Document:

exv10w9

Exhibit 10.9

EXECUTION COPY

 

TERM LOAN AGREEMENT

between

SPARTECH CORPORATION

and

CALYON NEW YORK BRANCH

Dated as of February 16, 2005

 

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 1
	 	 	 	 
	Definitions
	 	 	 	 
	Section 1.1. Defined Terms

	 	 	1	 
	Section 1.2. Other Interpretive Provisions

	 	 	8	 
	Section 1.3. Accounting Principles

	 	 	9	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	The Term Loan
	 	 	 	 
	 
	 	 	 	 
	Section 2.1. The Term Loan

	 	 	9	 
	Section 2.2. Evidence of Debt

	 	 	9	 
	Section 2.3. Procedure for Borrowing

	 	 	10	 
	Section 2.4. Prepayment

	 	 	10	 
	Section 2.5. Repayment

	 	 	10	 
	Section 2.6. Interest

	 	 	10	 
	Section 2.7. Fees

	 	 	10	 
	Section 2.8. Computation of Interest and Fees

	 	 	11	 
	Section 2.9. Payments by the Company

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Taxes, Yield Protection and Illegality
	 	 	 	 
	 
	 	 	 	 
	Section 3.1. Taxes

	 	 	12	 
	Section 3.2. Illegality

	 	 	13	 
	Section 3.3. Increased Costs and Reduction of Return

	 	 	14	 
	Section 3.4. Funding Losses

	 	 	15	 
	Section 3.5. Inability to Determine Rates

	 	 	15	 
	Section 3.6. Certificates of Bank

	 	 	16	 
	Section 3.7. Survival

	 	 	16	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Conditions Precedent
	 	 	 	 
	 
	 	 	 	 
	Section 4.1. Conditions of Closing Date

	 	 	16	 

 

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	Section 5.1. Corporate Existence and Power

	 	 	17	 
	Section 5.2. Corporate Authorization; No Contravention

	 	 	18	 
	Section 5.3. Governmental Authorization

	 	 	18	 
	Section 5.4. Binding Effect

	 	 	18	 
	Section 5.5. Litigation

	 	 	18	 
	Section 5.6. No Default

	 	 	18	 
	Section 5.7. ERISA

	 	 	19	 
	Section 5.8. Use of Proceeds; Margin Regulations

	 	 	19	 
	Section 5.9. Title to Properties

	 	 	19	 
	Section 5.10. Taxes

	 	 	19	 
	Section 5.11. Environmental Matters

	 	 	19	 
	Section 5.12. Regulated Entities

	 	 	20	 
	Section 5.13. Copyrights, Patents, Trademarks and Licenses, Etc

	 	 	20	 
	Section 5.14. Financial Information

	 	 	20	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Affirmative Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 6.1. Financial Statements

	 	 	20	 
	Section 6.2. Certificates; Other Information

	 	 	21	 
	Section 6.3. Notices

	 	 	21	 
	Section 6.4. Preservation of Corporate Existence, Etc

	 	 	22	 
	Section 6.5. Insurance

	 	 	22	 
	Section 6.6. Payment of Obligations

	 	 	22	 
	Section 6.7. Compliance with Laws

	 	 	22	 
	Section 6.8. Inspection of Property and Books and Records

	 	 	23	 
	Section 6.9. Use of Proceeds

	 	 	23	 
	Section 6.10. Minimum Net Worth

	 	 	23	 
	Section 6.11. Incorporation by Reference

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Negative Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 7.1. Limitation on Liens

	 	 	23	 
	Section 7.2. Disposition of Assets; Consolidations and Mergers

	 	 	24	 
	Section 7.3. Pari Passu Ranking; Benefit of Guarantees and Security

	 	 	24	 
	Section 7.4. Transactions with Affiliates

	 	 	24	 
	Section 7.5. Margin Stock

	 	 	24	 
	Section 7.6. Leverage Ratio

	 	 	24	 
	Section 7.7. Restricted Payments

	 	 	25	 

 

 

	 	 	 	 	 
	 	 	Page
	Section 7.8. Prepayment of Subordinated Notes

	 	 	25	 
	Section 7.9. Incorporation by Reference

	 	 	25	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Events of Default
	 	 	 	 
	 
	 	 	 	 
	Section 8.1. Event of Default

	 	 	25	 
	Section 8.2. Rights and Remedies

	 	 	27	 
	Section 8.3. Rights Not Exclusive

	 	 	27	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	 Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 9.1. Amendments and Waivers

	 	 	28	 
	Section 9.2. Notices

	 	 	28	 
	Section 9.3. No Waiver; Cumulative Remedies

	 	 	29	 
	Section 9.4. Costs and Expenses

	 	 	29	 
	Section 9.5. Indemnity

	 	 	29	 
	Section 9.6. Marshalling; Payments Set Aside

	 	 	30	 
	Section 9.7. Successors and Assigns

	 	 	30	 
	Section 9.8. Assignments

	 	 	30	 
	Section 9.9. Set-off

	 	 	30	 
	Section 9.10. Counterparts

	 	 	31	 
	Section 9.11. Severability

	 	 	31	 
	Section 9.12. No Third Parties Benefited

	 	 	31	 
	Section 9.13. Governing Law and Jurisdiction

	 	 	31	 
	Section 9.14. Waiver of Jury Trial

	 	 	32	 
	Section 9.15. Entire Agreement

	 	 	32	 

 

 

Exhibit 10.9

TERM LOAN AGREEMENT

     This TERM LOAN AGREEMENT is entered into as of February 16, 2005 by Spartech Corporation, a
Delaware corporation (the “Company”) and Calyon New York Branch (the “Bank”).

     WHEREAS, the Bank has agreed to make available to the Company a term loan upon the terms and
conditions set forth in this Agreement;

     NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, the parties agree as follows:

ARTICLE 1

Definitions

     Section 1.1. Defined Terms. In addition to the terms defined elsewhere in this
Agreement, the following terms have the following meanings:

     “Adjusted LIBOR Rate” means, with respect to any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/16th of 1%) equal to (i) the LIBOR Rate
for such Interest Period multiplied by (ii) the Reserve Requirement.

     “Affiliate” means, as to any Person, (i) any other Person which directly, or indirectly
through one or more intermediaries, controls such Person, (ii) any other Person which directly, or
indirectly through one or more intermediaries, is controlled by, or is under common control with,
such Person or (iii) any other Person or which such Person owns, directly or indirectly, 20% or
more of the common stock or equivalent equity interests. As used herein, the term “control” means
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ownership of voting securities, by contract or
otherwise.

     “Agreement” means this Term Loan Agreement, as amended or supplemented from time to time in
accordance with the terms hereof.

     “Applicable Margin” means, for any day, 1.0% per annum; provided, however, that if either the
Leverage Ratio covenant or Consolidated Net Worth covenant applicable to the Company under the
Revolving Credit Agreement is amended or modified, the effect of which is to ease any restricition
imposed thereby, the “Applicable Margin” shall be equal to the greater of (i) 1.0% per annum and
(ii) the applicable margin in effect at such time under the Revolving Credit Agreement for
Eurodollar Rate Loans (as therein defined).

     “Availability Period” means the period beginning on the Effective Date and ending not more
than 15 days thereafter.

 

 

     “Bank” has the meaning specified in the introductory clause hereto.

     “Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.).

     “Bank’s Payment Office” means the address for payments specified as such on the signature page
hereto in relation to the Bank or such other address as the Bank may from time to time specify in
accordance with Section 9.2.

     “Business Day” means any day other than a Saturday, Sunday or other day on which (i)
commercial banks in New York City are authorized or required by law to close, (ii) dealings are not
carried on in the London interbank market and (iii) the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) System is not open.

     “Capital Adequacy Regulation” means any guideline, request or directive of any central bank or
other Governmental Authority, or any other law, rule or regulation, whether or not having the force
of law, in each case, regarding capital adequacy of any bank or of any corporation controlling a
bank.

     “Closing Date” means the date on which the Term Loan is funded hereunder.

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

     “Company” has the meaning ascribed to that term in the preamble and recitals hereto.

     “Contingent Obligation” as to any Person, any guarantee of payment by such Person of any
Indebtedness or other obligation of any other Person, or any agreement to provide financial
assurance with respect to the financial condition, or the payment of the obligations of, such other
Person which has the effect of assuring or holding harmless any third Person against loss with
respect to one or more obligations of such other Person to such third Person; provided, however,
that the term Contingent Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business.

     “Contractual Obligations” means, as to any Person, any provision of any security issued by
such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other
instrument, document or agreement to which such Person is a party or by which it or any of its
property is bound and which is material to such Person.

     “Controlled Group” means the Company and all Persons (whether or not incorporated) under
common control or treated as a single employer with the Company pursuant to Section 414(b), (c),
(m) or (o) of the Code.

     “Default” means any event or circumstance which, with the giving of notice, the lapse of time,
or both, would (if not cured or otherwise remedied during such time) constitute an Event of
Default.

     “Dollar(s)” means the lawful currency of the United States of America.

2

 

     “Effective Date” means the date on which this Agreement is executed by the Company and the
Bank, but in any event shall be no later than February 28, 2005.

     “EMU Legislation” means the legislative measures of the European Union for the introduction
of, changeover to, or operation of the Euro in one or more member states.

     “Environmental Laws” means all federal, state or local laws, statutes, common law duties,
rules, regulations, ordinances and codes, together with all administrative orders, directed duties,
requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authorities, in each case relating to environmental, health, safety and land use matters; including
the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), the
Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the
Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act and the Emergency
Planning and Community Right-to-Know Act.

     “Equivalent” means, as determined by the Bank, the United States Dollar equivalent of an
amount expressed in Euro, determined on the basis of the Spot Exchange Rate obtained by the Bank in
a commercially reasonable manner.

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

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Company within the meaning of Section 414(b), 414(c) or 414(m) of the Code.

     “ERISA Event” means (a) a Reportable Event with respect to a Qualified Plan or a Multiemployer
Plan; (b) a withdrawal by the Company or any ERISA Affiliate from a Qualified Plan subject to
Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA); (c) a complete or partial withdrawal by the Company or any ERISA
Affiliate from a Multiemployer Plan; (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 Qualified Plan or Multiemployer Plan subject
to Title IV of ERISA; (e) a failure by the Company or any member of the Controlled Group to make
required contributions to a Qualified Plan or Multiemployer Plan; (f) an event or condition which
might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Qualified Plan or Multiemployer Plan; (g)
the imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Company or any ERISA Affiliate; or (h) an
application for a funding waiver or an extension of any amortization period pursuant to Section 412
of the Code with respect to any Plan.

     “Euro” or “€” means the single currency of the Participating Member States of the European
Union as constituted by the Treaty on European Union and as referred to in the EMU Legislation.

     “Event of Default” has the meaning specified in Section 8.1.

3

 

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any
entity succeeding to any of its principal functions.

     “Final Maturity Date” means the date falling five years after the funding of the Term Loan
hereunder, but in any event, no later than March 15, 2010; provided that if such date is not a
Business Day, the “Final Maturity Date” shall be the next preceding Business Day.

     “GAAP” means generally accepted accounting principles set forth from time to time 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 agencies with similar functions of comparable stature and authority within the
accounting profession), or in such other statements by such other entity as may be in general use
by significant segments of the U.S. accounting profession, which are applicable to the
circumstances as of the date of determination.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

     “Indebtedness” of any Person at any date: (a) all indebtedness of such Person for borrowed
money or for the deferred purchase price of property or services (other than current trade
liabilities incurred in the ordinary course of business and payable in accordance with customary
practices), (b) any other indebtedness which is evidenced by a note, bond, debenture or similar
instrument, (c) all capital lease obligations of such Person, (d) all obligations of such Person in
respect of outstanding letters of credit, acceptances and similar obligations created for the
account of such Person, (e) all liabilities secured by any Lien on any property owned by such
Person even though such Person has not assumed or otherwise become liable for the payment thereof,
(f) all Contingent Obligations of such Person and (g) net liabilities of such Person under interest
rate cap agreements, interest rate swap agreements, foreign currency exchange agreements and other
hedging agreements or arrangements (calculated on a basis satisfactory to the Bank and in
accordance with accepted industry practice). The Indebtedness of any Person shall include any
Indebtedness of any partnership in which such Person is the general partner.

     “Indemnified Person” has the meaning specified in subsection 9.5.

     “Indemnified Liabilities” has the meaning specified in subsection 9.5.

     “Insolvency Proceeding” means (a) any case, action or proceeding before any court or other
Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors, composition, marshalling of assets for creditors, or other, similar
arrangement in respect of its creditors generally or any substantial portion of its creditors; in
each case (a) and (b) undertaken under U.S. Federal, State or foreign law, including the Bankruptcy
Code.

4

 

     “Interest Payment Date” means the last day of each Interest Period; provided that for Interest
Periods of more than three months’ duration, “Interest Payment Date” shall mean the end of each
three month period.

     “Interest Period” means the period commencing on the date the Term Loan is made or renewed, as
the case may be, and ending on the numerically corresponding day on the date which is one, two,
three or six months thereafter; provided that (a) each such Interest Period which commences on the
last Business Day of a calendar month (or on any day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period and (b) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be advanced to end on the
next preceding Business Day.

     “Lending Office” means the office or offices of the Bank as the Bank may from time to time
specify as its “Lending Office” by notice to the Company.

     “LIBOR Rate” means with respect to each day during each Interest Period, the rate per annum
determined on the basis of the rate for deposits in Euro for a period equal to such Interest Period
commencing on the first day of such Interest Period appearing on Page 3750 of the Telerate screen
as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period.
In the event that such rate does not appear on Page 3750 of the Telerate screen (or otherwise on
such screen), the “LIBOR Rate” for purposes of this definition shall be determined by reference to
such other comparable publicly available service for displaying eurodollar rates as may be selected
by the Bank.

     “Lien” any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien
(statutory or other), other charge or security interest or any preference, priority or other
agreement or preferential arrangement of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement or any capital lease obligation
having substantially the same economic effect as any of the foregoing).

     “Loan Documents” means this Agreement and all other documents delivered to the Bank by the
Company in connection herewith and therewith.

     “Margin Stock” means “margin stock” as such term is defined in Regulation T, U or X of the
Federal Reserve Board.

     “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect
upon, the business, assets, liabilities (actual or contingent), operations, condition (financial or
otherwise) or prospects of the Company or the Company and its Subsidiaries taken as a whole; or (b)
a material adverse effect upon the legality, validity, binding effect or enforceability of this
Agrement or any other Loan Document, or on the ability of the Company to perform its obligations
hereunder or thereunder.

     “Multiemployer Plan” means a “multiemployer plan” (within the meaning of Section 4001(a)(3) of
ERISA) and to which any member of the Controlled Group makes, is making, or is

5

 

obligated to make contributions or, during the preceding three calendar years, has made, or
been obligated to make, contributions.

     “Obligations” means the Term Loan and all other advances, debts, liabilities, obligations,
covenants and duties owing by the Company to the Bank or any other Person required to be
indemnified, that arises under any Loan Document, whether or not for the payment of money, whether
arising by reason of an extension of credit, loan, guaranty, indemnification or in any other
manner, whether direct or indirect (including those acquired by assignment), absolute or
contingent, due or to become due, now existing or hereafter arising and however acquired.

     “Ordinary Course of Business” means, in respect of any transaction involving the Company or
any Subsidiary of the Company, the ordinary course of such Person’s business, as conducted by any
such Person and undertaken by such Person in good faith and not for purposes of evading any
covenant or restriction in any Loan Document.

     “Organization Documents” means, for any corporation, the certificate or articles of
incorporation, the bylaws, any certificate of determination or instrument relating to the rights of
preferred shareholders of such corporation and any shareholder rights agreement.

     “Other Taxes” has the meaning specified in subsection 3.1(b).

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any of its
principal functions under ERISA.

     “Person” means an individual, partnership, corporation, business trust, limited liability
company, joint stock company, trust, unincorporated association, joint venture or Governmental
Authority.

     “Plan” means a Multiemployer Plan or a Qualified Plan.

     “Prepayment Fee” has the meaning specified in Section 2.7

     “Property” means any estate or interest in any kind of property or asset, whether real,
personal or mixed, and whether tangible or intangible.

     “Qualified Plan” means a pension plan intended to be tax-qualified under Section 401(a) of the
Code, which is subject to Title IV of ERISA and which any member of the Controlled Group sponsors,
maintains, or to which it makes, is making or is obligated to make contributions, or in the case of
a multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at any
time during the immediately preceding period covering at least five (5) plan years, but excluding
any Multiemployer Plan.

     “Reportable Event” means, as to any Plan, (a) any of the events set forth in Section 4043(b)
of ERISA or the regulations thereunder, other than any such event for which the 30-day notice
requirement under ERISA has been waived in regulations issued by the PBGC, (b) a withdrawal from a
Plan described in Section 4063 of ERISA, or (c) a cessation of operations described in Section
4062(e) of ERISA.

6

 

     “Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or
regulation or determination of an arbitrator or of a Governmental Authority, in each case
applicable to or binding upon the Person or any of its property or to which the Person or any of
its property is subject.

     “Reserve Requirement” means the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal established by the
Board of Governors of the Federal Reserve System to which the Bank is subject for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of said Board). Such
reserve percentages shall include those imposed pursuant to such Regulation D. The Term Loan,
based upon the Adjusted LIBOR Rate, shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration, exemptions or
offsets that may be available from time to time to the Bank under such Regulation D or any
comparable regulation. The Reserve Requirement shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Responsible Officer” means the chief executive officer, any vice chairman, the president, the
chief financial officer, the treasurer or any senior vice president of the Company.

     “Restricted Payment” means (i) any dividend or other distribution on any shares of the
Company’s capital stock (except dividends payable solely in shares of its capital stock) or (ii)
any payment on account of the purchase, redemption, retirement or acquisition of any shares of the
Company’s capital stock (except shares acquired upon the conversion thereof into other shares of
its capital stock).

     “Revolving Credit Agreement” means the Third Amended and Restated Credit Agreement dated as of
March 3, 2004, among, inter alia, the Company, the lenders party thereto and Bank of America, N.A.,
as administrative agent, as the same may be amended or supplemented hereafter, and any
substitutions or replacements thereof.

     “Spot Exchange Rate” means the currency exchange rate at the time at which such rate is to be
determined for Euro in good faith and in a commercially reasonable manner by Lender.

     “Subordinated Notes” means the 2014 Preferred Securities, the 2015 Preferred Securities, the
2014 Debentures and the 2015 Debentures..

     “Subsidiary” of a Person means any corporation, association, partnership, joint venture or
other business entity of which more than 51% of the voting stock or other equity interests (in the
case of Persons other than corporations), is owned or controlled directly or indirectly by the
Person, or one or more of the Subsidiaries of the Person, or a combination thereof.

     “Substitute Rate” has the meaning specified in subsection 3.2(c).

     “Taxes” has the meaning specified in subsection 3.1(a).

     “Term Loan” has the meaning ascribed to that term in Section 2.1.

7

 

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

     “United States” and “U.S.” each means the United States of America.

     “Upfront Fee” has the meaning ascribed to that term in Section 2.7(b).

     “Withdrawal Liabilities” means, as of any determination date, the aggregate amount of the
liabilities, if any, pursuant to Section 4201 of ERISA if the Controlled Group made a complete
withdrawal from all Multiemployer Plans and any increase in contributions pursuant to Section 4243
of ERISA.

     Section 1.2. Other Interpretive Provisions.

     (a) Defined Terms. Unless otherwise specified herein, capitalized terms used herein and not
otherwise defined shall have the meaning ascribed thereto in the Revolving Credit Agreement
(including, without limitation, for purposes of calculating compliance with Sections 6.10 and 7.6
and of this Agreement) or in any certificate or other document made or delivered pursuant hereto,
as applicable. The meaning of defined terms shall be equally applicable to the singular and plural
forms of the defined terms.

     (b) The Agreement. The words “hereof”, “herein”, “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement; and subsection, section, schedule and exhibit references are to this Agreement
unless otherwise specified.

     (c) Certain Common Terms.

     (i) The term “documents” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced.

     (ii) The term “including” is not limiting and means “including without limitation.”

     (d) Performance; Time. Whenever any performance obligation hereunder shall be stated to be
due or required to be satisfied on a day other than a Business Day, such performance shall be made
or satisfied on the next succeeding Business Day. 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.” If
any provision of this Agreement refers to any action taken or to be taken by any Person, or which
such Person is prohibited from taking, such provision shall be interpreted to encompass any and all
means, direct or indirect, of taking, or not taking, such action.

     (e) Contracts. Unless otherwise expressly provided herein, references to agreements and other
contractual instruments shall be deemed to include all subsequent amendments and

8

 

other modifications thereto, but only to the extent such amendments and other modifications are not
prohibited by the terms of any Loan Document.

     (f) Laws. References to any statute or regulation are to be construed as including all
statutory and regulatory provisions consolidating, amending, replacing, supplementing or
interpreting the statute or regulation.

     (g) Captions. The captions and headings of this Agreement are for convenience of reference
only and shall not affect the interpretation of this Agreement.

     (h) Independence of Provisions. The parties acknowledge that this Agreement and other Loan
Documents may use several different limitations, tests or measurements to regulate the same or
similar matters, and that such limitations, tests and measurements are cumulative and must each be
performed, except as expressly stated to the contrary in this Agreement.

     Section 1.3. Accounting Principles. (a) Unless the context otherwise clearly
requires, all accounting terms not expressly defined herein shall be construed, and all financial
computations required under this Agreement shall be made, in accordance with GAAP; provided, that
if the Company requests an amendment to any provisions hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such
provision (or if the Bank notifies the Company that it requests an amendment to any provision
hereof for such purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be interpreted on the basis
of GAAP as in effect and applied immediately before such change shall have become effective until
such notice shall have been withdrawn or such provision amended in accordance herewith.

     (b) References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
the Company.

ARTICLE 2

THE TERM LOAN

     Section 2.1. Term Loan. Subject to the terms and conditions hereof, the Bank agrees
to make a term loan (the “Term Loan”) to the Company during the Availability Period in a single
advance in the principal amount of not more than Twenty Million Euro (€20,000,000). Amounts
repaid or prepaid in respect of the principal of the Term Loan may not be reborrowed.

     Section 2.2. Evidence of Debt. The Bank shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Company to the Bank resulting
from the Term Loan, including the amounts of principal and interest payable and paid to the Bank
from time to time hereunder. The entries made in any such accounts shall, to the extent permitted
by applicable law, be prima facie evidence of the existence and amounts of the

9

 

obligations of the Company therein recorded; provided, however, that the failure of the Bank
to maintain any such account, or any error therein, shall not in any manner affect the obligation
of the Company to repay (with applicable interest) the Term Loan made to the Company by the Bank in
accordance with the terms of this Agreement. The Company agrees that, upon the Bank’s request, the
Company will execute and deliver to the Bank a promissory note in form and substance reasonably
satisfactory to the Bank and consistent with the terms of this Agreement.

     Section 2.3. Procedure for Borrowing. The Borrowing of the Term Loan shall be made
upon the Company’s irrevocable written notice delivered to the Bank in accordance with Section 9.2,
which notice must be received by the Bank prior to 11:00 a.m. (New York time) three Business Days
prior to the requested date of such borrowing specifying the amount of such Loan to be borrowed and
the applicable Interest Period.

     Section 2.4. Prepayment. The Term Loan may be prepaid at any time in whole or in
part without premium or penalty, subject to compliance with Sections 2.7 and 3.4 hereof; provided,
however that partial prepayments shall be in integral amounts of €500,000. The Company shall
give the Bank written notice of such intended prepayment in accordance with Section 9.2 not less
than two (2) Business Days prior to the date of prepayment. Once given, such notice of prepayment
shall be irrevocable.

     Section 2.5. Repayment. The Company agrees to repay the Term Loan in full on the
Final Maturity Date.

     Section 2.6. Interest. (a) Subject to Section 2.6(c), interest shall accrue on the
outstanding principal amount of the Term Loan for the period from and including the date thereof to
but excluding the date the Term Loan is due at the Adjusted LIBOR Rate for each Interest Period
plus the Applicable Margin.

     (b) Interest on the Term Loan shall be paid in arrears on each Interest Payment Date.
Interest shall also be paid upon payment or prepayment of the Term Loan and, during the existence
of any Event of Default, interest shall be paid on demand.

     (c) While any Event of Default exists or after acceleration, the Company shall pay interest
(after as well as before entry of judgment thereon to the extent permitted by law) on the principal
amount of all Obligations due and unpaid, at a rate per annum equal to 2% per annum above the
Adjusted LIBOR Rate plus the Applicable Margin.

     (d) Anything herein to the contrary notwithstanding, the obligations of the Company hereunder
shall be subject to the limitation that payments of interest shall not be required, for any period
for which interest is computed hereunder, to the extent (but only to the extent) that contracting
for or receiving such payment by the Bank would be contrary to the provisions of any law applicable
to the Bank limiting the highest rate of interest which may be lawfully contracted for, charged or
received by the Bank, and in such event the Company shall pay the Bank interest at the highest rate
permitted by applicable law.

     Section 2.7. Fees. (a) Upon any prepayment of any portion of the Term Loan as
provided in Section 2.4 which occurs prior to the date that is six (6) months after the Closing

10

 

Date, the Company shall pay to the Bank a prepayment fee (the “Prepayment Fee”) equal to 0.2%
of the amount so prepaid.

     (b) The Company shall pay to the Bank on or before the Closing Date an upfront fee (the
“Upfront Fee”) calculated as of the Effective Date and equal to (i) .25% per annum multiplied by
(ii) the US Dollar Equivalent of €20,000,000, which fee shall be non-refundable and deemed
fully earned when paid.

     Section 2.8. Computation of Interest and Fees. (a) All computations of interest and
fees under this Agreement shall be made on the basis of a 360-day year and actual days elapsed.
Interest and fees shall accrue during each period during which interest or such fees are computed
from the first day thereof to the last day thereof.

     (b) The Bank will, with reasonable promptness, notify the Company of each determination of a
LIBOR Rate; provided that any failure to do so shall not relieve the Company of any liability
hereunder or provide the basis for any claim against the Bank. Any change in the interest rate on
the Term Loan resulting from a change in the Reserve Requirement shall become effective and shall
apply thereto as of the opening of business on the day on which such change becomes effective. The
Bank will with reasonable promptness notify the Company of the effective date and the amount of
each such change, provided that any failure to do so shall not relieve the Company of any liability
hereunder or provide the basis for any claim against the Bank.

     (c) Each determination of an interest rate by the Bank pursuant hereto shall be conclusive and
binding on the Company in the absence of manifest error. The Bank will, at the request of the
Company, deliver to the Company or the Bank, as the case may be, a statement showing the quotations
used by the Bank in determining any interest rate.

     Section 2.9. Payments by the Company. (a) All payments (including prepayments) to
be made by the Company on account of principal, interest, fees and other amounts required hereunder
shall be made without set-off, recoupment or counterclaim; shall, except as otherwise expressly
provided herein, be made to the Bank at the Bank’s Payment Office, and shall be made in Euro and in
immediately available funds, no later than 5:00 p.m. (New York time) on the date specified herein.
Any payment which is received by the Bank later than 5:00 p.m. (New York time) shall be deemed to
have been received on the immediately succeeding Business Day and any applicable interest or fee
shall continue to accrue.

     (b) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of interest or fees, as the case may be; subject
to the provisions set forth in the definition of “Interest Period” herein.

11

 

ARTICLE 3

Taxes, Yield Protection and Illegality

     Section 3.1. Taxes. (a) Subject to subsection 3.1(g), any and all payments by the
Company to the Bank under this Agreement shall be made free and clear of, and without deduction or
withholding for, any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding such taxes (including income
taxes or franchise taxes) as are imposed on or measured by the Bank’s net income by Governmental
Authority (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as “Taxes”).

     (b) In addition, the Company shall pay any present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies which arise from any payment made
hereunder or from the execution, delivery or registration of, or otherwise with respect to, this
Agreement or any other Loan Documents (hereinafter referred to as “Other Taxes”). If the Bank
becomes aware of the imposition of Other Taxes, it shall promptly notify the Company thereof.

     (c) Subject to subsection 3.1(g), the Company shall indemnify and hold harmless the Bank for
the full amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 3.1) paid by the Bank and any liability
(including penalties, interest, additions to tax and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. Payment
under this indemnification shall be made within 30 days from the date the Bank makes written demand
therefor.

     (d) If the Company shall be required by law to deduct or withhold any Taxes or Other Taxes
from or in respect of any sum payable hereunder to the Bank, then, subject to subsection 3.1(g):

     (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
3.1) the Bank receives an amount equal to the sum it would have received had no such
deductions been made;

     (ii) the Company shall make such deductions; and

     (iii) the Company shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

     (e) Within 30 days after the date of any payment by the Company of Taxes or Other Taxes, the
Company shall furnish to the Bank evidence of payment satisfactory to the Bank.

12

 

     (f) The Bank agrees to deliver to the Company at the time or times prescribed by applicable
law such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Company as will permit payments under this Agreement and the other Loan Documents
to be made without withholding or at a reduced rate

     (g) The Company will not be required to pay any additional amounts in respect of United States
Federal income tax pursuant to subsection 3.1(d) to the Bank for the account of any Lending Office
of the Bank if the obligation to pay such additional amounts would not have arisen but for a
failure by the Bank to comply with its obligations under subsection 3.1(f);

     (h) If the Company is required to pay additional amounts to the Bank pursuant to subsection
3.1(b) or 3.1(d), then the Bank shall use its reasonable best efforts (consistent with legal and
regulatory restrictions) to change the jurisdiction of its Lending Office or to take other
reasonable action so as to eliminate any such additional payment by the Company which may
thereafter accrue if such change or action in the judgment of the Bank is not otherwise
disadvantageous to the Bank.

     Section 3.2. Illegality. (a) If the Bank shall reasonably determine, based upon the
advice of its counsel, that the introduction of any Requirement of Law, or any change in any
Requirement of Law or in the interpretation or administration thereof, has made it unlawful, or
that any central bank or other Governmental Authority has asserted that it is unlawful, for the
Bank or its Lending Office to make the Term Loan based upon the LIBOR Rate, then, on notice thereof
by the Bank to the Company, the obligation of the Bank to make the Term Loan shall be suspended
until the Bank shall have notified the Company that the circumstances giving rise to such
determination no longer exist.

     (b) If the Bank shall reasonably determine, based upon the advice of its counsel, that it is
unlawful to maintain the Term Loan based upon the LIBOR Rate, then, on notice thereof by the Bank
to the Company, the Company shall, subject to any election under subsection 3.2(d), prepay the Term
Loan then outstanding in full, together with interest accrued thereon, either on the last day of
the current Interest Period thereof if the Bank may lawfully continue to maintain the Term Loan to
such day, or immediately, if the Bank may not lawfully continue to do so, together with any amounts
required to be paid in connection therewith pursuant to Section 3.4.

     (c) Intentionally Omitted.

     (d) If the obligation of the Bank to make the Term Loan based upon the LIBOR Rate has been
suspended as provided in subsection 3.2(a) or 3.2(b), the Company may elect, by giving notice to
the Bank that the Term Loan shall be instead be made initially or maintained, as the case may be,
as a loan that accrues interest at a rate that reflects, as closely as practicable, the Bank’s cost
of funds (the “Substitute Rate”), plus the Applicable Margin.

     (e) If the Company elects pursuant to subsection 3.2(d) to borrow or maintain the Term Loan at
the Substitute Rate, plus the Applicable Margin, such loan shall continue as such unless and until
the Bank shall notify the Company that the condition or conditions that gave rise to such
requirement or election have ceased to exist and that such loan may be made or maintained at the
LIBOR Rate. Upon the giving of such notice by the Bank to the Company, the Company

13

 

shall prepay in full such Substitute Rate Loan then outstanding, together with interest
accrued thereon, and, concurrently with such prepayment, the Company shall borrow from the Bank, in
the amount of such repayment, a loan based upon the LIBOR Rate.

     (f) Before giving any notice to the Company pursuant to this Section 3.2, the Bank shall
designate a different Lending Office with respect to the Term Loan if such designation will avoid
the need for giving such notice or making such demand and will not, in the judgment of the Bank, be
illegal or otherwise disadvantageous to the Bank.

     Section 3.3. Increased Costs and Reduction of Return. (a) If after the date hereof
the Bank shall reasonably determine that, due to and as a direct result of either (i) the
introduction of or any change (other than any change by way of imposition of or increase in reserve
requirements included in the calculation of Adjusted LIBOR Rate) in or in the interpretation of
any law or regulation or (ii) the compliance with any guideline or request from any central bank or
other Governmental Authority (whether or not having the force of law), there shall be any increase
in the cost to the Bank of agreeing to make or making, funding or maintaining the Term Loan, then
the Company shall be liable for, and shall from time to time, upon demand therefor by the Bank, pay
to the Bank, additional amounts as are sufficient to compensate the Bank for such increased costs.

     (b) If after the date hereof the Bank shall have reasonably determined that (i) the
introduction of any Capital Adequacy Regulation, (ii) any change in any Capital Adequacy
Regulation, (iii) any change in the interpretation or administration of any Capital Adequacy
Regulation by any central bank or other Governmental Authority charged with the interpretation or
administration thereof, or (iv) compliance by the Bank (or its Lending Office) or any corporation
controlling the Bank, with any Capital Adequacy Regulation, affects or would affect the amount of
capital required or expected to be maintained by the Bank or any corporation controlling the Bank
and (taking into consideration the Bank’s or such corporation’s policies with respect to capital
adequacy and the Bank’s desired return on capital) determines that the amount of such capital is
increased as a consequence of the Term Loan, credits or obligations under this Agreement, then,
upon demand of the Bank, the Company shall upon demand pay to the Bank, from time to time as
specified by the Bank, additional amounts sufficient to compensate the Bank for such increase.

     (c) If the Company is required to pay additional amounts to the Bank pursuant to subsection
3.3(a) or (b), then the Bank shall use its reasonable efforts (consistent with legal and regulatory
restrictions) to designate a different Lending Office so as to eliminate any such additional
payment by the Company which may thereafter accrue if such change in the judgment of the Bank is
not otherwise disadvantageous to the Bank.

     (d) Notwithstanding anything in this Section 3.03 to the contrary, if the Bank fails to notify
the Company of any event which will entitle the Bank to compensation pursuant to this Section 3.03
within 180 days after the Bank obtains knowledge of such event, then the Bank shall not be entitled
to any compensation from the Company for any such increased cost or reduction of return arising
prior to the date which is 180 days before the date on which the Bank notifies the Company of such
event.

14

 

     Section 3.4. Funding Losses. The Company agrees to reimburse the Bank and to hold
the Bank harmless from any loss or out-of-pocket expense which the Bank may sustain or incur as a
direct consequence of:

     (a) the failure of the Company to make on a timely basis any payment of principal in respect
of the Term Loan (for so long as the interest rate pertaining thereto is the LIBOR Rate),
including payments made after any acceleration thereof;

     (b) the failure of the Company to borrow the Term Loan after the Company has given a notice of
borrowing or is required to borrow such Term Loan;

     (c) the failure of the Company to prepay the Term Loan (in whole or in part) based upon the
LIBOR Rate after the Company has given a notice in accordance with Section 2.4;

     (d) any principal payment or prepayment in respect of the Term Loan based upon the LIBOR Rate
on a day which is not the last day of the Interest Period with respect thereto; or

     (e) the conversion pursuant to Section 3.2(d) of the Term Loan based upon the LIBOR Rate to
the Term Loan based upon the Substitute Rate on a day that is not the last day of the respective
Interest Period;

including any such loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Term Loan hereunder or from standard fees payable to terminate the deposits
from which such funds were obtained. Solely for purposes of calculating amounts payable by the
Company to the Bank under this Section 3.4, such Term Loan (and each related reserve, special
deposit or similar requirement) shall be conclusively deemed to have been funded at the LIBOR Rate
used in determining the Adjusted LIBOR Rate for such Term Loan by a matching deposit or other
borrowing in the European interbank market for a comparable amount and for a comparable period,
whether or not such Term Loan is in fact so funded.

     Section 3.5. Inability to Determine Rates. If the Bank shall have determined (i)
that for any reason adequate and reasonable means do not exist for ascertaining the LIBOR Rate for
any Interest Period or (ii) that the LIBOR Rate applicable pursuant to subsection 2.6(a) for any
Interest Period does not adequately and fairly reflect the cost to the Bank of funding the Term
Loan, the Bank will forthwith give notice of such determination to the Company. Thereafter, the
obligation of the Bank to make or maintain the Term Loan hereunder shall be suspended until the
Bank revokes such notice in writing. If the Term Loan has not then been made, the Company may
elect, by giving notice to the Bank, that such Term Loan shall be instead be made based upon the
Substitute Rate, plus the Applicable Margin. If the Term Loan is then outstanding based upon the
LIBOR Rate, the Company shall prepay in full (without any liability for a Prepayment Fee) such Term
Loan then outstanding, together with interest accrued thereon, on the last day of the current
Interest Period thereof, and, concurrently with such prepayment, the Company may elect to borrow
from the Bank, in the amount of such repayment, the Term Loan based upon the Substitute Rate. If
the Company elects pursuant to this Section 3.5, to borrow based upon the Substitute Rate, it shall
continue as such unless and until the Bank shall notify the Company that the condition or
conditions that gave rise to such requirement or election have ceased to exist and that the Term
Loan may be made or maintained based upon the LIBOR Rate.

15

 

Upon the giving of such notice by the Bank to the Company, the Company shall prepay in full
(without any liability for a Prepayment Fee) such Substitute Rate Loan then outstanding, together
with interest accrued thereon, and, concurrently with such prepayment, the Company may elect to
borrow from the Bank, in the amount of such repayment, the Term Loan based upon the LIBOR Rate.

     Section 3.6. Certificates of Bank. If the Bank claims reimbursement or compensation
pursuant to this Article 3 it shall deliver to the Company a certificate setting forth in
reasonable detail the basis for and the computation of the amount payable to the Bank hereunder and
such certificate shall be conclusive and binding on the Company in the absence of manifest error.

     Section 3.7. Survival. The agreements and obligations of the Company in this
Article 3 shall survive the payment of all Obligations and termination of this Agreement and any
other Loan Document.

ARTICLE 4

Conditions Precedent

     Section 4.1. Conditions of Closing Date. The obligation of the Bank to make the
initial Loan hereunder is subject to the condition that the Bank shall have received on or before
the Closing Date (i) the Upfront Fee and (ii) all of the following, in form and substance
satisfactory to the Bank:

     (a) Term Loan Agreement. This Agreement duly executed by the Company and the Bank;

     (b) Resolutions; Incumbency.

     (i) Copies of the resolutions of the board of directors of the Company approving and
authorizing the execution, delivery and performance by the Company of this Agreement and the
other Loan Documents to be delivered hereunder, and authorizing the borrowing of the Term
Loan, certified as of the Closing Date by the Secretary or an Assistant Secretary of the
Company; and

     (ii) A certificate of the Secretary or Assistant Secretary of the Company, certifying
the names and true signatures of the officers of the Company authorized to execute, deliver
and perform, as applicable, this Agreement, and all other Loan Documents to be delivered
hereunder;

     (c) Articles of Incorporation; By-laws and Good Standing. Each of the following documents:

     (i) the articles or certificate of incorporation of the Company as in effect on the
Closing Date, certified by the Secretary or Assistant Secretary of the Company as of the
Closing Date, and the bylaws of the Company as in effect on the Closing Date, certified by
the Secretary or Assistant Secretary of the Company as of the Closing Date; and

16

 

     (ii) a good standing certificate for the Company from the Secretary of State (or
similar, applicable Governmental Authority) of its state of incorporation as of a recent
date, together with a bring-down certificate by facsimile, dated the Closing Date;

     (d) Legal Opinions. A legal opinion of counsel of the Company, addressed to the Bank, in form
and substance satisfactory to the Bank;

     (e) Certificate. A certificate signed by a Responsible Officer, dated as of the Closing Date,
stating that:

     (i) the representations and warranties contained in Article 5 are true and correct on
and as of such date, as though made on and as of such date;

     (ii) no Default or Event of Default exists; and

     (iii) since October 30, 2004, there has not been a Material Adverse Effect; and

     (f) Borrowing Notice. A notice of borrowing of the Term Loan as and when contemplated by
Section 2.3.

     (g) Other Documents. Such other approvals, opinions, documents or materials as the Bank may
reasonably request.

ARTICLE 5

Representations and Warranties

     The Company represents and warrants to the Bank that:

     Section 5.1. Corporate Existence and Power. The Company:

     (a) is a corporation duly organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation;

     (b) has the power and authority and all material governmental licenses, authorizations,
consents and approvals to own its assets, carry on its business and to execute, deliver, and
perform its obligations under, the Loan Documents;

     (c) is duly qualified as a foreign corporation, and licensed and in good standing, under the
laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification or license and the failure to be so qualified or licensed
could have or cause a Material Adverse Effect; and

17

 

     (d) is in compliance with all Requirements of Law; except, in each case referred to in clause
(c) or clause (d), to the extent that the failure to do so could not reasonably be expected to have
a Material Adverse Effect.

     Section 5.2. Corporate Authorization; No Contravention. The execution, delivery and
performance by the Company of this Agreement, and any other Loan Document to which it is a party,
have been duly authorized by all necessary corporate action, and do not and will not:

     (a) contravene the terms of its Organization Documents;

     (b) conflict with or result in any breach or contravention of, or the creation of any Lien
under, any document evidencing any Contractual Obligation to which it is a party or any order,
injunction, writ or decree of any Governmental Authority to which its Properties is subject; or

     (c) violate any Requirement of Law.

     Section 5.3. Governmental Authorization. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority is
necessary or required in connection with the execution, delivery or performance by, or enforcement
against, the Company of this Agreement or any other Loan Document.

     Section 5.4. Binding Effect. This Agreement and each other Loan Document to which
the Company is a party constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability.

     Section 5.5. Litigation. Except as disclosed by the Company in writing from time to
time to the Bank, there are no actions, suits, proceedings, claims or disputes pending, or to the
best knowledge of the Company, expressly threatened or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, against the Company, or its Subsidiaries or any
of their respective Properties which:

     (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby or thereby; or

     (b) if determined adversely to the Company or its Subsidiaries, would reasonably be expected
to have a Material Adverse Effect.

     Section 5.6. No Default. No Default or Event of Default exists or would result from
the incurring of any Obligations by the Company. Neither the Company nor any of its Subsidiaries
is in default under or with respect to any Contractual Obligation in any respect which,
individually or together with all such defaults, could reasonably be expected to have a Material
Adverse Effect or that would, if such default had occurred after the Closing Date, create an Event
of Default under subsection 8.1(e).

18

 

     Section 5.7. ERISA. (a) There is no outstanding liability under Title IV of ERISA
with respect to any Qualified Plan maintained or sponsored by the Company or any ERISA Affiliate,
nor with respect to any Qualified Plan to which the Company or any ERISA Affiliate contributes or
is obligated to contribute.

     (b) No Qualified Plan subject to Title IV of ERISA has any Unfunded Pension Liability in
excess of $25,000,000 in the aggregate.

     (c) No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan
which, in either case, could reasonably be expected to have a Material Adverse Effect.

     (d) Neither the Company nor any ERISA Affiliate has incurred nor reasonably expects to incur
(i) 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 or (ii) any liability under Title IV of ERISA (other than premiums due and not
delinquent under Section 4007 of ERISA) with respect to a Plan and which, in either case, could
reasonably be expected to have a Material Adverse Effect.

     (e) Neither the Company nor any ERISA Affiliate has transferred any Unfunded Pension Liability
to a Person other than the Company or an ERISA Affiliate or otherwise engaged in a transaction that
could be subject to Section 4069 or 4212(c) of ERISA and which could reasonably be expected to have
a Material Adverse Effect..

     Section 5.8. Use of Proceeds; Margin Regulations. The proceeds of the Term Loan are
intended to be and shall be used solely for the purposes set forth in and permitted by Section 6.9,
and are not intended to be, and shall not be used in violation of Section 7.5. Neither the Company
nor any of its Subsidiaries is generally engaged in the business of purchasing or selling Margin
Stock or extending credit for the purpose of purchasing or carrying Margin Stock.

     Section 5.9. Title to Properties. The Company and each of its Subsidiaries have
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 their respective businesses, except for such
defects in title as could not, individually or in the aggregate, have a Material Adverse Effect.

     Section 5.10. Taxes. The Company and its Subsidiaries have filed all Federal and
other material tax returns and reports required to be filed, and have paid all Federal 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 and for which adequate reserves have been
provided in accordance with GAAP. There is no proposed tax assessment against the Company or any of
its Subsidiaries which would, if the assessment were made, have a Material Adverse Effect.

     Section 5.11. Environmental Matters. In the ordinary course of its business, the
Company conducts evaluations of the effect of Environmental Laws on the business, operations and
properties of the Company and its Subsidiaries consistent with the risks posed and the nature of
its operations, in the course of which it identifies and evaluates associated liabilities and costs
(including, without limitation, any capital or operating expenditures required for clean-up or

19

 

closure of properties presently or previously owned, any capital or operating expenditures
required to achieve or maintain compliance with environmental protection standards imposed by law
or as a condition of any license, permit or contract, any related constraints on operating
activities, including any periodic or permanent shutdown of any facility or reduction in the level
of or change in the nature of operations conducted thereat and any actual or potential liabilities
to third parties, including employees, and any related costs and expenses). On the basis of these
evaluations, the Company has reasonably concluded that Environmental Laws are unlikely to have a
Material Adverse Effect..

     Section 5.12. Regulated Entities. None of the Company, any Person controlling the
Company, or any Subsidiary of the Company, is (a) an “Investment Company” within the meaning of the
Investment Company Act of 1940; or (b) subject to regulation under the Public Utility Holding
Company Act of 1935.

     Section 5.13. Copyrights, Patents, Trademarks and Licenses, Etc. The Company or its
Subsidiaries own or are licensed or otherwise have the right to use all of the material patents,
trademarks, service marks, trade names, copyrights, contractual franchises, authorizations and
other rights that are reasonably necessary for the operation of their respective businesses. No
claim or litigation regarding any of the foregoing is pending or threatened, and no patent,
invention, device, application, principle or any statute, law, rule, regulation, standard or code
is pending or, to the knowledge of the Company, proposed, which, in either case, could reasonably
be expected to have a Material Adverse Effect.

     Section 5.14. Financial Information. The consolidated balance sheet of the Company
and its Subsidiaries as of October 30, 2004 and the related consolidated statements of earnings,
stockholders’ equity and cash flows for the fiscal year then ended, reported on by Ernst & Young,
LLP, copies of which have been delivered to the Bank, fairly present, in conformity with GAAP, the
consolidated financial position of the Company as of such date and its consolidated results of
operations and cash flows for such period.

ARTICLE 6

Affirmative Covenants

     The Company covenants and agrees that, so long as the Bank shall have any obligation to extend
credit hereunder, or any portion of the Term Loan or other Obligation shall remain unpaid or
unsatisfied, unless the Bank shall waive compliance in writing:

     Section 6.1. Financial Statements. The Company shall deliver to the Bank by the
same delivery method used for such deliveries under the Revolving Credit Agreement:

     (a) as soon as available, but not later than 90 days after the end of each fiscal year, a
consolidated balance sheet of the Company and its Subsidiaries as of the end of such fiscal year
and the related consolidated statements of income, 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 certified by Ernst & Young, LLP or another nationally recognized independent public

20

 

accounting firm which shall state that the Company’s consolidated financial statements contained in
such reports present fairly the financial position for the periods indicated in conformity with
GAAP applied on a basis consistent with prior years. Such opinion shall not be qualified or
limited because of a restricted or limited examination by such accountant of any material portion
of the Company’s or any Subsidiary’s records;

     (b) as soon as available, but not later than 45 days after the end of each of the first three
fiscal quarters of each fiscal year, a consolidated balance sheet of the Company and its
Subsidiaries as of the end of such fiscal quarter and the related statements of income and cash
flows for such fiscal quarter and for the portion of the fiscal year ended at the end of such
fiscal quarter, setting forth in each case in comparative form the figures for the corresponding
fiscal quarter and the corresponding portion of the previous fiscal year, all certified (subject to
normal year-end adjustments) as to fairness of presentation, GAAP and consistency by the chief
financial officer, the treasurer or the chief accounting officer of the Company; and

     (c) concurrently with the delivery of the financial statements referred to above, a
certificate of the chief financial officer, the treasurer or the chief accounting officer of the
Company (i) setting forth in reasonable detail the calculations required to establish compliance
with the requirements of Sections 6.10 and 7.6 hereof, (ii) stating whether any Default exists on
the date of such certificate and, if any Default then exists, setting forth the details thereof and
the action which the Company is taking or proposes to take with respect thereto; and (iii)
containing the certification required by clause (b) above.

     Section 6.2. Certificates; Other Information. The Company shall furnish to the
Bank:

     (a) promptly after the same are sent, copies of all financial statements and reports which the
Company sends to its shareholders generally; and promptly after the same are filed, copies of all
financial statements and regular, periodical or special reports which the Company may make to, or
file with, the Securities and Exchange Commission under Section 13 or 15(d) of the Securities
Exchange Act of 1934 or any successor or similar Governmental Authority; provided that this
subsection (a) shall not require the Company to furnish any statements or reports which it has
previously furnished to the Bank; and

     (b) promptly, such additional business, financial, corporate affairs and other information as
the Bank may from time to time reasonably request.

     Section 6.3. Notices. The Company shall promptly notify the Bank:

     (a) (i) of the occurrence of any Default or Event of Default, and (ii) of the occurrence or
existence of any event or circumstance that reasonably could be expected to become a Default or
Event of Default;

     (b) of (i) any breach or non-performance of, or any default under, any Contractual Obligation
of the Company or any of its Subsidiaries which could reasonably be expected to result in a
Material Adverse Effect; and (ii) any dispute, litigation, investigation, proceeding or suspension
which may exist at any time between the Company or any of its Subsidiaries and any

21

 

Governmental Authority which could reasonably be expected to result in a Material Adverse Effect;

     (c) of the commencement of, or any material development in, any litigation or proceeding
affecting the Company or any Subsidiary, including pursuant to any applicable Environmental Law
that, individually or in the aggregate, has resulted or could reasonably be expected to result in a
Material Adverse Effect; and

     (d) of the occurrence of any ERISA Event.

Each notice pursuant to this Section 6.3 shall be accompanied by a written statement by a
Responsible Officer of the Company setting forth details of the occurrence referred to therein, and
stating in general what action the Company proposes to take with respect thereto. Each notice
under subsection 6.3(a) shall describe with particularity any and all clauses or provisions of this
Agreement or other Loan Document that have been breached or violated.

     Section 6.4. Preservation of Corporate Existence, Etc. Subject to Section 7.2, the
Company shall:

     (a) preserve and maintain in full force and effect its corporate existence; and

     (b) carry on its business in substantially the same manner and in substantially the same
fields in which such business is now carried on.

     Section 6.5. Insurance. The Company shall, and shall cause its Subsidiaries to
insure and maintain insurance with responsible insurance companies in such amounts and against such
risks as is customarily carried by owners of similar businesses and property.

     Section 6.6. Payment of Obligations. The Company shall, and shall cause its
Subsidiaries to, pay and discharge as the same shall become due and payable, all their respective
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
and adequate reserves in accordance with GAAP are being maintained by the Company or such
Subsidiary;

     (b) all lawful claims which, if unpaid, would by law become a Lien (other than a Permitted
Lien) upon its Property, unless the same are being contested in good faith by appropriate
proceedings and adequate reserves in accordance with GAAP are being maintained by the Company or
such Subsidiary; 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.

     Section 6.7. Compliance with Laws. The Company shall comply, and shall cause each
of its Subsidiaries to comply, in all material respects with all Requirements of Law (including,

22

 

without limitation, Environmental Laws) of any Governmental Authority having jurisdiction over
it or its business, except such as may be contested in good faith by proceedings diligently pursued
or as to which a bona fide dispute may exist and where non-compliance could not be expected to
result in a Material Adverse Effect.

     Section 6.8. Inspection of Property and Books and Records. The Company shall
maintain and shall cause each of its Subsidiaries to maintain books of record and account in
conformity with GAAP. The Company shall permit, and shall cause each of its Subsidiaries to
permit, representatives and independent contractors of the Bank to visit and inspect any of their
respective Properties, to examine their respective records, and make copies thereof or abstracts
therefrom, and to discuss their respective affairs, finances and accounts with their respective
directors, officers, and independent public accountants, all at such reasonable times during normal
business hours, upon reasonable advance notice to the Company; provided, however, when an Event of
Default exists the Bank may do any of the foregoing at the expense of the Company at any time
during normal business hours and without advance notice.

     Section 6.9. Use of Proceeds. The Company shall use the proceeds of the Term Loan
solely for general corporate purposes, specifically to finance the expansion of its plant in
France, but not in contravention of any Requirement of Law.

     Section 6.10. Minimum Net Worth. The Company shall maintain at all times
Consolidated Net Worth (which for purposes of this Section 6.10, shall exclude from the calculation
thereof subclause (iv) of clause (a) of the definition thereof) of not less than $325,000,000 plus
(a) 50% of Consolidated Net Income for each fiscal quarter beginning with the fiscal quarter ending
on January 31, 2004 (excluding from such calculations of Consolidated Net Income for purposes of
this clause (a) any quarter in which the Consolidated Net Income is negative and (b) 85% of the net
proceeds of any equity issued by the Company after the Effective Date.

     Section 6.11. Incorporation by Reference. The Company hereby agrees that the terms
and provisions of Article VI of the Revolving Credit Agreement (excluding Sections 6.13 through
6.15) are hereby incorporated by reference and shall, notwithstanding any duplication of such
provisions herein, apply to the same extent as if expressly stated herein. Subject to Section
9.1(b) hereof, to the extent the provisions of such Article VI are inconsistent or conflict with
the terms of this Article 6, the provisions of the Revolving Credit Agreement shall control, but
only until the Maturity Date (as defined in the Revolving Credit Agreement).

ARTICLE 7

Negative Covenants

     The Company hereby covenants and agrees that, so long as the Bank shall have any obligation to
extend credit hereunder, or the Term Loan or any other Obligation shall remain unpaid or
unsatisfied, unless the Bank shall waive compliance in writing:

     Section 7.1. Limitation on Liens. The Company shall not, and shall not suffer or
permit any of its Subsidiaries to, directly or indirectly, make, create, incur, assume or suffer to
exist any

23

 

Lien upon or with respect to any part of its Property, whether now owned or hereafter
acquired, except to the extent permitted under Section 7.01 of the Revolving Credit Agreement

     Section 7.2. Disposition of Assets; Consolidations and Mergers. The Company shall
not, and shall not suffer or permit any of its Subsidiaries to, (i) directly or indirectly, sell,
assign, lease, convey, transfer or otherwise dispose of (whether in one or a series of
transactions) any Property (including accounts and notes receivable, with or without recourse) or
enter into any agreement to do any of the foregoing, or (ii) merge or consolidate with or into any
Person, except to the extent permitted by Section 7.02 and 7.03 of the Revolving Credit Agreement.

     Section 7.3. Pari Passu Ranking; Benefit of Guarantees and Security. (a) The
Company will ensure that the claims and rights of the Bank against it under the Loan Documents will
not be at any time subordinate to, and will rank at all times at least pari passu with, the claims
and rights of any other of its unsecured creditors (including, without limitation, such creditors
under the Revolving Credit Agreement), except as may be limited by bankruptcy, insolvency,
moratorium or other similar laws affecting the enforcement of creditors’ rights in general.

     (b) The Company shall not permit the Revolving Credit Agreement to be materially amended or
to benefit from any guarantee given after the Closing Date or security granted by any Person unless
(i) the Bank shall be afforded the opportunity to effect a similar amendment to this Agreement and
(ii) such guarantee or security equally and ratably guarantees or secures, as the case may be, the
obligations of the Company under this Agreement. The Company agrees, promptly upon request
therefor by the Bank, to execute and deliver such amendments to this Agreement, and to cause any
other relevant Person to execute, deliver and record such guarantees and security documents, and do
all such further acts, as the Bank may request in order to further effect the provisions of this
Section 7.3(b). The Company further agrees that it will notify the Bank as soon as the Revolving
Credit Agreement is so amended or the Company becomes aware of the existence of any such guarantee
or security as contemplated in this Section 7.3(b).

     Section 7.4. Transactions with Affiliates. The Company shall not, and shall not
suffer or permit any of its Subsidiaries to, enter into any transaction with any Affiliate of the
Company or of any such Subsidiary, except as permitted by law and in the Ordinary Course of
Business and pursuant to reasonable terms no less favorable to the Company or such Subsidiary than
would be obtained in a comparable arm’s length transaction with a Person which is not an
Affiliate. 

     Section 7.5. Margin Stock. The Company shall not and shall not suffer or permit any
of its Subsidiaries to use any portion of the Term Loan proceeds, directly or indirectly, (i) to
purchase or carry Margin Stock, (ii) to repay or otherwise refinance indebtedness of the Company or
others incurred to purchase or carry Margin Stock or (iii) to extend credit for the purpose of
purchasing or carrying any Margin Stock.

     Section 7.6. Leverage Ratio. The Company shall not permit the Leverage Ratio to
exceed 3.25 to 1.00.

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     Section 7.7. Restricted Payments. The Company will not declare or make any
Restricted Payment duringthe existence of any Default or Event of Default or if any Default would
result therefrom.

     Section 7.8 Prepayment of Subordinated Notes. The Company will not prepay or permit
the prepayment of any of the Subordinated Notes prior to the later to occur of the Final Maturity
Date and the date on which all amounts outstanding under this Agreement and the other Loan
Documents have been paid in full.

     Section 7.9 Incorporation by Reference. The Company hereby agrees that the terms and
provisions of Article VII of the Revolving Credit Agreement are hereby incorporated by reference
and shall, notwithstanding any duplication of such provisions herein, apply to the same extent as
if expressly stated herein. Subject to Section 9.1(b) hereof, to the extent the provisions of such
Article VII are inconsistent or conflict with the terms of this Article 7, the provisions of the
Revolving Credit Agreement shall control, but only until the Maturity Date (as defined in the
Revolving Credit Agreement).

ARTICLE 8

Events of Default

     Section 8.1. Event of Default. Any of the following shall constitute an “Event of
Default”:

     (a) Non-Payment. The Company fails to pay, (i) when and as required to be paid herein, any
amount of principal of the Term Loan, or (ii) within five (5) Business Days after the same shall
become due, any interest, fee or any other amount payable hereunder or pursuant to any other Loan
Document;

     (b) Representation or Warranty. Any representation or warranty by the Company made or deemed
made herein, in any Loan Document, or which is contained in any certificate, document or financial
or other statement by the Company, or its Responsible Officers, furnished at any time under this
Agreement, or in or under any Loan Document, shall prove to have been incorrect in any material
respect on or as of the date made or deemed made;

     (c) Specific Defaults. The Company fails to perform or observe any term, covenant or
agreement contained in Section 6.3, 6.4, 6.9, 6.10 or Article 7;

     (d) Other Defaults. The Company fails to perform or observe any other term or covenant
contained in this Agreement or any Loan Document, and such default shall continue unremedied for a
period of 30 days after the earlier to occur of (i) the first day on which the Company has
knowledge of such failure or (iii) written notice thereof has been given to the Company by the
Bank;

     (e) Cross-Default. The Company or any material Subsidiary shall (i) fail to pay when due,
subject to the applicable grace period, if any, whether at stated maturity or otherwise, any
principal of, interest on, or premiums, fees or expenses or any other amounts relating to, any

25

 

Indebtedness in excess of $7,500,000 (other than the Loans) or (ii) fail to observe or perform,
subject to the applicable grace period, if any, any other term, covenant, condition or agreement
contained in any instrument or agreement evidencing, securing or relating to any Indebtedness, if
the effect thereof is to cause, or permit the holder or holders of any such Indebtedness or
obligation, or a trustee or agent on behalf of such holder or holders to cause, such Indebtedness
or obligation to become due prior to its stated maturity;

     (f) Insolvency; Voluntary Proceedings. The Company or any of its material Subsidiaries (i)
generally fails to pay, or admits in writing its inability to pay, its debts as they become due,
subject to applicable grace periods, if any, whether at stated maturity or otherwise; (ii)
voluntarily ceases to conduct its business in the ordinary course; (iii) commences any Insolvency
Proceeding with respect to itself; or (iv) takes any action to effectuate or authorize any of the
foregoing;

     (g) Involuntary Proceedings. (i) Any involuntary Insolvency Proceeding is commenced or filed
against the Company or any material Subsidiary of the Company, or any writ, judgment, warrant of
attachment, execution or similar process, is issued or levied against a substantial part of the
Company’s or any of its material Subsidiaries’ Properties, and any such proceeding or petition
shall not be dismissed, or such writ, judgment, warrant of attachment, execution or similar process
shall not be released, vacated or fully bonded within 60 days after commencement, filing or levy;
(ii) the Company or any of its material Subsidiaries admits the material allegations of a petition
against it in any Insolvency Proceeding, or an order for relief (or similar order under non-U.S.
law) is ordered in any Insolvency Proceeding; or (iii) the Company or any of its material
Subsidiaries acquiesces in the appointment of a receiver, trustee, custodian, conservator,
liquidator, mortgagee in possession (or agent therefor), or other similar Person for itself or a
substantial portion of its Property or business;

     (h) Default under Revolving Credit Agreement. An “Event of Default” under (and as defined in)
the Revolving Credit Agreement shall have occurred;

     (i) Monetary Judgments. There shall be entered against the Company or any material Subsidiary
one or more judgments or decrees which in the aggregate exceed $3,000,000 (not paid or fully
covered by insurance or for which no adequate reserve has been established) and such judgments or
decrees shall not have been vacated, discharged, stayed or appealed within the applicable period
for appeal from the date of entry thereof;

     (j) ERISA. (i) the Company or an ERISA Affiliate shall fail to satisfy its contribution
requirements under Section 412(c)(11) of the Code, whether or not it has sought a waiver under
Section 412(d) of the Code, and such failure could result in liability of more than $50,000,000;
(ii) in the case of an ERISA Event involving the withdrawal from a Plan of a “substantial employer”
(as defined in Section 4001(a)(2) or Section 4062(e) of ERISA), the withdrawing employer’s
proportionate share of that Plan’s Unfunded Pension Liabilities is more than $50,000,000; (iii) in
the case of an ERISA Event involving the complete or partial withdrawal from a Multiemployer Plan,
the withdrawing employer has incurred a withdrawal liability in an aggregate amount exceeding
$50,000,000; (iv) in the case of an ERISA Event not described in clause (ii) or (iii), the Unfunded
Pension Liabilities of the relevant Plan or Plans exceed

26

 

$50,000,000; or (v) the commencement or increase of contributions to, or the adoption of or the
amendment of a Plan by, a member of the Controlled Group shall result in a net increase in unfunded
liabilities to the Controlled Group in excess of $50,000,000;

     (k) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or under such other Loan
Documents or satisfaction in full of all the Obligations, ceases to be in full force and effect in
any material respect; or the Company contests in any manner the validity or enforceability of any
Loan Document; or the Company denies that it has any or further liability or obligation under any
Loan Document other than in accordance with its terms; or

     (l) Change of Control. There occurs any Change of Control with respect to the Company.

     Section 8.2 Rights and Remedies. If an Event of Default occurs, the Bank may,

     (a) declare the Bank’s obligation to make the Term Loan, if not then already made, to be
terminated, whereupon such obligation shall forthwith be terminated;

     (b) declare the unpaid principal amount of the Term Loan, 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 the Company; and

     (c) exercise all rights and remedies available to it under the Loan Documents or applicable
law;

provided, however, that upon the occurrence of any event specified in paragraph (f) or (g) of
Section 8.1 above, the obligation of the Bank to make the Term Loan, if not then already made,
shall automatically terminate and the unpaid principal amount of the Term Loan outstanding and all
interest and other amounts as aforesaid shall automatically become due and payable without further
act of the Bank.

     Section 8.3. Rights Not Exclusive. The rights provided for in this Agreement and
the other Loan Documents are cumulative and are not exclusive of any other rights, powers,
privileges or remedies provided by law or in equity, or under any other instrument, document or
agreement now existing or hereafter arising.

27

 

ARTICLE 9

Miscellaneous

     Section 9.1. Amendments and Waivers. (a) No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent with respect to any departure by the
Company therefrom, shall be effective unless the same shall be in writing and signed by the Bank
and the Company, and then such waiver shall be effective only in the specific instance and for the
specific purpose for which given.

     (b) The Company and the Bank agree to effect such amendment or amendments to this Agreement
and the other Loan Documents as shall be necessary so that the covenants contained herein and
therein are no more restrictive than those to which the Company is bound under the Revolving Credit
Agreement; provided, however, that if the Revolving Credit Agreement is amended to delete therefrom
in substance either Section 7.06 (Consolidated Net Worth) or Section 7.08 (Leverage Ratio), the
foregoing shall not apply to, and no such amendment or amendments shall be required with respect
to, Sections 6.10 and 7.6 hereof. For the avoidance of doubt, notwithstanding that the Revolving
Credit Agreement may no longer contain substantive provisions regarding minimum net worth and
maximum leverage, the restrictions contained in Sections 6.10 and 7.6 of this Agreement shall
continue to apply to the Company.

     Section 9.2. Notices. (a) All notices, requests and other communications provided
for hereunder to any party shall be in writing (including, unless the context expressly otherwise
provides, by facsimile transmission, provided that any matter transmitted by the Company by
facsimile (i) shall be immediately confirmed by a telephone call to the Bank at the number
specified on the signature page hereof, and (ii) shall be followed promptly by a hard copy original
thereof) and mailed, faxed or delivered, to such party: (A) at its address or facsimile number set
forth on the signature pages hereof, or (B) at such other address or facsimile number as the
respective party may hereafter specify for the purpose by notice to the to the other party.

     (b) All such notices, requests and communications shall, when transmitted by overnight
delivery, or faxed, be effective when delivered for overnight (next-day) delivery, or transmitted
by facsimile machine, respectively, or if mailed, upon the third Business Day after the date
deposited into the U.S. mail, or if delivered, upon delivery; except that notices pursuant to
Article 2 shall not be effective until actually received by the Bank.

     (c) The Company acknowledges and agrees that any agreement of the Bank in Article 2 herein to
receive certain notices by telephone and facsimile is solely for the convenience and at the request
of the Company. The Bank shall be entitled to rely on the authority of any Person purporting to be
a Person authorized by the Company to give such notice and the Bank shall not have any liability to
the Company or other Person on account of any action taken or not taken by the Bank in reliance
upon such telephonic or facsimile notice. The obligation of the Company to repay the Term Loan
shall not be affected in any way or to any extent by any failure by the Bank to receive written
confirmation of any telephonic or facsimile notice or the receipt by the Bank of

28

 

a confirmation which is at variance with the terms understood by the Bank to be contained in the
telephonic or facsimile notice.

     Section 9.3. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Bank, 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.

     Section 9.4. Costs and Expenses. The Company shall, whether or not the transactions
contemplated hereby shall be consummated:

     (a) pay or reimburse the Bank within fifteen Business Days after demand for (i) all
reasonable, out-of-pocket expenses incurred by the Bank in connection with the development,
preparation, delivery, execution and administration of, this Agreement, any Loan Document and any
other documents prepared in connection herewith or therewith and (ii) any amendment, supplement,
waiver or modification to this Agreement, any Loan Document and any other documents prepared in
connection herewith or therewith, in each case, whether or not consummated, and the consummation of
the transactions contemplated hereby and thereby, including the reasonable fees and disbursements
of counsel incurred by the Bank with respect thereto; provided, however, that the fees and expenses
under clause (i) above shall not exceed $10,000 in the aggregate; and

     (b) pay or reimburse the Bank within fifteen Business Days after demand for all costs and
expenses incurred by it in connection with the enforcement, attempted enforcement, or preservation
of any rights or remedies (including in connection with any “workout” or restructuring regarding
the Loans, and including in any Insolvency Proceeding or appellate proceeding) under this
Agreement, any other Loan Document, and any such other documents, including fees and disbursements
of counsel incurred by the Bank.

     Section 9.5. Indemnity. (a) The Company shall pay, indemnify, and hold the Bank and
each of its officers, directors, employees, counsel, agents and attorneys-in-fact (each, an
“Indemnified Person”) harmless from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, charges, expenses or disbursements (including
the reasonable fees and disbursements of counsel) of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement and any
other Loan Documents, or the transactions contemplated hereby and thereby, and with respect to any
investigation, litigation or proceeding (including any Insolvency Proceeding or appellate
proceeding) related to this Agreement or the Term Loan or the use or proposed use of the proceeds
thereof, whether or not any Indemnified Person is a party thereto (all the foregoing, collectively,
the “Indemnified Liabilities”); provided, that the Company shall have no obligation hereunder to
any Indemnified Person with respect to Indemnified Liabilities to the extent resulting from the
gross negligence or willful misconduct of such Indemnified Person. The agreements in this Section
shall survive payment of all Obligations and termination of this Agreement and the other Loan
Documents.

29

 

     (b) To the extent permitted by applicable law, the Company shall not assert, and the Company
hereby waives, any claim against any Indemnified Person on any theory of liability, for special,
indirect, consequential or punitive damages arising out of, in connection with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or
thereby, the Term Loan or the use or proposed use of the proceeds thereof.

     Section 9.6. Marshalling; Payments Set Aside. The Bank shall be under no obligation
to marshall any assets in favor of the Company or any other Person or against or in payment of any
or all of the Obligations. To the extent that the Company makes a payment or payments to the Bank,
or the Bank exercises its rights of set-off, and such payment or payments or the proceeds of such
set-off or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement entered into by the Bank)
to be repaid to a trustee, receiver or any other party in connection with any Insolvency
Proceeding, or otherwise, then 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 enforcement or set-off had not occurred.

     Section 9.7. Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that the Company may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the Bank (and any attempted
assignment or transfer by the Company without such consent shall be null and void).

     Section 9.8. Assignments.

     (a) The Bank may assign all or a portion of its rights and obligations under this Agreement to
any branch, Lending Office or Affiliate of Calyon (or any successor entity). From and after the
effective date of an assignment, the assignee shall be a party hereto and, to the extent of the
interest assigned, have the rights and obligations of the Bank under this Agreement, and the Bank
shall, to the extent of the interest assigned, be released from its obligations under this
Agreement (and, in the case of an assignment covering all of the Bank’s rights and obligations
under this Agreement, the Bank shall cease to be a party hereto but shall continue to be entitled
to the benefits of Sections 3.1, 3.3, 3.4, 9.4, and 9.5).

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

     Section 9.9. Set-off. In addition to any rights and remedies of the Bank provided
by law, if an Event of Default exists, the Bank is authorized at any time and from time to time,
without prior notice to the Company, any such notice being waived by the Company to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held by, and other indebtedness at any time owing to, the
Bank or any of its Affiliates to or for the credit or the account of the Company against any

30

 

and all Obligations owing to the Bank or Affiliate, now or hereafter existing, irrespective of
whether or not the Bank shall have made demand under this Agreement or any Loan Document and
although such Obligations may be contingent or unmatured. The Bank agrees promptly to notify the
Company after any such set-off and application made by the Bank or Affiliate; provided, however,
that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of each Bank under this Section 9.9 are in addition to the other rights and remedies
(including other rights of set-off) which the Bank may have.

     Section 9.10. Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement in any number of separate counterparts, each of which, when so executed,
shall be deemed an original, and all of said counterparts taken together shall be deemed to
constitute but one and the same instrument. A set of the copies of this Agreement signed by all the
parties shall be lodged with the Company.

     Section 9.11. Severability. The illegality or unenforceability of any provision of
this Agreement or any instrument or agreement required hereunder shall not in any way affect or
impair the legality or enforceability of the remaining provisions of this Agreement or any
instrument or agreement required hereunder.

     Section 9.12. No Third Parties Benefited. This Agreement is made and entered into
for the sole protection and legal benefit of the Company and the Bank, and their permitted
successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or
have any direct or indirect cause of action or claim in connection with, this Agreement or any of
the other Loan Documents. The Bank shall not have any obligation to any Person not a party to this
Agreement or other Loan Documents.

     Section 9.13. Governing Law and Jurisdiction. (a) THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AND ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE COMPANY AND THE
BANK CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THOSE COURTS. EACH OF THE COMPANY AND THE BANK IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. THE COMPANY AND THE BANK EACH WAIVES PERSONAL
SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY NEW YORK LAW.

31

 

     Section 9.14. Waiver of Jury Trial. THE COMPANY AND THE BANK EACH WAIVES THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES
AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR
OTHERWISE. THE COMPANY AND THE BANK EACH AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE
THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY
ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE
VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR
THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     Section 9.15. Entire Agreement. This Agreement, together with the other Loan
Documents embodies the entire agreement and understanding between the Company and the Bank, and
supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or
written, relating to the subject matter hereof and thereof.

[SIGNATURES TO FOLLOW]

32

 

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

	 	 	 	 	 
	 	 	SPARTECH CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Randy C. Martin
	 

	 	 	 	 
	 

	 	Name:
	 	Randy C. Martin
	 

	 	Title:
	 	Executive VP and CFO
	 
	 	 	 	 
	 	 	Address for notices:
	 
	 	 	 	 
	 	 	Spartech Corporation

120 South Central

Suite 1700

Clayton, Missouri 63105

Attn:  Randy C. Ridenhour
	 

	 	 	Director of Tax & Treasury
	 	 	Tel: (314) 721-4242
	 	 	Facsimile: (314) 721-1543
	 
	 	 	 	 
	 	 	CALYON NEW YORK BRANCH
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Joseph A. Philbin
	 

	 	 	 	 
	 

	 	Name:
	 	Joseph A. Philbin
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lee E. Greve
	 

	 	 	 	 
	 

	 	Name:
	 	Lee E. Greve
	 

	 	Title:
	 	Managing Director Deputy Manager
	 
	 	 	 	 
	 	 	Address for notices:
	 
	 	 	 	 
	 	For Borrowings and rate-settings:
	 
	 	 	 	 
	 	 	Attention: Jaikissoon Sanichar

Loan Servicing Dept.

Calyon New York Branch

1301 Avenue of the Americas

New York, NY 10019

Tel. (212) 261-7644

Fax (212) 459 3180

E-Mail: jaikissoon.sanichar@us.calyon.com

33

 

	 	 	 
	 

	 	For Payments (including Prepayments) of principal, interest, fees,
etc.:

	 	 	 	 	 
	 	 	Calyon

SWIFT Code: CRLYFRPP

A/C No.: 91000181005

Ref: Spartech

Attn: L/S Dept. New York Branch

	 	 	 
	 

	 	For Documentation/ Business/Credit Matters:

	 	 	 	 	 
	 	 	Attention: Joe Philbin

Calyon Chicago Branch

227 W. Monroe Street, Suite 3800

Chicago, IL 60606

Tel. (312) 220-7314

Fax (312) 641-0527

E-Mail: joseph.philbin@us.calyon.com

34exv10w10

Exhibit 10.10

EXECUTION COPY

THIRD AMENDMENT TO

TERM LOAN AGREEMENT

     THIS THIRD AMENDMENT TO TERM LOAN AGREEMENT (this “Agreement”), dated as of September
10, 2008, is entered into between SPARTECH CORPORATION, a Delaware corporation (the
“Company”) and CALYON NEW YORK BRANCH (the “Bank”).

BACKGROUND

     A. The Company and the Bank have heretofore entered into that certain Term Loan Agreement,
dated as of February 16, 2005, as amended (the “Loan Agreement”; the terms defined in the
Loan Agreement and not otherwise defined herein shall be used herein as defined in the Loan
Agreement).

     B. The Company and the Bank desire to amend the Loan Agreement.

     NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are all
hereby acknowledged, the Company and the Bank covenant and agree as follows:

     1. AMENDMENTS TO THE LOAN AGREEMENT.

     (a) The definition of “Applicable Margin” in Section 1.1 of the Loan Agreement is
hereby amended to read in its entirety as follows:

     “Applicable Margin” means, for any day, 2.25% per annum.

(b) Section 1.1 of the Loan Agreement is further amended by adding the following terms in
proper alphabetical order to read as follows:

     “Fixed Charge Coverage Ratio” has the meaning assigned to such term in the Third
Amendment.

     “Intercreditor Agreement” has the meaning assigned to such term in the Third Amendment.

     “Security Agreement” has the meaning assigned to such term in the Third Amendment.

     “Third Amendment” means the Third Amendment dated as of the date hereof to the
Revolving Credit Agreement.

 

 

     (b) Section 2.4 of the Loan Agreement is hereby amended by (i) inserting “(a)” immediately
preceding the words “The Term Loan” in the first line thereof and (ii) adding a new clause (b) to
read as follows:

     “(b) The Term Loan shall be subject to mandatory prepayment in accordance with the
terms of Section 2.04 of the Revolving Credit Agreement, as amended by the Third Amendment.”

     (c) Section 6.10 of the Loan Agreement is hereby amended to read in its entirety as follows:

     “‘Minimum Net Worth’. The Company shall maintain at all times Consolidated Net Worth
of not less than the sum of (i) $350,000,000 plus (ii) 50% of Consolidated Net Income for
each fiscal quarter beginning with the fiscal quarter ending on April 30, 2006 (excluding
any fiscal quarter in which Consolidated Net Income is not positive) plus (iii) 85% of the
net proceeds of any equity issued by the Company after January 31, 2006, minus (iv) non-cash
impairment charges for goodwill, intangible and fixed assets at such time of determination.”

     (d) Section 6.11 of the Loan Agreement is hereby amended by revising the parenthetical in the
first sentence thereof to read as follows: “(excluding Sections 6.13 and 6.14)”.

     (e) Section 7.6 of the Loan Agreement is hereby amended to read in its entirety as follows:

          “‘Leverage Ratio’. The Company shall not permit the Leverage Ratio to exceed (a) 4.35 to 1.00
at any time from and including the Third Amendment Closing Date (as defined in the Third Amendment)
through and including the day immediately preceding the last day of the fourth fiscal quarter of
fiscal year 2008, (b) 4.25 to 1.00 from and including the last day of the fourth fiscal quarter of
fiscal year 2008 through and including the day immediately preceding the last day of the first
fiscal quarter of fiscal year 2009, (c) 4.00 to 1.00 from and including the last day of the first
fiscal quarter of fiscal year 2009 through and including the day immediately preceding the last day
of the third fiscal quarter of fiscal year 2009, (d) 3.75 to 1.00 from and including the last day
of the third fiscal quarter of fiscal year 2009 through and including the day immediately preceding
the last day of the first fiscal quarter of fiscal year 2010, and (e) 3.50 to 1.00 thereafter.”.

     (f) Sections 7.7, 7.8 and 7.9 of the Loan Agreement are hereby renumbered 7.8, 7.9 and 7.10,
respectively, and a new Section 7.7 is hereby added to the Loan Agreement to read as follows:

          “‘Section 7.7. Fixed Charge Coverage Ratio. The Company shall not permit the Fixed Charge
Coverage Ratio to be less than (a) 1.50 to 1.00 at the end of any fiscal quarter-end occurring
during the period from and including the Third Amendment Closing Date through and including the
fourth fiscal quarter of fiscal year 2009, (b) 1.75 to 1.00 at the end of any fiscal quarter-end
occurring during the period from and including the first day of the first fiscal quarter

2

 

of fiscal
year 2010 through and including the second fiscal quarter of fiscal year 2010, and (c) 2.25 to 1.00
at the end of any fiscal quarter thereafter.

     (g) The first sentence of Section 7.10 (as renumbered pursuant to the terms of this Agreement)
is hereby amended by inserting the parenthetical “(excluding Section 7.20)” immediately following
the first reference to the words “Revolving Credit Agreement”.

     (h) Section 8.1 of the Loan Agreement is hereby amended by (i) deleting the word “or” at the
end of clause (l), (ii) deleting the period and inserting a semicolon and the word “and” at the end
of clause (l) and (iii) inserting a new clause (m) to read as follows:

          “(m) Collateral Documents. Any Collateral Document shall for any reason (other on account of
the Collateral Agent’s election not to take possession of or make certain filings or registrations
in respect of certain Collateral) fail to create a valid and perfected first priority (subject only
to Permitted Liens) in any Collateral purported to be covered thereby, except as permitted by the
terms of any Collateral Document.”.

     (i) The proviso and the last sentence of Section 9.1(b) of the Loan Agreement are hereby
amended to read in their entirety as follows:

“provided, however, that if the Revolving Credit Agreement is amended to delete
therefrom in substance Section 7.06 (Consolidated Net Worth), Section 7.07 (Fixed
Charge Coverage Ratio) or Section 7.08 (Leverage Ratio), the foregoing shall not
apply to, and no such amendment or amendments shall be required with respect to,
Sections 6.10, 7.7 and 7.6 hereof. For the avoidance of doubt, notwithstanding that
the Revolving Credit Agreement may no longer contain substantive provisions
regarding minimum net worth, minimum fixed charge coverage and maximum leverage, the
restrictions contained in Sections 6.10, 7.7 and 7.6 of this Agreement shall
continue to apply to the Company.”.

     2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its execution and
delivery hereof, the Company represents and warrants that, as of the date hereof and after giving
effect to the amendments contemplated by the foregoing Section 1:

     (a) the representations and warranties contained in the Loan Agreement and the other Loan
Documents are true and correct on and as of the date hereof as if made on and as of such date,
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;

     (b) no event has occurred and is continuing which constitutes a Default or an Event of
Default;

     (c) (i) the Company has full corporate power and authority to execute and deliver this
Agreement and the Security Agreement, (ii) each Granting Party has full legal power and authority
to execute, deliver and perform the Security Agreement, (iii) this Agreement, the Security
Agreement and the Loan Agreement, as amended hereby, constitute the legal, valid and binding
respective obligations of the Company, enforceable against the Company in accordance

3

 

with their
respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws affecting the enforcement of creditors’ rights generally and by general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and except
as rights to indemnity may be limited by federal or state securities laws, (iv) the Security
Agreement constitutes the legal, valid and binding respective obligations of each Granting Party,
enforceable against each Granting Party in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law) and except as rights to indemnity may be limited by
federal or state securities laws;

     (d) (i) the execution, delivery and performance by the Company of this Agreement, the Security
Agreement and the Loan Agreement, as amended hereby, do not and will not conflict with, result in a
breach of or constitute a default under any Organization Document of the Company or any Contractual
Obligation to which the Company is a party or by which its respective properties may be bound and
(ii) the execution, delivery and performance by each Granting Party of the Security Agreement does
not and will not conflict with, result in a breach of or constitute a default under any
Organization Document of any Granting Party or any Contractual Obligation to which any Granting
Party is a party or by which its respective properties may be bound; and

     (e) (i) no authorization, approval, consent, or other action by, notice to, or filing with,
any governmental authority or other Person (including the Company’s Board of Directors) not
previously obtained is required for the execution, delivery or performance by the Company of this
Agreement and the Security Agreement and (ii) no authorization, approval, consent or other action
by, notice to, or filing with, any Governmental Authority or other Person (including any Granting
Party’s Board of Directors or similar governing body) not previously obtained is required for the
execution, delivery or performance by any Granting Party of the Security Agreement.

     3. CONDITIONS TO EFFECTIVENESS. This Agreement shall be effective as of September ___,
2008, subject to the following:

     (a) the Bank shall have received a counterpart of this Agreement executed by the Company and
acknowledged by each Guarantor;

     (b) the representations and warranties set forth in Section 2 of this Agreement shall be true
and correct;

     (c) the Bank shall have received copies of (i) the Third Amendment, (ii) the Security
Agreement and (iii) the Intercreditor Agreement, in each case, executed by all the parties thereto;

     (d) the Bank shall have received an opinion of the Company’s counsel, in form and substance
satisfactory to the Bank, with respect to matters set forth in Sections 2(c), (d) and (e) of this
Agreement and with respect to such other matters as requested by the Bank; and

     (e) the Bank shall have received in form and substance satisfactory to it, such other
documents and certificates as the Bank shall require.

4

 

     4. GUARANTORS ACKNOWLEDGMENT. By signing below, each of the Guarantors
(i) acknowledges, consents and agrees to the execution, delivery and performance by the Company of
this Agreement, (ii) acknowledges and agrees that its obligations in respect of the Guaranty are
not released, diminished, waived, modified, impaired or affected in any manner by this Agreement or
any of the provisions contemplated herein, (iii) ratifies and confirms its obligations under the
Guaranty, and (iv) acknowledges and agrees that it has no claims or offsets against, or defenses or
counterclaims to, the Guaranty.

     5. REFERENCE TO THE LOAN AGREEMENT.

     (a) Upon the effectiveness of this Agreement, each reference in the Loan Agreement to “this
Agreement”, “hereunder”, or words of like import shall mean and be a reference to the Loan
Agreement, as affected and amended by this Agreement.

     (b) The Loan Agreement, as amended by this Agreement, and all other Loan Documents shall
remain in full force and effect and are hereby ratified and confirmed.

     6. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument. For purposes of this Agreement, a counterpart hereof
(or signature page thereto) signed and transmitted by any Person party hereto to the Bank by
facsimile machine, telecopier or electronic mail is to be treated as an original. The signature of
such Person thereon, for purposes hereof, is to be considered as an original signature, and the
counterpart (or signature page thereto) so transmitted is to be considered to have the same binding
effect as an original signature on an original document.

     7. GOVERNING LAW; BINDING EFFECT. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Agreement shall be
binding upon all parties hereto and their respective successors and assigns.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE COMPANY AND THE BANK CONSENTS, FOR ITSELF AND
IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE COMPANY
AND THE BANK IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED
HERETO. THE COMPANY AND THE BANK EACH WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

5

 

     8. HEADINGS. Section headings in this Agreement are included herein for convenience
of reference only and shall not constitute a part of this Agreement for any other purpose.

     9. WAIVER OF JURY TRIAL. THE COMPANY AND THE BANK EACH WAIVES THEIR RESPECTIVE RIGHTS
TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF
ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO
CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE COMPANY AND THE BANK EACH AGREES THAT ANY SUCH
CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE
OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE
LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     10. ENTIRE AGREEMENT. The Loan Agreement, as amended by this Agreement, together with
the other Loan Documents, embodies the entire agreement and understanding between the Company and
the Bank, and supersedes all prior or contemporaneous agreements and understandings of such
Persons, verbal or written, relating to the subject matter hereof and thereof.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

6

 

     IN WITNESS WHEREOF, this Agreement is executed as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	SPARTECH CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Randy C. Martin
	 	 
	 

	 	Title:
	 	Executive Vice President and 

Chief
Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Blake Wright
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:

Title:
	 	 

Joseph Philbin
Director
	 	 

7

 

ACKNOWLEDGED AND AGREED TO:

ATLAS ALCHEM PLASTICS, INC.

ALCHEM PLASTICS CORPORATION

ALCHEM PLASTICS, INC.

SPARTECH PLASTICS, LLC

	 	 	 	 	 
	 

	 	By:
	 	Spartech Corporation, its sole 
member

POLYMER EXTRUDED PRODUCTS, INC.

SPARTECH POLYCAST, INC.

SPARTECH TOWNSEND, INC.

SPARTECH INDUSTRIES FLORIDA, INC.

SPARTECH POLYCOM, INC.

FRANKLIN-BURLINGTON PLASTICS, INC.

SPARTECH INDUSTRIES, INC.

ANJAC-DORON PLASTICS, INC.

SPARTECH CMD, LLC

	 	 	 	 	 
	 

	 	By:
	 	Spartech Corporation, its sole 
member

SPARTECH FCD, LLC

	 	 	 	 	 
	 

	 	By:
	 	Polymer Extruded Products, Inc., 
its sole member

SPARTECH SPD, LLC

	 	 	 	 	 
	 

	 	By:
	 	Spartech Corporation, its sole 
member

SPARTECH MEXICO HOLDING COMPANY

SPARTECH MEXICO HOLDING COMPANY TWO

SPARTECH MEXICO HOLDINGS, LLC

	 	 	 	 	 
	 

	 	By:
	 	Spartech Mexico Holding Company, 
its sole member

CREATIVE FORMING, INC.

SPARTECH POLYCOM (TEXAS), INC.

ALSHIN TIRE CORPORATION 

X-CORE, LLC

	 	 	 	 	 
	 

	 	By:
	 	Spartech Industries, Inc., its sole member

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Randy C. Martin
	 	 
	 

	 	Vice President for all of the above	 	 

8

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