the meanings specified
in Section 2.01(c).

     “Canadian Dollar Loan Commitment” means, as to the Canadian Lender (and not any of the
other Lenders), its obligation to make Canadian Dollar Loans to Borrower pursuant to Section
2.01(c), in an aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite the Canadian Lender’s name on the portion of Schedule 2.01 describing
the Canadian Dollar Loans.

     “Canadian Dollar Loan Note” means a promissory note made by Borrower in favor of the
Canadian Lender evidencing the Canadian Dollar Loans made by the Canadian Lender, substantially in
the form of Exhibit “G” attached hereto and made a part hereof, as said promissory note may
be from

- 4 -

 

time to time amended, modified, extended, renewed, substituted, and/or supplemented.

     “Canadian Lender” means Bank of America, N.A., solely in its capacity as the lender
for Canadian Loans, and specifically excludes the Agent, the L/C Issuer, and the other Lenders.

     “Cash Collateralize” has the meaning specified in Section 2.03(g).

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “Change of Control” means, with respect to any Person, an event or series of events by
which:

          (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary
or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time (hereinafter such
right shall be referred to as an “option right”)), directly or indirectly, of more than 50%
of the equity securities of such Person entitled to vote for members of the board of directors or
equivalent governing body of such Person on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any option right);

          (b) during any period of 24 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of such Person cease to be composed of individuals (i)
who were members of that board or equivalent governing body on the first day of such period, (ii)
whose election or nomination to that board or equivalent governing body was approved by individuals
referred to in clause (b)(i) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by individuals referred to
in clauses (i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body (excluding, in the case of both
clause (ii) and clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent governing body occurs as a result of
an actual or threatened solicitation of proxies or consents for the election or removal of one or
more directors by any person or group other than a solicitation for the election of one or more
directors by or on behalf of the board of directors);

     (c) any individual(s) or entity(s) acting in concert shall have acquired by contract or
otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof,
will result in its or their acquisition of the power to exercise, directly or indirectly, a
controlling influence over the management or policies of such Person, or control over the equity
securities of such Person entitled to vote for members of the board of directors or equivalent
governing body of such Person on a fully-diluted basis (and taking into account all such securities
that such individual(s) or entity(s) or group has the right to acquire pursuant to any option
right) representing more than 50% of the combined voting power of such securities; or

     (d) in the case of Mistras Group, Inc., Sotirios Vahaviolos ceases to own and control,
directly

- 5 -

 

and indirectly, at least fifty-one (51%) percent of its capital stock entitled to vote for the
election of directors.

     Notwithstanding the foregoing to the contrary, however, if any of the events or series of
events described in subsections (a), (b), (c), or (d) above occurs solely in
connection with the public offering of Borrower’s common stock pursuant to an effective
registration statement filed under the Securities Act of 1933, as amended, such event or series of
events shall not be deemed to constitute a “Change of Control” for purposes of this Agreement.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

     “Code” means the Internal Revenue Code of 1986, as amended and modified from time to
time.

     “Co-Lead Arranger” means JPMorgan Chase Bank, N.A., in its capacity as Co-Lead
Arranger under any of the Loan Documents, or any successor Co-Lead Arranger.

     “Collateral” means any and all assets and rights and interests in or to property of
Borrower and each of the other Loan Parties, whether real or personal, tangible or intangible, in
which a Lien is granted or purported to be granted pursuant to the Collateral Documents.

     “Collateral Documents” means all agreements, instruments and documents now or
hereafter executed and delivered in connection with this Agreement pursuant to which Liens are
granted or purported to be granted to Agent in Collateral securing all or part of the Obligations
each in form and substance satisfactory to Agent.

     “Commitment” means (a) as to each Lender, its Revolving Loan Commitment and its Term
Loan Commitment and (b) as to the Canadian Lender, its Canadian Dollar Loan Commitment.

     “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency, and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by (a) in the case of a Committed Loan denominated in U.S. Dollars, each of
the Lenders pursuant to Sections 2.01(a) and/or (b), and (b) in the case of a Committed
Loan denominated in Canadian Dollars, the Canadian Lender pursuant to Section 2.01(c).

     “Committed Loan” means (a) the Term Loan (or any portion thereof made by a Lender),
(b) a Revolving Loan (or any portion thereof made by a Lender), or (c) a Canadian Loan (or any
portion thereof made by the Canadian Lender).

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans,
pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit “A” attached hereto and made a part hereof.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
“D” attached hereto and made a part hereof.

     “Consolidated Subsidiaries” means a collective reference to (a) Quality Services
Laboratories, Inc., (b) Physical Acoustics Ltd., (c) Euro Physical Acoustics, S.A., (d) Anru
Physical ALC TLP Beheer B.V., (e) Physical Acoustics India Private Ltd., (f) Nippon Physical
Acoustics Limited, (g) Diapac, (h) Physical Acoustics South America Ltda., (i) ThermTech Services,
Inc., (j) Mistras Canada, Inc., and (k)

- 6 -

 

any other Subsidiary of Borrower now or hereafter included in the Audited Financial
Statements.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

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

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “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.

     “Debt Service Coverage Ratio” means the ratio, as of any date of determination
thereof, of (a) the difference between (i) EBITDA for the 12 month period immediately preceding
said date of determination, taken together as one accounting period, minus (ii) cash taxes,
dividends, cash distributions, withdrawals and other distributions paid or made during said test
period, -to- (b) the sum of (i) the current portion of long-term liabilities (i.e., that portion
due and owing in the 12 month period following said date of determination), which shall include any
conditional payments due under any earn-out agreements, deemed due and owing in such 12 month
period, plus (ii) the current portion of capitalized lease obligations (i.e., that portion
due and owing in the 12 month period following said date of determination), plus (iii)
interest expense on all obligations of the Borrower and its Subsidiaries paid during the 12 month
period immediately preceding said date of determination.

     “Decrease in Working Capital” means, for the Borrower and its Subsidiaries, as of any
test date, the decrease, if any, in working capital of the Borrower and its Subsidiaries as
calculated on Annex 2 attached to the applicable Free Cash Flow Certificate.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would constitute an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than L/C Fees an
interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable
to Base Rate Loans plus (iii) two hundred basis points (2.0%) per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus two hundred basis points (2.0%) per annum, and (b) when used with respect to L/C Fees,
a rate equal to the Applicable Rate plus two hundred basis points (2.0%) per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans or participations in L/C Obligations required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder unless such failure has been
cured, (b) has otherwise failed to pay over to Agent or any other Lender any other amount required
to be paid by it hereunder within one Business Day of the date when due, unless the subject of a
good faith dispute or unless such failure has been cured, or (c) has been deemed insolvent or
become the subject of a bankruptcy or insolvency proceeding.

- 7 -

 

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by any Person, including
any sale, assignment, transfer or other disposal, with or without recourse, of any notes or
accounts receivable or any rights and claims associated therewith.

     “Dollar”, “Dollars”, and “$” mean lawful money of the United States.

     “EBITDA” means (a) net income less (b) income (or plus loss) from discontinued
operations and extraordinary items, plus (c) income tax expenses, plus (d) interest
expense, plus (e) depreciation, depletion, and amortization (including non-cash loss on
retirement of assets), plus (f) stock option expense, less (g) cash expense related
to stock options, plus (h) Add Back Amounts, if applicable, plus (i) amounts, if
any, expended by the Borrower or its Subsidiaries in the settlement of that certain labor class
action lawsuit filed in California against Conam Inspection & Engineering Services, Inc. in an
amount not to exceed $2,100,000.00, plus (j) amounts expended by the Borrower in connection
with the initial public offering of its common stock pursuant to an effective registration
statement under the Securities Act of 1933, plus (k) amounts expended by the Borrower in
connection with the closing of the credit facilities described in this Agreement, and adjusted for
certain historical expenses, accounting adjustments, and other non-cash charges, all such
adjustments as calculated in the Required Lenders’ sole and absolute discretion. With respect to
each Person (other than IMPro Technologies, LP, Arminus, Inc., d/b/a Pacific Technical Services,
and Space Science Services, Inc.) acquired by the Borrower or any of its Subsidiaries in accordance
with Section 7.02(f), for purposes of determining (i) compliance by the Borrower with
Section 6.12, the calculation of EBITDA shall not include the EBITDA of such acquired
Person to the extent attributable to periods prior to the date of such acquisition and (ii) for
purposes of determining the Applicable Rate, the calculation of EBITDA shall include the historical
EBITDA of such acquired Person during the applicable 12 month reporting period, whether or not the
acquired Person was owned by the Borrower during the entire period in question.

     “Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(v) and (vi) (subject to such consents, if any, as may be required
under Section 10.06(b)(iii)).

     “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 any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of
Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure
to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

     “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

- 8 -

 

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 or
modified from time to time.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan, (b) a
withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA
during a plan year in which it was a “substantial employer” (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA, (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer
Plan or notification that a Multiemployer Plan is in reorganization, (d) the filing of a notice of
intent to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A
of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan, (e) an event or condition which constitutes grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan or (f) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA
Affiliate.

     “Eurodollar Base Rate” has the meaning specified in the definition of Eurodollar Rate.

     “Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Rate
Loan, a rate per annum determined by Agent (or, in the case of a Canadian Loan, the Canadian
Lender) pursuant to the following formula:

	 	 	 	 	 	 	
	Eurodollar Rate
	 	=
	 	Eurodollar Base Rate	
	 
	 	 	 	 	
	 
	 	 	 	1.00 – Eurodollar Reserve Percentage	

     Where,

“Eurodollar Base Rate” means, for any Interest Period with respect to a Eurodollar
Rate Loan, the sum of (a) the rate per annum equal to (i) the British Bankers Association
LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available
source providing quotations of BBA LIBOR as designated by the Agent (or, in the case of a
Canadian Loan, the Canadian Lender) from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for deposits in
the applicable currency (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period or (ii) if such published rate is not available at such
time for any reason, the rate per annum determined by the Agent (or, in the case of a
Canadian Loan, the Canadian Lender) to be the rate at which deposits in the applicable
currency for delivery on the first day of such Interest Period in Same Day Funds in the
approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of
America and with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch (or, in the case of a Canadian Loan, the applicable branch or
Affiliate of the Canadian Lender) to major banks in the London or other offshore interbank
market for such currency at their request at approximately 11:00 a.m. (London time)

- 9 -

 

two Business Days prior to the commencement of such Interest Period, plus (b) the
Market Disruption Spread, if any, as of the time and date of determination.

“Eurodollar Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on
such day, whether or not applicable to any Lender, under regulations issued from time to
time by the Board of Governors of the Federal Reserve System of the United States for
determining the maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as
“Eurocurrency liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan
shall be adjusted automatically as of the effective date of any change in the Eurodollar
Reserve Percentage.

     “Eurodollar Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurodollar Rate.

     “Eurodollar Unavailability Period” means any period of time during which a notice
delivered to the Borrower in accordance with Section 3.03(a) remains in full force and
effect.

     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, with respect to Agent, any Lender, the L/C Issuer 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, and (b)
any branch profits taxes imposed by the United States or any similar tax imposed by any other
jurisdiction in which Borrower is located.

     “Existing Letter of Credit” means that certain standby letter of credit # 68030004
issued by Bank of America, N.A. for the account of the Borrower, in the stated amount of
$25,566.30, for the benefit of ZHEJIANG ORIENT HOLL, with a current expiry date of September 15,
2009.

     “Federal Funds Rate” means, for any day, the rate per annum 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 upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by Agent.

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

     “Free Cash Flow” means, as of any date of determination, (a) EBITDA for the 12 month
period immediately preceding said date of determination, taken together as one accounting period,
minus (b) all taxes paid or payable in cash during said test period, minus (c) cash
interest paid during said test period, minus (d) all capital expenditures made in cash
during said test period, minus (e) all scheduled and non-scheduled principal payments on
Funded Debt made during said test period (excluding free cash flow payments made pursuant to
Section 2.05(c) of this Agreement), and plus (f) any Decrease in Working Capital
(or minus any Increase in Working Capital) for said test period.

- 10 -

 

     “Free Cash Flow Certificate” means a certificate substantially in the form of
Exhibit “F” attached hereto and made a part hereof.

     “Funded Debt” means, as of any date of determination thereof, all outstanding
liabilities for borrowed money and other interest-bearing liabilities, including current and long
term liabilities, but excluding the capital lease between Borrower and Sotirios Vahaviolos relating
to Borrower’s occupancy of the premises located at 195 Clarksville Road, Princeton Junction, New
Jersey.

     “Funded Debt Leverage Ratio” means, as of any date of determination, the ratio of (a)
Funded Debt as of said date of determination -to- (b) EBITDA for the period of four consecutive
fiscal quarters immediately preceding said date of determination, taken together as one accounting
period.

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

     “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

     “Guarantor” means each of (a) Quality Services Laboratories, Inc., a Delaware
corporation, (b) Physical Acoustics Corporation, a Delaware corporation, (c) CISMIS Springfield
Corp., a Delaware corporation, (d) ThermTech Services, Inc., a Florida corporation, and (e) any
additional guarantors added pursuant to the terms, conditions, and provisions of Section
6.13, all on a joint and several basis.

     “Guaranty” means the Second Amended and Restated Guaranty Agreement dated of even date

- 11 -

 

herewith executed and delivered by the Guarantors, on a joint and several basis, in favor of
Agent, for the benefit of the Lenders, as said Second Amended and Restated Guaranty Agreement may
be from time to time amended, modified, extended, renewed, substituted, and/or supplemented.

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

     “Honor Date” has the meaning specified in Section 2.03(c)(i).

     “Increase in Working Capital” means, for the Borrower and its Subsidiaries, as of any
test date, the increase, if any, in working capital of the Borrower and its Subsidiaries as
calculated on Annex 2 attached to the applicable Free Cash Flow Certificate.

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such Person
evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or services
(other than trade accounts payable in the ordinary course of business and, in each case, not past
due for more than 60 days or such longer period as permitted in the ordinary course of business);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under conditional sales or other
title retention agreements), whether or not such indebtedness shall have been assumed by such
Person or is limited in recourse;

     (f) capital leases and Synthetic Lease Obligations;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any
payment in respect of any Equity Interest in such Person or any other Person, valued, in the case
of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable

- 12 -

 

Indebtedness in respect thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” and “Indemnitees” has the meaning specified in Section
10.04(b).

     “Information” has the meaning specified in Section 10.07.

     “Interest Payment Date” means (a) as to any Loan other than a Base Rate Loan, the last
day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each
January, April, July and October and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two or three months thereafter, as selected by Borrower in its
Committed Loan Notice; provided that:

     (a) any Interest Period that would otherwise end on a day that is not a Business Day shall be
extended to the next succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding Business Day;

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

     (c) no Interest Period shall extend beyond the Maturity Date.

     “Internal Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in Borrower’s internal controls over
financial reporting.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other
Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions)
of assets of another Person that constitute a business unit. For purposes of covenant compliance,
the amount of any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the L/C Application and
any other document, agreement and instrument entered into by the L/C Issuer and Borrower (or any
Subsidiary) or in favor of the L/C Issuer and relating to such Letter of Credit.

- 13 -

 

     “Law” and “Laws” means, collectively, all international, foreign, Federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement, interpretation
or administration thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each
case whether or not having the force of law.

     “L/C Advance” and “L/C Advances” mean, with respect to each Lender, such
Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable
Percentage. All L/C Advances shall be denominated in U.S. Dollars.

     “L/C Application” means an application and agreement for the issuance or amendment of
a Letter of Credit in the form from time to time in use by the L/C Issuer.

     “L/C Borrowing” and “L/C Borrowings” mean an extension of credit resulting
from a drawing under any Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Committed Borrowing. All L/C Borrowings shall be denominated in U.S. Dollars.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Expiration Date” means the day that is thirty days prior to the Maturity Date
then in effect (or, if such day is not a Business Day, the next preceding Business Day).

     “L/C Fee” has the meaning specified in Section 2.03(i).

     “L/C Issuer” means Bank of America, N.A. in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, (a) the aggregate amount
available to be drawn under all outstanding Letters of Credit plus (b) the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “L/C Sublimit” means an amount equal to $3,000,000.00. The L/C Sublimit is part of,
and not in addition to, the Aggregate Revolving Loan Commitments.

     “Lead Arranger” means Bank of America, N.A. in its capacity as Lead Arranger under any
of the Loan Documents, or any successor Lead Arranger.

     “Lender” and “Lenders” have the meaning assigned and ascribed to such terms as
set forth in the preamble to this Agreement. Where the context requires, the defined terms
“Lender” and “Lenders” shall include the Canadian Lender.

     “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 Agent.

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     “Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letter of Credit. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” and “Loans” mean an extension of credit by a Lender to Borrower under
Article II in the form of a Revolving Loan, the Term Loan, or a Canadian Dollar Loan.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, the Agent Fee
Letter, each Collateral Document, the Guaranty, and the Subordination Agreements.

     “Loan Parties” means, collectively, Borrower and each Person (other than Agent, the
L/C Issuer, or any Lender) executing a Loan Document including, without limitation, each Guarantor
and such each Person executing a Collateral Document.

     “Majority-Owned Subsidiary” of the Borrower means a Subsidiary of which the Borrower
owns, directly or indirectly through another Subsidiary, more than fifty percent (50%) of the
issued and outstanding capital stock or other equity interests.

     “Market Disruption Spread” means zero (-0-) unless a notice delivered pursuant to
Section 3.03(b) is in effect, in which case, such spread shall mean one hundred basis
points (1.0%), for so long as any such notice is in effect.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent),
condition (financial or otherwise) or prospects of Borrower or Borrower and its Subsidiaries taken
as a whole; (b) a material impairment of the ability of the Borrower to perform its obligations
under this Agreement; or (c) a material adverse effect upon the legality, validity, binding effect
or enforceability against any Loan Party of any Loan Document to which it is a party which could
reasonably be expected to have a material adverse effect upon the rights of the Lenders hereunder.

     “Maturity Date” means July 21, 2012.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Note” and “Notes” mean a Revolving Note, a Term Note, or the Canadian Dollar
Loan Note, as the context may require.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and

- 15 -

 

fees are allowed claims in such proceeding.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (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 (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 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, as any of the
foregoing may be from time to time amended, modified, substituted, and/or supplemented.

     “Other Taxes” means all present or future stamp or documentary taxes imposed by any
taxing authority which may arise (a) from the registration, filing, recording, or perfection of any
security interest in connection with this Agreement or any other Loan Document (other than Taxes
attributable to a voluntary transfer of a Loan or Note by a Lender or Participant) or (b) from the
enforcement of this Agreement or any other Loan Document in connection with an Event of Default.

     “Outstanding Canadian Dollar Loan Amount” means, with respect to Canadian Dollar Loans
on any date, the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Canadian Loans, as the case may be, occurring on such
date.

     “Outstanding Revolving Loan Amount” means (a) with respect to Revolving Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Revolving Loans, as the case may be, occurring on such date, and (b)
with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by Borrower of Unreimbursed Amounts.

     “Participant” has the meaning specified in Section 10.06(d).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “PCAOB” means the Public Company Accounting Oversight Board.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
immediately preceding five plan years.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by Borrower or, with respect to any such plan that is subject to Section 412 of
the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.02.

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     “Prime Rate” means the rate of interest in effect for such day as publicly announced
from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set by Bank
of America based upon various factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in such rate announced by
Bank of America shall take effect at the opening of business on the day specified in the public
announcement of such change.

     “Register” has the meaning specified in Section 10.06(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.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice and (b) with respect to an L/C Credit
Extension, a L/C Application.

     “Required Lenders” means, as of any date of determination, Lenders having at least
sixty-six and two-thirds percent (66 2/3%) of the sum of the Revolving Loan Commitments and the
outstanding principal balance of the Term Loans (taken as a whole) or, if the commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Section 8.02, Lenders holding in the aggregate at least sixty-six
and two-thirds percent (66 2/3%) of the total outstanding Loans (with the aggregate amount of each
Lender’s risk participation and funded participation in L/C Obligations being deemed “held” by such
Lender for purposes of this definition); provided that the Commitment of, and the portion of the
total outstanding Loans held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer and, solely for purposes of notices given pursuant to Article II, any
other officer or employee of the applicable Loan Party so designated by any of the foregoing
officers in a notice to Agent. Any document delivered hereunder that is signed by a Responsible
Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and such Responsible
Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of
Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other Equity Interest or on
account of any return of capital to Borrower’s stockholders, partners or members (or the equivalent
Person thereof).

     “Revaluation Date” means with respect to any Canadian Dollar Loan, each of the
following: (a) each date of a Borrowing of a Eurodollar Rate Loan denominated in Canadian Dollars,
(b) each date of a continuation of a Eurodollar Rate Loan denominated in Canadian Dollars, and (c)
such additional dates as the Canadian Lender shall determine.

     “Revolving Loan” has the meaning specified in Section 2.01(b).

- 17 -

 

     “Revolving Loan Commitment” means, as to each Lender, its obligation to (a) make
Revolving Loans to Borrower pursuant to Section 2.01(b) and (b) purchase participations in
L/C Obligations, in an aggregate principal amount at any one time outstanding not to exceed the
amount set forth opposite such Lender’s name on the portion of Schedule 2.01 describing the
Revolving Loans or in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in accordance with this
Agreement.

     “Revolving Note” means a promissory note made by Borrower in favor of a Lender
evidencing Revolving Loans made by such Lender, substantially in the form of Exhibit “B”
attached hereto and made a part hereof, as said promissory note may be from time to time amended,
modified, extended, renewed, substituted, and/or supplemented.

     “Same Day Funds” means (a) with respect to disbursements and payments in U.S. Dollars,
immediately available funds, and (b) with respect to disbursements and payments in Canadian
Dollars, same day or other funds as may be determined by the Canadian Lender to be customary in the
place of disbursement or payment for the settlement of international banking transactions in
Canadian Dollars.

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the PCAOB.

     “Spot Rate” for Canadian Dollars means the rate determined by the Canadian Lender to
be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such
Person of such currency with another currency through its principal foreign exchange trading office
at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign
exchange computation is made; provided that the Canadian Lender may obtain such
spot rate from another financial institution designated by the Canadian Lender if the Person acting
in such capacity does not have as of the date of determination a spot buying rate for any such
currency.

     “Subordinated Documents” means a collective reference to (a) the Subordination
Agreements and (b) the Subordinated Notes.

     “Subordinated Notes” means a collective reference to (a) that certain Subordinated
Promissory Note dated December 31, 2005, executed by Conam Engineering and Inspection Services,
Inc., as maker, in favor of Code Services, Inc., as payee, in the principal amount of $270,000.00,
(b) that certain Subordinated Promissory Note dated January 12, 2007, executed by Conam Inspection
and Engineering Services, Inc., as maker, in favor of Petroleum Refractory, Inc., as payee, in the
principal amount of $250,000.00, (c) the 2008 Subordinated Target Notes, and (d) any other
subordinated promissory note entered into by the Borrower or any Subsidiary as evidence of
Indebtedness incurred under Section 7.03(f)(ii), which promissory note is not subject to a
Subordination Agreement in favor of the Administrative Agent, for the benefit of the Lenders, as
any of the foregoing promissory notes may be from time to time amended, modified, extended,
renewed, substituted, and/or supplemented.

     “Subordination Agreement #1” means that certain Amended and Restated Subordination
Agreement #1 dated of even date herewith, executed by and among the Borrower, the Agent, TC NDT
Holdings LLC, Altus Capital Partners SBIC, L.P., Altus-Mistras Co-Investment, LLC and Sotirios J.

- 18 -

 

Vahaviolos, as said Amended and Restated Subordination Agreement #1 may be from time to time
amended, modified, extended, renewed, substituted, and/or supplemented.

     “Subordination Agreement #2” means that certain Amended and Restated Subordination
Agreement #2 dated of even date herewith, executed by and among the Borrower, the Agent, John Dyer,
Harry Boss, Maxine Boss, Michael Smith, and Vonda Todd, as said Amended and Restated Subordination
Agreement #2 may be from time to time amended, modified, extended, renewed, substituted, and/or
supplemented.

     “Subordination Agreement #3” means that certain Subordination Agreement dated as of
December 10, 2008, executed by and among the Borrower, the Agent, Conam Inspection and Engineering
Services, Inc., and Elite Inspection Service Company (d/b/a Elite Inspection Service Co., Inc.), an
Indiana corporation, as said Subordination Agreement may be from time to time amended, modified,
extended, renewed, substituted, and/or supplemented.

     “Subordination Agreement #4” means that certain Subordination Agreement (Contingent
Payment) dated as of [sic], 2009, executed by and among the Borrower, the Agent, Conam Inspection
and Engineering Services, Inc., and Edge Testing and Inspection, Inc., a Washington corporation, as
said Subordination Agreement (Contingent Payment) may be from time to time amended, modified,
extended, renewed, substituted, and/or supplemented.

     “Subordination Agreements” means a collective reference to (a) the Subordination
Agreement #1, (b) the Subordination Agreement #2, (c) Subordination Agreement #3, (d) Subordination
Agreement #4, and (d) any other subordination agreement entered into by the Borrower or any
Subsidiary in connection with Indebtedness incurred under Section 7.03(f)(ii), as any of
the foregoing subordination agreements may be from time to time amended, modified, extended,
renewed, substituted, and/or supplemented.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of Borrower.

     “Swap Contract” means (a) any and all rate 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 bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, shall be hereinafter referred to as a “Master
Agreement”), including any such obligations or liabilities under any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a)

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for any date on or after the date such Swap Contracts have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior
to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender).

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

     “Term Loan” has the meaning specified in Section 2.01(a).

     “Term Loan Commitment” means, as to each Lender, the amount set forth opposite such
Lender’s name on the portion of Schedule 2.01 describing the Term Loan or in the Assignment
and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Term Note” means a promissory note made by Borrower in favor of a Lender evidencing
the Lender’s Applicable Percentage of the Term Loan, substantially in the form of Exhibit
“C” attached hereto and made a part hereof, as said promissory note may be from time to time
amended, modified, extended, renewed, substituted, and/or supplemented.

     “Threshold Amount” means $500,000.00.

     “Total Liabilities” means the sum of (a) current liabilities plus (b) long
term liabilities.

     “Total Revolving Loan Outstandings” means the aggregate Outstanding Revolving Loan
Amount of all Revolving Loans and all L/C Obligations.

     “Type” means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001 (a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section
412 of the Code for the applicable plan year.

     “United States” and “U.S.” mean the United States of America.

     “U.S. Dollars” means lawful money of the United States.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “Wholly-Owned Subsidiary” of the Borrower means a Subsidiary of which the Borrower
owns, directly or indirectly through another Subsidiary, ninety-five percent (95%) or more of the
issued and

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outstanding capital stock or other equity interests.

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan Document:

     (a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to
have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document (including any
Organization Document) shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (iii) the words “herein,” “hereof and “hereunder,” and words of similar
import when used in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference
to any law shall include all statutory and regulatory provisions consolidating, amending, replacing
or interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to time,
and (vi) the words “asset’ and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

     (b) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;”
and the word “through” means “to and including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms

     (a) Generally. All accounting terms not specifically or completely defined herein
shall be construed in conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a
manner consistent with that used in preparing the Audited Financial Statements, except as otherwise
specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and either Borrower or the
Required Lenders shall so request, Agent, Lenders and Borrower shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP prior to such change
therein and (ii) Borrower shall provide to Agent and Lenders financial statements and other
documents required under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

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     (c) Consolidation of Variable Interest Entities. All references herein to consolidated
financial statements of Borrower and its Consolidated Subsidiaries or to the determination of any
amount for Borrower and its Subsidiaries on a consolidated basis or any similar reference shall, in
each case, be deemed to include each variable interest entity that Borrower is required to
consolidate pursuant to FASB Interpretation No. 46 — Consolidation of Variable Interest Entities:
an interpretation of ARB No. 51 (January 2003) as if such variable interest entity were a
Subsidiary as defined herein.

     1.04 Rounding. Any financial ratios required to be maintained by Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05 Times of Day. Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as applicable).

     1.06 Letter of Credit Amounts. Unless otherwise specified herein the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any Issuer Document related thereto, provides for one or more automatic
increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all such increases,
whether or not such maximum stated amount is in effect at such time.

     1.07 Interpretation and Construction of Exceptions/Carveouts to Article VII Negative
Covenants. In connection with the exceptions/carveouts to the negative covenants set forth and
described in Article VII of this Agreement, each such exception/carveout shall be available
as described therein independent of, and separate, distinct, and apart from, any other such
exceptions/carveouts, including, without limitation, any other exceptions/carveouts expressly set
forth and described within the same section of said Article VII. Other than the carveout
for additional Investments described in Section 7.02(f) of this Agreement, any and all such
exceptions/carveouts which make reference to an aggregate dollar amount (i.e., a “basket”) shall be
deemed to refer to the aggregate dollar amount which the Lenders will permit the Borrower and its
Subsidiaries to incur or to have incurred and to permit to remain outstanding subsequent to the
Closing Date, however, such aggregate dollar amount (i.e., a “basket”) shall be deemed to be
inclusive of, and not in
addition to, the aggregate dollar amount of each such exception/carveout
which may have been previously incurred and which is currently outstanding as of the Closing Date.

     1.08 Exchange Rates; Currency Equivalents. 

     (a) The Canadian Lender shall determine the Spot Rate as of each Revaluation Date to be used
for calculating Canadian Dollar Equivalent amounts of Canadian Loans and Outstanding Canadian
Dollar Loan Amounts. Such Spot Rates shall become effective as of such Revaluation Date and shall
be the Spot Rates employed in converting any amounts between the applicable currencies until the
next Revaluation Date to occur.

     (b) Wherever in this Agreement in connection with a Canadian Loan, conversion, continuation or
prepayment of a Canadian Loan, an amount, such as a required minimum or multiple amount, is
expressed in U.S. Dollars, but such Loan is a Canadian Loan, such amount shall be the relevant
Canadian Dollar Equivalent of such U.S. Dollar amount (rounded to the nearest Canadian Dollar, with
0.50 of a unit being rounded upward).

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ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Loans.

     (a) Term Loan. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make a term loan (hereinafter each such loan shall be referred to as a
“Term Loan”) to Borrower on the Closing Date in an amount equal to the amount of such
Lender’s Term Loan Commitment, and to execute and deliver to each such Lender a Term Note. Term
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein, and the Borrower
shall execute and deliver a Term Note to each Lender requesting a Term Note. Once repaid or
prepaid, the Term Loan may not be re-borrowed.

     (b) Revolving Loans. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make certain revolving loans (hereinafter each such revolving loan shall
be referred to as a “Revolving Loan”) to Borrower from time to time, on any Business Day
during the Availability Period, in an aggregate amount not to exceed at any time outstanding the
amount of such Lender’s Revolving Loan Commitment; provided, however, that after
giving effect to any Borrowing of a Revolving Loan, (i) the Total Revolving Loan Outstandings shall
not exceed the Aggregate Revolving Loan Commitments, and (ii) the aggregate Outstanding Revolving
Loan Amount of all Revolving Loans of any Lender, plus such Lender’s Applicable Percentage
of the Outstanding Revolving Loan Amount of all L/C Obligations shall not exceed such Lender’s
Revolving Loan Commitment. Within the limits of each Lender’s Revolving Loan Commitment, and
subject to the other terms and conditions hereof, Borrower may borrow under this Section
2.01(b), prepay under Section 2.05, and reborrow
under this
Section 2.01(b).
The Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein,
and the Borrower shall execute and deliver a Revolving Note to each Lender requesting a Revolving
Note.

     (c) Canadian Loans. Subject to the terms and conditions set forth herein, the
Canadian Lender (and not any of the other Lenders) agrees to make certain Canadian Dollar
denominated revolving loans (hereinafter each such Canadian Dollar denominated revolving loan shall
be referred to as a “Canadian Dollar Loan” and collectively, all of such Canadian Dollar
denominated revolving loans shall be referred to as “Canadian Dollar Loans”) to Borrower
from time to time, on any Business Day during the Availability Period, in an aggregate amount not
to exceed at any time outstanding the amount of the Canadian Dollar Loan Commitment and solely in
Canadian Dollars and in no other currency. Within the limits of the Canadian Lender’s Canadian
Dollar Loan Commitment, and subject to the other terms and conditions hereof, Borrower may borrow
under this Section 2.01(c), prepay under Section 2.05, and reborrow under this
Section 2.01(c). The Canadian Dollar Loans shall be Eurodollar Rate Loans (and may not be
Base Rate Loans), as further provided herein, and the Borrower shall execute and deliver a Canadian
Dollar Loan Note to the Canadian Lender if the Canadian Lender so requires one. No Lender other
than the Canadian Lender shall have any obligation to make or fund all or any portion of Canadian
Dollar Loans or to purchase participations in Canadian Dollar Loans from the Canadian Lender, the
Canadian Dollar Loan Commitment being solely the responsibility and commitment of the
Canadian Lender.

     2.02 Borrowings, Conversions and Continuations of Committed Loans.

     (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans shall be made upon Borrower’s irrevocable notice to
Agent, which may be given by telephone. Each such notice must be received by Agent not later than
11:00 a.m. (i) three Business Days prior to the requested date of any Borrowing of, conversion to
or

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continuation of Eurodollar Rate Loans denominated in U.S. Dollars or of any conversion of
Eurodollar Rate Loans denominated in U.S. Dollars to Base Rate Loans, (ii) four Business Days prior
to the requested date of any Borrowing or continuation of Eurodollar Rate Loans denominated in
Canadian Dollars, and (iii) on the requested date of any Borrowing of Base Rate Loans. Each
telephonic notice by Borrower pursuant to this Section 2.02(a) must be confirmed promptly
by delivery to Agent of a written Committed Loan Notice, appropriately completed and signed by a
Responsible Officer of Borrower. Each Borrowing of, conversion to or continuation of Eurodollar
Rate Loans shall be in a principal amount of $500,000.00 or a whole multiple of $100,000.00 in
excess thereof. Except as provided in Section 2.03(c), each conversion to Base Rate Loans
shall be in a principal amount of $500,000.00 or a whole multiple of $100,000.00 in excess thereof.
Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether Borrower is
requesting a Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a
continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion or
continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of
Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be
borrowed or to which existing Committed Loans are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto. If Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if Borrower fails to give a timely notice requesting a
conversion or continuation, then the applicable Committed Loans shall be made as, or converted to,
Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the
last day of the Interest Period than in effect with respect to the applicable Eurodollar Rate
Loans. If Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate
Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed
to have specified an Interest Period of one month.

     (b) Following receipt of a Committed Loan Notice for any Loan other than a Canadian Dollar
Loan, Agent shall promptly notify each Lender of the amount of its Applicable Percentage of the
applicable Committed Loans, and if no timely notice of a conversion or continuation is provided by
Borrower, Agent shall notify each Lender of the details of any automatic conversion to Base Rate
Loans described in the preceding subsection. In the case of a Committed Borrowing, each Lender
shall make the amount of its Committed Loan available to Agent in immediately available funds at
the Agent’s Office not later than 2:00 p.m. on the Business Day specified in the applicable
Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), Agent
shall make all funds so received available to Borrower in like funds as received by Agent either by
(i) crediting the account of Borrower on the books of Bank of America with the amount of such funds
or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) Agent by Borrower; provided, however, that if, on the
date the Committed Loan Notice with respect to such Borrowing is given by Borrower, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing first, shall be applied, to the payment
in full of any such L/C Borrowings, and second, shall be made available to Borrower as provided
above. Following receipt of a Committed Loan Notice for any Canadian Dollar Loan, Agent shall
promptly notify the Canadian Lender of each Canadian Dollar Loan, and if no timely notice of a
conversion or continuation is provided by Borrower, Agent shall notify the Canadian Lender of the
details of any automatic conversion to Base Rate Loans described in the preceding subsection. The
Canadian Lender shall make the amount of the Canadian Dollar Loans available to Agent in
immediately available funds at the Agent’s Office not later than 2:00 p.m. on the Business Day
specified in the applicable Committed Loan Notice. Upon satisfaction of the applicable conditions
set forth in Section 4.02, Agent shall make all funds so received available to Borrower in
like funds as received by Agent either by (i) crediting the account of Borrower on the books of
Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) Agent by Borrower.

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     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of
a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders, and the Required Lenders may demand that any or all of the
then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans and Borrower
agrees to pay all amounts due under Section 3.05 in accordance with the terms thereof due
to any such conversion.

     (d) Agent shall promptly notify Borrower and Lenders of the interest rate applicable to any
Interest Period for Eurodollar Rate Loans upon determination of such interest rate.

     (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than four (4) Interest Periods in effect with respect to Committed Loans.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

          (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section 2.03, (1) from
time to time on any Business Day during the period from the Closing Date until the L/C Expiration
Date, to issue Letters of Credit for the account of Borrower, and to amend or extend Letters of
Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters
of Credit issued for the account of Borrower and any drawings
thereunder, provided that the Lenders
shall have no obligation to issue a Letter of Credit unless after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (x) the Total Revolving Loan Outstandings shall not
exceed the Aggregate Revolving Loan Commitments, (y) the aggregate Outstanding Revolving Loan
Amount of all Revolving Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Revolving Loan Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Term Loan shall not exceed such Lender’s Commitment, and (z) the Outstanding Revolving Loan
Amount of the L/C Obligations shall not exceed the L/C Sublimit. Each request by Borrower for the
issuance or amendment of a Letter of Credit shall be deemed to be a representation by Borrower that
the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the
preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof,
Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly Borrower
may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have
expired or that have been drawn upon and reimbursed. The Existing Letter of Credit shall be deemed
to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and
governed by the terms and conditions hereof.

          (ii) The L/C Issuer shall not issue any Letter of Credit, if:

               (A) subject to Section 2.03(b)(iv), the expiry date of such requested Letter of Credit
would occur more than twelve (12) months after the date of issuance or last extension, unless the
Required Lenders have approved such expiry date; or

               (B) the expiry date of such requested Letter of Credit would occur after the L/C Expiration
Date, unless all the Lenders have approved such expiry date.

          (iii) The L/C Issuer shall be under no obligation to issue any Letter of Credit if:

- 25 -

 

               (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law
applicable to the L/C Issuer or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request
that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed
loss, cost or expense which was not applicable on the Closing Date and which in each case the L/C
Issuer in good faith deems material to it;

               (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer
applicable to letters of credit generally, a copy of which policies has previously been provided to
the Borrower or is provided in connection with the Borrower’s L/C Application

               (C) except as otherwise agreed by Agent and the L/C Issuer, such Letter of Credit is in an
initial stated amount less than $10,000.00, in the case of a commercial Letter of Credit, or
$100,000.00, in the case of a standby Letter of Credit;

               (D) such Letter of Credit is to be denominated in a currency other than Dollars;

               (E) a default of any Lender’s obligations to fund under Section 2.03(c) exists or any
Lender is at such time (1) a Defaulting Lender hereunder or (2) a Lender as to which (x) the L/C
Issuer has a good faith belief that such Lender has defaulted in fulfilling its obligations under
one or more other syndicated credit facilities or (y) an entity that controls such Lender has been
deemed insolvent or become subject to a bankruptcy or other similar proceeding, unless in any such
event the L/C Issuer has entered into arrangements (satisfactory to the L/C Issuer) with Borrower
or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender, including, without
limitation, the posting of cash collateral or other security with respect to such Lender’s
obligations in connection with such Letter of Credit; or

               (F) unless specifically provided for in this Agreement, such Letter of Credit contains any
provisions for automatic reinstatement of the stated amount after any drawing thereunder.

          (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

          (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C
Issuer would have no obligation at such time to issue such Letter of Credit in its amended form
under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit.

          (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith, and the L/C Issuer shall have all of the
benefits and immunities (A) provided to Agent in Article IX with respect to any acts taken
or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or
proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as
if the term “Administrative Agent” or “Agent” as used in Article IX included the L/C Issuer
with respect to such acts or omissions, and (B) as additionally provided herein with respect to the
L/C Issuer.

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     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

          (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of
Borrower delivered to the L/C Issuer (with a copy to Agent) in the form of a L/C Application,
appropriately completed and signed by a Responsible Officer of Borrower. Such L/C Application must
be received by the L/C Issuer and Agent not later than 11:00 a.m. at least two Business Days (or
such later date and time as Agent and the L/C Issuer may agree in a particular instance in their
sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In
the case of a request for an initial issuance of a Letter of Credit, such L/C Application shall
specify in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry
date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder, (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer reasonably may require. In the case of a request for an amendment
of any outstanding Letter of Credit, such L/C Application shall specify in form and detail
satisfactory to the L/C Issuer (1) the Letter of Credit to be amended, (2) the proposed date of
amendment thereof (which shall be a Business Day), (3) the nature of the proposed amendment and (4)
such other matters as the L/C Issuer reasonably may require. Additionally, Borrower shall furnish
to the L/C Issuer and Agent such other documents and information pertaining to such requested
Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or Agent
reasonably may require.

          (ii) Promptly after receipt of any L/C Application at the address set forth in Section
10.02, the L/C Issuer will confirm with Agent (by telephone or in writing) that Agent has
received a copy of such L/C Application from Borrower and, if not, the L/C Issuer will provide
Agent with a copy thereof. Unless the L/C Issuer has received written notice from any Lender,
Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable conditions contained in
Article IV shall not then be satisfied, then, subject to the terms and conditions hereof,
the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of Borrower
or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C
Issuer’s usual and customary business practices. Immediately upon the issuance of each Letter of
Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to
the product of such Lender’s Applicable Percentage times the amount of such Letter of Credit.

          (iii) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will
also deliver to Borrower and Agent a true and complete copy of such Letter of Credit or amendment.

          (iv) If Borrower so requests in any applicable L/C Application, the L/C Issuer may, in its
sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension
provisions (hereinafter each such Letter of Credit that has automatic extension provisions shall be
referred to as an “Auto-Extension Letter of
Credit”); provided that any such Auto-Extension
Letter of Credit must permit the L/C Issuer to prevent any such extension at least once in each
twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day (hereinafter referred to as the
“Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time
such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, Borrower shall not
be required to make a specific request to the L/C Issuer for any such extension. Once an
Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized
(but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time
to an expiry date not later than the L/C Expiration Date; provided, however, that
the L/C Issuer shall not permit any

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such extension if (A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised form (as extended)
under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or
in writing) on or before the day that is five Business Days before the Non-Extension Notice Date
(1) from Agent that the Required Lenders have elected not to permit such extension or (2) from
Agent, any Lender or Borrower that one or more of the applicable conditions specified in
Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer not to
permit such extension.

          (v) If Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer
may, in its sole and absolute discretion, agree to issue a Letter of Credit that permits the
automatic reinstatement of all or a portion of the stated amount thereof after any drawing
thereunder (hereinafter each such Letter of Credit that permits the automatic reinstatement of all
or a portion of the stated amount thereof after any drawing thereunder shall be referred to as an
“Auto-Reinstatement Letter of Credit”). Unless otherwise directed by the L/C Issuer,
Borrower shall not be required to make a specific request to the L/C Issuer to permit such
reinstatement. Once an Auto-Reinstatement Letter of Credit has been issued, except as provided in
the following sentence, the Lenders shall be deemed to have authorized (but may not require) the
L/C Issuer to reinstate all or a portion of the stated amount thereof in accordance with the
provisions of such Letter of Credit. Notwithstanding the foregoing to the contrary, if such
Auto-Reinstatement Letter of Credit permits the L/C Issuer to decline to reinstate all or any
portion of the stated amount thereof after a drawing thereunder by giving notice of such
non-reinstatement within a specified number of days after such drawing (hereinafter referred to as
the “Non-Reinstatement Deadline”), the L/C Issuer shall not permit such reinstatement if it
has received a notice (which may be by telephone or in writing) on or before the day that is five
Business Days before the Non-Reinstatement Deadline (A) from Agent that the Required Lenders have
elected not to permit such reinstatement or (B) from Agent, any Lender or Borrower that one or more
of the applicable conditions specified in Section 4.02 is not then satisfied (treating such
reinstatement as an L/C Credit Extension for purposes of this clause) and, in each case, directing
the L/C Issuer not to permit such reinstatement

     (c) Drawings and Reimbursements; Funding of Participations.

          (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under
such Letter of Credit, the L/C Issuer shall notify Borrower and Agent thereof. Not later than 11:00
a.m. on the date of any payment by the L/C Issuer under a Letter of Credit (hereinafter each such
date shall be referred to as an “Honor Date”), Borrower shall reimburse the L/C Issuer
through Agent in an amount equal to the amount of such drawing. If Borrower fails to so reimburse
the L/C Issuer by such time, Agent shall promptly notify each Lender of the Honor Date, the amount
of the unreimbursed drawing (hereinafter referred to as the “Unreimbursed Amount”), and the
amount of such Lender’s Applicable Percentage thereof. In such event, Borrower shall be deemed to
have requested a Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an
amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in
Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Revolving Loan Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Committed Loan Notice). Any notice given by the
L/C Issuer or Agent pursuant to this Section 2.03(c)(i) may be given by telephone if
immediately confirmed in writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

          (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds
available to Agent for the account of the L/C Issuer at the Agent’s Office in an amount equal to
its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by Agent, whereupon, subject to the provisions of Section
2.03(c)(iii), each

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Lender that so makes funds available shall be deemed to have made a Base Rate Loan to Borrower
in such amount. Agent shall remit the funds so received to the L/C Issuer.

          (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be
satisfied or for any other reason, Borrower shall be deemed to have incurred from the L/C Issuer an
L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C
Borrowing shall be due and payable on demand (together with interest) and shall bear interest at
the Default Rate. In such event, each Lender’s payment to Agent for the account of the L/C Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in
such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

          (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this Section
2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest
in respect of such Lender’s Applicable Percentage of such amount shall be solely for the account of
the L/C Issuer.

          (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the L/C
Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any circumstance, including (A)
any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the
L/C Issuer, Borrower or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default or (C) any other occurrence, event or condition, whether or not similar to
any of the foregoing; provided, however, that each Lender’s obligation to make
Committed Loans pursuant to this
Section 2.03(c) is subject to the conditions set forth in
Section 4.02 (other than delivery by Borrower of a Committed Loan Notice). No such making
of an L/C Advance shall relieve or otherwise impair the obligation of Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together
with interest as provided herein.

          (vi) If any Lender fails to make available to Agent for the account of the L/C Issuer any
amount required to be paid by such Lender pursuant to the foregoing provisions of this Section
2.03(c) by the time specified in Section 2.03(c)(ii), the L/C Issuer shall be entitled
to recover from such Lender (acting through Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the greater of the Federal
Funds Rate and a rate determined by the L/C Issuer in accordance with banking industry rules on
interbank compensation, plus any administrative, processing or similar fees customarily charged by
the L/C Issuer in connection with the foregoing. If such Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included
in the relevant Committed Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the
case may be. A certificate of the L/C Issuer submitted to any Lender (through Agent) with respect
to any amounts owing under this clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

          (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and has
received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with
Section 2.03(c), if Agent receives for the account of the L/C Issuer any payment in respect
of the related Unreimbursed Amount or interest thereon (whether directly from Borrower or
otherwise, including proceeds of Cash Collateral applied thereto by Agent), Agent will distribute
to such Lender its

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Applicable Percentage thereof in the same funds as those received by Agent.

          (ii) If any payment received by Agent for the account of the L/C Issuer pursuant to
Section 2.03(c)(i) is required to be returned under any of the circumstances described in
Section 10.05 (including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Lender shall pay to Agent for the account of the L/C Issuer its Applicable
Percentage thereof on demand of Agent, plus interest thereon from the date of such demand to the
date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect. The obligations of Lenders under this clause (ii) shall
survive the payment in full of the Obligations and the termination of this Agreement.

     (e) Obligations Absolute. The obligation of Borrower to reimburse the L/C Issuer for
each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

          (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any
other Loan Document;

          (ii) the existence of any claim, counterclaim, setoff, defense or other right that Borrower
may have at any time against any beneficiary or any transferee of such Letter of Credit (or any
Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any
other Person, whether in connection with this Agreement, the transactions contemplated hereby or by
such Letter of Credit or any agreement or instrument relating thereto, or any unrelated
transaction;

          (iii) any draft, demand, certificate or other document presented under such Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under such Letter of Credit;

          (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft
or certificate that does not strictly comply with the terms of such Letter of Credit; or any
payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee
in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or
other representative of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief Law; or

          (v) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a defense available to,
or a discharge of, Borrower.

Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is
delivered to it and, in the event of any claim of noncompliance with Borrower’s instructions or
other irregularity, Borrower will promptly notify the L/C Issuer. Borrower shall be conclusively
deemed to have waived any such claim against the L/C Issuer and its correspondents unless such
notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and Borrower agree that, in paying any drawing
under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by the Letter of Credit)
or to ascertain or inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering

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any such document. None of the L/C Issuer, Agent, any of their respective Related Parties or
any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i)
any action taken or omitted in connection herewith at the request or with the approval of Lenders
or the Required Lenders, as applicable, (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or Issuer Document.
Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however, that this assumption
is not intended to, and shall not, preclude Borrower’s pursuing such rights and remedies as it may
have against the beneficiary or transferee at law or under any other agreement. None of the L/C
Issuer, Agent, any of their respective Related Parties or any correspondent, participant or
assignee of the L/C Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary notwithstanding, Borrower may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to Borrower, to the extent, but only to the extent, of any
direct, as opposed to consequential or exemplary, damages suffered by Borrower which Borrower
proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s
willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary
of a sight draft and certificates) strictly complying with the terms and conditions of a Letter of
Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents
that appear on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

     (g) Cash Collateral. Upon the request of Agent, (i) if the L/C Issuer has honored any
full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C
Borrowing, or (ii) if, as of the L/C Expiration Date, any L/C Obligation for any reason remains
outstanding, Borrower shall, in each case, immediately Cash Collateralize the then Outstanding
Revolving Loan Amount of all L/C Obligations. Sections 2.05 and 8.02(c) set forth certain
additional requirements to deliver Cash Collateral hereunder. For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to Agent, for the benefit of the L/C
Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances
pursuant to documentation in form and substance satisfactory to Agent and the L/C Issuer (which
documents are hereby consented to by Lenders). Derivatives of such term have corresponding
meanings. Borrower hereby grants to Agent, for the benefit of the L/C Issuer and Lenders, a
security interest in all such cash, deposit accounts and all balances therein and all proceeds of
the foregoing. Cash collateral shall be maintained in blocked, interest bearing deposit accounts
at Bank of America.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C Issuer
and Borrower when a Letter of Credit is issued (including any such agreement applicable to the
Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby Letter of Credit,
and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

     (i) L/C Fees. Borrower shall pay to Agent for the account of each Lender in
accordance with its Applicable Percentage an L/C fee (hereinafter referred to as the “L/C
Fee”) for each standby Letter of Credit equal to the Applicable Rate times the daily
amount available to be drawn under such Letter of Credit. For purposes of computing the daily
amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall
be determined In accordance with Section 1.06. L/C Fees shall be (1) due and payable on
the first Business Day after the end of each March, June, September

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and December, commencing with the first such date to occur after the issuance of such Letter
of Credit, on the L/C Expiration Date and thereafter on demand and (ii) computed on a quarterly
basis in arrears. If there is any change in the Applicable Rate during any quarter, the daily
amount available to be drawn under each Letter of Credit shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such Applicable Rate was in
effect. Notwithstanding anything to the contrary contained herein, upon the request of the
Required Lenders, while any Event of Default exists, all L/C Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee (i) with respect
to each commercial Letter of Credit at the rate specified in the Agent Fee Letter, computed on the
amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to any
amendment of a commercial Letter of Credit increasing the amount of such Letter of Credit, at a
rate separately agreed between Borrower and the L/C Issuer, computed on the amount of such
increase, and payable upon the effectiveness of such amendment, and (iii) with respect to each
Letter of Credit, at the rate per annum specified in the Agent Fee Letter, computed on the daily
amount available to be drawn under such Letter of Credit and on a quarterly basis in arrears. Such
fronting fee shall be due and payable on the tenth Business Day after the end of each March, June,
September and December, in respect of the most recently-ended quarterly period (or portion thereof,
in the case of the first payment), commencing with the first such date to occur after the issuance
of such Letter of Credit, on the L/C Expiration Date and thereafter on demand. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In addition,
Borrower shall pay directly to the L/C Issuer for its own account the reasonable and customary
issuance, presentation, amendment and other processing fees, and other standard costs and charges,
of the L/C Issuer relating to letters of credit as from time to time in effect. Such individual
customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Documents, the terms hereof shall govern and control.

     2.04 Repayment of Loans.

     (a) Borrower shall repay to Lenders on the Maturity Date the aggregate principal amount of all
Revolving Loans outstanding on such date. In addition, Borrower shall repay to the Canadian Lender
on the Maturity Date the aggregate principal amount of all Canadian Dollar Loans outstanding on
such date.

     (b) The Borrower shall repay to the Agent for the ratable account of the Lenders the amount of
the aggregate principal amount of the Term Loan as follows (with adjustment for any prepayments
made under Section 2.05), each such payment to be made on the last Business Day of the
applicable quarterly period:

	 	 	 	 	 
	Quarter Ending	 	Payment	 
	 
	October 31, 2009; January 31, 2010; April 30, 2010; and July 31, 2010
	 	$	1,500,000.00	 
	October 31, 2010; January 31, 2011; April 30, 2011; and July 31, 2011
	 	$	2,000,000.00	 

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	Quarter Ending	 	Payment	 
	 
	October 31, 2011; January 31, 2012; and April 30, 2012
	 	$	2,750,000.00	 

provided that on the Maturity Date, all Loans outstanding on such date shall be repaid in full.

     2.05 Prepayments.

     (a) Borrower may, upon notice to Agent, at any time or from time to time voluntarily prepay
the Term Loan, Revolving Loans, or Canadian Dollar Loans in whole or in part without premium or
penalty; provided that such notice must be received by Agent not later than 11:00 a.m. (i) three
Business Days prior to any date of prepayment of Eurodollar Rate Loans denominated in U.S. Dollars
and (ii) four Business Days prior to any date of prepayment of Eurodollar Rate Loans denominated in
Canadian Dollars. Each such notice shall specify the date and amount of such prepayment and the
Type(s) of Committed Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the
Interest Period(s) of such Loans. Agent will promptly notify each Lender of its receipt of each
such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If such
notice is given by Borrower, Borrower shall make such prepayment and the payment amount specified
in such notice shall be due and payable on the date specified therein. Any prepayment of a
Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05. Each such prepayment shall
be applied to the Committed Loans of Lenders in accordance with their respective Applicable
Percentages.

     (b) If for any reason the Total Revolving Loan Outstandings at any time exceed the Aggregate
Revolving Loan Commitments then in effect, Borrower shall immediately prepay Revolving Loans and/or
Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess;
provided, however, that Borrower shall not be required to Cash Collateralize the
L/C Obligations pursuant to this Section 2.05 unless after the prepayment in full of the
Revolving Loans the Total Revolving Loan Outstandings exceed the Aggregate Revolving Loan
Commitments then in effect.

     (c) Until such time as the Funded Debt Leverage Ratio is less than 2.0 -to- 1.0, on or before
October 1st of each year, beginning in 2010, Borrower shall prepay to Agent, for the
ratable account of the Lenders, an amount equal to twenty-five percent (25%) of Free Cash Flow for
the immediately preceding fiscal year; provided, however, if the financial
statements delivered by the Borrower pursuant to Section 6.01(a) and the Compliance
Certificate delivered by the Borrower pursuant to Section 6.02(a) evidence the Borrower’s
satisfaction of the financial covenants set forth and contained in Section 6.12 through the
fiscal year ending May 31, 2009, the prepayment required under this Section 2.05(c) shall
be the lesser of (i) twenty-five (25%) percent of Free Cash Flow for the immediately preceding
fiscal year or (ii) $1,500,000.00.

     (d) All prepayments under this Section 2.05 shall be applied to installments due under
the Term Loan in the inverse order of their maturity.

     2.06 Termination or Reduction of Commitments. Borrower may, upon notice to Agent,
terminate the Aggregate Revolving Loan Commitments, or from time to time permanently reduce the
Aggregate Revolving Loan Commitments; provided that (a) any such notice shall be received by Agent
not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (b) any
such partial reduction shall be in an aggregate amount of $5,000,000.00 or any whole multiple of
$1,000,000.00 in excess thereof, (c) Borrower shall not terminate or reduce the Aggregate Revolving

- 33 -

 

Loan Commitments if, after giving effect thereto and to any concurrent prepayments hereunder,
the Total Revolving Loan Outstandings would exceed the Aggregate Revolving Loan Commitments, and
(d) if, after giving effect to any reduction of the Aggregate Revolving Loan Commitments, the L/C
Sublimit exceeds the amount of the Aggregate Revolving Loan Commitments, such Sublimit shall be
automatically reduced by the amount of such excess. Agent will promptly notify the Lenders of any
such notice of termination or reduction of the Aggregate Revolving Loan Commitments. Any reduction
of the Aggregate Revolving Loan Commitments shall be applied to the Revolving Loan Commitment of
each Lender according to its Applicable Percentage. All fees accrued until the effective date of
any termination of the Aggregate Revolving Loan Commitments shall be paid on the effective date of
such termination.

     2.07 Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan
shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate
and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

          (ii) If any amount (other than principal of any Loan) payable by Borrower under any Loan
Document is not paid when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then upon the request of the Required Lenders, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

          (iii) Upon the request of the Required Lenders, while any Event of Default exists, Borrower
shall pay interest on the principal amount of all outstanding Obligations hereunder at a
fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

          (iv) Accrued and unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     (d) For the purposes of the Interest Act (Canada), (i) whenever a rate of interest or fee rate
hereunder is calculated on the basis of a year (the “deemed year”) that contains fewer days than
the actual number of days in the calendar year of calculation, such rate of interest or fee rate
shall be expressed as a yearly rate by multiplying such rate of interest or fee rate by the actual
number of days in the calendar year of calculation and dividing it by the number of days in the
deemed year, (ii) the principle of deemed reinvestment of interest shall not apply to any interest
calculation hereunder and (iii) the rates of interest stipulated herein are intended to be nominal
rates and not effective rates or yields.

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     2.08 Fees. In addition to certain fees described in subsections (i) and (j)
of Section 2.03:

     (a) Commitment Fee — Aggregate Revolving Loan Commitments. Borrower shall pay to
Agent for the account of each Lender in accordance with its Applicable Percentage, a commitment fee
equal to the Applicable Rate times the daily amount by which the Aggregate Revolving Loan
Commitments exceed the sum of (i) the Outstanding Revolving Loan Amount of Revolving Loans
plus (ii) the Outstanding Revolving Loan Amount of L/C Obligations, calculated on the basis
of a 360-day year and the number of actual days elapsed. The commitment fee shall accrue at all
times during the Availability Period, including at any time during which one or more of the
conditions in Article IV is not met, and shall be due and payable quarterly in arrears on
the last Business Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the last day of the Availability Period. The
commitment fee shall be calculated quarterly in arrears, and if there is any change in the
Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such Applicable Rate was in
effect.

     (b) Commitment Fee — Canadian Dollar Loan Commitment. Borrower shall pay to Agent for
the sole account of the Canadian Lender, a commitment fee equal to the Applicable Rate
times the daily amount by which the Canadian Dollar Loan Commitment exceeds the Outstanding
Canadian Dollar Loan Amount of Canadian Dollar Loans calculated on the basis of a 360-day year and
the number of actual days elapsed. The commitment fee shall accrue at all times during the
Availability Period, including at any time during which one or more of the conditions in
Article IV is not met, and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such date to
occur after the Closing Date, and on the last day of the Availability Period. The commitment fee
shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during
any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in effect.

     (c) Other Fees. The Borrower shall pay (i) to the Lead Arranger and the Agent for
their own respective accounts fees in the amounts and at the times specified in the Agent Fee
Letter and (ii) to any other arranger fees in such amounts and at such times as are agreed upon
between such arranger and the Borrower. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

     2.09 Computation of Interest and Fees. All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis
of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations
of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on the basis of a
365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall
not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is
paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.11(a), bear interest for one day. Each determination by Agent of an interest
rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

     2.10 Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by Agent in the ordinary course of business. The accounts or
records maintained by Agent and each Lender shall be conclusive absent manifest error of the amount
of

- 35 -

 

the Credit Extensions made by Lenders to Borrower and the interest and payments thereon. Any
failure to so record or any error in doing so shall not, however, limit or otherwise affect the
obligation of Borrower hereunder 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 Agent in respect of such matters, the accounts and records of Agent shall control in
the absence of manifest error. Upon the request of any Lender made through Agent, Borrower shall
execute and deliver to such Lender (through Agent) a Note, which shall evidence such Lender’s Loans
in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse
thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect
thereto.

     (b) In addition to the accounts and records referred to in subsection (a), each Lender
and Agent shall maintain in accordance with its usual practice accounts or records evidencing the
purchases and sales by such Lender of participations in Letters of Credit. In the event of any
conflict between the accounts and records maintained by Agent and the accounts and records of any
Lender in respect of such matters, the accounts and records of Agent shall control in the absence
of manifest error.

     2.11 Payments Generally; Agent’s Clawback.

     (a) (i) General. All payments to be made by Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by Borrower hereunder with respect to other than Canadian Dollar
Loans shall be made to Agent, for the account of the respective Lenders to which such payment is
owed, at the Agent’s Office in Dollars and in immediately available funds not later than 12:00 noon
on the dates specified herein. Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such payment in like funds by wire
transfer to such Lender’s Lending Office. Except as otherwise expressly provided herein, all
payments by Borrower hereunder with respect to principal and interest on Canadian Dollar Loans
shall be made to the Agent, for the account of the Canadian Lender, at the Agent’s Office in
Canadian Dollars and in Same Day Funds not later than 12:00 noon on the dates specified herein.
Without limiting the generality of the foregoing, all payments due under this Agreement shall be
made in the United States. All payments received by Agent after 12:00 noon shall be deemed
received on the next succeeding Business Day and any applicable interest or fees shall continue to
accrue. If any payment to be made by Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be.

     (ii) On each date when the payment of any principal, interest or fees are due hereunder or
under any Note, Borrower agrees to maintain on deposit in an ordinary checking account maintained
by Borrower with Agent (hereinafter, as such account shall be designated by Borrower in a written
notice to Agent from time to time, referred to as the “Borrower Account”) an amount
sufficient to pay such principal, interest or fees in full on such date. Borrower hereby
authorizes Agent (A) to deduct automatically all principal, interest or fees when due hereunder or
under any Note from the Borrower Account, and (B) if and to the extent any payment of principal,
interest or fees under this Agreement or any Note is not made when due to deduct any such amount
from any or all of the accounts of Borrower maintained at Agent. Agent agrees to provide written
notice to Borrower of any automatic deduction made pursuant to this Section 2.11(a)(ii)
showing in reasonable detail the amounts of such deduction. Lenders agree to reimburse Borrower
promptly based on their Applicable Percentage for any amounts deducted from such accounts in excess
of amount due hereunder and under any other Loan Documents. Borrower’s failure to deposit funds
into the Borrower Account as required under the terms of this Agreement in no way relieves Borrower
of its obligation to make any payment due under the terms of this Agreement on such date.

- 36 -

 

     (b) (i) Funding by Lenders; Presumption by Agent. Unless Agent shall have received
notice from a Lender prior to the proposed date of any Committed Borrowing of Eurodollar Rate Loans
(or, in the case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the date of
such Committed Borrowing) that such Lender will not make available to Agent such Lender’s share of
such Committed Borrowing, Agent may assume that such Lender has made such share available on such
date in accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base Rate
Loans, that such Lender has made such share available in accordance with and at the time required
by Section 2.02) and may, in reliance upon such assumption, make available to Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to Agent, then the applicable Lender and Borrower severally agree to
pay to Agent forthwith on demand such corresponding amount in immediately available funds with
interest thereon, for each day from and including the date such amount is made available to
Borrower to but excluding the date of payment to Agent, at (A) in the case of a payment to be made
by such Lender, the greater of the Federal Funds Rate and a rate determined by Agent in accordance
with banking industry rules on interbank compensation, plus any administrative, processing or
similar fees customarily charged by Agent in connection with the foregoing and (B) in the case of a
payment to be made by Borrower, the interest rate applicable to Base Rate Loans. If Borrower and
such Lender shall pay such interest to Agent for the same or an overlapping period, Agent shall
promptly remit to Borrower the amount of such interest paid by Borrower for such period. If such
Lender pays its share of the applicable Committed Borrowing to Agent, then the amount so paid shall
constitute such Lender’s Revolving Loan included in such Committed Borrowing. Any payment by
Borrower shall be without prejudice to any claim Borrower may have against a Lender that shall have
failed to make such payment to Agent.

          (ii) Payments by Borrower; Presumptions by Agent. Unless Agent shall have received
notice from Borrower prior to the date on which any payment is due to Agent for the account of the
Lenders or the L/C Issuer hereunder that Borrower will not make such payment, Agent may assume that
Borrower has made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to Lenders or the L/C Issuer, as the case may be, the amount due. In such
event, if Borrower has not in fact made such payment, then each of Lenders or the L/C Issuer, as
the case may be, severally agrees to repay to Agent forthwith on demand the amount so distributed
to such Lender or the L/C Issuer, in immediately available funds with interest thereon, for each
day from and including the date such amount is distributed to it to but excluding the date of
payment to Agent, at the greater of the Federal Funds Rate and a rate determined by Agent in
accordance with banking industry rules on interbank compensation. A notice of Agent to any Lender
or Borrower with respect to any amount owing under this subsection (b) shall be conclusive,
absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to Agent
funds for any Loan to be made by such Lender as provided in the foregoing provisions of this
Article II, and such funds are not made available to Borrower by Agent because the
conditions to the applicable Credit Extension set forth in Article IV are not satisfied or
waived in accordance with the terms hereof, Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and to make payments under Section
10.04(c) are several and not joint. The failure of any Lender to make any Committed Loan, to
fund any such participation or to make any payment under Section 10.04(c) on any date
required hereunder shall not relieve any other Lender of its corresponding obligation to do so on
such date, and no Lender shall be responsible for the failure of any other Lender to so make its
Committed Loan, purchase its participation or to make its payment under Section 10.04(e).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the

- 37 -

 

funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     2.12 Sharing of Payments. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the
Committed Loans made by it, or the participations in L/C Obligations held by it resulting in such
Lender’s receiving payment of a proportion of the aggregate amount of such Committed Loans or
participations and accrued interest thereon greater than its pro rata share thereof as provided
herein, then the Lender receiving such greater proportion shall (a) notify Agent of such fact, and
(b) purchase (for cash at face value) participations in the Committed Loans and subparticipations
in L/C Obligations of the other Lenders, or make such other adjustments as shall be equitable, so
that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Committed Loans and other
amounts owing them, provided that:

          (i) if any such participations or subparticipations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest; and

          (ii) the provisions of this Section 2.12 shall not be construed to apply to (A) any
payment made by Borrower pursuant to and in accordance with the express terms of this Agreement or
(B) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Committed Loans or subparticipations in L/C Obligations to any assignee
or participant, other than to Borrower or any Subsidiary thereof (as to which the provisions of
this Section shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against such Loan Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of
such participation. Notwithstanding any term, condition or provision of this Section 2.12
or any other provision of this Agreement to the contrary, any payment or other amount received by
the L/C Issuer from cash or deposit account balances used to Cash Collateralize obligations of a
Lender to the L/C Issuer, in accordance with the terms, conditions, and provisions of Section
2.03(a)(iii)(E) shall be the for the sole benefit of the L/C Issuer and shall not be subject to
the sharing provisions of this Section 2.12.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Payments Free of Taxes. Any and all payments by Borrower to or on account of any
obligation of Borrower hereunder or under any other Loan Document shall be made free and clear of
and without reduction or withholding for any indemnified Taxes or Other Taxes, provided that if
Borrower shall be required by any applicable law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section 3.01), Agent, Lender or L/C Issuer, 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 timely pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable Law.

     (b) Payment of Other Taxes by Borrower. Without limiting the provisions of
subsection (a)

- 38 -

 

above, Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable Law.

     (c) Indemnification by Borrower. Borrower shall indemnify Agent, each Lender and the
L/C Issuer, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by Agent, such Lender or the L/C Issuer, as the case may
be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to Borrower by a Lender or the L/C Issuer (with a copy to Agent), or by Agent
on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest
error.

     (d) Status of Lenders. Any Lender, if requested by Borrower or Agent, shall deliver
such documentation prescribed by applicable law or reasonably requested by Borrower or Agent as
will enable Borrower or Agent to determine whether or not such Lender is subject to backup
withholding or information reporting requirements.

     (e) Treatment of Certain Refunds. If Agent, any Lender or the L/C Issuer has received
a refund of any 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, it shall pay to
Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by Borrower under this Section with respect to the Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses and net of any loss or gain realized
in the conversion of such funds from or to another currency incurred by Agent, such Lender or the
L/C Issuer, as the case may be, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that Borrower, upon the request of
Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over to Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to Agent, such
Lender or the L/C Issuer in the event Agent, such Lender or the L/C Issuer is required to repay
such refund to such Governmental Authority. This subsection shall not be construed to require
Agent, any Lender or the L/C Issuer to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to Borrower or any other Person.

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that
any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain or fund Eurodollar Rate Loans, 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 applicable interbank market, then, on notice thereof by such Lender to Borrower through
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans in the affected
currency or currencies or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended
until such Lender notifies Agent and Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, Borrower shall, upon demand from such
Lender (with a copy to Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such
Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Notwithstanding the
foregoing to the contrary and despite the illegality for such a Lender to make, maintain or fund
Eurodollar Rate Loans, that Lender shall remain committed to make Base Rate Loans and shall be
entitled to recover interest thereon at the Base Rate. Upon any such prepayment or conversion,
Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due
under Section 3.05 in accordance with the terms thereof due to such prepayment or

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conversion.

     3.03 Inability to Determine Rates.

     (a) If the Agent determines that for any reason in connection with any request for a
Eurodollar Rate Loan or a conversion to or continuation thereof that (i) Dollar deposits are not
being offered to banks in the applicable offshore interbank eurodollar market for such currency for
the applicable amount and Interest Period of such Eurodollar Rate Loan, (ii) adequate and
reasonable means do not exist for determining the Eurodollar Base Rate, or (iii) the Eurodollar
Base Rate does not adequately and fairly reflect the cost to such Lenders of funding or maintaining
such Loan, Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation
of the Lenders to make or maintain Eurodollar Rate Loans in the affected currency or currencies
shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders)
revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending request for
a Borrowing of, conversion to or continuation of Eurodollar Rate Loans in the affected currency or
currencies or, failing that, will be deemed to have converted such request into a request for a
Committed Borrowing of Base Rate Loans in the amount specified therein.

     (b) If the Required Lenders determine (which determination shall be conclusive and binding
upon the Borrower) that the Eurodollar Base Rate will not adequately and fairly reflect the cost to
such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected
Loans, the Agent shall give notice thereof to the Borrower and the Lenders as soon as practicable
thereafter. Upon delivery of such notice and until such time as the Eurodollar Base Rate does
adequately and fairly reflect such costs (and the Lenders shall provide notice to the Agent and the
Borrower within five (5) Business Days of such time), the Market Disruption Spread shall be
included in the calculation of the Eurodollar Base Rate.

     3.04 Increased Costs.

     (a) Increased Costs Generally. If any Change in Law applicable to the Lender or the
L/C Issuer shall:

          (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance
charge or similar requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement reflected in the
Eurodollar Rate) or the L/C Issuer;

          (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to
this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Eurodollar
Rate Loan made by it, or change the basis of taxation of payments to such Lender or the L/C Issuer
in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and
the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the L/C
Issuer); or

          (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such Lender or
any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining
any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the

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amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of
principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer,
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or
amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional
costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time Borrower will pay to such Lender or the L/C
Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this
Section 3.04 and delivered to Borrower shall be conclusive absent manifest error. Borrower
shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such
certificate within ten (10) days after receipt thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not
constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation,
provided that Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to
the foregoing provisions of this Section 3.04 for any increased costs incurred or
reductions suffered more than nine months prior to the date that such Lender or the L/C Issuer, as
the case may be, notifies Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the L/C Issuer’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-month period referred to above shall be extended to include the period
of retroactive effect thereof).

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to Agent) from
time to time, Borrower shall promptly compensate such Lender for and hold such Lender harmless from
any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise); or

     (b) any failure by Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in
the amount notified by Borrower,

     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

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deposits from which such funds were obtained. Borrower shall also pay any customary administrative
fees charged by such Lender in connection with the foregoing. For purposes of calculating amounts
payable by Borrower to Lenders under this Section 3.05, each Lender shall be deemed to have
funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

     3.06 Mitigation Obligations. If any Lender requests compensation under Section
3.04, or Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a
notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate
a different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need
for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not
subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

     3.07 Survival. All of Borrower’s obligations under this Article III shall
survive termination of the Aggregate Revolving Loan Commitments and repayment of all other
Obligations hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each
Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following
conditions precedent:

     (a) Agent’s receipt of the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer
of the signing Loan Party, 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
satisfactory to Agent and each of the Lenders:

          (i) executed counterparts of this Agreement, all Collateral Documents and the Guaranty,
sufficient in number for distribution to Agent, each Lender and Borrower;

          (ii) Notes executed by Borrower in favor of each Lender requesting such Notes;

          (iii) such certificates of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of each Loan Party as Agent may require evidencing the
identity, authority and capacity of each Responsible Officer thereof authorized to act as a
Responsible Officer in connection with this Agreement and the other Loan Documents to which such
Loan Party is a party;

          (iv) such documents and certifications as Agent may reasonably require to evidence that each
Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such qualification, except to the
extent that failure to

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do so could not reasonably be expected to have a Material Adverse Effect;

          (v) a favorable opinion of counsel to the Loan Parties acceptable to Agent addressed to Agent
and each Lender, as to the matters set forth concerning the Loan Parties and the Loan Documents in
form and substance acceptable to Agent;

          (vi) a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of
all consents, licenses and approvals required in connection with the execution, delivery and
performance by such Loan Party and the validity against such Loan Party of the Loan Documents to
which it is a party, and such consents, licenses and approvals shall be in full force and effect,
or (B) stating that no such consents, licenses or approvals are so required;

          (vii) evidence that all insurance required to be maintained pursuant to the Loan Documents has
been obtained and is in effect;

          (viii) a duly completed Compliance Certificate as of the last day of the fiscal quarter of
Borrower most recently ended prior to the Closing Date, signed by a Responsible Officer of
Borrower;

          (ix) a forecast for the Borrower’s fiscal year ending May 31, 2009, in the same format as
required for the 2010 fiscal year forecast, all as described in Section 6.01(c); and

          (x) such other assurances, certificates, documents, consents or opinions as Agent, the L/C
Issuer or the Required Lenders reasonably may require.

     (b) Any fees required to be paid on or before the Closing Date shall have been paid.

     (c) Unless waived by Agent, Borrower shall have paid the reasonable fees, charges and
disbursements of counsel to Agent (directly to such counsel if requested by 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 Agent).

Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, 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 Agent shall have received notice from such Lender
prior to the proposed Closing Date specifying its objection thereto.

     4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any
Request for Credit Extension is subject to the following conditions precedent:

     (a) The representations and warranties of Borrower and each other Loan Party contained in
Article V or any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct on and as of the
date of such Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct as of such
earlier date, and except that for purposes of this Section 4.02, the representations and
warranties contained in subsections (a) and (b) of Section 5.05 shall be
deemed to refer to the most recent statements furnished pursuant to clauses (a) and
(b), respectively, of Section 6.01.

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     (b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

     (c) Agent and, if applicable, the L/C Issuer shall have received a Request for Credit
Extension in accordance with the requirements hereof.

     (d) Agent shall have received, in form and substance satisfactory to it, such other
assurances, certificates, documents or consents related to the foregoing as Agent or the Required
Lenders reasonably may require.

Each Request for Credit Extension submitted by Borrower shall be deemed to be a representation and
warranty that the conditions specified in Sections 4.02(a) and (b) have been
satisfied on and as of the date of the applicable Credit Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Agent and the Lenders that:

     5.01 Existence, Qualification and Power. Each Loan Party (a) is duly organized or
formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of
its incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and
carry on its business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in
good standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license; except in each
case referred to in clauses (b)(i) or (c) above, to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each
Loan Party of each Loan Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a) contravene the
terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to be made under (i)
any Contractual Obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree
of any Governmental Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any applicable Law except in the case of subsections (b) and
(c) where such breach, contravention or payment could not reasonably be expected to have a
Material Adverse Effect.

     5.03 Governmental Authorization; Other Consents. 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 the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan Document except for such
filings as may be necessary to perfect the security interest of the Agent in the Collateral.

     5.04 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 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 party thereto in accordance with its terms.

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     5.05 Financial Statements; No Material Adverse Effect; No Internal Control Event.

     (a) (i) The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted
therein; (ii) fairly present the financial condition of Borrower and its Consolidated Subsidiaries
as of the date thereof and their results of operations for the period covered thereby in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other liabilities, direct or
contingent, of Borrower and its Consolidated Subsidiaries as of the date thereof, including
liabilities for taxes, material commitments and Indebtedness.

     (b) The unaudited consolidated balance sheets of Borrower and its Consolidated Subsidiaries
dated February 28, 2009, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for the fiscal quarter ended on that date (i) were prepared in
accordance with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein, and (ii) fairly present the financial condition of Borrower and
its Consolidated Subsidiaries as of the date thereof and their results of operations for the period
covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes
and to normal year-end audit adjustments.

     (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

     (d) To the best knowledge of Borrower, other than as set forth in Amendment No. 2 to the
Registration Statement on Form S-1 of the Borrower, as filed on September 15, 2008 with the SEC, no
Internal Control Event exists or has occurred since the date of the Audited Financial Statements
that has resulted in or could reasonably be expected to result in a misstatement in any material
respect, in any financial information delivered or to be delivered to Agent or Lenders, of (i)
covenant compliance calculations provided hereunder or (ii) the assets, liabilities, financial
condition or results of operations of Borrower and its Subsidiaries on a consolidated basis.

     (e) The forecasted balance sheet and statements of income and cash flows of Borrower and its
Consolidated Subsidiaries delivered pursuant to Section 6.01(c) were prepared in good faith
on the basis of the assumptions stated therein, which assumptions were fair in light of the
conditions existing at the time of delivery of such forecasts, and represented, at the time of
delivery, Borrower’s best estimate of its future financial condition and performance.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending
or, to the knowledge of Borrower after due and diligent investigation, threatened or contemplated,
at law, in equity, in arbitration or before any Governmental Authority, by or against Borrower or
any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect
or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) except as specifically disclosed in Schedule 5.06, either individually or in
the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse
Effect, and there has been no adverse change in the status, or financial effect on any Loan Party
or any Subsidiary thereof, of the matters described on Schedule 5.06.

     5.07 No Default. Neither any Loan Party nor any Subsidiary thereof is in default under
or with respect to any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing
or would result from the consummation of the transactions contemplated by this Agreement or any
other Loan Document.

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     5.08 Ownership of Property; Liens. Each of Borrower and each Subsidiary has good
record and marketable title in fee simple to, or valid leasehold interests in, all real property
necessary or used in the ordinary conduct of its business, except for such defects in title as
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. The property of Borrower and its Subsidiaries is subject to no Liens, other than Liens
permitted by Section 7.01, including Liens listed on Schedule 7.01.

     5.09 Environmental Compliance. Borrower and its Subsidiaries conduct in the ordinary
course of business a review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on their respective
businesses, operations and properties, and as a result thereof Borrower has reasonably concluded
that, except as specifically disclosed in Schedule 5.09, such Environmental Laws and claims
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     5.10 Insurance. The properties of Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of Borrower, in such amounts
(after giving effect to any self-insurance compatible with the following standards), with such
deductibles and covering such risks as Borrower reasonably believes appropriate. All insurance with
respect to the Collateral shall (a) contain a breach of warranty clause in favor of the Agent, (b)
provide that no cancellation, reduction in amount or change in coverage thereof shall be effective
until at least 30 days after receipt by the Agent of written notice thereof and (c) be reasonably
satisfactory in all material respects to the Agent.

     5.11 Taxes. Borrower and its Subsidiaries have filed all foreign and domestic Federal,
state and other material tax returns and reports required to be filed, and have paid all foreign
and domestic Federal, state and other material taxes, assessments, fees and other governmental
charges levied or imposed upon them or their properties, income or assets otherwise due and
payable, except those which are being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with GAAP. There is no
proposed tax assessment against Borrower or any Subsidiary that would, if made, have a Material
Adverse Effect.

     5.12 ERISA Compliance.

     (a) Each Plan is in compliance with the applicable provisions of ERISA, the Code and other
Federal or state Laws except for any failure to comply which, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. Each Plan that
is intended to qualify under Section 401(a) of the Code has received a favorable determination
letter from the IRS or an application for such a letter is currently being processed by the IRS
with respect thereto and, to the best knowledge of Borrower, nothing has occurred which would
prevent, or cause the loss of, such qualification. Borrower and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 412 of the Code, and no application for a
funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any such Plan.

     (b) There are no pending or, to the best knowledge of Borrower, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could be
reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan
has any Unfunded Pension Liability in excess of the Threshold Amount; (iii) neither Borrower nor
any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of
ERISA

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with respect to any Pension Plan (other than premiums due and not delinquent under Section
4007 of ERISA); (iv) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects
to incur, any liability (and no event has occurred which, with the giving of notice under Section
4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to
a Multiemployer Plan; and (v) neither Borrower nor any ERISA Affiliate has engaged in a transaction
that could be subject to Section 4069 or 4212(c) of ERISA.

     5.13 Subsidiaries. As of the Closing Date, Borrower has no Subsidiaries other than
those specifically disclosed in Part (a) of Schedule 5.13, and the outstanding
Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 5.13
free and clear of all Liens. Borrower has no equity investments in any other corporation or entity
other than those specifically disclosed in Part (b) of Schedule 5.13. All of the
outstanding Equity Interests in Borrower have been validly issued and are fully paid and
nonassessable and are owned by the parties specified and in the amounts specified on Part
(c) of Schedule 5.13 free and clear of all Liens.

     5.14 Margin Regulations; Investment Company Act; Public Utility Holding Company Act.

     (a) Neither Borrower nor any Subsidiary is engaged or will engage, principally or as one of
its important activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or
carrying margin stock.

     (b) None of Borrower, any Person Controlling Borrower, or any Subsidiary (i) is a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, or (ii) is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

     5.15 Disclosure. Borrower has disclosed to Agent and Lenders all agreements,
instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject,
and all other matters known to it, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.

     5.16 Compliance with Laws. Each Loan Party and each Subsidiary thereof is in
compliance in all material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its properties, except in such instances in which
(a) such requirement of Law or order, writ, injunction or decree is being contested in good faith
by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     5.17 Taxpayer Identification Number. Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02 attached hereto and made a part
hereof.

     5.18 Intellectual Property; Licenses, Etc. Borrower and its Subsidiaries own, or
possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents,
patent rights, franchises, licenses and other intellectual property rights that are reasonably
necessary for the operation of their respective businesses, without conflict with the rights of any
other Person. To the best knowledge of Borrower, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now contemplated to be
employed, by Borrower or any Subsidiary infringes

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upon any rights held by any other Person. No claim or litigation regarding any of the
foregoing is pending or, to the best knowledge of Borrower, threatened, which, either individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

     5.19 Rights in Collateral; Priority of Liens. Borrower and each other Loan Party own
the property granted by it as Collateral under the Collateral Documents, free and clear of any and
all Liens in favor of third parties, other than Liens permitted under Section 7.01,
including Liens set forth on Schedule 7.01. Upon the proper filing of UCC financing
statements and trademark and patent assignments, the Liens granted pursuant to the Collateral
Documents will constitute valid and enforceable first, prior and perfected Liens in favor of Agent,
for the ratable benefit of Agent and Lenders on all collateral on which a lien may be perfected by
the filing of such UCC financing statements and trademark and patent assignments, subject only to
the Liens set forth on Schedule 7.01

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Subsidiary to:

     6.01 Financial Statements. Deliver to Agent a sufficient number of copies for
delivery by Agent to each Lender, in form and detail satisfactory to Agent and the Required
Lenders:

     (a) as soon as available, but in any event within one hundred twenty (120) days after the end
of each fiscal year of Borrower, a consolidated balance sheet of Borrower and its Consolidated
Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income
or operations, shareholders’ equity and cash flows for such fiscal year, setting forth in each case
in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared
in accordance with GAAP, such consolidated statements to be audited and accompanied by a report and
opinion of Price WaterhouseCoopers, LLP or another independent certified public accounting firm of
recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall
be prepared in accordance with generally accepted auditing standards and applicable Securities Laws
and shall not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit or with respect to the absence of any
material misstatement;

     (b) as soon as available, but in any event within forty-five (45) days after the end of each
fiscal quarter of each fiscal year of Borrower, a consolidated balance sheet of Borrower and its
Consolidated Subsidiaries as at the end of such fiscal quarter, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter and
for the portion of Borrower’s fiscal year then ended, setting forth in each case in comparative
form the figures for the corresponding fiscal quarter of the previous fiscal year and the
corresponding portion of the previous fiscal year, all in reasonable detail, such consolidated
statements to be certified by the chief executive officer, chief financial officer, treasurer or
controller of Borrower as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of Borrower and its Consolidated Subsidiaries in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and

     (c) as soon as available, but in any event at least fifteen (15) days before the end of each
fiscal year of Borrower, forecasts prepared by management of Borrower, in form satisfactory to
Agent and the Required Lenders, of consolidated balance sheets and statements of income or
operations of

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Borrower and its Consolidated Subsidiaries for the immediately following fiscal year
(including the fiscal year in which the Maturity Date occurs), prepared on an annual basis.

     6.02 Certificates: Other Information. Deliver to Agent a sufficient number of copies
for delivery by Agent to each Lender, in form and detail satisfactory to Agent and the Required
Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by the chief financial
officer or president of Borrower;

     (b) promptly after any request by Agent or any Lender, copies of any detailed audit reports,
management letters or recommendations submitted to the board of directors (or the audit committee
of the board of directors) of Borrower by independent accountants in connection with the accounts
or books of Borrower or any Subsidiary, or any audit of any of them;

     (c) promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of Borrower, and copies of any
annual, regular, periodic and special reports and registration statements which Borrower may file
or be required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the
Securities Exchange Act of 1934, and not otherwise required to be delivered to Agent pursuant
hereto;

     (d) promptly after the furnishing thereof, copies of any statement or report furnished to any
holder of debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any
indenture, loan or credit or similar agreement and not otherwise required to be furnished to the
Lenders pursuant to Section 6.01 or any other clause of this Section 6.02;

     (e) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
Securities and Exchange Commission (or comparable agency in any applicable non-U.S. jurisdiction)
concerning any investigation or possible investigation or other inquiry by such agency regarding
financial or other operational results of any Loan Party or any Subsidiary thereof;

     (f) promptly, such additional information regarding the business, financial or corporate
affairs of Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as Agent
or any Lender may from time to time reasonably request; and

     (g) concurrently with the delivery of the financial statements referred to in Section
6.01(a), a duly completed Free Cash Flow Certificate signed by a Responsible Officer of the
Borrower.

     Borrower hereby acknowledges that (i) Agent will make available to Lenders and the L/C Issuer
materials and/or information provided by or on behalf of Borrower hereunder (hereinafter
collectively referred to as “Borrower Materials”) by posting Borrower Materials on
IntraLinks or another similar electronic system (hereinafter referred to as the “Platform”)
and (ii) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to
receive material non-public information with respect to Borrower or its securities) (hereinafter
each shall be referred to as a “Public Lender”). Borrower hereby agrees that (A) 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; (B) by marking Borrower Materials “PUBLIC,” Borrower shall
be deemed to have authorized Agent, the L/C Issuer and the 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

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the extent such Borrower Materials constitute Information, they shall be treated as set forth
in Section 10.07); (C) all Borrower Materials marked “PUBLIC” are permitted to be made available
through a portion of the Platform designated “Public Investor;” and (D) Agent 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 Investor”.

     6.03 Notices. Promptly notify Agent and each Lender for which the Agent has provided
an address:

     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect,

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting practices by Borrower
or any Subsidiary, and

     (e) of Borrower’s determination at any time of the occurrence or existence of any Internal
Control Event.

     Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of Borrower setting forth details of the occurrence referred to therein and
stating what action Borrower has taken and proposes to take with respect thereto. Each notice
pursuant to Section 6.03(a) shall describe with particularity any and all provisions of
this Agreement and any other Loan Document that have been breached.

     6.04 Payment of Obligations. Pay and discharge as the same shall become due and
payable, all its obligations and liabilities, including (a) all tax liabilities, assessments and
governmental charges or levies upon it or its properties or assets, unless the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by Borrower or such Subsidiary; (b) all lawful claims
which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and
when due and payable, but subject to any subordination provisions contained in any instrument or
agreement evidencing such Indebtedness.

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force
and effect its legal existence and good standing under the Laws of the jurisdiction of its
organization except in a transaction permitted by Section 7.04 or 7.05; (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and franchises
necessary or desirable in the normal conduct of its business, except to the extent that failure to
do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew
any registered patents, trademarks, trade names and service marks, the non-preservation of which
could reasonably be expected to have a Material Adverse Effect.

     6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals
and replacements thereof except where the failure to do so could not reasonably be expected to have
a Material Adverse Effect,

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance

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companies not Affiliates of Borrower, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons engaged in the same or
similar business, of such types and in such amounts (after giving effect to any self-insurance
compatible with the following standards) as are customarily carried under similar circumstances by
such other Persons and providing for not less than thirty (30) days’ prior notice to Agent of
termination, lapse or cancellation of such insurance. Borrower shall cause its carriers to name the
Agent as additional insured and, in the case of property or casualty insurance for all tangible
Collateral, first loss payee, and shall provide the Agent with a certificate or certificates
evidencing such coverages and the payment of premiums therefore, on or before the Closing Date and
at such times as the insurance in question is modified or renewed.

     6.08 Compliance with Laws. Comply in all material respects with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or
property, except in such instances in which (a) such requirement of Law or order, write, injunction
or decree is being contested in good faith by appropriate proceedings diligently conducted or (b)
the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records. Maintain (a) proper books of record and account, in which
full, true and correct entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of Borrower or such
Subsidiary, as the case may be and (b) such books of record and account in material conformity with
all applicable requirements of any Governmental Authority having regulatory jurisdiction over
Borrower or such Subsidiary, as the case may be. Borrower shall maintain at all times books and
records pertaining to the Collateral in such detail, form and scope as Agent or any Lender shall
reasonably require.

     6.10 Inspection Rights. Permit representatives and independent contractors of Agent
and each Lender to visit and inspect any of its properties, to examine its corporate, financial and
operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs,
finances and accounts with its directors, officers, and independent public accountants, all at the
expense of Borrower and at such reasonable times during normal business hours and as often as may
be reasonably desired, upon reasonable advance notice to Borrower; provided, however, that when an
Event of Default exists Agent or any Lender (or any of their respective representatives or
independent contractors) may do any of the foregoing at the expense of Borrower at any time during
normal business hours and without advance notice.

     6.11 Use of Proceeds. Use the proceeds of (a) the Revolving Loans and Letters of
Credit for working capital and other lawful corporate purposes, including, without limitation,
financing such acquisitions as may be permitted hereunder and (b) the Term Loan for purposes of:
(i) refinancing Borrower’s existing senior credit facility with Bank of America, N.A. and JPMorgan
Chase Bank, N.A., (ii) financing the settlement of certain labor class action litigation filed in
California against Conam Inspection & Engineering Services, Inc. (loan proceeds of approximately
$2,100,000.00 to be used), and (iii) financing (1) up to $10,000,000.00 (plus or minus and subject
to minor closing adjustments) of the costs associated with the Borrower’s acquisition of IMPro
Technologies, LP, (2) up to $4,000,000.00 (plus or minus and subject to minor closing adjustments)
of the costs associated with the Borrower’s acquisition of Arminus, Inc., d/b/a Pacific Technical
Services, and (3) up to $750,000.00 (plus or minus and subject to minor closing adjustments) of the
costs associated with the Borrower’s acquisition of Space Science Services, Inc.

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     6.12 Financial Covenants

     (a) Minimum Consolidated EBITDA. Maintain, on a consolidated basis, EBITDA of at
least the following amounts calculated for the 12-month periods ending on the following dates:

	 	 	 	 	 
	 	 	Minimum Annual
	Fiscal Year	 	Consolidated EBITDA
	2010

	 	$	37,500,000.00	 
	2011

	 	$	40,000,000.00	 
	2012 and thereafter

	 	$	45,000,000.00	 

     (b) Minimum Consolidated Debt Service Coverage Ratio. Maintain, on a consolidated
basis, a Debt Service Coverage Ratio of at least the ratio indicated for each period specified
below:

	 	 	 
	Test Dates	 	Ratio
	August 31, 2009; November 30, 2009; February 28,
2010; and May 31, 2010

	 	1.10 -to- 1.0
	August 31, 2010; November 30, 2010; February 28,
2011; and May 31, 2011

	 	1.15 -to- 1.0
	August 31, 2011; November 30, 2011; February 28,
2012; and May 31, 2012

	 	1.20 -to- 1.0

     This ratio will be calculated at the end of each reporting period for which this Agreement
requires Borrower to deliver financial statements, using the results of the twelve-month period
ending with that reporting period. The current portion of long-term liabilities will be measured
as of the last day of the calculation period.

     (c) Maximum Funded Debt Leverage Ratio. Maintain, on a consolidated basis, a Funded
Debt Leverage Ratio not exceeding the ratio indicated for each period specified below:

	 	 	 
	Test Dates	 	Ratio
	August 31, 2009 and November 30, 2009

	 	3.00 -to- 1.0
	February 28, 2010; May 31, 2010; and August 31,
2010

	 	2.50 -to- 1.0
	November 30, 2010 and thereafter

	 	2.25 -to- 1.0

     This ratio will be calculated at the end of each reporting period for which this Agreement
requires

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Borrower to deliver financial statements, using the results of the twelve-month period ending
with that reporting period.

     6.13 Additional Guarantors; Pledges of Stock. Notify Agent at the time that (a) any
Person becomes a Subsidiary, and promptly thereafter (and in any event within 30 days), cause such
Person, if such Person is a Majority-Owned Subsidiary, (i) to become a Guarantor by executing and
delivering to Agent a joinder to the Guaranty or such other document as Agent shall deem
appropriate for such purpose and (ii) to deliver to Agent documents of the types referred to in
clauses (iii) and (iv) of Section 4.01(a) and, with respect to any such Person
which has assets or operating income that represents fifteen percent (15.0%) or more of the assets
or operating income of Borrower, favorable opinions of counsel to such Person (which shall cover,
among other things, the legality, validity, binding effect and enforceability of the documentation
referred to in the foregoing clause (i)), all in form, content and scope reasonably
satisfactory to Agent; provided that such Subsidiary (1) has assets or operating income that
represents five percent (5.0%) or more of the assets or operating income of Borrower and/or (2) was
formed or incorporated in the United States or (b) any foreign first-tier Subsidiary of the
Borrower has assets or operating income that represents five percent (5.0%) or more of the assets
or operating income of Borrower, and promptly thereafter (and in any event within 30 days), take
such action, and cause the appropriate Subsidiaries to take such action, from time to time as shall
be necessary to ensure that sixty-five percent (65%) of the Equity Interests in such foreign
first-tier Subsidiary that is a Majority-Owned Subsidiary shall be pledged to the Agent, for the
benefit of the Lenders, (i) by executing and delivering to the Agent a pledge agreement, or such
other document as Agent shall deem appropriate for such purpose, and (ii) by delivering to the
Agent documents of the types referred to in clauses (iii) and (iv) of Section
4.01(a) with respect to such foreign Subsidiary and, with respect to any such foreign
first-tier Subsidiary which has assets or operating income that represents fifteen percent (15.0%)
or more of the assets or operating income of Borrower, favorable opinions of counsel to such
foreign first-tier Subsidiary and to such pledging Borrower or Subsidiary (which shall cover, among
other things, the legality, validity, binding effect and enforceability of the documentation
referred to in the foregoing clause (i)), all in form, content and scope reasonably
satisfactory to the Agent.

     6.14 Collateral Records. To execute and deliver promptly, and to cause each other
Loan Party to execute and deliver promptly, to Agent, from time to time, solely for Agent’s
convenience in maintaining a record of the Collateral, such written statements and schedules as
Agent may reasonably require designating, identifying or describing the Collateral. The failure by
Borrower or any other Loan Party, however, to promptly give Agent such statements or schedules
shall not affect, diminish, modify or otherwise limit the Liens on the Collateral granted pursuant
to the Collateral Documents.

     6.15 Security Interests. To, and to cause each other Loan Party to, (a) defend the
Collateral against all claims and demands of all Persons at any time claiming the same or any
interest therein, (b) comply with the requirements of all United States state and federal laws in
order to grant to Agent and Lenders valid and perfected security interests in the Collateral
subject only to Liens set forth on Schedule 7.01, with perfection, in the case of any
investment property, deposit account or letter of credit, being effected by giving Agent control of
such investment property or deposit account or letter of credit, rather than by the filing of a
Uniform Commercial Code (“UCC”) financing statement with respect to such investment
property, and (c) do whatever Agent may reasonably request, from time to time, to effect the
purposes of this Agreement and other Loan Documents, including filing notices of liens, UCC
financing statements, fixture filings and amendments, renewals and continuations thereof;
cooperating with Agent’s representatives; keeping stock records; using reasonable efforts to obtain
waivers from landlords and mortgagees and from warehousemen and their landlords and mortgagees; and
paying claims which might, if unpaid, become a lien on the Collateral, Agent is hereby authorized
by Borrower to file any UCC financing statements covering the Collateral whether or not Borrower’s
signatures appear thereon.

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     6.16 Deposits. Maintain its primary deposit relationship, including, without
limitation, operating accounts and cash management services with Bank of America, such services to
be provided at reasonable costs to Borrower and its Subsidiaries.

     6.17 2009 Acquisitions. Prior to using any of the proceeds of the Term Loan for the
purposes of consummating the acquisition by Borrower of the assets of any of (a) IMPro
Technologies, LP, (b) Arminus, Inc., d/b/a Pacific Technical Services, or (c) Space Science
Services, Inc., confirm that the following shall be true and correct with respect to each such
acquisition: (i) such acquisition shall have closed and all assets purchased thereunder shall have
been delivered to Borrower; (ii) all conditions precedent to the closing of such acquisition set
forth and contained in the applicable purchase agreement shall have been satisfied or waived; (iii)
no liens or encumbrances affecting the assets acquired in connection with such acquisition shall
exist other than those created pursuant to or expressly permitted by this Agreement and the other
Loan Documents, including, without limitation, those liens and encumbrances permitted by the terms
of Section 7.01(i) of this Agreement; (iv) no dispute shall exist between Borrower and the
applicable seller in connection with such acquisition; and (v) any Indebtedness incurred (and not
assumed) by Borrower in connection with any such acquisition shall be unsecured and shall be
subordinated to the Obligations in accordance with the terms, conditions, and provisions of
Section 7.03(f).

ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount
secured or benefited thereby is not increased except as expressly contemplated by Section
7.03(b), (iii) the direct or any contingent obligor with respect thereto is not changed, and
(iv) and any renewal or extension of the obligations secured or benefited thereby is permitted by
Section 7.03(b);

     (c) Liens for taxes not yet due or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period of more than 30 days
or which are being contested in good faith and by appropriate proceedings diligently conducted, if
adequate reserves with respect thereto are maintained on the books of the applicable Person;

     (e) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation, other than any Lien
imposed by ERISA;

     (f) deposits to secure the performance of bids, trade contracts and leases (other than

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Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

     (g) easements, rights-of-way, restrictions and other similar encumbrances affecting real
property which, in the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person;

     (h) Liens securing judgments for the payment of money not constituting an Event of Default
under Section 8.01(h);

     (i) Liens securing Indebtedness permitted under Section 7.03(e); provided that (i)
such Liens do not at any time encumber any property other than the property financed by such
Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market
value, whichever is lower, of the property being acquired on the date of acquisition; and

     (j) Liens existing solely with respect to cash or deposit account balances used to Cash
Collateralize obligations of a Lender to the L/C Issuer, in accordance with the terms, conditions,
and provisions of Section 2.03(a)(iii)(E).

     7.02 Investments Make any Investments, except:

     (a) Investments held by Borrower or such Subsidiary in the form of cash equivalents or
short-term marketable debt securities;

     (b) advances to officers, directors and employees of Borrower and Subsidiaries in an aggregate
amount not to exceed $250,000.00 at any time outstanding, for travel, entertainment, relocation and
analogous ordinary business purposes;

     (c) Investments (i) of Borrower in any Wholly-Owned Subsidiary, (ii) of Borrower or any
Wholly-Owned Subsidiary in other Subsidiaries, not to exceed $2,000,000.00 in the aggregate in any
12-month period, and (iii) of any Wholly-Owned Subsidiary in Borrower or in another Wholly-Owned
Subsidiary;

     (d) Investments of Borrower or its Subsidiaries for strategic purposes in non-Subsidiary joint
ventures, not to exceed $2,000,000.00 individually in any 12-month period; provided,
however, Investments permitted under this Section 7.02(d) shall not be construed to
increase the $5,000,000.00 limit on new acquisitions described in Section 7.02(f) below;

     (e) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss;

     (f) Investments in (i) the acquisition by Borrower of the assets of (A) IMPro Technologies,
LP, (B) Arminus, Inc., d/b/a Pacific Technical Services, and (C) Space Science Services, Inc. and
(ii) other acquisitions of assets and/or Equity Interests; provided that, with
respect to any such other acquisitions (and, for purposes of clarity, not the acquisitions
described in the foregoing clause (i)), all of the following shall have been satisfied: (A)
the cash portion of the purchase price (paid at closing and in the first 12 months thereafter) with
respect to such other acquisition shall not exceed $7,000,000.00 in the aggregate in any 12-month
period; (B) there shall not be more than two such other acquisitions in any 12-

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month period where the cash portion of the purchase price (paid at closing and in the first 12
months thereafter) with respect to any such other acquisition exceeds $3,000,000.00; (C)
immediately following each such other acquisition, the amount by which the Aggregate Revolving Loan
Commitments exceed the Total Revolving Loan Outstandings shall not be less than $5,000,000.00; (D)
the acquired Person shall be in a line of business substantially similar to the business conducted
by Borrower or its Subsidiaries; (E) pro-forma compliance with the financial covenants set forth
and contained in Section 6.12 can be evidenced by Borrower to the reasonable satisfaction
of Agent and Required Lenders; and (F) no Default shall have occurred and be continuing as of the
date any such other acquisition is closed; provided, however, that, in the case of
any acquisition described in either of the foregoing clauses (i) and (ii), notice of any
such other acquisition shall be delivered to the Agent no later than 15 days prior to the date of
the closing of such other acquisition, and all material acquisition documents shall promptly be
delivered to the Agent upon the Agent’s request; and

     (g) Guarantees permitted by Section 7.03.

     7.03 Indebtedness. Create, incur, assume or suffer to exist any indebtedness, except
the following:

     (a) Indebtedness under the Loan Documents;

     (b) Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any
refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of such
Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and
expenses reasonably incurred, in connection with such refinancing and by an amount equal to any
existing commitments unutilized thereunder and (ii) the terms relating to principal amount,
amortization, maturity, collateral (if any) and subordination (if any), and other material terms
taken as a whole, of any such refinancing, refunding, renewing or extending of Indebtedness, and of
any agreement entered into and of any instrument issued in connection therewith, are no less
favorable in any material respect to the Loan Parties or the Lenders than the terms of any
agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended
and the interest rate applicable to any such refinancing, refunding, renewing or extending
Indebtedness does not exceed the then applicable market interest rate;

     (c) Guarantees of Borrower or any Subsidiary in respect of Indebtedness otherwise permitted
hereunder of Borrower or any Subsidiary;

     (d) obligations (contingent or otherwise) of Borrower or any Subsidiary existing or arising
under any Swap Contract, provided that (i) such obligations are (or were) entered into by such
Person in the ordinary course of business for the purpose of directly mitigating risks associated
with liabilities, commitments, investments, assets, or property held or reasonably anticipated by
such Person, or changes in the value of securities issued by such Person, and not for purposes of
speculation or taking a “market view and (ii) such Swap Contract does not contain any provision
exonerating the non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party;

     (e) Indebtedness in respect of capital leases, Synthetic Lease Obligations and purchase money
obligations for fixed or capital assets within the limitations set forth in Section
7.01(i); provided, however, that the aggregate amount of all such Indebtedness
at any one time outstanding shall not exceed $22,000,000.00; and

     (f) (i) Indebtedness assumed in connection with acquisitions permitted under this Agreement or
(ii) Indebtedness issued in connection with the payment for acquisitions permitted under this

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Agreement, which Indebtedness is unsecured and has been subordinated to the payment of the
Obligations on terms approved by the Agent in writing, or is otherwise approved by the Agent in
writing; provided that, in the case of each of the foregoing clauses (i) and (ii), the
covenants set forth and described in Section 6.12 shall at all times continue to be
satisfied, as tested on a pro forma basis.

     7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another
Person, or Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person, except that, so long as no Default exists or would result therefrom:

     (a) any Subsidiary may merge with (i) Borrower, provided that Borrower shall be the continuing
or surviving Person, or (ii) any one or more other Subsidiaries, provided that when any
Majority-Owned Subsidiary is merging with another Subsidiary, the Majority-Owned Subsidiary shall
be the continuing or surviving Person, and provided further that if a Guarantor is merging with
another Subsidiary, the Guarantor shall be the surviving Person; and

     (b) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to Borrower or to another Subsidiary; provided that if the transferor in
such a transaction is a Majority-Owned Subsidiary, then the transferee must either be Borrower or a
Majority-Owned Subsidiary and provided further that if the transferor of such assets is a
Guarantor, the transferee must either be Borrower or a Guarantor.

     7.05 Dispositions. Make any Disposition or enter into any agreement to make any
Disposition, except:

     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business;

     (b) Dispositions of inventory in the ordinary course of business;

     (c) Dispositions of equipment or real property to the extent that (i) such property is
exchanged for credit against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase price of such
replacement property;

     (d) Dispositions of property by any Subsidiary to Borrower or to a Majority-Owned Subsidiary;
provided that if the transferor of such property is a Guarantor, the transferee thereof must either
be Borrower or a Guarantor;

     (e) Dispositions permitted by Section 7.04; and

     (f) Dispositions of up to $500,000.00 individually or in a series of related Dispositions;

     provided, however, that any Disposition pursuant to clauses (a) through
(e) shall be for fair market value.

     7.06 Restricted Payments. Declare or make, directly or indirectly, any Restricted
Payment, or incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity
Interests, except that, so long as no Default shall exist at the time of any action described below
or would result therefrom:

     (a) each Subsidiary may make Restricted Payments to Borrower, Guarantors and any other Person
that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of

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the type of Equity Interest in respect of which such Restricted Payment is being made;

     (b) Borrower and each Subsidiary may declare and make dividend payments or other distributions
payable solely in the common stock or other common Equity Interests of such Person;

     (c) Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests
issued by it with the proceeds received from the substantially concurrent issue of new shares of
its common stock or other common Equity Interests;

     (d) Borrower may make Restricted Payments to the extent permitted under the Subordinated
Documents; and

     (e) Borrower may issue or sell its common stock in connection with a public offering pursuant
to an effective registration statement filed under the Securities Act of 1933, as amended, provided
that the terms and conditions of such offering are reasonably acceptable to Agent and Lenders in
all respects.

     7.07 Change in Nature of Business. Engage in any material line of business
substantially different from those lines of business conducted by Borrower and its Subsidiaries on
the date hereof or any business substantially related or incidental thereto.

     7.08 Transactions with Affiliates. Enter into any transaction of any kind with any
Affiliate of Borrower, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to Borrower or such Subsidiary as would be obtainable
by Borrower or such Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate, provided that the foregoing restriction shall not apply to transactions
between or among Borrower and any Guarantor or between and among Guarantors, so long as the effect
of such transactions is not to circumvent the limitations contained in Section 7.02.

     7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this
Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make
Restricted Payments to Borrower or any Guarantor or to otherwise transfer property to Borrower or
any Guarantor, (ii) of any Subsidiary to Guarantee the Indebtedness of Borrower or (iii) of
Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such
Person; provided, however, that this clause (iii) shall not prohibit any negative pledge
incurred or provided in favor of any holder of Indebtedness permitted under Section 7.03(e)
solely to the extent any such negative pledge relates to the property financed by or the subject of
such Indebtedness; or (b) requires the grant of a Lien to secure an obligation of such Person if a
Lien is granted to secure another obligation of such Person.

     7.10 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

     7.11 Subordinated Debt to 2008 Asset Sellers.

       (a) Notwithstanding Section 3 of any of the 2008 Subordinated Target Notes
to the contrary, prepay, or permit or suffer the prepayment of, any amounts under any of the 2008
Subordinated Target Notes, other than monthly installments due and owing in accordance with
Section 1 thereof, without the prior express written consent of Agent, which consent may be
withheld for any reason or for no reason.

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     Borrower hereby acknowledges and agrees that any such prepayment made in violation of the terms,
conditions, and provisions of this Section 7.11 shall constitute an immediate Event of
Default.

     (b) Notwithstanding any of the terms, conditions, or provisions of any of the 2008
Subordinated Target Notes to the contrary, amend, or permit any amendment of, the terms,
conditions, and provisions of the 2008 Subordinated Target Notes without the prior express written
consent of Agent, which consent may be withheld for any reason or for no reason. Borrower hereby
acknowledges and agrees that any such amendment made in violation of the terms, conditions, and
provisions of this Section 7.11 shall constitute an immediate Event of Default.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii)
within three days after the same becomes due, any interest on any Loan or on any L/C Obligation, or
any fee due hereunder, or (iii) within five days after the same becomes due, any other amount
payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. Borrower fails to perform or observe any term, covenant or
agreement contained in any of Sections 6.01, 6.02, 6.03, 6.05, 6.07, 6.08, 6.10, 6.11, 6.12
or 6.13; or Borrower fails to perform or observe any term, covenant or agreement contained
Article VII, or any Guarantor fails to perform or observe any term, covenant or agreement
contained in Article III of the Guaranty; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on
its part to be performed or observed and such failure continues for 30 days or any default or Event
of Default occurs under any other Loan Document; or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of Borrower or any other Loan Party herein,
in any other Loan Document, or in any document delivered in connection herewith or therewith shall
be incorrect or misleading in any material respect when made or deemed made; or

     (e) Cross-Default. (i) Borrower or any Subsidiary (A) fails to make any payment when
due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under
Swap Contracts), such failed payment having an aggregate principal amount (including any payments
owing due to acceleration caused by such failed payment) of more than the Threshold Amount, or (B)
fails to observe or perform any other agreement or condition relating to any such Indebtedness or
Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or
any other event occurs, the effect of which default or other event is to cause, or to permit the
holder or holders of such indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause,
with the giving of notice if required, such Indebtedness to be demanded or to become due or to be
repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such
Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there
occurs under any Swap Contract an Early Termination Date (as

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defined in such Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap
Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which
Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by Borrower or such Subsidiary as a result thereof is greater than the
Threshold Amount; or

     (f) Insolvency Proceedings, Etc. Any Loan Party institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of
its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief
Law relating to any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or
an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Borrower or any Subsidiary becomes unable
or admits in writing its inability or fails generally to pay its debts as they become due, or (ii)
any writ or warrant of attachment or execution or similar process is issued or levied against all
or any material part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

     (h) Judgments. There is entered against Borrower or any Subsidiary (i) one or more
final judgments or orders for the payment of money in an aggregate amount (as to all such judgments
or orders) exceeding the Threshold Amount (to the extent not covered by independent third-party
insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary
final judgments that have, or could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced
by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive days during
which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in
effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of Borrower under
Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC which, either individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect, or (ii) Borrower
or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period,
any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under
a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

     (j) Invalidity of Loan Documents. This Agreement, any Collateral Document or any
Guaranty or any provision thereof, at arty 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; or any Loan Party or any other Person contests
in any manner the validity or enforceability of any Loan Document or any provision thereof; or any
Loan Party denies that it has any or further liability or obligation under any Loan Document, or
purports to revoke, terminate or rescind any Loan Document or any provision thereof; or

     (k) Change of Control. There occurs any Change of Control with respect to Borrower
and/or any Guarantor except as expressly permitted by Section 7.04 or Section 7.05;
provided, however, that a Change of Control resulting from the death of Sotirios
Vahaviolos shall not constitute an Event of Default if Borrower identifies and employs a
replacement executive officer reasonably acceptable to the Agent

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within 60 days from the date of said death; or

     (l) Material Adverse Effect. There occurs any event or circumstance that has a
Material Adverse Effect.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is
continuing, Agent shall, at the request of, or may, with the consent of, the Required Lenders, take
any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by Borrower;

     (c) require that Borrower Cash Collateralize the L/C Obligations (in an amount equal to the
then Outstanding Revolving Loan Amount thereof); and

     (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents;

     provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and
all interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically
become effective, in each case without further act of Agent or any Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the proviso
to Section 8.02), any amounts received on account of the Obligations shall be applied by
Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including reasonable fees, charges and disbursements of counsel to
Agent and amounts payable under Article III), payable to Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and L/C Fees) payable to Lenders and the L/C
Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the L/C
Issuer (including fees and time charges for attorneys who may be employees of any Lender or the L/C
Issuer) and amounts payable under Article III), ratably among them in proportion to the
respective amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
L/C Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably among Lenders and
the L/C Issuer in proportion to the respective amounts described in this clause Third payable to
them;

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     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, ratably among Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Fourth held by them;

     Fifth, to Agent for the account of the L/C Issuer, to Cash Collateralize that portion
of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to Borrower or as otherwise required by applicable Law.

     Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn
amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired, such remaining
amount shall be applied to the other Obligations, if any, in the order set forth above.

ARTICLE IX.

AGENT

     9.01 Appointment and Authorization of Agent.

     (a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act
on its behalf as Agent hereunder and under the other Loan Documents and authorizes Agent to take
such actions on its behalf and to exercise such powers as are delegated to Agent by the terms
hereof and thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article IX are solely for the benefit of Agent, the Lenders and the L/C
Issuer, and neither Borrower nor any other Loan Party shall have rights as a third party
beneficiary of any of such provisions.

     (b) Agent shall also act as the “collateral agent” under the Loan Documents, and each of the
Lenders and the L/C Issuer hereby irrevocably appoints and authorizes Agent to act as the agent of
such Lender and the L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens
on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with
such powers and discretion as are reasonably incidental thereto. In this connection, Agent, as
“collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by Agent pursuant
to Section 9.05 or otherwise for purposes of holding or enforcing any Lien on the
Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any
rights and remedies thereunder at the direction of Agent), shall be entitled to the benefits of all
provisions of this Article IX and Article X, as though such co-agents, sub-agents
and attorneys-in-fact were the “collateral agent” under the Loan Documents as if set forth in full
herein with respect thereto.

     9.02 Rights as a Lender. The Person serving as 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 Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly
indicated or unless the context otherwise requires, include the Person serving as Agent hereunder
in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to,
act as the financial advisor or in any other advisory capacity for and generally engage in any kind
of business with Borrower or any Subsidiary or other Affiliate thereof as if such Person were not
Agent hereunder and without any duty to account therefor to Lenders.

     9.03 Exculpatory Provisions. 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

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foregoing, Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

     (b) 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 Agent is required to exercise as directed in writing by the Required Lenders (or
such other number or percentage of the Lenders as shall be expressly provided for herein or in the
other Loan Documents), provided that Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose Agent to liability or that is contrary to any
Loan Document or applicable Law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as
Agent or any of its Affiliates in any capacity.

     (d) Agent shall not be liable for any action taken or not taken by it (i) with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary, or as Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Sections 8.02 and 10.01) or (ii) in the absence of its own gross negligence
or willful misconduct. Agent shall be deemed not to have knowledge of any Default unless and until
written notice describing such Default is given to Agent by Borrower, a Lender or the L/C Issuer.
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 or the occurrence of any
Default, (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 Article IV or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to Agent.

     9.04 Reliance by Agent. 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, sent or otherwise
authenticated by the proper Person. Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. In determining compliance with any condition hereunder to the
making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, Agent may presume that such condition is satisfactory
to such Lender or the L/C Issuer unless Agent shall have received notice to the contrary from such
Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.
Agent may consult with legal counsel (who may be counsel for 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.

     9.05 Delegation of Duties. Agent may perform any and all of its duties and exercise
its rights and powers hereunder or under any other Loan Document by or through any one or more sub
agents appointed by Agent. Agent and any such sub agent may perform any and all of its duties and
exercise its rights and powers by or through their respective Related Parties. The exculpatory
provisions of this

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Article IX shall apply to any such sub agent and to the Related Parties of 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 Agent.

     9.06 Resignation of Agent. Agent may at any time give notice of its resignation to
Lenders, the L/C Issuer and Borrower. Upon receipt of any such notice of resignation, the Required
Lenders shall have the right, in consultation with Borrower, to appoint a successor, which shall be
a bank with an office in the United States, or an Affiliate of any such bank with an office in the
United States. If no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may on behalf of Lenders and the L/C Issuer, appoint a
successor Agent meeting the qualifications set forth above;
provided that if Agent shall notify
Borrower and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (a) the retiring
Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents (except that in the case of any collateral security held by Agent on behalf of the
Lenders or the L/C Issuer under any of the Loan Documents, the retiring Agent shall continue to
hold such collateral security until such time as a successor Agent is appointed) and (b) all
payments, communications and determinations provided to be made by, to or through Agent shall
instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required
Lenders appoint a successor Agent as provided for above in this Section 9.06. Upon the
acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder
or under the other Loan Documents (if not already discharged therefrom as provided above in this
Section 9.06). The fees payable by Borrower to a successor Agent shall be the same as
those payable to its predecessor unless otherwise agreed between Borrower and such successor.
After the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions
of this Article IX and Section 10.04 shall continue in effect for the benefit of
such retiring Agent, its sub agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Agent was acting as Agent.

Any resignation by Bank of America as Agent pursuant to this Section 9.06 shall also
constitute its resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as
Agent hereunder, (i) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer, (ii) the retiring L/C Issuer shall be
discharged from all of their respective duties and obligations hereunder or under the other Loan
Documents, and (iii) the successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C
Issuer with respect to such Letters of Credit.

     9.07 Non-Reliance on Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon Agent or any other Lender or any
of their Related Parties 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 and the L/C
Issuer also acknowledges that it will, independently and without reliance upon Agent or any other
Lender or any of their Related Parties 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.

     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, no Lender
holding a title listed on the cover page hereof shall have any powers, duties or responsibilities
under this

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Agreement or any of the other Loan Documents, except in its capacity, as applicable, as Agent,
a Lender or the L/C Issuer hereunder.

     9.09 Agent May File Proofs of Claim. In case of the pendency of any proceeding under
any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have
made any demand on Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise:

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
Lenders, the L/C Issuer and Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of Lenders, the L/C Issuer and Agent and their respective agents and
counsel and all other amounts due Lenders, the L/C Issuer and Agent under Sections 2.03(i) and
(j), 2.09 and 10.04) allowed in such judicial proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to Agent and, in the event that Agent shall consent to the making of such payments
directly to Lenders and the L/C Issuer, to pay to Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of Agent and its agents and counsel, and any
other amounts due Agent under Sections 2.08, 2.11 or 10.04. Nothing contained
herein shall be deemed to authorize Agent to authorize or consent to or accept or adopt on behalf
of any Lender or the L/C Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or the L/C Issuer or to authorize Agent to
vote in respect of the claim of any Lender or the L/C Issuer in any such proceeding.

     9.10 Guaranty Matters. Each Lender and the L/C Issuer hereby irrevocably authorizes
Agent, at its option and in its discretion, to release any Guarantor from its obligations under the
Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.
Upon request by Agent at any time, each Lender and the L/C Issuer will confirm in writing Agent’s
authority to release any Guarantor from its obligations under the Guaranty pursuant to this
Section 9.10.

     9.11 Collateral Matters.

     (a) Each Lender and the L/C Issuer hereby irrevocably authorizes and directs Agent to enter
into the Collateral Documents for the benefit of such Lender and the L/C Issuer. Each Lender and
the L/C Issuer hereby agrees, and each holder of any Note by the acceptance thereof will be deemed
to agree, that, except as otherwise set forth in Section 10.01, any action taken by the
Required Lenders, in accordance with the provisions of this Agreement or the Collateral Documents,
and the exercise by the Required Lenders of the powers set forth herein or therein, together with
such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of
Lenders and the L/C Issuer. Agent is hereby authorized (but not obligated) on behalf of all of
Lenders and the L/C Issuer, without the necessity of any notice to or further consent from any
Lender or the L/C Issuer from time to time prior to, an Event of Default, to take any action with
respect to any Collateral or Collateral Documents which may be necessary to perfect and maintain
perfected the Liens upon the Collateral granted pursuant to the Collateral Documents.

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     (b) Each Lender and the L/C Issuer hereby irrevocably authorize Agent, at its option and in
its discretion,

     (i) to release any Lien on any property granted to or held by Agent under any Loan Document
(A) upon termination of the Aggregate Revolving Loan Commitments and payment in full of all
Obligations (other than contingent indemnification obligations) and the expiration or termination
of all Letters of Credit, (B) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, (C) subject to Section 10.01, if
approved, authorized or ratified in writing by the Required Lenders, or (D) in connection with any
foreclosure sale or other disposition of Collateral after the occurrence of an Event of Default;
and

     (ii) to subordinate any Lien on any property granted to or held by Agent under any Loan
Document to the holder of any Lien on such property that is permitted by this Agreement or any
other Loan Document.

Upon request by Agent at any time, each Lender and the L/C Issuer will confirm in writing Agent’s
authority to release or subordinate its interest in particular types or items of Collateral
pursuant to this Section 9.11.

     (c) Subject to subsection (b) above, Agent shall (and is hereby irrevocably authorized
by each Lender and the L/C Issuer to) execute such documents as may be necessary to evidence the
release or subordination of the Liens granted to Agent for the benefit of Agent and Lenders and the
L/C Issuer herein or pursuant hereto upon the applicable Collateral;
provided that (i) Agent shall
not be required to execute any such document on terms which, in Agent’s opinion, would expose Agent
to or create any liability or entail any consequence other than the release or subordination of
such Liens without recourse or warranty and (ii) such release or subordination shall not in any
manner discharge, affect or impair the Obligations or any Liens upon (or obligations of Borrower or
any other Loan Party in respect of) all interests retained by Borrower or any other Loan Party,
including the proceeds of the sale, all of which shall continue to constitute part of the
Collateral. In the event of any sale or transfer of Collateral, or any foreclosure with respect to
any of the Collateral, Agent shall be authorized to deduct all expenses reasonably incurred by
Agent from the proceeds of any such sale, transfer or foreclosure.

     (d) Agent shall have no obligation whatsoever to any Lender, the L/C Issuer or any other
Person to assure that the Collateral exists or is owned by Borrower or any other Loan Party or is
cared for, protected or insured or that the Liens granted to Agent herein or in any of the
Collateral Documents or pursuant hereto or thereto have been properly or sufficiently or lawfully
created, perfected, protected or enforced or are entitled to any particular priority, or to
exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or
fidelity any of the rights, authorities and powers granted or available to Agent in this
Section 9.11 or in any of the Collateral Documents, it being understood and agreed that in
respect of the Collateral, or any act, omission or event related thereto, Agent may act in any
manner it may deem appropriate, in its sole discretion, given Agent’s own interest in the
Collateral as one of Lenders and that Agent shall have no duty or liability whatsoever to Lenders
or the L/C Issuer.

     (e) Each Lender and the L/C Issuer hereby appoints each other Lender as agent for the purpose
of perfecting Lenders’ and the L/C Issuer’s security interest in assets which, in accordance with
Article 9 of the UCC can be perfected only by possession. Should any Lender or the L/C Issuer
(other than Agent) obtain possession of any such Collateral, such Lender or the L/C Issuer shall
notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver such Collateral to
Agent or in accordance with Agent’s instructions.

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ARTICLE X.

MISCELLANEOUS

     10.01 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 other Loan Party
therefrom, shall be effective unless in writing signed by the Required Lenders and Borrower or the
applicable Loan Party, as the case may be, and acknowledged by 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) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender; provided, however, in the sole and absolute discretion of Agent, only
a waiver by Agent shall be required with respect to immaterial matters or items specified in
Sections 4.01(a)(iii) or (iv) with respect to which Borrower has given assurances
satisfactory to Agent that such items shall be delivered promptly following the Closing Date;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment
(excluding mandatory 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 L/C
Borrowing, or (subject to clause (iii) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document, without the written
consent of each Lender directly affected thereby; provided, however, that only the consent of the
Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or to waive any
obligation of Borrower to pay interest or L/C Fees at the Default Rate or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee
payable hereunder;

     (e) change Section 2.12 or Section 8.03 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 10.01 or the definition of “Required 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; or

     (g) release any Guarantor from the Guaranty or release the Liens on all or substantially all
of the Collateral in any transaction or series of related transactions except in accordance with
the terms of any Loan Document, without the written consent of each Lender;

and,
provided further that (i) no amendment, waiver or consent shall, unless in writing and
signed by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of
the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued
or to be issued by it, (ii) no amendment, waiver or consent shall, unless in writing and signed by
Agent in addition to the Lenders required above, affect the rights or duties of Agent under this
Agreement or any other Loan Document, and (iii) the Agent Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing

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executed only by the parties thereto. Notwithstanding anything contained herein to the contrary,
no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

     10.02 Notices; Effectiveness; Electronic Communications.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b)
below), all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly permitted hereunder to be
given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to Borrower, Agent or the L/C Issuer, to the address, telecopier number, electronic
mail address or telephone number specified for such Person on Schedule 10.02; and

     (ii) 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 subsection
(b) below, shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to Lenders and the
L/C Issuer hereunder may be delivered or furnished by electronic communication (including e-mail
and internet or intranet websites) pursuant to procedures approved by
Agent, provided that the
foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II
if such Lender or the L/C Issuer, as applicable has notified the Agent that it is incapable of
receiving notices under such Article by electronic communication, 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 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 SUCH TERM IS 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

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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 Agent or any of its Related Parties (collectively, the “Agent Parties”) have
any liability to Borrower, any Lender, the L/C Issuer 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 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, the L/C Issuer 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, Agent and the L/C Issuer 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, Agent and the L/C Issuer. In
addition, each Lender agrees to notify Agent from time to time to ensure that 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 Agent, L/C Issuer and Lenders. Agent, the L/C Issuer and Lenders
shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices)
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 Agent, the L/C Issuer, each Lender and the Related
Parties of 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. All
telephonic notices to and other telephonic communications with Agent may be recorded by Agent, and
each of the parties hereto hereby consents to such recording.

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer or
Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law.

     10.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. Borrower shall pay (i) all reasonable out of pocket expenses
incurred by Agent and its Affiliates (including the reasonable fees, charges and disbursements of
counsel for Agent set forth in Section 4.01(c) hereof), in connection with the syndication
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), (ii) all reasonable out of pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out of pocket expenses incurred by Agent, any
Lender or the L/C Issuer (including the reasonable fees, charges and disbursements of any counsel
for Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its
rights (A) in connection with this Agreement and the other Loan

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Documents, including its rights under this Section 10.04, or (B) in connection with
the Loans made or Letters of Credit issued hereunder, including all such out of pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

     (b) Indemnification by Borrower. Borrower shall indemnify Agent (and any sub-agent
thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee’’) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses (including the
reasonable fees, charges and disbursements of any counsel for any Indemnitee), asserted against any
Indemnitee by any third party or by Borrower or any other Loan Party arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations hereunder or thereunder, or the consummation of the transactions
contemplated hereby or thereby, or, in the case of Agent (and any sub-agent thereof) and its
Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any
Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any
refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not comply with the terms of such Letter of Credit),
(iii) 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 (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by Borrower or any other
Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (A) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Indemnitee, (B) result from a claim brought by Borrower or any other Loan Party against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan Document, if Borrower or such Loan Party has obtained a final and nonappealable judgment in
its favor on such claim as determined by a court of competent jurisdiction, or (C) are or relate to
Taxes.

     (c) Reimbursement by Lenders. To the extent that Borrower for any reason fails to
indefeasibly pay any amount required under subsections (a) or (b) of this Section
10.04 to be paid by it to Agent (or any sub-agent thereof), the L/C Issuer or any Related Party
of any of the foregoing, each Lender severally agrees to pay to Agent (or any such sub-agent), the
L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount, 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 Agent (or any
such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party of any of
the foregoing acting for Agent (or any such sub-agent) or L/C Issuer in connection with such
capacity. The obligations of the Lenders under this subsection (c) are subject to the
provisions of Section 2.11(d).

     (d) Waiver of Consequential Damages, Etc. 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,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in subsection (b) above shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed to such
unintended recipients by such Indemnitee through telecommunications,

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electronic or other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby other than for direct or
actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent jurisdiction.

     (e) Payments. All amounts due under this Section 10.04 shall be payable not
later than ten Business Days after demand therefor.

     (f) Survival. The agreements contained in this Section 10.04 shall survive
the resignation of Agent and the L/C Issuer, the replacement of any Lender, the termination of the
Aggregate Revolving Loan Commitments and the repayment, satisfaction or discharge of all the other
Obligations.

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of Borrower
is made to Agent, the L/C Issuer or any Lender, or Agent, the L/C Issuer or any Lender exercises
its right of setoff, and such payment or the proceeds of such setoff 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 Agent, the L/C Issuer or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law 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 setoff had not occurred, and (b)
each Lender and the L/C Issuer severally agrees to pay to Agent upon demand its applicable share
(without duplication) of any amount so recovered from or repaid by 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. The obligations of the Lenders and the L/C Issuer
under clause (b) of the preceding sentence shall survive the payment in full of the
Obligations and the termination of this Agreement.

     10.06 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 neither Borrower nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of
Agent, the L/C Issuer and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section 10.06, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section 10.06, or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of subsection (f)
of this Section 10.06 (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 subsection (d) of this
Section 10.06 and, to the extent expressly contemplated hereby, the Related Parties of each
of Agent, the L/C Issuer and the 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
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it);
provided that any such assignment
shall be subject to the following conditions:

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          (i) Minimum Amounts.

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

               (B) in any case not described in subsection (b)(i)(A) of this Section 10.06,
the aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, 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 Agent or, if a “Trade
Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000.00 unless each of 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 assignee (or to an
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) Proportionate Amounts. Each partial assignment shall be made as an assignment of
a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned.

          (iii) Required Consents. No consent shall be required for any assignment except to
the extent required by subsection (b)(i)(B) of this Section 10.06 and, in addition:

               (A) the consent of Borrower (such consent not to be unreasonably withheld or delayed) shall be
required unless (1) an Event of Default has occurred and is continuing at the time of such
assignment or (2) such assignment is to a Lender or an Affiliate of a Lender;

               (B) the consent of Agent (such consent not to be unreasonably withheld or delayed) shall be
required if such assignment is to a Person that is not a Lender or an Affiliate of such Lender with
respect to such Lender; and

               (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed)
shall be required for any assignment that increases the obligation of the assignee to participate
in exposure under one or more Letters of Credit (whether or not then outstanding).

          (iv) Assignment and Assumption. The parties to each assignment shall execute and
deliver to Agent an Assignment and Assumption, together with a processing and recordation fee in
the amount, if any, required as set forth in Schedule 10.06; provided,
however, that the Agent may, in its sole and absolute discretion, elect to waive such
processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender,
shall deliver to Agent an Administrative Questionnaire. The Agent shall deliver a copy of such
Assignment and Assumption to the Borrower, in accordance with Section 10.02.

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

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

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Subject to acceptance and recording thereof by Agent pursuant to subsection (c) of this
Section 10.06, from and after the effective date specified in each Assignment and
Assumption, the 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 3.01, 3.04, 3.05, and 10.04 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 Note to the assignee Lender and (to the
extent the assigning Lender continues to hold any portion of the Commitments being assigned) to the
assigning Lender in exchange for the Note, if any, previously issued to the assigning Lender. Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this subsection 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 subsection (d)
of this Section 10.06.

     (c) Register. Agent, acting solely for this purpose as an agent of Borrower, shall
maintain at the 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 the Lenders, and the Commitments of, and
principal amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be conclusive,
and Borrower, Agent and the 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
and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
Borrower or 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 (including such Lender’s participations in L/C Obligations) owing to
it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations and (iii) Borrower, Agent, the L/C Issuer and the 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 described in the first proviso to Section
10.01 that affects such Participant. Subject to subsection (e) of this Section
10.06, Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to subsection (b) of this Section 10.06. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section
10.08 as though it were a Lender, provided such Participant agrees to be subject to Section
2.12 as though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 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.

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     (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 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 slate laws based on
the Uniform Electronic Transactions Act.

     (h) Deemed Consent of Borrower. If the consent of Borrower to an assignment to an
Eligible Assignee is required hereunder (including a consent to an assignment which does not meet
the minimum assignment threshold specified in Section 10.06(b)(i)(B)), Borrower shall be
deemed to have given its consent five Business Days after the date notice thereof has been
delivered to Borrower by the assigning Lender (through Agent) unless such consent is expressly
refused by Borrower prior to such fifth Business Day.

     (i) Resignation as L/C Issuer. Notwithstanding anything to the contrary contained
herein, if at any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, upon 30 days’ notice to Borrower and the
Lenders, resign as L/C Issuer, in the event of any such resignation as L/C Issuer, Borrower shall
be entitled to appoint from among Lenders a successor L/C Issuer hereunder; provided,
however, that no failure by Borrower to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer. If Bank of America resigns as L/C Issuer, it shall
retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to
all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all
L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate
Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).
Upon the appointment of a successor L/C Issuer, (i) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, as the
case may be, and (ii) the successor L/C Issuer shall issue letters of credit in substitution for
the Letters of Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.

     10.07 Treatment of Certain Information; Confidentiality. Each of Agent, Lenders and
the L/C Issuer agrees to maintain the confidentiality of the “Information” (as such term is defined
below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and
representatives (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 and that the party disclosing Information to such Person shall remain liable for any
direct damages arising out of any such unauthorized disclosure by any such Person), (b) to the
extent requested by any regulatory authority, purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable laws or regulations or by any subpoena or similar legal process
(after prior notice to Borrower to the extent reasonably practicable and not prohibited by
applicable law), (d) to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject

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to an agreement containing provisions substantially the same as those of this Section
10.07, to (i) any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and its
obligations, (g) with the consent of Borrower or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section 10.07 or (ii) becomes
available to Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than Borrower. For purposes of this Section
10.07, “Information” means all information received from Borrower or any Subsidiary
relating to Borrower or any Subsidiary or any of their respective businesses, other than any such
information that is available to Agent, any Lender or the L/C Issuer on a nonconfidential basis
prior to disclosure by Borrower or any Subsidiary. Any Person required to maintain the
confidentiality of information as provided in this Section 10.07 shall be considered to
have complied with its obligation to do so if such Person has exercised reasonable care to maintain
the confidentiality of such Information. Each of Agent, the Lenders and the L/C Issuer
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 applicable Federal and state securities
Laws.

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by applicable law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such
Lender, the L/C Issuer or any such Affiliate to or for the credit or the account of Borrower or any
other Loan Party against any and all of the obligations of Borrower or such Loan Party now or
hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer
or any such Affiliate, irrespective of whether or not such Lender or the L/C Issuer shall have made
any demand under this Agreement or any other Loan Document and although such obligations of
Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of
such Lender or the L/C Issuer different from the branch or office holding such deposit or obligated
on such indebtedness. The rights of each Lender, the L/C Issuer and their respective Affiliates
under this Section 10.08 are in addition to other rights and remedies (including other
rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have. Each
Lender and the L/C Issuer agrees to notify Borrower and Agent promptly after any such setoff and
application, provided that the failure to give such notice shall not affect the validity of such
setoff and application.

     10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in
any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).
If Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the
excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid
principal, refunded to Borrower. In determining whether the interest contracted for, charged, or
received by Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the

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other Loan Documents constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as expressly provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by Borrower and Agent and when
Agent shall have received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement.

     10.11 Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by Agent and each
Lender, regardless of any investigation made by Agent or any Lender or on their behalf and
notwithstanding that Agent or any Lender may have had notice or knowledge of any Default at the
time of any Credit Extension, and shall continue in full force and effect as long as any Loan or
any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

     10.12 Severability. If any provision of this Agreement or the other Loan Documents is
held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction,

     10.13 Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW JERSEY.

     (b) SUBMISSION TO JURISDICTION. BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW JERSEY AND OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW
JERSEY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW JERSEY STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE 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 OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT, ANY
LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN
THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. BORROWER AND EACH OTHER LOAN PARTY

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IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
SUBSECTION (b) OF THIS SECTION 10.13. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     10.14 Waiver of Jury Trial. 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 10.14.

     10.15 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby, Borrower and each other Loan Party acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (a) the credit facilities provided for hereunder
and any related arranging or other services in connection therewith (including in connection with
any amendment, waiver or other modification hereof or of any other Loan Document) are an
arm’s-length commercial transaction between Borrower, each other Loan Party and their respective
Affiliates, on the one hand, and Agent, on the other hand, and Borrower and each other Loan Party
is capable of evaluating and understanding and understands and accepts the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan Documents (including any
amendment, waiver or other modification hereof or thereof); (b) in connection with the process
leading to such transaction, Agent is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for Borrower, any other Loan Party or any of their
respective Affiliates, stockholders, creditors or employees or any other Person; (c) Agent has not
assumed and will not assume an advisory, agency or fiduciary responsibility in favor of Borrower or
any other Loan Party with respect to any of the transactions contemplated hereby or the process
leading thereto, including with respect to any amendment, waiver or other modification hereof or of
any other Loan Document (irrespective of whether Agent has advised or is currently advising
Borrower, any other Loan Party or any of their respective Affiliates on other matters) and Agent
has no obligation to Borrower, any other Loan Party or any of their respective Affiliates with
respect to the transactions contemplated hereby except those obligations expressly set forth herein
and in the other Loan Documents; (d) Agent and its Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of Borrower, the other Loan Parties and
their respective Affiliates, and Agent has no obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (e) Agent has not provided and will
not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions
contemplated hereby (including any

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amendment, waiver or other modification hereof or of any other Loan Document) and each of
Borrower and the other Loan Parties has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate. Each of Borrower and the other Loan Parties
hereby waives and releases, to the fullest extent permitted by law, any claims that it may have
against Agent with respect to any breach or alleged breach of agency or fiduciary duty.

     10.16 USA PATRIOT Act Notice. Each Lender that is subject to the “Act” (as such term
is hereinafter defined) and Agent (for itself alone 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)) (as amended or modified, 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
Agent, as applicable, to identify Borrower in accordance with the Act.

     10.17 Time of the Essence. Time is of the essence of the Loan Documents.

     10.18 Judgment Currency. If, for the purposes of obtaining judgment in any court, it
is necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Agent could purchase the first currency with such other currency on the Business Day
preceding that on which final judgment is given. The obligation of Borrower in respect of any such
sum due from it to the Agent or the Canadian Lender hereunder or under the other Loan Documents
shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that
in which such sum is denominated in accordance with the applicable provisions of this Agreement
(the “Agreement Currency”), be discharged only to the extent that on the Business Day
following receipt by the Agent or the Canadian Lender, as the case may be, of any sum adjudged to
be so due in the Judgment Currency, the Agent or the Canadian Lender, as the case may be, may in
accordance with normal banking procedures purchase the Agreement Currency with the Judgment
Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due
to the Agent or the Canadian Lender from Borrower in the Agreement Currency, Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the Agent or the Canadian
Lender, as the case may be, against such loss. If the amount of the Agreement Currency so
purchased is greater than the sum originally due to the Agent or the Canadian Lender in such
currency, the Agent or the Canadian Lender, as the case may be, agrees to return the amount of any
excess to Borrower (or to any other Person who may be entitled thereto under applicable law).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 	 	 
	 	MISTRAS GROUP, INC., as Borrower

 	 
	 	By:  	/s/ Sotirios J. Vahaviolos
 	 
	 	 	Sotirios J. Vahaviolos 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Agent

 	 
	 	By:  	/s/ Anne Zeschke
 	 
	 	 	Anne Zeschke 	 
	 	 	Agency Management Officer 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a
Lender, Lead Arranger and L/C Issuer

 	 
	 	By:  	/s/ William T. Franey
 	 
	 	 	William T. Franey 	 
	 	 	Senior Vice President 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as
a Lender and a Co-Lead Arranger

 	 
	 	By:  	/s/ Susan M. Graham
 	 
	 	 	Susan M. Graham 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	 	TD BANK, N.A., as a Lender

 	 
	 	By:  	/s/ John T. Callaghan
 	 
	 	 	Name:  	John T. Callaghan 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CAPITAL BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Allison Saroo
 	 
	 	 	Name:  	Allison Saroo 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

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EXHIBIT “A”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND

RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS,

MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A.,

AS ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FORM OF COMMITTED LOAN NOTICE

Date:                          ,           

To: Bank of America, N.A., as Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated July
[___], 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the terms defined therein being used herein as therein
defined), among Mistras Group, Inc., a Delaware corporation (the “Borrower”), the Lenders
from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer.

     The undersigned hereby requests (select one):

      Borrowing of Revolving Loans

      Conversion or continuation of Revolving Loans

     1. On                           (a Business Day).

     2. In the amount of $                    

     3. Comprised of                     

          [Type of Loan requested]

     4. For Eurodollar Rate Loans: with an Interest Period of            months.

     The undersigned hereby requests (select one):

      Borrowing of the Term Loan

      Conversion or continuation of the Term Loan

     1. On                           (a Business Day).

     2. In the amount of $                         

     3. Comprised of                          

     [Type of Loan requested]

     4. For Eurodollar Rate Loans: with an Interest Period of            months.

 

 

      Borrowing of Canadian Dollar Loans

      Conversion or continuation of Canadian Dollar Loans

     1. On                      (a Business Day).

     2. In the amount of $                         

     3. Comprised of                          

     [Type of Loan requested]

     4. For Eurodollar Rate Loans: with an Interest Period of                           months.

     The Committed Borrowing requested herein complies with the provisions of Section 2.02
of the Agreement.

	 	 	 	 	 
	 	MISTRAS GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	                                              	 
	 	 	Title:  	                                              	 

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EXHIBIT “B”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED

AND RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS, MISTRAS

GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE

AGENT, DATED JULY [___], 2009

FORM OF FIRST AMENDED AND RESTATED REVOLVING CREDIT LOAN NOTE

			
	US$                                   
	 	July ___, 2009

     FOR VALUE RECEIVED, the undersigned (“Borrower”), hereby promises to pay to                                     or registered assigns (“Lender”), in accordance
with the provisions of the “Agreement” (as such term is hereinafter defined), the principal amount
of each Revolving Loan from time to time made by the Lender to Borrower under that certain Second
Amended and Restated Credit Agreement, dated July ___, 2009 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement”; the terms
defined therein being used herein as therein defined), among Borrower, the Lenders from time to
time party thereto, JPMorgan Chase Bank, N.A., as Co-Lead Arranger and Bank of America, N.A., as
Administrative Agent, Lead Arranger and L/C Issuer.

     Borrower promises to pay interest on the unpaid principal amount of each Revolving Loan from
the date of such Loans until such principal amount is paid in full, at such interest rates and at
such times as provided in the Agreement. All payments of principal and interest shall be made to
the Agent for the account of the Lender in Dollars in immediately available funds at the Agent’s
Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Agreement.

     This First Amended and Restated Revolving Credit Loan Note (as it may be from time to time
amended, modified, extended, renewed, substituted, and/or supplemented, this “Note”) is one
of the Revolving Notes referred to in the Agreement, is entitled to the benefits thereof and may be
prepaid in whole or in part subject to the terms and conditions provided therein. This Note is
also entitled to the benefits of the Guaranty and is secured by the Collateral. Upon the
occurrence and continuation of one or more of the Events of Default specified in the Agreement, all
amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due
and payable all as provided in the Agreement. Revolving Loans made by the Lender shall be
evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course
of business. The Lender may also attach schedules to this Note and endorse thereon the date,
amount and maturity of its Loans and payments with respect thereto.

     This Note is given in full substitution for and in full replacement of that certain Substitute
Revolving Note dated January 7, 2009 by Borrower, as maker, and delivered to Lender, as payee, in
the maximum principal amount of up to $10,000,000.00 (hereinafter referred to as the “Original
Note”). The execution and delivery of this Note does not evidence a refinancing,
repayment, accord and satisfaction or novation of the indebtedness evidenced by the Original Note.

     Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
JERSEY.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	MISTRAS GROUP, INC., a Delaware corporation
	 

	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Paul Peterik
	 	 	 	 	 	Sotirios J. Vahaviolos
	 

	 	Chief Financial Officer
	 	 	 	 	 	President

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LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Amount of	 	 	Outstanding	 	 	 	 
	 	 	 	 	Type of	 	 	Amount of	 	 	End of	 	 	Principal or	 	 	Principal	 	 	 	 
	 	 	 	 	Loan	 	 	Loan	 	 	Interest	 	 	Interest Paid	 	 	Balance	 	 	Notation	 
	 	Date	 	 	Made	 	 	Made	 	 	Period	 	 	This Date	 	 	This Date	 	 	Made By	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

EXHIBIT “C”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND RESTATED CREDIT AGREEMENT BY AND

AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS

ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FORM OF FIRST AMENDED AND RESTATED TERM LOAN NOTE

			
	US$                                   
	 	July ___, 2009

     FOR VALUE RECEIVED, the undersigned (“Borrower”), hereby promises to pay to                                     or registered assigns (“Lender”), in accordance
with the provisions of the “Agreement” (as such term is hereinafter defined), the principal amount
of the Term Loans made by the Lender to Borrower under that certain Second Amended and Restated
Credit Agreement, dated July ___, 2009 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement”; the terms defined therein being used herein
as therein defined), among Borrower, the Lenders from time to time party thereto, JPMorgan Chase
Bank, N.A., as Co-Lead Arranger and Bank of America, N.A., as Agent, Lead Arranger and L/C Issuer.

     Borrower promises to pay interest on the unpaid principal amount of the Term Loans from the
date of such Loan until such principal amount is paid in full, at such interest rates and at such
times as provided in the Agreement. All payments of principal and interest shall be made to the
Agent for the account of the Lender in Dollars in immediately available funds at the Agent’s
Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Agreement.

     This First Amended and Restated Term Loan Note (as it may be from time to time amended,
modified, extended, renewed, substituted, and/or supplemented, this “Note”) is one of the
Term Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in
whole or in part subject to the terms and conditions provided therein. This Note is also entitled
to the benefits of the Guaranty and is secured by the Collateral. Upon the occurrence and
continuation of one or more of the Events of Default specified in the Agreement, all amounts then
remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable
all as provided in the Agreement.

     This Note is given in full substitution for and in full replacement of (a) that certain
undated Term Note, by Borrower, as maker, and delivered to Lender, as payee, in the original
principal amount of $12,500,000.00 (hereinafter referred to as the “Original Term Note”)
and (b) that certain undated Acquisition Note, by Borrower, as maker, and delivered to Lender, as
payee, in the original principal amount of $10,000,000.00 (hereinafter referred to as the
“Original Acquisition Note” and hereinafter the Original term Note and the Original
Acquisition Note shall be collectively referred to as the “Original Notes”). The execution
and delivery of this Note does not evidence a refinancing, repayment, accord and
satisfaction or novation of the indebtedness evidenced by the Original Notes.

     Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
JERSEY.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	MISTRAS GROUP, INC., a Delaware corporation
	 

	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Paul Peterik
	 	 	 	 	 	Sotirios J. Vahaviolos
	 

	 	Chief Financial Officer
	 	 	 	 	 	President

- 2 -

 

EXHIBIT “D”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND RESTATED CREDIT AGREEMENT BY AND

AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS

ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                                    

To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated July
[___], 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the terms defined therein being used herein as therein
defined), among Mistras Group, Inc., a Delaware corporation (the “Borrower”), the Lenders
from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                    of Borrower, and that, as such, he/she is authorized to execute
and deliver this Certificate to Agent on the behalf of Borrower, and that:

     [Use following paragraph 1 for fiscal year-end financial statements]

     1. Attached hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of Borrower ended as of
the above date, together with the report and opinion of an independent certified public accountant
required by such section.

     [Use following paragraph 1 for fiscal quarter-end financial statements]

     1. Attached hereto as Schedule 1 are the unaudited financial statements required by
Section 6.01(b) of the Agreement for the fiscal quarter of Borrower ended as of the above
date. Such financial statements fairly present the financial condition, results of operations and
cash flows of Borrower and its Consolidated Subsidiaries in accordance with GAAP as at such date
and for such period, subject only to normal year-end audit adjustments and the absence of
footnotes.

     2. The officer executing this Certificate on behalf of the Borrower has reviewed and is
familiar with the terms of the Agreement and has made, or has caused to be made under his/her
supervision, a detailed review of the transactions and condition (financial or otherwise) of
Borrower during the accounting period covered by the attached financial statements.

     3. A review of the activities of Borrower during such fiscal period has been made under the
supervision of the officer executing this Certificate on behalf of the Borrower with a view to
determining whether during such fiscal period Borrower performed and observed all its Obligations
under the Loan Documents, and

     [select one:]

- 3 -

 

[to the best knowledge of the officer executing this Certificate on behalf of the Borrower
during such fiscal period, Borrower performed and observed each covenant and condition of
the Loan Documents applicable to it, and no Default has occurred and is continuing.]

—
or —

[the following covenants or conditions have not been performed or observed and the following
is a list of each such Default and its nature and status:]

     4. The representations and warranties of Borrower contained in Article V of the
Agreement, and/or any representations and warranties of Borrower or any other Loan Party that are
contained in any document furnished at any time under or in connection with the Loan Documents, are
true and correct on and as of the date hereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, and except that for purposes of this Compliance Certificate, the representations
and warranties contained in subsections (a) and (b) of Section 5.05 of the
Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses
(a) and (b), respectively, of Section 6.01 of the Agreement, including the statements
in connection with which this Compliance Certificate is delivered.

     5. The financial covenant analyses and information set forth on Schedules 2 and 3
attached hereto are true and accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of ____________.

	 	 	 	 	 
	 	MISTRAS GROUP, INC.

 	 
	 	By:  	_____________________________
 	 
	 	 	Name:  	_______________________ 	 
	 	 	Title:  	_______________________ 	 
	 

- 2 -

 

For the Quarter/Year ended __________________ (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 	 	 	 	 
	I.	 	Section 6.12(a) — Minimum EBITDA	 	 
	 	 	1. 	 	net income:	 	$___________
	 	 	2. 	 	minus income or plus loss from discontinued
operations and extraordinary items:	 	($___________)
	 	 	3. 	 	plus income tax expenses:	 	$___________
	 	 	4. 	 	plus interest expense:	 	$___________
	 	 	5. 	 	plus depreciation, depletion and amortization (including non-cash loss on retirement assets:	 	$___________
	 	 	6. 	 	plus stock option expense:	 	$___________
	 	 	7. 	 	minus cash expense related to stock options:	 	($___________)
	 	 	8. 	 	plus Add Back Amounts, if applicable:	 	$___________
	 	 	9. 	 	plus amounts expended in the settlement of that certain labor class action lawsuit filed in California against Conam Inspection &
Engineering Services, Inc. in an amount not to exceed $2,100,000.00, if applicable:	 	$___________
	 	 	10. 	 	 plus amounts expended by the Borrower in connection with the initial public offering of its common stock pursuant to an effective registration statement under the Securities Act of 1933, if applicable:	 	$___________
	 	 	11. 	 	 plus amounts expended by the Borrower in connection with the closing of the credit facilities described in this Agreement, if applicable: 	 	$___________
	 	 	12. 	 	 Total (Line I.1 - I.2 + I.3 + I.4 + I.5 + I.6 - I.7 + I.8 + I.9 + I.10 + I.11):	 	$___________
	 	 	Minimum Required:	 	$___________
	II.	 	Section 6.12(b) — Minimum Debt Service Coverage Ratio.	 	 
	 	 	A. 	 	EBITDA (Line I.12):	 	$____________

 

 

	 	 	 	 	 	 	 	 	 
	 	 	B. 	 	Cash taxes, dividends, cash distributions, withdrawals and other distributions: 	 	($___________)
	 	 	C. 	 	Current Portion of Long Term Debt:	 	 
	 	 	 	 	1.  current portion of long-term liabilities (i.e., that portion due and owing in the 12 month period following said date of
determination), including any conditional payments due under any earn-out agreements, deemed due and owing in such 12
month period, and current portion of capitalized lease obligations (i.e., that portion due and owing in the 12 month
period following said date of determination):	 	 
	 

	 	 	 	 	 	 	 	$___________
	 	 	 	 	2.  plus interest expense on all obligations paid during the 12 month period immediately preceding said date of
determination:	 	 
	 

	 	 	 	 	 	 	 	$___________
	 	 	 	 	3.  Total (Line II.C.1 + Line II.C.2):	 	$___________
	 	 	D. 	 	Debt Service Coverage Ratio ((Line II.A — II.B) / Line II.C.3):	 	_______ -to- 1.0
	 	 	Minimum Required:	 	_______ -to- 1.0
	III.	 	Section 6.12(c) — Maximum Funded Debt Leverage Ratio.	 	 
	 	 	A. 	 	Funded Debt: all outstanding liabilities for borrowed money plus other interest-bearing liabilities, including current and long-term
liabilities (but excluding the capital lease between Borrower and Sotirios Vahaviolos relating to Borrower’s occupancy of the premises
located at 195 Clarksville Road, Princeton Junction, New Jersey):	 	$___________
	 	 	B. 	 	EBITDA (Line I.12)	 	$___________
	 	 	C. 	 	Funded Debt Leverage Ratio (Line III.A / Line III.B):	 	_______ -to- 1.0
	 	 	Maximum Permitted:	 	_______ -to- 1.0
	IV.	 	Free Cash Flow	 	 
	 	 	1. 	 	EBITDA (Line I.12):	 	$___________
	 	 	2. 	 	less all taxes paid or payable in cash:	 	($___________)
	 	 	3. 	 	less cash interest paid:	 	($___________)
	 	 	4. 	 	less all capital expenditures made in cash:	 	($___________)

- 2 -

 

	 	 	 	 	 	 	 	 	 
	 	 	5. 	 	less all scheduled and non-scheduled principal payments on Funded Debt made during the period (excluding free cash flow payments made
pursuant to Section 2.05(c) of the Credit Agreement):	 	($__________)
	 	 	6. 	 	plus any Decrease in Working Capital (or minus any Increase in Working Capital):	 	$___________
	 	 	7. 	 	Total Free Cash Flow:	 	$___________

- 3 -

 

EXHIBIT “E”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND

RESTATED CREDIT AGREEMENT BY AND AMONG, AMONGST OTHERS,

MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A.,

AS ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FORM OF

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each] Assignor identified
in item 1 below ([the][each, an] “Assignor”) and [the][each] Assignee identified in item 2 below
([the](each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the
Assignors][the Assignees] hereunder are several and not joint.] Capitalized terms used but not
defined herein shall have the meanings given to them in the Second Amended and Restated Credit
Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by Agent
as contemplated below (i) all of [the Assignor’s][the respective Assignors] rights and obligations
in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement
and any other documents or instruments delivered pursuant thereto to the extent related to the
amount and percentage interest identified below of all of such outstanding rights and obligations
of [the Assignor][the respective Assignors] under the respective facilities identified below
(including, without limitation, the Letters of Credit included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes of action and any
other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their
respective capacities as Lenders)] against any Person, whether known or unknown, arising under or
in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold and
assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii)
above being referred to herein collectively as, [the][an] “Assigned Interest”). Each such
sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in
this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

	1.	 	Assignor[s]:                               

	2.	 	Assignee[s]                                for each Assignee, indicate
Affiliate of [identify Lender]

	3.	 	Borrower(s):                               

	4.	 	Administrative Agent: Bank of America, N. A., as the administrative agent under the Credit

 

 

	 	 	Agreement

	5.	 	Credit Agreement: Second Amended and Restated Credit Agreement, dated July ___, 2009, among
Mistras Group, Inc., the Lenders from time to time party thereto, Bank of America, N.A., as
Administrative Agent and L/C Issuer

     6. Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	

Assignor[s]
	 	 	

Assignee[s]
	 	 	

Facility
Assigned
	 	 	Aggregate
Amount of

Commitment/Loans

for all Lenders
	 	 	
Amount of

Commitment/Loans

Assigned
	 	 	
Percentage
Assigned
of
Commitment/Loans
	 	 	

CUSIP No.	 
	 	 

	 	 	 
	 	 	 
	 	 	$ 
	 	 	$ 
	 	 	 %
	 	 	 	 
	 	 

	 	 	 
	 	 	 
	 	 	$ 
	 	 	$ 
	 	 	 %
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	$ 
	 	 	$ 
	 	 	 %
	 	 	 	 
	 

[7. Trade Date:           ]

Effective Date:                      , 20           [TO BE INSERTED BY ADMINISTRATIVE
AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR:

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	ASSIGNEE:

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 2 -

 

	 	 	 	 	 

[Consented to and] Accepted:

Bank of America, N.A., as

Administrative Agent

	By:	 	
 

Title:

[Consented to:]

	By:	 	
 

Title:

- 3 -

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

          1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][the relevant] Assigned interest, (ii) [the][such] Assigned
interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Second Amended and Restated Credit Agreement or any other Loan Document, (ii)
the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv)
the performance or observance by Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan Document.

          1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Second Amended and Restated Credit Agreement, (ii) it meets all the requirements to be an assignee
under Section 10.06(b)(iii),(v) and (vi) of the Second Amended and Restated Credit
Agreement (subject to such consents, if any, as may be required under Section 10.06(b)(iii)
of the Second Amended and Restated Credit Agreement), (iii) from and after the Effective Date, it
shall be bound by the provisions of the Second Amended and Restated Credit Agreement as a Lender
thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations
of a Lender thereunder, and (iv) it is sophisticated with respect to decisions to acquire assets of
the type represented by [the][such] Assigned Interest and either it, or the Person exercising
discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in
acquiring assets of such type, (v) it has received a copy of the Second Amended and Restated Credit
Agreement, and has received or has been accorded the opportunity to receive copies of the most
recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and
such other documents and information as it deems appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vi) it has independently and without reliance upon 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 Assignment and Assumption and to purchase [the][such] Assigned
Interest; and (b) agrees that (i) it will, independently and without reliance upon Agent,
[the][any] Assignor or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

     2. Payments. From and after the Effective Date, Agent shall make all payments in
respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other
amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the
Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after
the Effective Date.

 

 

     3. General Provisions. This Assignment and Assumption shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and assigns. This Assignment
and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumptions. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New Jersey.

- 2 -

 

EXHIBIT “F”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND RESTATED CREDIT AGREEMENT BY AND

AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS

ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FREE CASH FLOW CERTIFICATE

MISTRAS GROUP, INC.

DATE: ____________________, 20___

     Reference is made to that certain Second Amended and Restated Credit Agreement, dated July
[___], 2009 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the terms defined therein being used herein as therein
defined), among Mistras Group, Inc., a Delaware corporation (the “Borrower”), the Lenders
from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer.

     The officer executing this certificate is a Responsible Officer of the Borrower and as such is
duly authorized to execute and deliver this certificate on behalf of the Borrower. By executing
this certificate such officer hereby certifies to the Agent and the Lenders that:

	 	(a)	 	attached hereto as Annex 1 is a correct calculation of Free Cash Flow
for the fiscal year ended ___, 20___and a correct calculation of the
required prepayment of $___; and
	 
	 	(b)	 	Annex 1 attached hereto is based on the audited financial statements
that have been delivered to the Agent in accordance with Section 6.01(a) of the
Agreement.

     IN WITNESS WHEREOF, the Borrower has caused this Certificate to be executed by one of its
Responsible Officers this ___day of ___, 20___.

	 	 	 	 	 
	 	MISTRAS GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name: 	 
	 	 	Title:	 

- 3 -

 

	 	 	 	 	 

ANNEX 1

FREE CASH FLOW CERTIFICATE CALCULATION

	 	 	 	 	 	 	 	 	 
	Free Cash Flow is defined as follows:	 	 	 	 
	EBITDA for the applicable period of measurement:	 	$	 	 
	LESS:
	 	Dividend and/or distributions paid in cash and permitted by the terms of the Agreement:	 	$	 	 
	 
	 	Unfinanced Capital Expenditures paid in cash and permitted by the terms of the Agreement:	 	$	 	 
	 
	 	Scheduled payments of interest on Funded Debt paid in cash	 	$	 	 
	 
	 	Taxes actually paid in cash:	 	$	 	 
	 
	 	Scheduled payments of principal on Funded Debt paid in cash:	 	$	 	 
	 
	 	Voluntary prepayments of the Term Loan:	 	$	 	 
	 
	 	Increase in Working Capital, if any:	 	$	 	 
	 
	 	(See calculation on Annex 2 attached hereto)	 	 	 	 
	PLUS:
	 	Decrease in Working Capital, if any:	 	$	 	 
	 
	 	(See calculation on Annex 2 attached hereto)	 	 	 	 
	Free Cash Flow	 	$	 	 
	[25%] of Free Cash Flow	 	$	 	 

- 4 -

 

ANNEX 2

DECREASE (INCREASE) IN WORKING CAPITAL CALCULATION

     Decrease (Increase) in Working Capital, for the purposes of the calculation of Free Cash Flow,
means the following:

	 	 	 	 	 	 	 
	 	 	 	 	Beg. Of Period	 	End of Period
	Current assets:	 	$   	 	$   
	Less:

	 	Cash	 	 	 	 
	 

	 	Cash Equivalents	 	 	 	 
	 

	 	Amounts due from Affiliates:	 	 	 	 
	 

	 	Deferred taxes	 	 	 	 
	Adjusted current assets	 	$   	 	$   
	Current liabilities:	 	$   	 	$   
	Less:

	 	Loans Outstanding	 	 	 	 
	 

	 	Current portion of Indebtedness	 	 	 	 
	 

	 	Amounts due to Affiliates	 	 	 	 
	 

	 	Deferred taxes	 	 	 	 
	Adjusted current liabilities	 	$   	 	$   
	Working capital
(adjusted current assets minus adjusted current liabilities)	 	$   	 	$   
	Decrease (Increase) in Working Capital
(beginning of period minus end of period
Working Capital)	 	 	 	$   

- 5 -

 

EXHIBIT “G”

ATTACHED TO AND MADE A PART OF THAT CERTAIN SECOND AMENDED AND RESTATED CREDIT AGREEMENT BY AND
AMONG, AMONGST OTHERS, MISTRAS GROUP, INC., AS BORROWER, AND BANK OF AMERICA, N.A., AS
ADMINISTRATIVE AGENT, DATED JULY [___], 2009

FORM OF CANADIAN DOLLAR LOAN NOTE

	 	 	 
	US$              

	 	July ___, 2009

     FOR VALUE RECEIVED, the undersigned (“Borrower”), hereby promises to pay to 
 or registered assigns (“Canadian Lender”), in accordance with the
provisions of the “Agreement” (as such term is hereinafter defined), the principal amount of each
Canadian Dollar Loan from time to time made by the Canadian Lender to Borrower under that certain
Second Amended and Restated Credit Agreement, dated July ___, 2009 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement”; the terms
defined therein being used herein as therein defined), among Borrower, the Lenders from time to
time party thereto, JPMorgan Chase Bank, N.A., as Co-Lead Arranger and Bank of America, N.A., as
Administrative Agent, Lead Arranger and L/C Issuer.

     Borrower promises to pay interest on the unpaid principal amount of each Canadian Dollar Loan
from the date of such Canadian Dollar Loans until such principal amount is paid in full, at such
interest rates and at such times as provided in the Agreement. All payments of principal and
interest shall be made to the Agent for the account of the Canadian Lender in Canadian Dollars in
immediately available funds at the Agent’s Office. If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date
thereof until the date of actual payment (and before as well as after judgment) computed at the per
annum rate set forth in the Agreement.

     This Canadian Dollar Loan Note (as it may be from time to time amended, modified, extended,
renewed, substituted, and/or supplemented, this “Note”) is the Canadian Dollar Loan Note
referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in
part subject to the terms and conditions provided therein. This Note is also entitled to the
benefits of the Guaranty and is secured by the Collateral. Upon the occurrence and continuation of
one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid
on this Note shall become, or may be declared to be, immediately due and payable all as provided in
the Agreement. Canadian Dollar Loans made by the Canadian Lender shall be evidenced by one or more
loan accounts or records maintained by the Canadian Lender in the ordinary course of business. The
Canadian Lender may also attach schedules to this Note and endorse thereon the date, amount and
maturity of its Loans and payments with respect thereto.

     Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
JERSEY.

	 	 	 
	ATTEST:

	 	MISTRAS GROUP, INC., a Delaware corporation
	 
	 	 
	 
	 	 
	By:

	 	By:
	 

	 	 
	Paul Peterik

	 	Sotirios J. Vahaviolos
	Chief Financial Officer

	 	President

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CANADIAN DOLLAR LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Amount of Principal	 	 	 	Outstanding	 	 	 	 	 	 
	 	 	 	 	Type of Loan	 	 	 	Amount of Loan	 	 	 	End of Interest	 	 	 	or Interest Paid	 	 	 	Principal Balance	 	 	 	 	 	 
	 	Date	 	 	Made	 	 	 	Made	 	 	 	Period	 	 	 	This Date	 	 	 	This Date	 	 	 	Notation Made ByExhibit 10.1

Exhibit 10.1

MINING LEASE WITH OPTION TO PURCHASE

THIS MINING LEASE AGREEMENT MADE AND ENTERED INTO on this 18th day of September, 2009, by and between:

Larry H. Killian a natural person (hereinafter referred to as “Lessor”)

And

Colorado Goldfields Inc., a Nevada corporation (hereinafter referred to as “Lessee”).

IN CONSIDERATION of FIFTY MILLION (50,000,000) RESTRICTED SHARES OF COLORADO GOLDFIELDS INC. CLASS A COMMON STOCK
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor does
hereby grant, demise and let exclusively unto Lessee for the duration and for the purposes herein specified, all of
Lessor’s right, title and interest in and to the mining claims described in Exhibit A referred to as the “Leased
Premises.”

I. EXCLUSIVE RIGHTS GRANTED

1. The Leased Premises are hereby leased exclusively to Lessee and its successor-in-interest for the following
purposes, all or any of which may be performed by Lessee in such manner and at such time or times as Lessee may
determine in its absolute discretion, subject to the terms hereof:

	 	a.	 	Exploring and prospecting for, developing, mining, excavating, leaching, milling, processing
and smelting, whether by open pit, underground, strip mining, solution mining, heap leaching, or any
other methods deemed desirable by Lessee in its sole discretion, all minerals, ores, valuable rocks, rare
earths and materials of all kinds, including mine dumps and tailings (hereinafter collectively referred
to as “Leased Substances”);

	 	b.	 	Processing, concentrating, beneficiating, treating, milling, smelting, shipping, selling and
otherwise disposing of the Leased Substances and receiving the proceeds of any such sale;

	 	c.	 	Erecting, constructing, maintaining, using and operating in and on the Leased Premises such
buildings, structures, machinery, facilities and equipment as Lessee deems necessary; and

	 	d.	 	Engaging in any other activity that Lessee deems reasonable and necessary to achieve the
foregoing purposes.

 

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II. TERM OF LEASE

2. The term of this Mining Lease shall be for three (3) years from the effective date set forth above, and may be
renewed by Lessee for successive three (3) year periods upon substantially the same terms and provisions as set forth
herein based upon the then-capital structure of the Lessee, until declared forfeited and canceled by Lessor or
relinquished by Lessee as provided herein. Lessee shall give Lessor written notice of each renewal at least thirty
(30) days prior to expiration of the respective three-year term. This Mining Lease shall automatically renew and
continue so long as ores, minerals, or metals are produced or sold from the Leased Properties on a continuous basis.

III. ADVANCE ROYALTY AND WORK COMMITMENT

3.1 A portion of the “restricted” stock received by Lessor shall constitute an Advance Royalty paid the Lessor as
initial consideration upon execution of this Mining Lease. A portion of such stock shall further constitute the
minimum advance royalty on or before the anniversary date of each succeeding lease year.

3.2 Lessee shall be entitled to a $50,000 credit in the amount of all such Advance Royalties paid against Production
Royalties otherwise owing to Lessor pursuant to Article IV of this Lease.

3.3 Lessee shall perform exploration, mining, development, production, processing or any other activity (“work” herein)
which benefits the Leased Premises at a minimum cost of $50,000 for each successive three (3) year term during the term
of this Mining Lease and commencing on the date of this Lease. All work on other lands within 500 feet of the boundary
of any portion of the Leased Premises shall be deemed to benefit the Leased Premises for the work commitment if such
work is part of an overall plan or project that includes the Leased Premises. All costs expended for work in excess of
$50,000 for any three (3) year term shall accrue and be applied to the work commitment for the next successive 3-year
term only; however, the maximum amount that can so accrue for the next succeeding lease term shall be no more than
$50,000.

3.4 In the event that Lessee does not perform work in the amount of the entire $50,000 minimum expenditure (which
amount will include any excess amount accrued from the prior three year term), Lessee shall pay Lessor the amount of
any such shortage in cash or cash equivalents, including additional shares of Company stock. Within 30 days after the
end of each three (3) year term, Lessee shall submit an accounting report of the expenditures toward the work
commitment and a report containing factual, non-interpretive data concerning the work of Lessee during the preceding
3-year term. On or before November 30 of each year, a separate one-year report shall be prepared and furnished to
Lessor containing factual, non-interpretive data concerning work of Lessee, if any, during the preceding calendar year.

3.5 The breach, by Lessee, of paragraphs 3.3 and/or 3.4 above shall entitle Lessor to immediately terminate the Lease
and in such event, Lessor waives the right to sue for monetary damages.

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IV. PRODUCTION ROYALTY

4.1 In addition to the consideration set forth herein, Lessee shall pay Lessor a Three and One Half percent (3.5%) Net
Smelter Royalty on all mineral bearing ores.

4.2 The payment of Production Royalty shall be made not more than 45 days after the close of the month during which the
payment is received from the smelter or buyer on which such Royalty is calculated.

4.3 “Net Smelter Returns” shall mean the net amount of money received by Lessee from the sale of Leased Substances to a
smelter, refinery or other buyer, after deduction of costs of transportation to point of sale and costs of any
concentration of Leased Substances prior to delivery to the smelter, refinery or other buyer, and less the deduction of
all cost, penalties or charges required by said smelter, refinery or other buyer to be paid by Lessee as a condition of
sale. In the event a Leased Substance is sold to any buyer other than a smelter, all costs incurred by Lessee after
mining for processing or treating such substances, including refining, shall be deductible costs.

4.4 The payment of Production Royalty shall be made not more than 45 days after the close of the month during which the
payment is received from the smelter or buyer on which such Royalty is calculated.

4.5 All Leased Substances which the Lessee chooses to market shall be marketed at the best terms reasonably obtainable,
with due regard to freight differentials, and if such ores or concentrates or other products shall be treated at a
smelter or refinery of Lessee, the smelter or refinery schedules used for determining the Net Smelter Returns thereon
shall not be less favorable than the terms and conditions either being offered to others or being contracted with
others at the time for products of like character and in similar quantities for delivery to Lessee’s smelters or
refineries.

4.6 Lessee shall be entitled to credit all Advance Royalty payments paid to Lessor pursuant to Article III of this
Mining Lease against all Production Royalties payable to Lessor under this Article IV.

4.7 If ores or concentrates produced from the Mining Properties are refined or smelted at a facility owned by the
Lessee, then the royalty interest of the Lessor provided for herein may be computed on the basis of the value of such
concentrate or shipment at the input side of such facility. The value shall be mutually agreed. If such value cannot
be agreed upon, it shall be the highest price which can be obtained by shipping such ores or concentrate to a smelter
willing to buy the same, taking into consideration the cost of transportation to the smelter and smelter costs and
penalties.

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4.8 By thirty (30) days’ written notice to the Lessee, the Lessor from time to time may elect to take its royalty
interest in gold and silver in kind. In such event, the amount of the production shall be computed on the basis of the
value thereof at the input of the smelter (either owned by the Lessee or otherwise), divided by the price thereof as
above determined for gold or the Johnson Matthey quoted price for silver.

4.9 Direct Royalty Payment. The Lessor may request the smelter or other ore-purchasing agency to deliver said
royalty interest in production directly to the Lessor or retain possession of such interest at the smelter for future
sale

V. INSPECTION, REPORTS, BOOKS AND RECORDS

5.1 Lessor, or its duly authorized agent or representative, shall be permitted to enter into or upon the Leased
Premises for the purpose of inspection, at all reasonable times during business hours, after 48 hours advance notice in
writing to Lessee. Lessor shall enter upon said Leased Premises at Lessor’s own risk and so as not to hinder the
operations of Lessee. Lessor shall indemnify and hold harmless Lessee from any damage, claim or demand arising from
the entry or inspection by Lessor or its agent or representatives, or any of them, on the Leased Premises or the
approaches thereto.

5.2 The books and records of Lessee insofar as they relate to operations on the Leased Premises pursuant to this Mining
Lease shall be open to inspection and copying by Lessor or its duly authorized representatives, at the expenses of
Lessor, during regular business hours, after 48 hours advance request in writing to Lessee. Within twenty-four (24)
months after the end of each calendar year, Lessor may at its sole cost and expense make or have made an audit of the
accounts and records of Lessee concerning operations on the Leased Premises for that calendar year; provided that
Lessor may audit the accounts for a calendar year only once and provided further that Lessor must notify Lessee in
writing of its intention to cause such an audit to be made sixty (60) days in advance of such date.

VI. DATA ON THE PROPERTY

6.1 Upon execution of this Mining Lease, Lessor will provide Lessee with access to all data concerning the Leased
Premises then in possession of Lessor or its agents. Lessee shall have the right to make and remove copies of all such
data at the expense of Lessee, but Lessee shall not remove original documents without written consent of Lessor.
Lessee hereby acknowledges that Lessor has provided all data in its possession.

VII. PROTECTION FROM LIENS, DAMAGES AND LIABILITY

7.1 Lessee shall keep the Leased Premises free and clear of liens for labor done or performed or materials furnished on
or for the development or operation of the Leased Premises under this Mining Lease. Lessee will not be considered in
breach of this provision so long as Lessee, in good faith, contests the validity of any liens or claims against the
Leased Premises.

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7.2 Lessee shall indemnify and shall hold harmless Lessor and all of Lessor’s partners, agents, and employees, and each
of them, from and against any and all obligations, debts, loss, damage, claims, demands, suits, controversies, costs,
fees, liens, encumbrances, and liabilities whatsoever, including attorneys’ fees, in any way resulting from or arising
out of any failure by Lessee to abide by any material term of the Mining Lease or any negligent or intentional act or
omission by Lessee’s contractors arising out of or in connection with the operations and activities of Lessee
hereunder, or out of its possession and occupancy of the Leased Premises, including environmental costs resulting from
Lessee’s operations, or from any similar actions by the public during the term of this Mining Lease. Lessor shall not
be responsible or liable for any loss or damage to Lessee or to Lessee’s property or business that may be occasioned by
or through acts or omissions of persons or entities (other than for negligent or reckless acts or willful misconduct or
omissions by Lessor or any of its partners, agents or employees) occupying, using, or passing over any part of the
Leased Premises. Lessee shall use and occupy the Leased Premises at its own risk, and hereby releases Lessor, to the
full extent permitted by law, from all claims of every kind or nature, including claims for loss of life, personal or
bodily injury, or property damage except as otherwise excluded herein.

7.3 Lessor hereby indemnifies and holds Lessee harmless from and against any claim by the EPA or some similar federal
or state agency based solely on past mining contamination or violations. In the event the EPA or a similar federal or
state agency brings suit against Lessee as a person in the chain of title, Lessor further agrees to defend any such
suit on Lessee’s behalf at its sole cost and expense.

7.4 Lessee shall establish a contingency reclamation reserve fund for the purpose of assuring payment of reclamation
costs caused by Lessee. There shall be deducted from net smelter returns on all materials produced and sold from the
Mining Properties, before any royalties are computed, five percent (5%) of the value thereof, for the purpose of a
contingency reclamation reserve fund for paying potential reclamation costs, up to TWO HUNDRED THOUSAND DOLLARS
($200,000). Said five-percent deduction shall be placed in an escrow account. If upon the termination of this lease
and the payment of all reclamation costs, there remain sums in said contingency reclamation reserve fund, the same
shall be returned to the Lessee. If at any time after two years from the time the Mining Properties subject hereto or
any of them are placed in production, it is determined that 5% of the value of such production exceeds the probable
amount of reclamation to be paid from such fund or is insufficient to pay such taxes, then said 5% deduction shall be
reduced or increased in such amount as may reasonably be expected to pay the reclamation costs which are to be paid
therefrom. The monies placed in such reserve fund shall be deposited in such manner, if possible, to derive interest
therefrom, and the interest shall become a part of the contingency reclamation reserve fund.

VIII. COMPLIANCE WITH LAW

8.1 In conducting its operations hereunder, Lessee will cause all work, development and mining to be done in a careful
and miner-like manner, and Lessee shall fully comply with the terms and provisions of worker’s compensation laws and
all other laws governing its operations under this Mining Lease, including but not limited to any mining or
environmental obligation, under existing or hereafter enacted legislation.

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IX. TERMINATION BY LESSEE

9.1 Lessee shall have the continuing right to terminate this Mining Lease at any time and to surrender the Leased
Premises to Lessor by giving Lessor written notice thereof at least 30 days prior to the stated date of termination.

9.2 In the event of termination, all sums theretofore paid Lessor by Lessee shall, except in the case of manifest
error, be retained by Lessor, and all obligations of Lessee to make payments (expect those accruing prior to the date
to termination) and perform any other obligation set forth in this Mining Lease shall terminate, except any reclamation
required by any federal or state regulatory agency.

9.3 In the event of termination, Lessee, upon request by Lessor, shall make, execute, acknowledge and deliver to Lessor
a written relinquishment of this Mining Lease in recordable form.

X. DEFAULT

10.1 Lessee shall be in default hereunder if either of the following shall occur:

a. Lessee fails to fulfill an obligation to Lessor, or does not in good faith contest in writing the
particular obligation, within thirty (30) days after receipt by Lessee of written notice from Lessor that a
required obligation has become due and has not been satisfied; or

b. Lessee fails to perform any of the other covenants or agreements herein contained, and such failure
continues for a period of 60 days after receipt by Lessee of written notice from Lessor of such failure,
stating how it may be cured, and Lessee is not diligently proceeding to cure such failure or is not in good
faith contesting the claimed failure.

c. In the event of default by Lessee as provided above, Lessor may at once enter into and upon the Leased
Premises or any part thereof and declare a forfeiture and cancellation of this Mining Lease.

XI. REMOVAL OF EQUIPMENT

11.1 During the term hereof, Lessee is granted exclusive use of all structures, improvements and personal property
located on the Leased Premises and owned by Lessor as of the date of this Mining Lease.

11.2 In the case of a valid forfeiture, surrender or other termination of this Mining Lease, Lessee shall have the
right for a period of one hundred eighty (180) days to remove from the Leased Premises all warehouse stocks,
merchandise, materials, tools, hoists, compressors, engines, motors, pumps, transformers, electrical accessories, metal
or wooden tanks and mine cars and any and all other machinery, trade-fixtures and equipment erected or placed in or
upon said Leased Premises by it, except only rails, mine timbers, installed pipes and connections. All property not
removed within said period shall be deemed abandoned to Lessor, unless such period is extended by agreement of Lessee
and Lessor or by reason of force majeure as defined herein.

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11.3 Lessee will not discard any structures, improvements and personal property located on the Leased Premises and
owned by Lessor as of the date of this Mining Lease, or discovered by Lessee during the term of this Mining Lease,
without prior written consent of Lessor.

XII. TITLE

12.1 Lessor warrants and covenants that it holds title and is in actual and exclusive possession of the Leased Premises
free and clear from all grants, sales, liens, defects, adverse claims and encumbrances of any kind. Lessor shall
deliver said actual, peaceful and exclusive possession of the Leased Premises to Lessee for the Term of this Mining
Lease, and, during the Term of this Mining Lease Lessor shall not encumber or burden title to the Leased Premises in
any way without the prior written consent of Lessee.

12.2 Lessor agrees to furnish Lessee such abstract, deeds or other evidence of title as may be in Lessor’s possession
and control, and to allow and cooperate with Lessee, at Lessee’s option and expense, to have abstracts brought to date
and to take such steps and proceedings to establish title as Lessee shall deem advisable. Lessee hereby acknowledges
that Lessor has provided all title information in its possession.

12.3 The Lessor has the right and authority to execute this Mining Lease and lease the Mining Properties to the Lessee.

12.4 The Lessor is not aware of any litigation, claims, or demands made by others with respect to the title of its
Mining Properties.

XIII. FORCE MAJEURE

13.1 The obligations of Lessee hereunder shall be suspended to the extent and for the period that performance of any of
Lessee’s obligations hereunder is prevented by any cause, whether foreseeable or unforeseeable, which are determined to
be beyond Lessee’s reasonable control (hereinafter “an event of force majeure”) including, without limitation any of
the following, acts of nature; labor disputes; strikes or threats of strike; fire; explosion; earthquake; storm; flood;
landslide; avalanche; drought or other adverse weather condition; interruption or delay in transportation; war ;
insurrection; riot; laws, regulations, orders, proclamations, instructions or requests of any government or
governmental entity; judgments or orders of any court; inability to obtain, on reasonably acceptable terms, any public
or private license, permit or other authorization; curtailment or suspension of activities to remedy or avoid an actual
or alleged, present or prospective, enforcement of federal, state or local environmental standards; unavoidable
casualties; shortage of labor, equipment, fuel, material, parts, supplies, services or equipment; plant breakdown; or
any disabling cause, whether similar or dissimilar to the foregoing enumeration.

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13.2 If an event of force majeure occurs, the suspension of Lessee’s performance hereunder during such occurrence shall
not be deemed a breach of the Mining Lease, and the Term of this Mining Lease shall be extended for a time period equal
to the duration of such suspension. Lessee shall promptly give notice to Lessor of the suspension of performance,
stating therein the cause and duration thereof. Lessee agrees to use reasonable diligence to remove such causes of
suspension as may occur from time to time, but shall not be required to settle strikes or other labor difficulties
contrary to its own judgment.

XIV. NOTICES

14.1 All notices, payments and elections required, permitted or requested hereunder shall be made in writing and
delivered personally or made in writing and sent by regular mail, facsimile transmission or e-mail (except notice of
termination or default, which shall be sent by certified mail, return receipt requested), addressed as follows:

To Lessor:

Larry H. Killian

355 County Road 160

Post, Texas 79356

To Lessee:

C. Stephen Guyer

Colorado Goldfields Inc.

10920 West Alameda Ave

Suite 207

Lakewood, Colorado 80226

unless otherwise changed or modified by written request of the recipient party.

XV. COMMINGLING OF ORE

15.1 The Lessee may mill ore produced from the Mining Properties and from other mining properties operated by him in
the same general area in a mill located on the mining property operated by him or under his control and may commingle
for milling purposes ore produced from any of the mining properties as well as ore produced from the Mining Properties
subject hereto with ore from other properties not subject to this Mining Lease. In such event the Lessee shall
establish procedures for determining the content of metal in the ores produced from such properties by calculating on a
metallurgical basis in accordance with sampling and mill efficiency experience, so that the production royalties
applicable to ores produced from each of the properties from which ores are commingled may reasonably be determined.
Such procedures and the records thereof may be questioned by the Lessor at any time and submitted to arbitration in
accordance with the rules of the American Arbitration Association if Lessor believes that such procedures are resulting
in a disadvantage to its property.

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XVI. TAXES

16.1 Lessee agrees to pay all taxes assessed against the Leased Premises during the term hereof (except federal, state
or local taxes assessed on income) including, but not limited to, ad valorem property taxes, net proceeds or mine
taxes, and all taxes for ores mined and ores treated under this Mining Lease. Payment of such taxes shall be made
prior to the delinquency date of the tax.

XVII. INCIDENTAL USE OF PROPERTY

17.1 Lessee may possess, occupy and use, in the course of and as pertinent to its operations in the vicinity of, or
upon the Leased Premises, all or any of the structures owned by Lessor located upon or within the Leased Premises.
Lessee shall maintain in reasonably good state of repair all such structures which it elects to use to which it is
granted exclusive use within the scope of such grant in Article XI, except for the ordinary wear and tear and
reasonable depreciation resulting from Lessee’s said use and possession. During the period of use by Lessee, Lessee
shall pay the insurance, power, light and miscellaneous costs that accrue on such structures as Lessee elects to use.
Lessor makes no warranty as to the condition or safety of any structures upon the Leased Premises and Lessee agrees to
accept the risk of loss resulting from its use of structures.

XVIII. ASSIGNMENT

18.1 The Lessee shall have the right to assign all or any portion of the Mining Properties to any financially able
party or parties, provided that all conditions of this Mining Lease shall be binding upon the assignee and that he
accepts Liability there for in writing and the Lessor is notified of such assignment and receives written acceptance of
liability. No conveyance, assignment, or transfer affecting the mineral rights on the Mining Properties or the mineral
production therefrom shall be made except subject to the terms and conditions of this Mining Lease

XIX. INUREMENT

19. The terms, provisions, covenants, warranties and agreements herein contained shall extend to, be binding upon and
inure to the benefit of the heirs, personal representatives, successors and assigns of the parties.

XX. MEMORANDUM OF LEASE

20. Lessor and Lessee agree to execute a Memorandum setting forth the basic terms and conditions of this Mining Lease.
Said Memorandum may be recorded in all public records where such documents are customarily recorded. Lessor and Lessee
agree that this Mining Lease shall not be recorded.

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XXI. OPTION TO PURCHASE

21. Lessor grants to Lessee the sole and exclusive option to purchase all of Lessor’s right, title and interest in the
property (the Leased Premises) for a total purchase price of ONE MILLION TWO HUNDRED FIFTY THOUSAND dollars
($1,250,000) (hereinafter referred to as the “Purchase Price”). The Purchase Price may be paid in cash or other cash
equivalent as mutually agreed by the Lessor and Lessee. Exercise of the option shall be effective upon delivery of
written notice thereof to Lessor at Lessor’s business address or the address of Lessor’s registered agent. Lessee
shall deliver to Lessor a negotiable instrument in the full amount of the Purchase Price in exchange for properly
executed and acknowledged Deeds and/or other indicia of ownership in recordable form. Closing shall occur within sixty
(60) days after exercise of the option.

XXII. STOCK LOCK-UP

22.1 The undersigned Lessor hereby agrees that for a period commencing on September 18, 2009 and expiring on September
18, 2012, he, she or it will not, directly or indirectly, issue, offer, agree or offer to sell, sell, grant an option
for the purchase or sale of, transfer, pledge, assign, hypothecate, distribute or otherwise encumber or dispose of any
securities of the Company issued pursuant to this Mining Lease, including common stock or options, rights,
warrants or other securities underlying, convertible into, exchangeable or exercisable for or evidencing any right to
purchase or subscribe for any common stock (whether or not beneficially owned by the undersigned), or any beneficial
interest therein (collectively, the “Securities”).

22.2 In order to enable the this Article XXII to be enforced, the undersigned Lessor hereby consents to the placing of
legends and/or stop-transfer orders with the transfer agent of the Company’s securities with respect to any of the
Securities registered in the name of the undersigned Lessor or beneficially owned by the undersigned Lessor, that are
issued pursuant to this Mining Lease.

22.3 The undersigned Lessor understands and acknowledges that this Article XXII is revocable by the undersigned Lessor
under the following circumstances.

	 	a.	 	Upon economic hardship, to be determined by the board of directors of the Company;

	 	b.	 	Any change in the ownership or control of common stock of the Company which results in more than 50% of
the issued and outstanding common stock of the Company being owned or controlled by a person or entity, or a
group of persons or entities, who did not own or control more than 50% of the issued and outstanding common
stock of the Company as of the date of this Agreement; provided, however, that it shall not be deemed a
“Change of Control” under this subsection (a) if the change in ownership of more than 50% of the issued and
outstanding common stock of the Company is pursuant to a public or private offering of common stock by the
Company for capital raising purposes, and such offering was approved by the Board of Directors of the Company;

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	 	c.	 	A merger or consolidation of the Company with another entity such that more than 50% of the issued and
outstanding voting stock of the surviving entity is owned or controlled by a person or entity, or a group of
persons or entities, who did not own or control more than 50% of the issued and outstanding common stock of
the Company as of the date of this Agreement.

IN WITNESS WHEREOF, the parties undersigned warrant that they are properly authorized to bind their respective
organizations and enter into this Mining Lease according to all terms and provisions hereof, effective as of the day
and year first above written.

Lessor:

/s/ Larry H. Killian

Larry H. Killian

Date signed:

18 September 2009

Lessee:

/s/ C. Stephen Guyer

Colorado Goldfields, Inc.

C. Stephen Guyer, Chief Financial Officer

Date signed:

18 September 2009

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EXHIBIT A

DESCRIPTION OF MINING PROPERTIES

	County Mining Property of Larry H. Killian
King Solomon — 7.33 Mountain Queen
-10.31 Jura -10.33
Agroup of 27.97 total acrts
Other Properties
Bowel)’ — 6.880 acres
Conlra.costa — 9.920 DollyVarden No. 2-
9.860
Ext &Combination of Dolly Varden ‘2 and Ethan Allen — 10.330 Agroup of29.11 total acres
Mater Delarosa -10.30 HungryJoe
-10.30
Agroup of20.6O total acrl’S
Humming Bird ·9.69 Humming Bird
Ext.. 8.76
Agroup of 18.45 total acres
Galena Mill Site · 4,201 Galena #2
·5.623
Agroup of9.830 total acres
Total County Acreage: 112.84 acres
Also 38 lots in the Taylor Addition (Shrine Hill)

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