Document:

EX-10.1

THIRD AMENDED AND RESTATED FINANCING AND SECURITY AGREEMENT

THIS THIRD AMENDED AND RESTATED FINANCING AND SECURITY AGREEMENT (this “Agreement”) is made as
of the 25th day of January, 2010, by and among ARGON ST, INC., a Delaware corporation,
formerly known as SensyTech, Inc., a Delaware corporation (“Argon”), COHERENT SYSTEMS
INTERNATIONAL, LLC, a Delaware limited liability company (“Coherent”; Argon and Coherent are
collectively and jointly and severally referred to herein as the “Borrower”) and BANK OF AMERICA,
N. A., a national banking association (the “Lender”).

RECITALS

A. The Borrower and the Lender have previously executed a Second Amended and Restated
Financing and Security Agreement dated as of February 28, 2002, as modified pursuant to (i) a First
Amendment to Second Amended and Restated Financing and Security Agreement dated as of February 28,
2003, (ii) a Second Amendment to Second Amended and Restated Financing and Security Agreement dated
as of March 31, 2003, (iii) a Third Amendment to Second Amended and Restated Financing and Security
Agreement dated as of February 28, 2004, (iv) a Fourth Amendment to Second Amended and Restated
Financing and Security Agreement dated as of February 28, 2006, (v) a Fifth Amendment to Second
Amended and Restated Financing and Security Agreement dated as of March 31, 2006, and (vi) a Sixth
Amendment to Second Amended and Restated Financing and Security Agreement dated as of February 28,
2008 (collectively, the “Prior Financing Agreement”) pursuant to which the Lender has extended
various credit facilities to the Borrower.

B. The Borrower has requested that the Lender amend and restate the Prior Financing Agreement
to (i) extend credit facilities consisting of a revolving credit facility in the maximum principal
amount of Forty Million Dollars ($40,000,000) including a letter of credit facility as part of that
revolving credit facility and (ii) make a guidance line facility in the maximum principal amount of
Twenty Million Dollars ($20,000,000).

C. The Lender is willing to so amend and restate the Prior Financing Agreement and continue to
make the credit facilities available to the Borrower upon the terms and subject to the conditions
set forth in this Agreement.

AGREEMENTS

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

	 	 	 	Section 1.1 Certain Defined Terms.

As used in this Agreement, the terms defined in the Preamble and Recitals hereto shall have
the respective meanings specified therein, and the following terms shall have the following
meanings:

“Account” individually and “Accounts” collectively mean all presently existing or hereafter
acquired or created accounts, accounts receivable, health-care insurance receivables, contract
rights, notes, drafts, instruments, acceptances, chattel paper, leases and writings evidencing a
monetary obligation or a security interest in, or a lease of, goods, all rights to payment of a
monetary obligation or other consideration under present or future contracts (including, without
limitation, all rights (whether or not earned by performance) to receive payments under presently
existing or hereafter acquired or created letters of credit), or by virtue of property that has
been sold, leased, licensed, assigned or otherwise disposed of, services rendered or to be
rendered, loans and advances made or other considerations given, by or set forth in or arising out
of any present or future chattel paper, note, draft, lease, acceptance, writing, bond, insurance
policy, instrument, document or general intangible, and all extensions and renewals of any thereof,
all rights under or arising out of present or future contracts, agreements or general interest in
goods which gave rise to any or all of the foregoing, including all commercial tort claims, other
claims or causes of action now existing or hereafter arising in connection with or under any
agreement or document or by operation of law or otherwise, all collateral security of any kind
(including, without limitation, real property mortgages and deeds of trust) Supporting Obligations,
letter-of-credit rights and letters of credit given by any Person with respect to any of the
foregoing, all books and records in whatever media (paper, electronic or otherwise) recorded or
stored, with respect to any or all of the foregoing and all equipment and general intangibles
necessary or beneficial to retain, access and/or process the information contained in those books
and records, and all Proceeds of the foregoing.

“Account Debtor” means any Person who is obligated on a Receivable and “Account Debtors” mean
all Persons who are obligated on the Receivables.

“ACH Transactions” means any cash management or related services including the automatic
clearing house transfer of funds by the Lender for the account of the Borrower pursuant to
agreement or overdrafts.

“Additional Borrower” means each Person that has executed and delivered an Additional Borrower
Joinder Supplement that has been accepted and approved by the Lender.

“Additional Borrower Joinder Supplement” means an Additional Borrower Joinder Supplement in
substantially the form attached hereto as EXHIBIT F, with the blanks appropriately
completed and executed and delivered by the Additional Borrower, Argon and Coherent.

“Adjustment Date” has the meaning described in Section 8.5 (Assignments by Lender).

“Administrative Fees” has the meaning described in Section 2.3.3 (Administrative Fees).

“Affiliate” means, with respect to any designated Person, any other Person, (a) directly or
indirectly controlling, directly or indirectly controlled by, or under direct or indirect common
control with the Person designated, (b) directly or indirectly owning or holding five percent (5%)
or more of any equity interest in such designated Person, or (c) five percent (5%) or more of whose
stock or other equity interest is directly or indirectly owned or held by such designated Person.
For purposes of this definition, the term “control” (including with correlative meanings, the terms
“controlling”, “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities or other equity interests or by contract or
otherwise.

“Agreement” means this Third Amended and Restated Financing and Security Agreement, as
amended, restated, supplemented or otherwise modified in writing in accordance with the provisions
of Section 8.2 (Amendments; Waivers).

“Assets” means at any date all assets that, in accordance with GAAP consistently applied,
should be classified as assets on a balance sheet of the Borrower.

“Assignee” means any Person to which the Lender assigns all or any portion of its interests
under this Agreement, any Commitment, and any Loan, in accordance with the provisions of Section
8.5 (Assignments by Lender), together with any and all successors and assigns of such Person;
“Assignees” means the collective reference to all Assignees.

“Bankruptcy Code” means Title 11 of the United States Code, as amended from time to time, and
any successor Laws.

“BBA LIBOR Daily Floating Rate” shall mean a fluctuating rate of interest per annum equal to
the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as selected by the Bank from time
to time) as determined for each banking day at approximately 11:00 a.m. London time two (2) London
Banking Days prior to the date in question, for U.S. Dollar deposits (for delivery on the first day
of such interest period) with a one month term, as adjusted from time to time in the Bank’s sole
discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs.

“Borrower” or “Borrowers” means the “Borrower” as defined in the preamble of this Agreement
and each Additional Borrower.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in the State are authorized or required to close.

“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.

“Capital Lease” means with respect to any Person any lease of real or personal property, for
which the related Lease Obligations have been or should be, in accordance with GAAP consistently
applied, capitalized on the balance sheet of that Person.

“Cash Equivalents” means (a) securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed or insured by the United States Government or any agency
thereof, (b) certificates of deposit with maturities of one (1) year or less from the date of
acquisition of, or money market accounts maintained with, the Lender, any Affiliate of the Lender,
or any other domestic commercial bank having capital and surplus in excess of One Hundred Million
Dollars ($100,000,000.00) or such other domestic financial institutions or domestic brokerage
houses to the extent disclosed to, and approved by, the Lender and (c) commercial paper of a
domestic issuer rated at least either A-1 by Standard & Poor’s Corporation (or its successor) or
P-1 by Moody’s Investors Service, Inc. (or its successor) with maturities of six (6) months or less
from the date of acquisition.

“Chattel Paper” means a record or records (including, without limitation, electronic chattel
paper) that evidence both a monetary obligation and a security interest in specific goods, a
security interest in specific goods and software used in the goods, or a lease of specific goods;
all Supporting Obligations with respect thereto; any returned, rejected or repossessed goods and
software covered by any such record or records and all proceeds (in any form including, without
limitation, accounts, contract rights, documents, chattel paper, instruments and general
intangibles) of such returned, rejected or repossessed goods; and all Proceeds of the foregoing.

“Closing Date” means the Business Day, in any event not later than January   , 2010, on which
the Lender shall be satisfied that the conditions precedent set forth in Section 5.1 (Conditions to
Initial Advance) have been fulfilled or otherwise waived by the Lender.

“Collateral” means all property of the Borrower subject from time to time to the Liens of this
Agreement, any of the Security Documents and/or any of the other Financing Documents, together with
any and all Proceeds thereof.

“Collateral Account” has the meaning described in Section 2.1.5 (The Collateral Account).

“Collateral Disclosure List” has the meaning described in Section 3.3 (Collateral Disclosure
List).

“Collection” means each check, draft, cash, money, instrument, item, and other remittance in
payment or on account of payment of the Accounts or otherwise with respect to any Collateral,
including, without limitation, cash proceeds of any returned, rejected or repossessed goods, the
sale or lease of which gave rise to an Account, and other proceeds of Collateral; and “Collections”
means the collective reference to all of the foregoing.

“Commitment” means the Revolving Credit Commitment.

“Committed Amount” means the Revolving Credit Committed Amount.

“Compliance Certificate” means a periodic Compliance Certificate described in Section 6.1.1
(Financial Statements).

“Commonly Controlled Entity” means an entity, whether or not incorporated, which is under
common control with the Borrower within the meaning of Section 414(b) or (c) of the Internal
Revenue Code.

“Copyrights” means and includes, in each case whether now existing or hereafter arising, all
of the Borrower’s rights, title and interest in and to (a) all copyrights, rights and interests in
copyrights, works protectable by copyright, copyright registrations, copyright applications, and
all renewals of any of the foregoing, (b) all income, royalties, damages and payments now or
hereafter due and/or payable under any of the foregoing, including, without limitation, damages or
payments for past, current or future infringements of any of the foregoing, (c) the right to sue
for past, present and future infringements of any of the foregoing, and (d) all rights
corresponding to any of the foregoing throughout the world.

“Credit Facility” means the Revolving Credit Facility or the Letter of Credit Facility, as the
case may be, and “Credit Facilities” means collectively the Revolving Credit Facility or the Letter
of Credit Facility and any and all other credit facilities now or hereafter extended under or
secured by this Agreement.

“Default” means an event which, with the giving of notice or lapse of time, or both, could or
would constitute an Event of Default under the provisions of this Agreement.

“Documents” means all documents of title or receipts, whether now existing or hereafter
acquired or created, and all Proceeds of the foregoing.

“EBITDA” means as to the Borrower for any period of determination thereof, the sum of (a) the
net profit (or loss) determined in accordance with GAAP, plus (b) interest and taxes for such
period, plus (c) depreciation and amortization of assets for such period.

“Enforcement Costs” means all expenses, charges, costs and fees whatsoever (including, without
limitation, reasonable outside and allocated in-house counsel attorney’s fees and expenses) of any
nature whatsoever paid or incurred by or on behalf of the Lender in connection with (a) any or all
of the Obligations, this Agreement and/or any of the other Financing Documents, (b) the creation,
perfection, collection, maintenance, preservation, defense, protection, realization upon,
disposition, sale or enforcement of all or any part of the Collateral, this Agreement or any of the
other Financing Documents, including, without limitation, those costs and expenses more
specifically enumerated in Section 3.6 (Costs) and/or Section 8.10 (Enforcement Costs), and (c) the
monitoring, administration, processing and/or servicing of any or all of the Obligations, the
Financing Documents, and/or the Collateral.

“Equipment” means all equipment, machinery, computers, chattels, tools, parts, machine tools,
furniture, furnishings, fixtures and supplies of every nature, presently existing or hereafter
acquired or created and wherever located, whether or not the same shall be deemed to be affixed to
real property, and all of such types of property leased by the Borrower and all of the Borrower’s
rights and interests with respect thereto under such leases (including, without limitation, options
to purchase), together with all accessions, additions, fittings, accessories, special tools, and
improvements thereto and substitutions therefore and all parts and equipment which may be attached
to or which are necessary or beneficial for the operation, use and/or disposition of such personal
property, all licenses, warranties, franchises and General Intangibles related thereto or necessary
or beneficial for the operation, use and/or disposition of the same, together with all Accounts,
Chattel Paper, Instruments and other consideration received by the Borrower on account of the sale,
lease or other disposition of all or any part of the foregoing, and together with all rights under
or arising out of present or future Documents and contracts relating to the foregoing and all
Proceeds of the foregoing.

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

“Event of Default” has the meaning described in ARTICLE VII (Default and Rights and Remedies).

“Facilities” means the collective reference to the loan, letter of credit, interest rate
protection, foreign exchange risk, cash management, and other credit facilities now or hereafter
provided to the Borrower by the Lender or any of its Affiliates.

“Fees” means the collective reference to each fee payable to the Lender under the terms of
this Agreement or under the terms of any of the other Financing Documents.

“Financing Documents” means at any time collectively this Agreement, the Notes, the Security
Documents, the Letter of Credit Documents, and any other instrument, agreement or document
previously, simultaneously or hereafter executed and delivered by the Borrower, any Guarantor
and/or any other Person, singly or jointly with another Person or Persons, evidencing, securing,
guarantying or in connection with this Agreement, any Note, any of the Security Documents, any of
the Facilities, and/or any of the Obligations.

“Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing
liabilities, including current and long-term debt, issued letters of credit, Capital Leases and
Subordinated Indebtedness.

“GAAP” means generally accepted accounting principles in the United States of America in
effect from time to time.

“General Intangibles” means all general intangibles of every nature, whether presently
existing or hereafter acquired or created, and without implying any limitation of the foregoing,
further means all books and records, commercial tort claims, other claims (including without
limitation all claims for income tax and other refunds), payment intangibles, Supporting
Obligations, choses in action, claims, causes of action in tort or equity, contract rights,
judgments, customer lists, software, Patents, Trademarks, licensing agreements, rights in
intellectual property, goodwill (including goodwill of the Borrower’s business symbolized by and
associated with any and all Trademarks, trademark licenses, Copyrights and/or service marks),
royalty payments, licenses, letter-of-credit rights, letters of credit, contractual rights, the
right to receive refunds of unearned insurance premiums, rights as lessee under any lease of real
or personal property, literary rights, Copyrights, service names, service marks, logos, trade
secrets, amounts received as an award in or settlement of a suit in damages, deposit accounts,
interests in joint ventures, general or limited partnerships, or limited liability companies or
partnerships, rights in applications for any of the foregoing, books and records in whatever media
(paper, electronic or otherwise) recorded or stored, with respect to any or all of the foregoing,
all Supporting Obligations with respect to any of the foregoing, and all Equipment and General
Intangibles necessary or beneficial to retain, access and/or process the information contained in
those books and records, and all Proceeds of the foregoing.

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

“Government Contracts” means any contract direct or indirect with the United States or with
any state or political subdivision thereof or any department, agency or instrumentality of the
United States, or any state or political subdivision thereof.

“Guidance Line Commitment” means the agreement of the Lender relating to the making of the
Guidance Loan and advances thereunder subject to and in accordance with the provisions of this
Agreement. The use of the term “Commitment” or the like (whether as part of a defined term or
otherwise) in this Agreement is for convenience only and shall not be deemed to imply any
limitation on the discretionary nature of the Guidance Line Facility.

“Guidance Line Availability Period” means the period of time from the Closing Date to the
Guidance Line Expiration Date.

“Guidance Line Amount” has the meaning described in Section 2.4.1 (Guidance Line Facility).

“Guidance Line Expiration Date” means February 28, 2012.

“Guidance Line Facility” means the facility established by Lender pursuant to Section 2.4.1
(Guidance Line Facility).

“Guidance Line Note” has the meaning described in Section 2.4.3 (Guidance Line Note).

“Guidance Line Termination Date” means the earlier of (a) the Guidance Line Expiration Date or
(b) the date on which the Guidance Line Commitment is terminated pursuant to 7.2 (Remedies) or
otherwise.

“Guidance Loan” has the meaning described in Section 2.5.1 (Guidance Line Facility).

“Guidance Loan Optional Prepayment” and “Guidance Loan Optional Prepayments” have the meanings
described in Section 2.4.4 (Optional Prepayment of Guidance Loan).

“Hazardous Materials” means (a) any “hazardous waste” as defined by the Resource Conservation
and Recovery Act of 1976, as amended from time to time, and regulations promulgated thereunder; (b)
any “hazardous substance” as defined by the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended from time to time, and regulations promulgated thereunder; (c)
any substance the presence of which on any property now or hereafter owned, acquired or operated by
the Borrower is prohibited by any Law similar to those set forth in this definition; and (d) any
other substance which by Law requires special handling in its collection, storage, treatment or
disposal.

“Hazardous Materials Contamination” means the contamination (whether presently existing or
occurring after the date of this Agreement) by Hazardous Materials of any property owned, operated
or controlled by the Borrower or for which the Borrower has responsibility, including, without
limitation, improvements, facilities, soil, ground water, air or other elements on, or of, any
property now or hereafter owned, acquired or operated by the Borrower, and any other contamination
by Hazardous Materials for which the Borrower is, or is claimed to be, responsible.

“Indebtedness” of a Person means at any date the total liabilities of such Person at such time
determined in accordance with GAAP consistently applied.

“Instrument” means a negotiable instrument or any other writing which evidences a right to
payment of a monetary obligation and is not itself a security agreement or lease and is of a type
that in the ordinary course of business is transferred by delivery with any necessary endorsement
or assignment, and all Supporting Obligations with respect to any of the foregoing and all Proceeds
with respect to any of the foregoing.

“Interest Payment Date” is defined in Section 2.5.2.

“Interest Rate” is defined in Section 2.5.1.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time,
and the Income Tax Regulations issued and proposed to be issued thereunder.

“Inventory” means all goods of the Borrower and all right, title and interest of the Borrower
in and to all of its now owned and hereafter acquired goods and other personal property furnished
under any contract of service or intended for sale or lease, including, without limitation, all raw
materials, work-in-process, finished goods and materials and supplies of any kind, nature or
description which are used or consumed in the Borrower’s business or are or might be used in
connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods
and other personal property and all licenses, warranties, franchises, General Intangibles, personal
property and all documents of title or documents relating to the same, together with all Accounts,
Chattel Paper, Instruments and other consideration received by any Borrower on account of the sale,
lease or other disposition of all or any part of the foregoing, and together with all rights under
or arising out of present or future Documents and contracts relating to the foregoing and all
Proceeds of the foregoing.

“Investment Property” means a security, whether certificated or uncertificated, security
entitlement, securities account, commodity contract or commodity account and all Proceeds of, and
Supporting Obligations with respect to, the foregoing.

“Item of Payment” means each check, draft, cash, money, instrument, item, and other remittance
in payment or on account of payment of the Receivables or otherwise with respect to any Collateral,
including, without limitation, cash proceeds of any returned, rejected or repossessed goods, the
sale or lease of which gave rise to a Receivable, and other proceeds of Collateral; and “Items of
Payment” means the collective reference to all of the foregoing.

“Laws” means all ordinances, statutes, rules, regulations, orders, injunctions, writs, or
decrees of any Governmental Authority.

“Lease Obligations” of a Person means for any period the rental commitments of such Person for
such period under leases for real and/or personal property (net of rent from subleases thereof, but
including taxes, insurance, maintenance and similar expenses which such Person, as the lessee, is
obligated to pay under the terms of said leases, except to the extent that such taxes, insurance,
maintenance and similar expenses are payable by sublessees), including rental commitments under
Capital Leases.

“Letter of Credit” and “Letters of Credit” shall have the meanings described in Section 2.2.1
(Letters of Credit).

“Letter of Credit Agreement” means the collective reference to each letter of credit
application and agreement substantially in the form of the Lender’s then standard form of
application for letter of credit or such other form as may be approved by the Lender, executed and
delivered by the Borrower in connection with the issuance of a Letter of Credit, as the same may
from time to time be amended, restated, supplemented or modified and “Letter of Credit Agreements”
means all of the foregoing in effect at any time and from time to time.

“Letter of Credit Cash Collateral Account” has the meaning described in Section 2.2.3 (Terms
of Letters of Credit).

“Letter of Credit Documents” means any and all drafts under or purporting to be under a Letter
of Credit, any Letter of Credit Agreement, and any other instrument, document or agreement executed
and/or delivered by the Borrower or any other Person under, pursuant to or in connection with a
Letter of Credit or any Letter of Credit Agreement.

“Letter of Credit Facility” means the facility established pursuant to Section 2.2 (Letter of
Credit Facility).

“Letter of Credit Fee” and “Letter of Credit Fees” have the meanings described in
Section 2.2.2 (Letter of Credit Fees).

“Letter of Credit Obligations” means all Obligations of the Borrower with respect to the
Letters of Credit and the Letter of Credit Agreements.

“Letter-of-credit right” means a right to payment or performance under a letter of credit,
whether or not the beneficiary has demanded or is at the time entitled to demand payment or
performance.

“Letter of Credit Sublimit” has the meaning described in Section 2.2.1 (Letters of Credit).

“Liabilities” means at any date all liabilities that in accordance with GAAP consistently
applied should be classified as liabilities on a consolidated balance sheet of the Borrower and its
Subsidiaries.

“Lien” means any mortgage, deed of trust, deed to secure debt, grant, pledge, security
interest, assignment, encumbrance, judgment, lien, financing statement, hypothecation, provision in
any instrument or other document for confession of judgment, cognovit or other similar right or
other remedy, claim, charge, control over or interest of any kind in real or personal property
securing any indebtedness, duties, obligations, and liabilities owed to, or claimed to be owed to,
a Person, all whether perfected or unperfected, avoidable or unavoidable, based on the common law,
statute or contract or otherwise, including, without limitation, any conditional sale or other
title retention agreement, any lease in the nature thereof, and the filing of or agreement to give
any financing statement under the Uniform Commercial Code of any jurisdiction, excluding the
precautionary filing of any financing statement by any lessor in a true lease transaction, by any
bailor in a true bailment transaction or by any consignor in a true consignment transaction under
the Uniform Commercial Code of any jurisdiction or the agreement to give any financing statement by
any lessee in a true lease transaction, by any bailee in a true bailment transaction or by any
consignee in a true consignment transaction.

“Loan” means each of the Revolving Loan or the Guidance Line Facility, as the case may be, and
“Loans” means the collective reference to the Revolving Loan and the Guidance Line Facility.

“Loan Notice” has the meaning described in Section 2.1.2 (Procedure for Making Advances).

“Lockbox” has the meaning described in Section 2.1.5 (The Collateral Account).

“London Banking Day” is a day on which banks in London are open for business and dealing in
offshore dollars.

“Multi-employer Plan” means a Plan that is a Multi-employer plan as defined in Section
4001(a)(3) of ERISA.

“Net Worth” means as to the Borrower at any date the excess of (a) the Assets, over (b) the
Liabilities less the non-current portion of Subordinated Indebtedness”.

“Note” means the Revolving Credit Note, and “Notes” means collectively the Revolving Credit
Note and any other promissory note which may from time to time evidence all or any portion of the
Obligations.

“Obligations” means all present and future indebtedness, duties, obligations, and liabilities,
whether now existing or contemplated or hereafter arising, of the Borrower to the Lender under,
arising pursuant to, in connection with and/or on account of the provisions of this Agreement, each
Note, each Security Document, and/or any of the other Financing Documents, the Loan, any Swap
Contract and/or any of the Facilities including, without limitation, the principal of, and interest
on, each Note, late charges, the Fees, Enforcement Costs, and prepayment fees (if any), letter of
credit reimbursement obligations, letter of credit fees or fees charged with respect to any
guaranty of any letter of credit; also means all other present and future indebtedness, duties,
obligations, and liabilities, whether now existing or contemplated or hereafter arising, of the
Borrower to the Lender or its Affiliates of any nature whatsoever regardless of whether such
indebtedness, duties, obligations and liabilities be direct, indirect, primary, secondary, joint,
several, joint and several, fixed or contingent; and also means any and all renewals, extensions,
substitutions, amendments, restatements and rearrangements of any such indebtedness, duties,
obligations and liabilities.

“Outstanding Letter of Credit Obligations” has the meaning described in Section 2.2.3 (Terms
of Letters of Credit).

“Patents” means and includes, in each case whether now existing or hereafter arising, all of
the Borrower’s rights, title and interest in and to (a) any and all patents and patent
applications, (b) any and all inventions and improvements described and claimed in such patents and
patent applications, (c) reissues, divisions, continuations, renewals, extensions and
continuations-in-part of any patents and patent applications, (d) income, royalties, damages,
claims and payments now or hereafter due and/or payable under and with respect to any patents or
patent applications, including, without limitation, damages and payments for past and future
infringements, (e) rights to sue for past, present and future infringements of patents, and (f) all
rights corresponding to any of the foregoing throughout the world.

“PBGC” means the Pension Benefit Guaranty Corporation.

“Permitted Liens” means: (a) Liens for Taxes which are not delinquent or which the Lender has
determined in the exercise of its sole and absolute discretion (i) are being diligently contested
in good faith and by appropriate proceedings, and such contest operates to suspend collection of
the contested Taxes and enforcement of a Lien, (ii) the Borrower has the financial ability to pay,
with all penalties and interest, at all times without materially and adversely affecting the
Borrower, and (iii) are not, and will not be with appropriate filing, the giving of notice and/or
the passage of time, entitled to priority over any Lien of the Lender; (b) deposits or pledges to
secure obligations under workers’ compensation, social security or similar laws, or under
unemployment insurance in the ordinary course of business; (c) Liens securing the Obligations; (d)
judgment Liens to the extent the entry of such judgment does not constitute a Default or an Event
of Default under the terms of this Agreement or result in the sale or levy of, or execution on, any
of the Collateral; and (e) such other Liens, if any, as are set forth on Schedule 4.1.19
attached hereto and made a part hereof.

“Permitted Uses” means to finance the performance of the Borrower’s Government Contracts, to
support the issuance of commercial and standby letters of credit, the Borrower’s short term working
capital purposes and for financing future acquisitions of companies under the acquisition
parameters outlined in EXHIBIT G.

“Person” means and includes an individual, a corporation, a partnership, a joint venture, a
limited liability company or partnership, a trust, an unincorporated association, a Governmental
Authority, or any other organization or entity.

“Plan” means any pension plan that is covered by Title IV of ERISA and in respect of which the
Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3 of ERISA.

“Post-Default Rate” means the Interest Rate, plus four percent (4%) per annum.

“Post-Expiration Date Letter of Credit” and “Post-Expiration Date Letters of Credit” have the
meanings described in Section 2.2.3 (Terms of Letters of Credit).

“Prepayment” means a Revolving Loan Mandatory Prepayment, a Revolving Loan Optional
Prepayment, as the case may be, and “Prepayments” mean collectively all Revolving Loan Mandatory
Prepayments and all Revolving Loan Optional Prepayments.

“Proceeds” has the meaning described in the Uniform Commercial Code as in effect from time to
time.

“Receivable” means one of the Borrower’s now owned and hereafter owned, acquired or created
Accounts, Chattel Paper, General Intangibles and Instruments; and “Receivables” means all of the
Borrower’s now or hereafter owned, acquired or created Accounts, Chattel Paper, General Intangibles
and Instruments, and all Proceeds thereof.

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA or the
regulations thereunder.

“Registered Organization” means an organization organized solely under the law of a single
state or the United States and as to which the state or the United States must maintain a public
record showing the organization to have been organized.

“Responsible Officer” means the chief executive officer of the Borrower or the president of
the Borrower or, with respect to financial matters, the chief financial officer of the Borrower.

“Revolving Credit Commitment” means the agreement of the Lender relating to the making of the
Revolving Loan and advances thereunder subject to and in accordance with the provisions of this
Agreement.

“Revolving Credit Commitment Period” means the period of time from the Closing Date to the
Business Day preceding the Revolving Credit Termination Date.

“Revolving Credit Committed Amount” has the meaning described in Section 2.1.1 (Revolving
Credit Facility).

“Revolving Credit Expiration Date” means February 28, 2012.

“Revolving Credit Facility” means the facility established by the Lender pursuant to Section
2.1.1 (Revolving Credit Facility).

“Revolving Credit Note” has the meaning described in Section 2.1.3 (Revolving Credit Note).

“Revolving Credit Termination Date” means the earlier of (a) the Revolving Credit Expiration
Date, or (b) the date on which the Revolving Credit Commitment is terminated pursuant to 7.1.18
(Remedies) or otherwise.

“Revolving Credit Unused Line Fee” and “Revolving Credit Unused Line Fees” have the meanings
described in Section 2.1.7 (Revolving Credit Unused Line Fee).

“Revolving Loan” has the meaning described in Section 2.1.1 (Revolving Credit Facility).

“Revolving Loan Account” has the meaning described in Section 2.1.6 (Revolving Loan Account).

“Revolving Loan Mandatory Prepayment” and “Revolving Loan Mandatory Prepayments” have the
meanings described in Section 2.1.6 (Mandatory Prepayments of Revolving Loan).

“Revolving Loan Optional Prepayment” and “Revolving Loan Optional Prepayments” have the
meanings described in Section 2.1.4 (Optional Prepayment of Revolving Loan).

“Security Documents” means collectively any assignment, pledge agreement, security agreement,
mortgage, deed of trust, deed to secure debt, financing statement and any similar instrument,
document or agreement under or pursuant to which a Lien is now or hereafter granted to, or for the
benefit of, the Lender on any real or personal property of any Person to secure all or any portion
of the Obligations, all as the same may from time to time be amended, restated, supplemented or
otherwise modified.

“Security Procedures” means the rules, policies and procedures adopted and implemented by the
Lender and its Affiliates at any time and from time to time with respect to security procedures and
measures relating to electronic funds transfers, all as the same may be amended, restated,
supplemented, terminated, or otherwise modified at any time and from time to time by the Lender in
its sole and absolute discretion.

“State” means the Commonwealth of Virginia.

“Subordinated Indebtedness” means all Indebtedness, incurred at any time by the Borrower,
which is in amounts, subject to repayment terms, and subordinated to the Obligations, as set forth
in one or more written agreements, all in form and substance satisfactory to the Lender in its sole
and absolute discretion.

“Subsidiary” means any corporation the majority of the voting shares of which at the time are
owned directly by the Borrower and/or by one or more Subsidiaries of the Borrower.

“Supporting Obligation” means a letter-of-credit right, secondary obligation or obligation of
a secondary obligor or that supports the payment or performance of an account, chattel paper, a
document, a general intangible, an instrument or investment property.

“Swap Contract” means any document, instrument or agreement between the Borrower and Lender or
any affiliate of Lender, now existing or entered into in the future, relating to an interest rate
swap transaction, forward rate transaction, interest rate cap, floor or collar transaction, any
similar transaction, any option to enter into any of the foregoing, and any combination of the
foregoing, which agreement may be oral or in writing, including, without limitation, any master
agreement relating to or governing any or all of the foregoing and any related schedule or
confirmation, each as amended from time to time.

“Taxes” means all taxes and assessments whether general or special, ordinary or extraordinary,
or foreseen or unforeseen, of every character (including all penalties or interest thereon), which
at any time may be assessed, levied, confirmed or imposed by any Governmental Authority on the
Borrower or any of its properties or assets or any part thereof or in respect of any of its
franchises, businesses, income or profits.

“Trademarks” means and includes in each case whether now existing or hereafter arising, all of
the Borrower’s rights, title and interest in and to (a) any and all trademarks (including service
marks), trade names and trade styles, and applications for registration thereof and the goodwill of
the business symbolized by any of the foregoing, (b) any and all licenses of trademarks, service
marks, trade names and/or trade styles, whether as licensor or licensee, (c) any renewals of any
and all trademarks, service marks, trade names, trade styles and/or licenses of any of the
foregoing, (d) income, royalties, damages and payments now or hereafter due and/or payable with
respect thereto, including, without limitation, damages, claims, and payments for past, present and
future infringements thereof, (e) rights to sue for past, present and future infringements of any
of the foregoing, including the right to settle suits involving claims and demands for royalties
owing, and (f) all rights corresponding to any of the foregoing throughout the world.

“Uniform Commercial Code” means, unless otherwise provided in this Agreement, the Uniform
Commercial Code as adopted by and in effect from time to time in the State or in any other
jurisdiction, as applicable.

“Wholly Owned Subsidiary” means any domestic United States corporation all the shares of stock
of all classes of which (other than directors’ qualifying shares) at the time are owned directly or
indirectly by the Borrower and/or by one or more Wholly Owned Subsidiaries of the Borrower.

“Wire Transfer Procedures” means the rules, policies and procedures adopted and implemented by
the Lender and its Affiliates at any time and from time to time with respect to electronic funds
transfers, including, without limitation, the Security Procedures, all as the same may be amended,
restated, supplemented, terminated or otherwise modified at any time and from time to time by the
Lender in its sole and absolute discretion.

	 	 	 	Section 1.2 Accounting Terms and Other Definitional Provisions.

Unless otherwise defined herein, as used in this Agreement and in any certificate, report or
other document made or delivered pursuant hereto, accounting terms not otherwise defined herein,
and accounting terms only partly defined herein, to the extent not defined, shall have the
respective meanings given to them under GAAP, as consistently applied to the applicable Person.
All terms used herein which are defined by the Uniform Commercial Code shall have the same meanings
as assigned to them by the Uniform Commercial Code unless and to the extent varied by this
Agreement. The words “hereof”, “herein” and “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 article, section, subsection, schedule and exhibit references are references to
articles, sections or subsections of, or schedules or exhibits to, as the case may be, this
Agreement unless otherwise specified. As used herein, the singular number shall include the
plural, the plural the singular and the use of the masculine, feminine or neuter gender shall
include all genders, as the context may require. Reference to any one or more of the Financing
Documents shall mean the same as the foregoing may from time to time be amended, restated,
substituted, extended, renewed, supplemented or otherwise modified.

ARTICLE II

THE CREDIT FACILITIES

	 	 	 	 	 	 	 
	Section 2.1	 	The Revolving Credit Facility.
	 	 	 
	 	 	 	2.1.1	 	 	Revolving Credit Facility.

	 	 	 	 	 	 	 

Subject to and upon the provisions of this Agreement, the Lender establishes a revolving
credit facility in favor of the Borrower. The aggregate of all advances under the Revolving Credit
Facility is sometimes referred to in this Agreement as the “Revolving Loan”.

The principal amount of Forty Million Dollars ($40,000,000) is the “Revolving Credit Committed
Amount”. If at any time the unpaid principal balance of the Revolving Loan exceeds the Revolving
Credit Committed Amount in effect from time to time, the Borrower shall pay such excess to the
Lender ON DEMAND.

During the Revolving Credit Commitment Period, the Borrower may request advances under the
Revolving Credit Facility in accordance with the provisions of this Agreement; provided that after
giving effect to the Borrower’s request the aggregate outstanding principal balance of the
Revolving Loan and all Letter of Credit Obligations would not exceed the Revolving Credit Committed
Amount.

Unless sooner paid, the unpaid Revolving Loan, together with interest accrued and unpaid
thereon, and all other Obligations shall be due and payable in full on the Revolving Credit
Expiration Date.

	 	2.1.2	 	Procedure for Making Advances Under the
Revolving Loan; Lender Protection Loans.

The Borrower may borrow under the Revolving Credit Facility on any Business Day. Advances
under the Revolving Loan shall be deposited to a demand deposit account of the Borrower with the
Lender (or an Affiliate of the Lender) or shall be otherwise applied as directed by the Borrower,
which direction the Lender may require to be in writing. Not later than 12:00 noon. (Eastern Time)
on the date of the requested borrowing, the Borrower shall give the Lender oral or written notice
(a “Loan Notice”) of the amount and (if requested by the Lender) the purpose of the requested
borrowing. Any oral Loan Notice shall be confirmed in writing by the Borrower within three (3)
Business Days after the making of the requested advance under the Revolving Loan. Each Loan Notice
shall be irrevocable.

In addition, the Borrower hereby irrevocably authorizes the Lender at any time and from time
to time, without further request from or notice to the Borrower, to make advances under the
Revolving Loan, which the Lender, in its sole and absolute discretion, deems necessary or
appropriate to protect the interests of the Lender, including, without limitation, advances and
reserves under the Revolving Loan made to cover debit balances in the Revolving Loan Account,
principal of, and/or interest on, any Loan, the Obligations (including, without limitation, any
Letter of Credit Obligations), and/or Enforcement Costs, prior to, on, or after the termination of
other advances under this Agreement, regardless of whether the outstanding principal amount of the
Revolving Loan that the Lender may advance or reserve hereunder exceeds the Revolving Credit
Committed Amount.

	 	2.1.3	 	Revolving Credit Note.

The obligation of the Borrower to pay the Revolving Loan, with interest, shall be evidenced by
a promissory note (as from time to time extended, amended, restated, supplemented or otherwise
modified, the “Revolving Credit Note”) substantially in the form of EXHIBIT “A” attached hereto and
made a part hereof, with appropriate insertions. The Revolving Credit Note shall be dated as of
the Closing Date, shall be payable to the order of the Lender at the times provided in the
Revolving Credit Note, and shall be in the principal amount of the Revolving Credit Committed
Amount. The Borrower acknowledges and agrees that, if the outstanding principal balance of the
Revolving Loan outstanding from time to time exceeds the face amount of the Revolving Credit Note,
the excess shall bear interest at the Post-Default Rate for the Revolving Loan and shall be
payable, with accrued interest, ON DEMAND. The Revolving Credit Note shall not operate as a
novation of any of the Obligations or nullify, discharge, or release any such Obligations or the
continuing contractual relationship of the parties hereto in accordance with the provisions of this
Agreement.

	 	2.1.4	 	Optional Prepayments of Revolving
Loan.

The Borrower shall have the option, at any time and from time to time, to prepay (each a
“Revolving Loan Optional Prepayment” and collectively the “Revolving Loan Optional Prepayments”)
the Revolving Loan, in whole or in part without premium or penalty.

	 	2.1.5	 	The Collateral Account.

If so directed by the Lender, the Borrower will deposit, or cause to be deposited, all Items
of Payment to a bank account designated by the Lender and from which the Lender alone has power of
access and withdrawal (the “Collateral Account”). Each deposit shall be made not later than the
next Business Day after the date of receipt of the Items of Payment. The Items of Payment shall be
deposited in precisely the form received, except for the endorsements of the Borrower where
necessary to permit the collection of any such Items of Payment, the Borrower hereby agreeing to
make such endorsement. In the event the Borrower fails to do so, the Lender is hereby authorized
by the Borrower to make the endorsement in the name of the Borrower. Prior to such a deposit, the
Borrower will not commingle any Items of Payment with any of the Borrower’s other funds or
property, but will hold them separate and apart in trust and for the account of the Lender.

In addition, if so directed by the Lender, the Borrower shall direct the mailing of all Items
of Payment from its Account Debtors to a post-office box designated by the Lender, or to such other
additional or replacement post-office boxes pursuant to the request of the Lender from time to time
(collectively, the “Lockbox”). The Lender shall have unrestricted and exclusive access to the
Lockbox.

The Borrower hereby authorizes the Lender to inspect all Items of Payment, endorse all Items
of Payment in the name of the Borrower, and deposit such Items of Payment in the Collateral
Account. The Lender reserves the right, exercised in its sole and absolute discretion from time to
time, to provide to the Collateral Account credit prior to final collection of an Item of Payment
and to disallow credit for any Item of Payment which is unsatisfactory to the Lender. In the event
Items of Payment are returned to the Lender for any reason whatsoever, the Lender may, in the
exercise of its discretion from time to time, forward such Items of Payment a second time. Any
returned Items of Payment shall be charged back to the Collateral Account, the Revolving Loan
Account, or other account, as appropriate.

The Lender will apply the whole or any part of the collected funds credited to the Collateral
Account against the Revolving Loan (or with respect to Items of Payment that are not proceeds of
Accounts or after a Default or Event of Default, against any of the Obligations) or credit such
collected funds to a depository account of the Borrower with the Lender (or an Affiliate of the
Lender), the order and method of such application to be in the reasonable discretion of the Lender.

	 	2.1.6	 	Revolving Loan Account.

The Lender will establish and maintain a loan account on its books (the “Revolving Loan
Account”) to which the Lender will (a) debit (i) the principal amount of each advance of
the Revolving Loan made by the Lender hereunder as of the date made, (ii) the amount of any
interest accrued on the Revolving Loan as and when due, and (iii) any other amounts due and payable
by the Borrower to the Lender from time to time under the provisions of this Agreement in
connection with the Revolving Loan, including, without limitation, Enforcement Costs, Fees, late
charges, and service, collection and audit fees, as and when due and payable, and (b)
credit all payments made by the Borrower to the Lender on account of the Revolving Loan as
of the date made including, without limitation, funds credited to the Revolving Loan Account from
the Collateral Account. The Lender may debit the Revolving Loan Account for the amount of any Item
of Payment that is returned to the Lender unpaid. All credit entries to the Revolving Loan Account
are conditional and shall be readjusted as of the date made if final and indefeasible payment is
not received by the Lender in cash or solvent credits. Any and all periodic or other statements or
reconciliations, and the information contained in those statements or reconciliations, of the
Revolving Loan Account shall be final, binding and conclusive upon the Borrower in all respects,
absent manifest error, unless the Lender receives specific written objection thereto from the
Borrower within thirty (30) Business Days after such statement or reconciliation shall have been
received by the Borrower.

	 	2.1.7	 	Revolving Credit Unused Line Fee.

The Borrower shall pay to the Lender a quarterly revolving credit facility fee (collectively,
the “Revolving Credit Unused Line Fees” and individually, a “Revolving Credit Unused Line Fee”) in
an amount equal to one quarter of one percent (1/4%) per annum of the average daily unused portion
of the Revolving Credit Committed Amount in effect from time to time accruing during each calendar
quarter. The accrued and unpaid portion of the Revolving Credit Unused Line Fee shall be paid by
the Borrower to the Lender on the first day of each calendar quarter, commencing on the first such
date following the date hereof, and on the Revolving Credit Termination Date.

	 	 	 	 	 	 	 
	Section 2.2	 	The Letter of Credit Facility.
	 	 	 
	 	 	 	2.2.1	 	 	Letters of Credit.

	 	 	 	 	 	 	 

Subject to and upon the provisions of this Agreement, and as a part of the Revolving Credit
Commitment, the Borrower, upon the prior approval of Agent, may obtain standby or commercial
letters of credit (as the same may from time to time be amended, supplemented or otherwise
modified, each a “Letter of Credit” and collectively the “Letters of Credit”) from Lender from time
to time from the Closing Date until the Business Day preceding the Revolving Credit Termination
Date. The Borrower will not be entitled to obtain a Letter of Credit hereunder unless (a) after
giving effect to the request, the outstanding principal balance of the Revolving Loan and of the
Letter of Credit Obligations would not exceed the Revolving Credit Committed Amount (b) the sum of
the aggregate face amount of the then outstanding Letters of Credit (including the face amount of
the requested Letter of Credit) does not exceed Fifteen Million Dollars ($15,000,000) (the “Letter
of Credit Sublimit”) and (c) the expiration date of the requested Letter of Credit is not later
than nine (9) months following the Revolving Credit Expiration Date.

	 	2.2.2	 	Letter of Credit Fees.

Prior to or simultaneously with the opening of each Letter of Credit, and annually thereafter,
the Borrower shall pay to Lender, a letter of credit fee (each a “Letter of Credit Fee” and
collectively the “Letter of Credit Fees”) in an amount equal to one and one-half percent (1.5%) per
annum of the face amount of said Letter of Credit at the time said Letter of Credit Fee is due.
Each Letter of Credit Fee shall be paid in advance on each anniversary of the date the related
Letter of Credit was issued. In addition, the Borrower shall pay to the Lender any and all
additional issuance, negotiation, processing, transfer or other fees to the extent and as and when
required by the provisions of any Letter of Credit Agreement. The Lender is authorized to deduct
any payment due hereunder from the Borrower’s account #004122817025 issued by the Lender, on or
after the date any Letter of Credit Fee is due. All Letter of Credit Fees and all such other
additional fees are included in and are a part of the “Fees” payable by the Borrower under the
provisions of this Agreement and are a part of the Obligations.

	 	2.2.3	 	Terms of Letters of Credit;
Post-Expiration Date Letters of Credit.

Each Letter of Credit shall (a) be opened pursuant to a Letter of Credit Agreement and (b)
expire on a date not later than the Business Day preceding the Revolving Credit Expiration Date;
provided, however, if any Letter of Credit does have an expiration date later than the Business Day
preceding the Revolving Credit Termination Date (each a “Post-Expiration Date Letter of Credit” and
collectively, the “Post-Expiration Date Letters of Credit”), effective as of the Business Day
preceding the Revolving Credit Termination Date and without prior notice to or the consent of the
Borrower, the Lender shall make advances under the Revolving Loan for the account of the Borrower
in the aggregate face amount of all such Letters of Credit. The Lender shall deposit the proceeds
of such advances into one or more non-interest bearing accounts with and in the name of the Lender
and over which the Lender alone shall have exclusive power of access and withdrawal (collectively,
the “Letter of Credit Cash Collateral Account”). The Letter of Credit Cash Collateral Account is
to be held by the Lender as additional collateral and security for any Letter of Credit Obligations
relating to the Post-Expiration Date Letters of Credit. The Borrower hereby assigns, pledges,
grants and sets over to the Lender a first priority security interest in, and Lien on, all of the
funds on deposit in the Letter of Credit Cash Collateral Account, together with any and all
Proceeds and products thereof as additional collateral and security for the Letter of Credit
Obligations relating to the Post-Expiration Date Letters of Credit. The Borrower acknowledges and
agrees that the Lender shall be entitled to fund any draw or draft on any Post-Expiration Date
Letter of Credit from the monies on deposit in the Letter of Credit Cash Collateral Account without
notice to or consent of the Borrower or the Lender. The Borrower further acknowledges and agrees
that the Lender’s election to fund any draw or draft on any Post-Expiration Date Letter of Credit
from the Letter of Credit Cash Collateral shall in no way limit, impair, lessen, reduce, release or
otherwise adversely affect the Borrower’s obligation to pay any Letter of Credit Obligations under
or relating to the Post-Expiration Date Letters of Credit. At such time as all Post-Expiration
Date Letters of Credit have expired and all Letter of Credit Obligations relating to the
Post-Expiration Date Letters of Credit have been paid in full, the Lender agrees to apply the
amount of any remaining funds on deposit in the Letter of Credit Cash Collateral Account to the
then unpaid balance of the Obligations under the Revolving Credit Facility in such order and manner
as the Lender shall determine in its sole and absolute discretion in accordance with the provisions
of this Agreement.

The aggregate face amount of all Letters of Credit at any one time outstanding and issued by
the Lender pursuant to the provisions of this Agreement, including, without limitation, any and all
Post-Expiration Date Letters of Credit, plus the amount of any unpaid Letter of Credit Fees accrued
or scheduled to accrue thereon, and less the aggregate amount of all drafts issued under or
purporting to have been issued under such Letters of Credit that have been paid by the Lender and
for which the Lender has been reimbursed by the Borrower in full in accordance with Section 2.2.5
(Payments of Letters of Credit) and the Letter of Credit Agreements, and for which the Lender has
no further obligation or commitment to restore all or any portion of the amounts drawn and
reimbursed, is herein called the “Outstanding Letter of Credit Obligations”.

	 	2.2.4	 	Procedures for Letters of Credit.

The Borrower shall give the Lender written notice at least five (5) Business Days prior to the
date on which the Borrower desires the Lender to issue a Letter of Credit. The Borrower shall give
the Lender written notice at least three (3) Business Days prior to the date on which a Letter of
Credit is requested to be opened of their request for a Letter of Credit. Such notice shall be
accompanied by a duly executed and delivered Letter of Credit Agreement. Upon receipt of the
Letter of Credit Agreement and the Letter of Credit Fee, the Lender shall process such Letter of
Credit Agreement in accordance with its customary procedures and open such Letter of Credit on the
Business Day specified in such notice.

	 	2.2.5	 	Payments of Letters of Credit.

The Borrower hereby promises to pay to the Lender, ON DEMAND and in United States Dollars, the
following which are herein collectively referred to as the “Current Letter of Credit Obligations”:

(a) the amount which the Lender has paid or will be required to pay under each
draft or draw on a Letter of Credit, whether such demand be in advance of the
Lender’s payment or for reimbursement for such payment;

(b) any and all reasonable charges and expenses which the Lender may pay or
incur relative to the Letter of Credit and/or such draws or drafts; and

(c) interest on the amounts described in (a) and (b) not paid by the Borrower
as and when due and payable under the provisions of (a) and (b) above from the day
the same are due and payable until paid in full at a rate per annum equal to the
then current highest rate of interest on the Revolving Loan.

In addition, the Borrower hereby promises to pay any and all other Letter of Credit
Obligations as and when due and payable in accordance with the provisions of this Agreement and the
Letter of Credit Agreements. The obligation of the Borrower to pay Current Letter of Credit
Obligations and all other Letter of Credit Obligations shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which
the Borrower or any other account party may have or have had against the beneficiary of such Letter
of Credit, the Lender, or any other Person, including, without limitation, any defense based on the
failure of any draft or draw to conform to the terms of such Letter of Credit, any draft or other
document proving to be forged, fraudulent or invalid, or the legality, validity, regularity or
enforceability of such Letter of Credit, any draft or other documents presented with any draft, any
Letter of Credit Agreement, this Agreement, or any of the other Financing Documents, all whether or
not the Lender had actual or constructive knowledge of the same, and irrespective of any
Collateral, security or guarantee therefore or right of offset with respect thereto and
irrespective of any other circumstances whatsoever which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for any Letter of Credit Obligations,
in bankruptcy or otherwise; provided, however, that the Borrower shall not be obligated to
reimburse the Lender for any wrongful payment under such Letter of Credit made as a result of the
Lender’s willful misconduct. The obligation of the Borrower to pay the Letter of Credit
Obligations shall not be conditioned or contingent upon the pursuit by the Lender or any other
Person at any time of any right or remedy against any Person which may be or become liable in
respect of all or any part of such obligation or against any Collateral, security or guarantee
therefore or right of offset with respect thereto.

The Letter of Credit Obligations shall continue to be effective, or be reinstated, as the case
may be, if at any time payment of all or any portion of the Letter of Credit Obligations is
rescinded or must otherwise be restored or returned by the Lender upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of any Person, or upon or as a result of the appointment
of a receiver, intervenor, or conservator of, or trustee or similar officer for, any Person, or any
substantial part of such Person’s property, all as though such payments had not been made.

	 	2.2.6	 	Change in Law; Increased Cost.

If any change in any law or regulation or in the interpretation thereof by any court or other
Governmental Authority charged with the administration thereof shall either (a) impose, modify or
deem applicable any reserve, special deposit or similar requirement against Letters of Credit
issued by the Lender, or (b) impose on the Lender any other condition regarding this Agreement or
any Letter of Credit, and the result of any event referred to in clauses (a) or (b) above shall be
to increase the cost to the Lender of issuing, maintaining or extending the Letter of Credit or the
cost to Lender of funding any obligation under or in connection with the Letter of Credit, then,
upon demand by the Lender, the Borrower shall immediately pay to the Lender from time to time as
specified by the Lender, additional amounts which shall be sufficient to compensate the Lender for
such increased cost, together with interest on each such amount from the date demanded until
payment in full thereof at a rate per annum equal to the then highest current rate of interest on
the Revolving Loan. A certificate as to such increased cost incurred by the Lender, submitted by
the Lender to the Borrower, shall be conclusive, absent manifest error.

	 	2.2.7	 	General Letter of Credit Provisions.

The Borrower hereby instructs the Lender to pay any draft complying with the terms of any
Letter of Credit irrespective of any instructions of the Borrower to the contrary. The Borrower
assumes all risks of the acts and omissions of the beneficiary and other users of any Letter of
Credit. The Lender and its respective branches, Affiliates and/or correspondents shall not be
responsible for and the Borrower hereby indemnifies and holds the Lender and its branches,
Affiliates and/or correspondents harmless from and against all liability, loss and expense
(including reasonable attorney’s fees and costs) incurred by the Lender and/or its respective
branches, Affiliates and/or correspondents relative to and/or as a consequence of (a) any failure
by the Borrower to perform the agreements hereunder and under any Letter of Credit Agreement, (b)
any Letter of Credit Agreement, this Agreement, any Letter of Credit and any draft, draw and/or
acceptance under or purported to be under any Letter of Credit, (c) any action taken or omitted by
the Lender and/or any of its respective branches, Affiliates and/or correspondents at the request
of the Borrower, (d) any failure or inability to perform in accordance with the terms of any Letter
of Credit by reason of any control or restriction rightfully or wrongfully exercised by any de
facto or de jure Governmental Authority, group or individual asserting or exercising
governmental or paramount powers, and/or (e) any consequences arising from causes beyond the
control of the Lender and/or any of its respective branches, Affiliates and/or correspondents.

Except for willful misconduct, the Lender and its respective branches, Affiliates and/or
correspondents, shall not be liable or responsible in any respect for any (a) error, omission,
interruption or delay in transmission, dispatch or delivery of any one or more messages or advices
in connection with any Letter of Credit, whether transmitted by cable, telegraph, mail or otherwise
and despite any cipher or code which may be employed, and/or (b) action, inaction or omission which
may be taken or suffered by it or them in good faith or through inadvertence in identifying or
failing to identify any beneficiary or otherwise in connection with any Letter of Credit.

Any Letter of Credit may be amended, modified or revoked only upon the receipt by the Lender
from the Borrower and the beneficiary (including any transferee and/or assignee of the original
beneficiary), of a written consent and request therefore.

If any Laws, order of court and/or ruling or regulation of any Governmental Authority of the
United States (or any state thereof) and/or any country other than the United States permits a
beneficiary under a Letter of Credit to require the Lender and/or any of its respective branches,
Affiliates and/or correspondents to pay drafts under or purporting to be under a Letter of Credit
after the expiration date of the Letter of Credit, the Borrower shall reimburse the Lender, as
appropriate, for any such payment pursuant to provisions of Section 2.2.6 (Change in Law; Increased
Cost).

Except as may otherwise be specifically provided in a Letter of Credit or Letter of Credit
Agreement, the laws of the State and the Uniform Customs and Practice for Documentary Credits, 1993
Revision, International Chamber of Commerce Publication No. 500 shall govern the Letters of Credit.
The Laws, rules, provisions and regulations of the Uniform Customs and Practice for Documentary
Credits are hereby incorporated by reference. In the event of a conflict between the Uniform
Customs and Practice for Documentary Credits and the laws of the State, the Uniform Customs and
Practice for Documentary Credits shall prevail.

	 	 	 	 	 	 	 
	Section 2.3	 	General Financing Provisions.
	 	 	 
	 	 	 	2.3.1	 	 	The Borrower’s Representatives.

	 	 	 	 	 	 	 

Each Borrower hereby represents and warrants to the Lender that each of them will derive
benefits, directly and indirectly, from each Letter of Credit and from each Loan, both in their
separate capacity and as a member of the integrated group to which each of the Borrowers belong and
because the successful operation of the integrated group is dependent upon the continued successful
performance of the functions of the integrated group as a whole, because (a) the terms of the
consolidated financing provided under this Agreement are more favorable than would otherwise be
obtainable by the Borrowers individually and (b) Borrowers’ additional administrative and other
costs and reduced flexibility associated with individual financing arrangements which would
otherwise be required if obtainable would substantially reduce the value to the Borrowers of the
financing. The Borrowers in the discretion of their respective managements are to agree among
themselves as to the allocation of the benefits of Letters of Credit and the proceeds of the Loan,
provided, however, that the Borrowers shall be deemed to have represented and warranted to the
Lender at the time of allocation that each benefit and use of proceeds is a Permitted Use.

For administrative convenience, each Borrower hereby irrevocably appoints Argon as the
Borrower’s attorney-in-fact, with power of substitution (with the prior written consent of the
Lender in the exercise of its sole and absolute discretion), in the name of Argon or in the name of
the Borrower or otherwise to take any and all actions with respect to the this Agreement, the other
Financing Documents, the Obligations and/or the Collateral (including, without limitation, the
Proceeds thereof) as Argon may so elect from time to time, including, without limitation, actions
to (i) request advances under the Loan, apply for and direct the benefits of Letters of Credits,
and direct the Lender to disburse or credit the proceeds of any Loan directly to an account of
Argon, any one or more of the Borrowers or otherwise, which direction shall evidence the making of
such Loan and shall constitute the acknowledgment by each of the Borrowers of the receipt of the
proceeds of such Loan or the benefit of such Letter of Credit, (ii) enter into, execute, deliver,
amend, modify, restate, substitute, extend and/or renew this Agreement, any Additional Borrower
Joinder Supplement, any other Financing Documents, security agreements, mortgages, deposit account
agreements, instruments, certificates, waivers, letter of credit applications, releases, documents
and agreements from time to time, and (iii) endorse any check or other item of payment in the name
of the Borrower or in the name of Argon. The foregoing appointment is coupled with an interest,
cannot be revoked without the prior written consent of the Lender, and may be exercised from time
to time through Argon’s duly authorized officer, officers or other Person or Persons designated by
Argon to act from time to time on behalf of Argon.

Each of the Borrowers hereby irrevocably authorizes the Lender to make Loans to any one or
more of the Borrowers, and hereby irrevocably authorizes the Lender to issue or cause to be issued
Letters of Credit for the account of any or all of the Borrowers, pursuant to the provisions of
this Agreement upon the written, oral or telephone request of any one or more of the Persons who is
from time to time a Responsible Officer of a Borrower under the provisions of the most recent
certificate of corporate resolutions and/or incumbency of the Borrowers on file with the Lender and
also upon the written, oral or telephone request of any one of the Persons who is from time to time
a Responsible Officer of Argon under the provisions of the most recent certificate of corporate
resolutions and/or incumbency for Argon on file with the Lender.

The Lender assumes no responsibility or liability for any errors, mistakes, and/or
discrepancies in the oral, telephonic, written or other transmissions of any instructions, orders,
requests and confirmations between the Lender and the Borrowers in connection with the Credit
Facilities, any Loan, any Letter of Credit or any other transaction in connection with the
provisions of this Agreement. Without implying any limitation on the joint and several nature of
the Obligations, the Lender agrees that, notwithstanding any other provision of this Agreement, the
Borrowers may create reasonable inter-company indebtedness between or among the Borrowers with
respect to the allocation of the benefits and proceeds of the advances and Credit Facilities under
this Agreement. The Borrowers agree among themselves, and the Lender consents to that agreement,
that each Borrower shall have rights of contribution from all of the other Borrowers to the extent
such Borrower incurs Obligations in excess of the proceeds of the Loans received by, or allocated
to purposes for the direct benefit of, such Borrower. All such indebtedness and rights shall be,
and are hereby agreed by the Borrowers to be, subordinate in priority and payment to the
indefeasible repayment in full in cash of the Obligations, and, unless the Lender agrees in writing
otherwise, shall not be exercised or repaid in whole or in part until all of the Obligations have
been indefeasibly paid in full in cash. The Borrowers agree that all of such inter-company
indebtedness and rights of contribution are part of the Collateral and secure the Obligations.
Each Borrower hereby waives all rights of counterclaim, recoupment and offset between or among
themselves arising on account of that indebtedness and otherwise. Each Borrower shall not evidence
the inter-company indebtedness or rights of contribution by note or other instrument, and shall not
secure such indebtedness or rights of contribution with any Lien or security. Notwithstanding
anything contained in this Agreement to the contrary, the amount covered by each Borrower under the
Obligations (including, without limitation, Section 2.3.9 (Guaranty) shall be limited to an
aggregate amount (after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Borrower in respect of the Obligations) which,
together with other amounts owing by such Borrowers to the Lender under the Obligations, is equal
to the largest amount that would not be subject to avoidance under the Bankruptcy Code or any
applicable provisions of any applicable, comparable state or other Laws.

	 	2.3.2	 	Use of Proceeds of the Loan.

The proceeds of each advance under the Loan shall be used by the Borrower for Permitted Uses,
and for no other purposes except as may otherwise be agreed by the Lender in writing. The Borrower
shall use the proceeds of the Loan promptly.

	 	2.3.3	 	Administrative Fees.

The Borrower shall pay to the Lender an annual administrative fee (each an “Administrative
Fee” and collectively, the “Administrative Fees”) for administrative services performed in
conjunction with the Revolving Credit Facility. The Administrative Fee shall be payable each year
in advance on the first (1st) day of each March until the Revolving Credit Termination
Date and equal to the product of (a) 0.0015 multiplied by (b) the Revolving Credit Committed
Amount; provided that if the Borrower and the Lender agree to increase the Revolving Credit
Committed Amount during the course of any year, the Borrower shall pay to the Lender at the time of
such increase, an additional amount equal to the product of (x) 0.0015 multiplied by (y) such
increase in the Revolving Credit Committed Amount.

	 	2.3.4	 	Computation of Interest and Fees.

All applicable Fees and interest shall be calculated on the basis of a year of 360 days for
the actual number of days elapsed.

	 	2.3.5	 	Payments.

All payments of the Obligations, including, without limitation, principal, interest,
Prepayments, and Fees, shall be paid by the Borrower without setoff, recoupment or counterclaim to
the Lender in immediately available funds not later than 12:00 p.m. (Eastern Time) on the due date
of such payment. All payments received by the Lender after such time shall be deemed to have been
received by the Lender for purposes of computing interest and Fees and otherwise as of the next
Business Day. Payments shall not be considered received by the Lender until such payments are paid
to the Lender in immediately available funds to the Lender’s principal office in McLean, Virginia
or at such other location as the Lender may at any time and from time to time notify the Borrower.
Alternatively, at its sole discretion, the Lender may charge any deposit account of the Borrower at
the Lender or any Affiliate of the Lender with all or any part of any amount due to the Lender
under this Agreement or any of the other Financing Documents to the extent that the Borrower shall
have not otherwise tendered payment to the Lender. All payments shall be applied first to any
unpaid Fees, second to any and all accrued and unpaid late charges and Enforcement Costs, third to
any and all accrued and unpaid interest on the Obligations, and then to the then unpaid principal
balance of the Obligations, all in such order and manner as shall be determined by the Lender in
its sole and absolute discretion.

	 	2.3.6	 	Liens; Setoff.

The Borrower hereby grants to the Lender as additional collateral and security for all of the
Obligations, a continuing Lien on any and all monies, Investment Property, and other property of
the Borrower and the proceeds thereof, now or hereafter held or received by or in transit to, the
Lender, and/or any Affiliate of the Lender, from or for the account of, the Borrower, and also upon
any and all deposit accounts (general or special) and credits of the Borrower, if any, with the
Lender or any Affiliate of the Lender, at any time existing, excluding any deposit accounts held by
the Borrower in its capacity as trustee for Persons who are not Affiliates of the Borrower.
Without implying any limitation on any other rights the Lender may have under the Financing
Documents or applicable Laws, during the continuance of an Event of Default, the Lender is hereby
authorized by the Borrower at any time and from time to time, without notice to the Borrower, to
set off, appropriate and apply any or all items hereinabove referred to against all Obligations
then outstanding (whether or not then due), all in such order and manner as shall be determined by
the Lender in its sole and absolute discretion.

	 	2.3.7	 	Requirements of Law.

In the event that the Lender shall have determined in good faith that (a) the adoption of any
Capital Adequacy Regulation, or (b) any change in any Capital Adequacy Regulation or in the
interpretation or application thereof or (c) compliance by the Lender or any corporation
controlling the Lender with any request or directive regarding capital adequacy (whether or not
having the force of law) from any central bank or Governmental Authority, does or shall have the
effect of reducing the rate of return on the capital of the Lender or any corporation controlling
the Lender, as a consequence of the obligations of the Lender hereunder to a level below that which
the Lender or any corporation controlling the Lender would have achieved but for such adoption,
change or compliance (taking into consideration the policies of the Lender and the corporation
controlling the Lender, with respect to capital adequacy) by an amount deemed by the Lender, in its
discretion, to be material, then from time to time, after submission by the Lender to the Borrower
of a written request therefore and a statement of the basis for such determination, the Borrower
shall pay to the Lender such additional amount or amounts in order to compensate the Lender or its
controlling corporation for any such reduction.

	 	2.3.8	 	ACH Transactions and Swap Contracts.

The Borrower may request and the Lender or its affiliates may, in their sole and absolute
discretion, provide ACH Transactions and Swap Contracts. In the event the Borrower requests Lender
or its affiliates to procure ACH Transactions or Swap Contracts, then the Borrower agrees to
indemnify and hold the Lender or its affiliates harmless from any and all obligations now or
hereafter owing to the Lender or its affiliates. The Borrower agrees to pay the Lender or its
affiliates all amounts owing to the Lender or its affiliates pursuant to ACH Transactions and Swap
Contracts. In the event the Borrower shall not have paid to the Lender or its affiliates such
amounts, the Lender may cover such amounts by an advance under the Revolving Loan, which advance
shall be deemed to have been requested by the Borrower. The Borrower acknowledges and agrees that
the obtaining of ACH Transactions and Swap Contracts from the Lender or its Affiliates (a) is in
the sole and absolute discretion of the Lender or its Affiliates and (b) is subject to all rules
and regulations of the Lender or its Affiliates.

	 	2.3.9	 	Guaranty.

(a) Each Borrower hereby unconditionally and irrevocably, guarantees to the Lender:

(i) the due and punctual payment in full (and not merely the collectibility) by the
other Borrowers of the Obligations, including unpaid and accrued interest thereon, in each
case when due and payable, all according to the terms of this Agreement, the Notes and the
other Financing Documents;

(ii) the due and punctual payment in full (and not merely the collectibility) by the
other Borrowers of all other sums and charges which may at any time be due and payable in
accordance with this Agreement, the Notes or any of the other Financing Documents;

(iii) the due and punctual performance by the other Borrowers of all of the other
terms, covenants and conditions contained in the Financing Documents; and

(iv) all the other Obligations of the other Borrowers.

(b) The obligations and liabilities of each Borrower as a guarantor under this Section 2.3.9
shall be absolute and unconditional and joint and several, irrespective of the genuineness,
validity, priority, regularity or enforceability of this Agreement, any of the Notes or any of the
Financing Documents or any other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or guarantor. Each Borrower in its capacity as a guarantor expressly agrees
that the Lender may, in its sole and absolute discretion, without notice to or further assent of
such Borrower and without in any way releasing, affecting or in any way impairing the joint and
several obligations and liabilities of such Borrower as a guarantor hereunder:

(i) waive compliance with, or any defaults under, or grant any other indulgences under
or with respect to any of the Financing Documents;

(ii) modify, amend, change or terminate any provisions of any of the Financing
Documents;

(iii) grant extensions or renewals of or with respect to the Credit Facilities, the
Notes or any of the other Financing Documents;

(iv) effect any release, subordination, compromise or settlement in connection with
this Agreement, any of the Notes or any of the other Financing Documents;

(v) agree to the substitution, exchange, release or other disposition of the Collateral
or any part thereof, or any other collateral for the Loan or to the subordination of any
lien or security interest therein;

(vi) make advances for the purpose of performing any term, provision or covenant
contained in this Agreement, any of the Notes or any of the other Financing Documents with
respect to which the Borrowers shall then be in default;

(vii) make future advances pursuant to this Agreement or any of the other Financing
Documents;

(viii) assign, pledge, hypothecate or otherwise transfer the Commitments, the
Obligations, the Notes, any of the other Financing Documents or any interest therein, all as
and to the extent permitted by the provisions of this Agreement;

(ix) deal in all respects with the other Borrowers as if this Section 2.3.9 were not in
effect;

(x) effect any release, compromise or settlement with any of the other Borrowers,
whether in their capacity as a Borrower or as a guarantor under this Section 2.3.9, or any
other guarantor; and

(xi) provide debtor-in-possession financing or allow use of cash collateral in
proceedings under the Bankruptcy Code, it being expressly agreed by all Borrowers that any
such financing and/or use would be part of the Obligations.

(c) The obligations and liabilities of each Borrower, as guarantor under this Section 2.3.9,
shall be primary, direct and immediate, shall not be subject to any counterclaim, recoupment, set
off, reduction or defense based upon any claim that a Borrower may have against any one or more of
the other Borrowers, the Lender, and/or any other guarantor and shall not be conditional or
contingent upon pursuit or enforcement by the Lender of any remedies it may have against the
Borrowers with respect to this Agreement, the Notes or any of the other Financing Documents,
whether pursuant to the terms thereof or by operation of law. Without limiting the generality of
the foregoing, the Lender shall not be required to make any demand upon any of the Borrowers, or to
sell the Collateral or otherwise pursue, enforce or exhaust its remedies against the Borrowers or
the Collateral either before, concurrently with or after pursuing or enforcing its rights and
remedies hereunder. Any one or more successive or concurrent actions or proceedings may be brought
against each Borrower under this Section 2.3.9, either in the same action, if any, brought against
any one or more of the Borrowers or in separate actions or proceedings, as often as the Lender may
deem expedient or advisable. Without limiting the foregoing, it is specifically understood that
any modification, limitation or discharge of any of the liabilities or obligations of any one or
more of the Borrowers, any other guarantor or any obligor under any of the Financing Documents,
arising out of, or by virtue of, any bankruptcy, arrangement, reorganization or similar proceeding
for relief of debtors under federal or state law initiated by or against any one or more of the
Borrowers, in their respective capacities as borrowers and guarantors under this Section 2.3.9, or
under any of the Financing Documents shall not modify, limit, lessen, reduce, impair, discharge, or
otherwise affect the liability of each Borrower under this Section 2.3.9 in any manner whatsoever,
and this Section 2.3.9 shall remain and continue in full force and effect. It is the intent and
purpose of this Section 2.3.9 that each Borrower shall and does hereby waive all rights and
benefits which might accrue to any other guarantor by reason of any such proceeding, and the
Borrowers agree that they shall be liable for the full amount of the obligations and liabilities
under this Section 2.3.9, regardless of, and irrespective to, any modification, limitation or
discharge of the liability of any one or more of the Borrowers, any other guarantor or any obligor
under any of the Financing Documents, that may result from any such proceedings.

(d) Each Borrower, as guarantor under this Section 2.3.9, hereby unconditionally, jointly and
severally, irrevocably and expressly waives:

(i) presentment and demand for payment of the Obligations and protest of non-payment;

(ii) notice of acceptance of this Section 2.3.9 and of presentment, demand and protest
thereof;

(iii) notice of any default hereunder or under the Notes or any of the other Financing
Documents and notice of all indulgences;

(iv) notice of any increase in the amount of any portion of or all of the indebtedness
guaranteed by this Section 2.3.9;

(v) demand for observance, performance or enforcement of any of the terms or provisions
of this Section 2.3.9, the Notes or any of the other Financing Documents;

(vi) all errors and omissions in connection with the Lender’s administration of all
indebtedness guaranteed by this Section 2.3.9, except errors and omissions resulting from
acts of bad faith;

(vii) any right or claim of right to cause a marshalling of the assets of any one or
more of the other Borrowers;

(viii) any act or omission of the Lender which changes the scope of the risk as
guarantor hereunder; and

(ix) all other notices and demands otherwise required by law which the Borrower may
lawfully waive.

Within ten (10) days following any request of the Lender so to do, each Borrower will furnish
the Lender and such other persons as the Lender may direct with a written certificate, duly
acknowledged stating in detail whether or not any credits, offsets or defenses exist with respect
to this Section 2.3.9.

	 	 	 	 	 	 	 
	Section 2.4	 	The Guidance Line Facility.
	 	 	 
	 	 	 	2.4.1	 	 	Guidance Line Facility.

	 	 	 	 	 	 	 

Subject to and upon the provisions of this Agreement, the Lender establishes a
guidance line facility in favor of the Borrower. The aggregate of all advances
under the Guidance Line Facility is sometimes referred to in this Agreement as the
“Guidance Loan”.

The maximum principal amount of Twenty Million and No/100 Dollars
($20,000,000.00) is the “Guidance Line Amount”.

During the Guidance Line Availability Period, the Borrower may request advances
under the Guidance Line Facility in accordance with the provisions of this
Agreement; provided, that after giving effect to the Borrower’s request the
aggregate outstanding principal balance of the Guidance Loan would not exceed the
Guidance Line Amount and, provided further, that the Lender may elect, in its sole
and absolute discretion exercised from time to time, to approve or to deny the
Borrower’s request for an advance under the Guidance Line Facility, notwithstanding
the occurrence or non-occurrence of a Default or an Event of Default.

From and after the Guidance Line Termination Date, the Borrower shall not be
entitled to request any additional advances under the Guidance Line Facility.
Unless sooner paid, the unpaid Guidance Loan, together with interest accrued and
unpaid thereon, and all other Obligations shall be due and payable in full at
maturity of the Guidance Line Note.

Notwithstanding anything to the contrary contained herein, no provision of this
Agreement and no course of dealing shall impose upon the Lender any obligation to
approve any request for an advance under the Guidance Line Facility to the Borrower.
The Borrower acknowledges and agrees that it fully understands that it is not
relying on the Lender to make or continue to make any advance under the Guidance
Loan Facility for any purpose whatsoever.

	 	2.4.2	 	Procedure for Making Advances Under the
Guidance Loan; Lender Protection Loans.

Subject to the limitations set forth in and the consent of the Lender described in Section
2.5.1 hereof, the Borrower may borrow under the Guidance Line Facility on any Business Day.
Advances approved under the Guidance Loan shall be deposited to a demand deposit account of the
Borrower with the Lender (or an Affiliate of the Lender) or shall be otherwise applied as directed
by the Borrower, which direction the Lender may require to be in writing. No later than 12:00 noon
(Eastern Time) on the date of the requested borrowing under the Guidance Loan, the Borrower shall
give the Lender a Loan Notice of the amount and (if requested by the Lender) the purpose of the
requested borrowing and shall designate the requested borrowing as a borrowing under the Guidance
Loan. Any oral Loan Notice shall be confirmed in writing by the Borrower within three (3) Business
Days after the making of the requested advance under the Guidance Loan. Each Loan Notice shall be
irrevocable.

	 	2.4.3	 	Guidance Line Note.

The obligation of the Borrower to pay the Guidance Loan, with interest, shall be evidenced by
a promissory note (as from time to time extended, amended, restated, supplemented or otherwise
modified, the “Guidance Line Note”), in form and substance satisfactory to the Lender. The
Guidance Line Note shall be dated as of the Closing Date, shall be payable to the order of the
Lender at the times provided in the Guidance Line Note, and shall be in the principal amount of the
Guidance Line Amount. The Guidance Line Note shall not operate as a novation of any of the
Obligations or nullify, discharge, or release any such Obligations or the continuing contractual
relationship of the parties hereto in accordance with the provisions of this Agreement.

	 	2.4.4	 	Optional Prepayments of Guidance Loan.

The Borrower shall have the option at any time and from time to time to prepay (each a
“Guidance Loan Optional Prepayment” and collectively the “Guidance Loan Optional Prepayments”) the
Guidance Loan, in whole or in part without premium or penalty.

	 	 	 	 	 	 	 
	Section 2.5	 	Interest.
	 	 	 
	
 
	 	 	2.5.1	 	 	Interest Rate.
	
 
	 	 	 	 	 	 

(a) Subject to Section 2.5.1(b), each Loan shall bear interest until maturity (whether by
acceleration, declaration, extension or otherwise) at a fluctuating rate per year which at all
times shall be equal to the BBA LIBOR Daily Floating Rate plus one hundred seventy-five (175) basis
points per annum (the “Interest Rate”).

(b) Notwithstanding the foregoing, following the occurrence and during the continuance of an
Event of Default, at the option of the Lender, all Loans and all other Obligations shall bear
interest at the Post-Default Rate.

	 	2.5.2	 	Payment of Interest.

Unpaid and accrued interest on the Loans shall be paid monthly, in arrears, on the first day
of each calendar month (each, an “Interest Payment Date”), commencing on the first such date after
the date of this Agreement, and on the first day of each calendar month thereafter, and at maturity
(whether by acceleration, declaration, extension or otherwise).

ARTICLE III

THE COLLATERAL

	 	 	 	Section 3.1 Debt and Obligations Secured.

All property and Liens assigned, pledged or otherwise granted under or in connection with this
Agreement (including, without limitation, those under Section 3.2 (Grant of Liens)) or any of the
Financing Documents shall secure (a) the payment of all of the Obligations, including, without
limitation, any and all Outstanding Letter of Credit Obligations, and (b) the performance,
compliance with and observance by the Borrower of the provisions of this Agreement and all of the
other Financing Documents or otherwise under the Obligations.

	 	 	 	Section 3.2 Grant of Liens.

The Borrower hereby assigns, pledges and grants to the Lender, and agrees that the Lender
shall have a perfected and continuing security interest in, and Lien on, all of the Borrower’s
Accounts, Government Contracts, Chattel Paper, Inventory, Documents, Instruments, Equipment,
Investment Property, and General Intangibles and all of the Borrower’s deposit accounts with any
financial institution with which the Borrower maintains deposits, whether now owned or existing or
hereafter acquired or arising, all insurance policies relating to the foregoing, all books and
records in whatever media (paper, electronic or otherwise) recorded or stored, with respect to the
foregoing and all Equipment and General Intangibles necessary or beneficial to retain, access
and/or process the information contained in those books and records, and all Proceeds and products
of the foregoing. The Borrower further agrees that the Lender, shall have in respect thereof all
of the rights and remedies of a secured party under the Uniform Commercial Code as well as those
provided in this Agreement, under each of the other Financing Documents and under applicable Laws.

The Borrower acknowledges and agrees that, with respect to any term used herein that is
defined in either (a) Article 9 of the Uniform Commercial Code as in force in the jurisdiction in
which this financing statement was signed by the Borrower at the time that it was signed, or (b)
Article 9 as in force at any relevant time in the jurisdiction in which this financing statement is
filed, the meaning to be ascribed thereto with respect to any particular item of property shall be
that under the more encompassing of the two definitions. A form of assignment is attached hereto
as EXHIBIT D and made a part hereof.

The Borrower covenants and agrees that the Borrower shall provide the Lender with all
necessary information and, if requested, will execute and deliver such documents as are required to
comply with the Federal Assignment of Claims Act of 1940 (31 U.S.C. §3727 and 41 U.S.C. §15),
excluding classified Government Contracts, with a contract value equal to or greater than Five
Hundred Thousand Dollars ($500,000) and such other Government Contracts as the Lender may determine
in its sole discretion.

	 	 	 	Section 3.3 Collateral Disclosure List.

On or prior to the Closing Date, the Borrower shall deliver to the Lender a list (the
“Collateral Disclosure List”) which shall contain such information with respect to the Borrower’s
business and real and personal property as the Lender may require and shall be certified by a
Responsible Officer of the Borrower, all in the form provided to the Borrower by the Lender.
Promptly after demand by the Lender, the Borrower shall furnish to the Lender an update of the
information contained in the Collateral Disclosure List at any time and from time to time as may be
requested by the Lender.

	 	 	 	Section 3.4 Personal Property.

The Borrower acknowledges and agrees that it is the intention of the parties to this Agreement
that the Lender shall have a first priority, perfected Lien, in form and substance satisfactory to
the Lender and its counsel, on all of the Borrower’s assets of any kind and nature whatsoever,
whether now owned or hereafter acquired, subject only to the Permitted Liens, if any. In
furtherance of the foregoing:

	 	3.4.1	 	Investment Property, Chattel Paper,
Promissory Notes, etc.

(a) On the Closing Date and without implying any limitation on the scope of Section 3.2 (Grant
of Liens), the Borrower shall deliver to the originals of all of the Borrower’s letters of credit,
Investment Property, Chattel Paper, Documents and Instruments and, if the Lender so requires, shall
execute and deliver separate pledge, assignment and security agreements in form and content
acceptable to the Lender, which pledge, assignment and security agreements shall assign, pledge and
grant a Lien to the Lender on all of the Borrower’s letters of credit, Investment Property, Chattel
Paper, Documents, and Instruments.

(b) In the event that the Borrower shall acquire after the Closing Date any letters of credit,
Investment Property, Chattel Paper, Documents, or Instruments, the Borrower shall promptly so
notify the Lender and deliver the originals of all of the foregoing to the Lender promptly and in
any event within ten (10) days of each acquisition.

(c) All letters of credit, Investment Property, Chattel Paper, Documents and Instruments shall
be delivered to the Lender endorsed and/or assigned as required by the pledge, assignment and
security agreement and/or as the Lender may require and, if applicable, shall be accompanied by
blank irrevocable and unconditional stock or bond powers and/or notices as the Lender may require.

	 	 	 	Section 3.5 Record Searches.

As of the Closing Date and thereafter at the time any Financing Document is executed and
delivered by the Borrower pursuant to this Section, the Lender shall have received, in form and
substance satisfactory to the Lender, such Lien or record searches with respect to the Borrower
and/or any other Person, as appropriate, and the property covered by such Financing Document
showing that the Lien of such Financing Document will be a perfected first priority Lien on the
property covered by such Financing Document subject only to Permitted Liens or to such other
matters as the Lender may approve.

	 	 	 	Section 3.6 Costs.

The Borrower agrees to pay, as part of the Enforcement Costs and to the fullest extent
permitted by applicable Laws, on demand all costs, fees and expenses incurred by the Lender in
connection with the taking, perfection, preservation, protection and/or release of a Lien on the
Collateral, including, without limitation:

(a) customary fees and expenses incurred in preparing Financing Documents from
time to time (including, without limitation, reasonable attorneys’ fees incurred in
connection with preparing the Financing Documents, including, any amendments and
supplements thereto);

(b) all filing and/or recording taxes or fees;

(c) all costs of Lien and record searches;

(d) reasonable attorneys’ fees in connection with all legal opinions required;
and

(e) all related costs, fees and expenses.

	 	 	 	Section 3.7 Release.

Upon the indefeasible repayment in full in cash of the Obligations and performance of all
Obligations of the Borrower and all obligations and liabilities of each other Person, other than
the Lender, under this Agreement and all other Financing Documents, the termination and/or
expiration of the Commitment and Outstanding Letter of Credit Obligations, upon the Borrower’s
request and at the Borrower’s sole cost and expense, the Lender shall release and/or terminate any
Financing Document but only if and provided that there is no commitment or obligation (whether or
not conditional) of the Lender to re-advance amounts which would be secured thereby and/or no
commitment or obligation of the Lender to issue any Letter of Credit or return or restore any
payment of any Current Letter of Credit Obligations.

	 	 	 	Section 3.8 Inconsistent Provisions.

In the event that the provisions of any Financing Document directly conflict with any
provision of this Agreement, the provisions of this Agreement govern.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 	 	 	 	 
	Section 4.1Representations and Warranties.
	 
	The Borrower represents and warrants to the Lender, as follows:
	 	4.1.1	 	 	Subsidiaries.

	 	 	 	 	 

The Borrower has only those Subsidiaries listed on the Collateral Disclosure List attached
hereto and made a part hereof and no others. Each of the Subsidiaries is a Wholly Owned Subsidiary
except as shown on the Collateral Disclosure List, which correctly indicates the nature and amount
of the Borrower’s ownership interests therein.

	 	4.1.2	 	Existence.

The Borrower (a) is a Registered Organization under the laws of the jurisdiction stated in the
Preamble of this Agreement, (b) is in good standing under the laws of the jurisdiction in which it
is organized, (c) has the power to own its property and to carry on its business as now being
conducted, and (d) is duly qualified to do business and is in good standing in each jurisdiction in
which the character of the properties owned by it therein or in which the transaction of its
business makes such qualification necessary. The Borrower is organized under the laws of only one
(1) jurisdiction.

	 	4.1.3	 	Power and Authority.

The Borrower has full power and authority to execute and deliver this Agreement and, the other
Financing Documents to which it is a party, to make the borrowings and request Letters of Credit
under this Agreement, and to incur and perform the Obligations whether under this Agreement, the
other Financing Documents or otherwise, all of which have been duly authorized by all proper and
necessary action. No consent or approval of shareholders or any creditors of the Borrower, and no
consent, approval, filing or registration with or notice to any Governmental Authority on the part
of the Borrower, is required as a condition to the execution, delivery, validity or enforceability
of this Agreement or any of the other Financing Documents, the performance by the Borrower of the
Obligations.

	 	4.1.4	 	Binding Agreements.

This Agreement and the other Financing Documents executed and delivered by the Borrower have
been properly executed and delivered and constitute the valid and legally binding obligations of
the Borrower and are fully enforceable against the Borrower in accordance with their respective
terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general
applications affecting the rights and remedies of creditors and secured parties, and general
principles of equity regardless of whether applied in a proceeding in equity or at law.

	 	4.1.5	 	No Conflicts.

Neither the execution, delivery and performance of the terms of this Agreement or of any of
the other Financing Documents executed and delivered by the Borrower nor the consummation of the
transactions contemplated by this Agreement will conflict with, violate or be prevented by (a) the
Borrower’s organizational or governing documents, (b) any existing mortgage, indenture, contract or
agreement binding on the Borrower or affecting its property, or (c) any Laws.

	 	4.1.6	 	No Defaults, Violations.

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

(b) Neither the Borrower nor any of its Subsidiaries is in default under or with respect to
any obligation under any existing mortgage, indenture, contract or agreement binding on it or
affecting its property in any respect which could be materially adverse to the business,
operations, property or financial condition of the Borrower, or which could materially adversely
affect the ability of the Borrower to perform its obligations under this Agreement or the other
Financing Documents, to which the Borrower is a party.

	 	4.1.7	 	Compliance with Laws.

Neither the Borrower nor any of its Subsidiaries is in violation of any applicable Laws
(including, without limitation, any Laws relating to employment practices, to environmental,
occupational and health standards and controls) or order, writ, injunction, decree or demand of any
court, arbitrator, or any Governmental Authority affecting the Borrower or any of its properties,
the violation of which, considered in the aggregate, could materially adversely affect the
business, operations or properties of the Borrower and/or its Subsidiaries.

	 	4.1.8	 	Margin Stock.

None of the proceeds of the Loan will be used, directly or indirectly, by the Borrower or any
Subsidiary for the purpose of purchasing or carrying, or for the purpose of reducing or retiring
any indebtedness which was originally incurred to purchase or carry, any “margin stock” within the
meaning of Regulation U (12 CFR Part 221), of the Board of Governors of the Federal Reserve System
or for any other purpose which might make the transactions contemplated in this Agreement a
“purpose credit” within the meaning of Regulation U, or cause this Agreement to violate any other
regulation of the Board of Governors of the Federal Reserve System or the Securities Exchange Act
of 1934 or the Small Business Investment Act of 1958, as amended, or any rules or regulations
promulgated under any of such statutes.

	 	4.1.9	 	Investment Company Act; Margin Stock.

Neither the Borrower nor any of its Subsidiaries is an investment company within the meaning
of the Investment Company Act of 1940, as amended, nor is it, directly or indirectly, controlled by
or acting on behalf of any Person which is an investment company within the meaning of said Act.
Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying “margin
stock” within the meaning of Regulation U (12 CFR Part 221), of the Board of Governors of the
Federal Reserve System.

	 	4.1.10	 	Litigation.

Except as otherwise disclosed on Schedule 4.1.10 attached hereto and made a part
hereof, there are no proceedings, actions or investigations pending or, so far as the Borrower
knows, threatened before or by any court, arbitrator or any Governmental Authority which, in any
one case or in the aggregate, if determined adversely to the interests of the Borrower or any
Subsidiary, would have a material adverse effect on the business, properties, condition (financial
or otherwise) or operations, present or prospective, of the Borrower.

	 	4.1.11	 	Financial Condition.

The financial statements of the Borrower dated June 30, 2009, are complete and correct and
fairly present the financial position of the Borrower and the results of its operations and
transactions in its surplus accounts as of the date and for the period referred to and have been
prepared in accordance with GAAP applied on a consistent basis throughout the period involved.
There are no liabilities, direct or indirect, fixed or contingent, of the Borrower as of the date
of such financial statements that are not reflected therein or in the notes thereto. There has
been no adverse change in the financial condition or operations of the Borrower since the date of
such financial statements and to the Borrower’s knowledge no such adverse change is pending or
threatened. The Borrower has not guaranteed the obligations of, or made any investment in or
advances to, any Person, except as disclosed in such financial statements.

	 	4.1.12	 	Full Disclosure.

The financial statements referred to in Section 4.1.11 (Financial Condition), the Financing
Documents (including, without limitation, this Agreement), and the statements, reports or
certificates furnished by the Borrower in connection with the Financing Documents (a) do not
contain any untrue statement of a material fact and (b) when taken in their entirety, do not omit
any material fact necessary to make the statements contained therein not misleading. There is no
fact known to the Borrower which the Borrower has not disclosed to the Lender in writing prior to
the date of this Agreement with respect to the transactions contemplated by the Financing Documents
that materially and adversely affects or in the future could, in the reasonable opinion of the
Borrower materially adversely affect the condition, financial or otherwise, results of operations,
business, or assets of the Borrower.

	 	4.1.13	 	Funded Debt.

Except for the Obligations and except as set forth in Schedule 4.1.13 attached hereto
and made a part hereof, the Borrower has no Funded Debt. The Lender has received photocopies of
all promissory notes evidencing any Funded Debt set forth in Schedule 4.1.13, together with
any and all subordination agreements, other agreements, documents, or instruments securing,
evidencing, guarantying or otherwise executed and delivered in connection therewith.

	 	4.1.14	 	Taxes.

Each of the Borrower and its Subsidiaries has filed all returns, reports and forms for Taxes
that, to the knowledge of the Borrower, are required to be filed, and has paid all Taxes as shown
on such returns or on any assessment received by it, to the extent that such Taxes have become due,
unless and to the extent only that such Taxes, assessments and governmental charges are currently
contested in good faith and by appropriate proceedings by the Borrower, such Taxes are not the
subject of any Liens other than Permitted Liens, and adequate reserves therefore have been
established as required under GAAP. All tax liabilities of the Borrower were as of the date of
audited financial statements referred to in Section 4.1.11 (Financial Condition), and are now,
adequately provided for on the books of the Borrower and its Subsidiaries, as appropriate. No tax
liability has been asserted by the Internal Revenue Service or any state or local authority against
the Borrower for Taxes in excess of those already paid.

	 	4.1.15	 	ERISA.

With respect to any Plan that is maintained or contributed to by the Borrower and/or by any
Commonly Controlled Entity or as to which the Borrower retains material liability: (a) no
“accumulated funding deficiency” as defined in Code §412 or ERISA §302 has occurred, whether or not
that accumulated funding deficiency has been waived; (b) no Reportable Event has occurred other
than events for which reporting has been waived; (c) no termination of any plan subject to Title IV
of ERISA has occurred; (d) neither the Borrower nor any Commonly Controlled Entity has incurred a
“complete withdrawal” within the meaning of ERISA §4203 from any Multi-employer Plan; (e) neither
the Borrower nor any Commonly Controlled Entity has incurred a “partial withdrawal” within the
meaning of ERISA §4205 with respect to any Multi-employer Plan; (f) no Multi-employer Plan to which
the Borrower or any Commonly Controlled Entity has an obligation to contribute is in
“reorganization” within the meaning of ERISA §4241 nor has notice been received by the Borrower or
any Commonly Controlled Entity that such a Multi-employer Plan will be placed in “reorganization”.

	 	4.1.16	 	Title to Properties.

The Borrower has good and marketable title to all of its properties, including, without
limitation, the Collateral and the properties and assets reflected in the balance sheets described
in Section 4.1.11 (Financial Condition). The Borrower has legal, enforceable and uncontested
rights to use freely such property and assets.

	 	4.1.17	 	Patents, Trademarks, Etc.

The Borrower owns, possesses, or has the right to use all necessary Patents, licenses,
Trademarks, Copyrights, permits and franchises to own its properties and to conduct its business as
now conducted, without known conflict with the rights of any other Person. Any and all obligations
to pay royalties or other charges with respect to such properties and assets are properly reflected
on the financial statements described in Section 4.1.11 (Financial Condition).

	 	4.1.18	 	Presence of Hazardous Materials or Hazardous Materials
Contamination.

Except as previously disclosed to the Lender, to the best of the Borrower’s knowledge, (a) no
Hazardous Materials are located on any real property owned, controlled or operated by of the
Borrower or for which the Borrower is, or is claimed to be, responsible, except for reasonable
quantities of necessary supplies for use by the Borrower in the ordinary course of its current line
of business and stored, used and disposed in accordance with applicable Laws; and (b) no property
owned, controlled or operated by the Borrower or for which the Borrower has, or is claimed to have,
responsibility has ever been used as a manufacturing, storage, or dump site for Hazardous Materials
nor is affected by Hazardous Materials Contamination at any other property.

	 	4.1.19	 	Perfection and Priority of Collateral.

The Lender has, or upon execution and recording of this Agreement and the Security Documents
will have, and will continue to have as security for the Obligations, a valid and perfected Lien on
and security interest in all Collateral, free of all other Liens, claims and rights of third
parties whatsoever except Permitted Liens, including, without limitation, those described on
Schedule 4.1.19 attached hereto and made a part hereof.

	 	4.1.20	 	No Suspension or Debarment.

Neither the Borrower nor any Affiliate nor any of their respective directors, officers or
employees has received any notice of, or information concerning, any proposed, contemplated or
initiated suspension or debarment, be it temporary or permanent, due to an administrative or a
statutory basis, of the Borrower or any Affiliate by any Governmental Authority. The Borrower and
each Affiliate further warrants and represents that neither the Borrower nor any Affiliate has
defaulted under any Government Contract which default would be a basis of terminating such
Government Contract.

	 	4.1.21	 	Collateral Disclosure List.

The information contained in the Collateral Disclosure List is complete and correct. The
Collateral Disclosure List completely and accurately identifies (a) the type of entity, the state
of organization and the chief executive office of the Borrower, (b) each other place of business of
the Borrower, (c) the location of all books and records pertaining to the Collateral, and (d) each
location, other than the foregoing, where any of the Collateral is located.

	 	4.1.22	 	Business Names and Addresses.

In the five (5) years preceding the date hereof, the Borrower has not changed its name,
identity or corporate structure, has not conducted business under any name other than its current
name, and has not conducted its business in any jurisdiction other than those disclosed on the
Collateral Disclosure List with the exception of Coherent Systems International LLC whose changes
of name and business address were disclosed to the Lender.

	 	4.1.23	 	Equipment.

All Equipment is personalty and is not and will not be affixed to real estate in such manner
as to become a fixture or part of such real estate. No equipment is held by the Borrower on a sale
on approval basis.

	 	4.1.24	 	Accounts.

With respect to all Accounts and to the best of the Borrower’s knowledge (a) they are genuine,
and in all respects what they purport to be, and are not evidenced by a judgment, an Instrument, or
Chattel Paper (unless such judgment has been assigned and such Instrument or Chattel Paper has been
endorsed and delivered to the Lender); (b) they represent bona fide transactions completed in
accordance with the terms and provisions contained in the invoices, purchase orders and other
contracts relating thereto, and the underlying transaction therefore is in accordance with all
applicable Laws; (c) the amounts shown on the Borrower’s books and records, with respect thereto
are actually and absolutely owing to the Borrower and are not contingent or subject to reduction
for any reason other than regular discounts, credits or adjustments allowed by the Borrower in the
ordinary course of its business; (d) no payments have been or shall be made thereon except payments
turned over to the Lender by the Borrower; (e) all Account Debtors thereon have the capacity to
contract; and (f) the services furnished giving rise thereto are not subject to any Liens except
the security interest granted to the Lender by this Agreement and Permitted Liens.

	 	 	 	Section 4.2 Survival; Updates of Representations and Warranties.

All representations and warranties contained in or made under or in connection with this
Agreement and the other Financing Documents shall survive the Closing Date, the making of any
advance under the Loan and extension of credit made hereunder, and the incurring of any other
Obligations and shall be deemed to have been made at the time of each request for, and again at the
time of the making of, each advance under the Loan or the issuance of each Letter of Credit, except
that the representations and warranties which relate to the financial statements which are referred
to in Section 4.1.11 (Financial Condition), shall also be deemed to cover financial statements
furnished from time to time to the Lender pursuant to Section 6.1.1 (Financial Statements).

ARTICLE V

CONDITIONS PRECEDENT

	 	 	 	Section 5.1 Conditions to the Initial Advance and Initial Letter of Credit.

The making of the initial advance under the Loan and the issuance of the initial Letter of
Credit is subject to the fulfillment on or before the Closing Date of the following conditions
precedent in a manner satisfactory in form and substance to the Lender and its counsel:

	 	5.1.1	 	Organizational Documents — Borrower.

The Lender shall have received:

(a) a certificate of good standing for the Borrower certified by the Secretary of State, or
other appropriate Governmental Authority, of the state of incorporation for the Borrower;

(b) a certificate of qualification to do business for the Borrower certified by the Secretary
of State or other Governmental Authority of each state in which the Borrower conducts business;

(c) a certificate dated as of the Closing Date by the Secretary or an Assistant Secretary of
the Borrower covering:

(i) true and complete copies of the Borrower’s corporate charter, bylaws, and all
amendments thereto;

(ii) true and complete copies of the resolutions of its Board of Directors authorizing
(i) the execution, delivery and performance of the Financing Documents to which the Borrower
is a party, (ii) the borrowings by the Borrower hereunder, (iii) the granting of the Liens
contemplated by this Agreement and the Financing Documents to which the Borrower is a party;

(iii) the incumbency, authority and signatures of the officers of the Borrower
authorized to sign this Agreement and the other Financing Documents to which the Borrower is
a party; and

(iv) the identity of the Borrower’s current directors.

	 	5.1.2	 	Opinion of Borrower’s Counsel.

The Lender shall have received the favorable opinion of counsel for the Borrower addressed to
the Lender.

	 	5.1.3	 	Consents, Licenses, Approvals, Etc.

The Lender shall have received copies of all consents, licenses and approvals, required in
connection with the execution, delivery, performance, validity and enforceability of the Financing
Documents, and such consents, licenses and approvals shall be in full force and effect.

	 	5.1.4	 	Notes.

The Lender shall have received the Revolving Credit Note, conforming to the requirements
hereof and executed by a Responsible Officer of the Borrower and attested by a duly authorized
representative of the Borrower.

	 	5.1.5	 	Financing Documents and Collateral.

The Borrower shall have executed and delivered the Financing Documents to be executed by it,
and shall have delivered original Chattel Paper, Instruments, Investment Property, and related
Collateral and all opinions, title insurance, and other documents contemplated by ARTICLE III (The
Collateral).

	 	5.1.6	 	Other Financing Documents.

In addition to the Financing Documents to be delivered by the Borrower, the Lender shall have
received the Financing Documents duly executed and delivered by Persons other than the Borrower.

	 	5.1.7	 	Other Documents, Etc.

The Lender shall have received such other certificates, opinions, documents and instruments
confirmatory of or otherwise relating to the transactions contemplated hereby as may have been
reasonably requested by the Lender.

	 	5.1.8	 	Payment of Fees.

The Lender shall have received payment of any Fees due on or before the Closing Date.

	 	5.1.9	 	Collateral Disclosure List.

The Borrower shall have delivered the Collateral Disclosure List required under the provisions
of Section 3.3 (Collateral Disclosure List) duly executed by a Responsible Officer of the Borrower.

	 	5.1.10	 	Recordings and Filings.

The Borrower shall have: (a) executed and delivered all Financing Documents (including,
without limitation, UCC-1 and UCC-3 statements) required to be filed, registered or recorded in
order to create, in favor of the Lender, a perfected Lien in the Collateral (subject only to the
Permitted Liens) in form and in sufficient number for filing, registration, and recording in each
office in each jurisdiction in which such filings, registrations and recordations are required, and
(b) delivered such evidence as the Lender deems satisfactory that all necessary filing fees and all
recording and other similar fees, and all Taxes and other expenses related to such filings,
registrations and recordings will be or have been paid in full.

	 	5.1.11	 	Insurance Certificate.

The Lender shall have received an insurance certificate in accordance with the provisions of
Section 6.1.8 (Insurance) and Section 6.1.18 (Insurance With Respect to Equipment).

	 	5.1.12	 	Field Examination.

The Lender, at its option, shall have completed a field examination of the Borrower’s
business, operations and income, the results of which field examination and audit shall be in all
respects acceptable to the Lender in its sole and absolute discretion and shall include reference
discussions with key customers and vendors.

	 	 	 	Section 5.2 Conditions to all Extensions of Credit.

The making of all advances under the Loan and the issuance of all Letters of Credit is subject
to the fulfillment of the following conditions precedent in a manner satisfactory in form and
substance to the Lender and its counsel:

	 	5.2.1	 	Compliance.

The Borrower shall have complied and shall then be in compliance with all terms, covenants,
conditions and provisions of this Agreement and the other Financing Documents that are binding upon
it.

	 	5.2.2	 	Default.

	 	 	 	 	 
	There shall exist no Event of Default or Default hereunder.
	 	5.2.3	 	 	Representations and Warranties.

	 	 	 	 	 

The representations and warranties of the Borrower contained among the provisions of this
Agreement shall be true and with the same effect as though such representations and warranties had
been made at the time of the making of, and of the request for, each advance under the Loan or the
issuance of each Letter of Credit, except that the representations and warranties which relate to
financial statements which are referred to in Section 4.1.11 (Financial Condition), shall also be
deemed to cover financial statements furnished from time to time to the Lender pursuant to Section
6.1.1 (Financial Statements).

	 	5.2.4	 	Adverse Change.

No adverse change shall have occurred in the condition (financial or otherwise), operations or
business of the Borrower that would, in the good faith judgment of the Lender, materially impair
the ability of the Borrower to pay or perform any of the Obligations.

	 	5.2.5	 	Legal Matters.

All legal documents incident to each advance under the Loan and each of the Letters of Credit
shall be reasonably satisfactory to counsel for the Lender.

ARTICLE VI

COVENANTS OF THE BORROWER

	 	 	 	Section 6.1 Affirmative Covenants.

So long as any of the Obligations or the Commitment shall be outstanding hereunder, the
Borrower agrees with the Lender as follows:

	 	6.1.1	 	Financial Statements.

The Borrower shall furnish to the Lender:

(a) Annual Statements and Certificates. The Borrower shall furnish to the Lender as
soon as available, but in no event more than one hundred and twenty (120) days after the close of
each fiscal year of the Borrower, (i) a copy of the annual audited consolidated financial statement
in reasonable detail satisfactory to the Lender relating to the Borrower and its Subsidiaries,
prepared in accordance with GAAP and examined and certified by independent certified public
accountants satisfactory to the Lender, which financial statement shall include a consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal year
and consolidated and consolidating statements of income, cash flows and changes in shareholders
equity of the and its Subsidiaries for such fiscal year, (ii) a Compliance Certificate, in
substantially the form attached to this Agreement as EXHIBIT B, as may be amended by the
Lender from time to time, containing a detailed computation of each financial covenant which is
applicable for the period reported, a certification that no material change has occurred to the
information contained in the Collateral Disclosure List (except as set forth in a schedule attached
to the certification), and a cash flow projection report, each prepared by a Responsible Officer of
the Borrower in a format acceptable to the Lender, and (iii) a management letter in the form
prepared by the Borrower’s independent certified public accountants, if prepared by such
accountants.

(b) Annual Opinion of Accountant. The Borrower shall furnish to the Lender as soon as
available, but in no event more than one hundred and twenty (120) days after the close of the
Borrower’s fiscal years, a letter or opinion of the accountant who examined and certified the
annual financial statement relating to the Borrower and its Subsidiaries (i) stating whether
anything in such accountant’s examination has revealed the occurrence of a Default or an Event of
Default hereunder, and, if so, stating the facts with respect thereto and (ii) acknowledging that
the Lender will rely on the statement and that the Borrower knows of the intended reliance by the
Lender.

(c) Semi-Annual Statements and Certificates. The Borrower shall furnish to the Lender
as soon as available, but in no event more than forty five (45) days after the close of the
Borrower’s second and fourth fiscal quarters, consolidated and consolidating balance sheets of the
Borrower and its Subsidiaries as of the close of each such semi-annual period, consolidated and
consolidating income, cash flows and changes in shareholders equity statements for such period and
a Compliance Certificate, in substantially the form attached to this Agreement as EXHIBIT
B, containing a detailed computation of each financial covenant which is applicable for the
period reported, a certification that no change has occurred to the information contained in the
Collateral Disclosure List (except as set forth on any schedule attached to the certification),
each prepared by a Responsible Officer of the Borrower in a format acceptable to the Lender, all as
prepared and certified by a Responsible Officer of the Borrower and accompanied by a certificate of
that officer stating whether any event has occurred which constitutes a Default or an Event of
Default hereunder, and, if so, stating the facts with respect thereto.

(d) Contract Backlog and A/R Aging Reports. The Borrower shall furnish to the Lender
within sixty (60) days after the end of the preceding fiscal year, a contract backlog report and
accounts receivable aging in form and substance acceptable to the Lender. A form of Backlog Report
is attached hereto as EXHIBIT E and made a part hereof.

(e) Annual Budget and Projections. The Borrower shall furnish to the Lender as soon
as available, but in no event later than sixty (60) days after the end of the preceding fiscal
year, a projected income statement, on a quarterly basis for the current fiscal year.

(f) Additional Reports and Information. The Borrower shall furnish to the Lender
promptly, such additional information, reports or statements as the Lender may from time to time
reasonably request

	 	6.1.2	 	Reports to SEC and to Stockholders.

The Borrower will furnish to the Lender, promptly upon the filing or making thereof, at least
one (1) copy of all financial statements, reports, notices and proxy statements sent by the
Borrower to its stockholders, and of all regular and other reports filed by the Borrower with any
securities exchange or with the Securities and Exchange Commission.

	 	6.1.3	 	Recordkeeping, Rights of Inspection,
Audit, Etc.

(a) The Borrower shall, and shall cause each of its Subsidiaries to, maintain (a) a standard
system of accounting in accordance with GAAP, and (b) proper books of record and account in which
full, true and correct entries are made of all dealings and transactions in relation to its
properties, business and activities.

(b) The Borrower shall, and shall cause each of its Subsidiaries to, permit Lender or its
agents to enter upon the premises of the Borrower or any Subsidiaries at during normal business
hours and other reasonable times and as often as the Lender may reasonably request for the purpose
of conducting field examinations of the Collateral, as well as any and all records pertaining
thereto, and at any time during the continuance of an Event of Default Lender may take possession
of and remove any or all such records. Borrower agrees to reimburse Lender for the cost of
periodic field examinations of the Collateral at such intervals as Lender may reasonably require.
The field examinations may be performed by employees of Lender or by independent appraisers.

(c) The Borrower hereby irrevocably authorizes and directs all accountants and auditors
employed by the Borrower and/or any of its Subsidiaries at any time prior to the repayment in full
of the Obligations to exhibit and deliver to the Lender copies of any and all of the financial
statements, trial balances, management letters, or other accounting records of any nature of the
Borrower and/or any of its Subsidiaries in the accountant’s or auditor’s possession, and to
disclose to the Lender any information they may have concerning the financial status and business
operations of the Borrower and/or any of its Subsidiaries . Further, the Borrower hereby
authorizes all Governmental Authorities to furnish to the Lender copies of reports or examinations
relating to the Borrower and/or any of its Subsidiaries, whether made by the Borrower or otherwise.

(d) Any and all costs and expenses incurred by, or on behalf of, the Lender in connection with
the conduct of any of the foregoing shall be part of the Enforcement Costs and shall be payable to
the Lender upon demand. The Borrower acknowledges and agrees that such expenses may include, but
shall not be limited to, any and all out-of-pocket costs and expenses of the Lender’s employees and
agents in, and when, traveling to any of the Borrower’s facilities.

	 	6.1.4	 	Existence.

The Borrower shall (a) maintain, and cause each of its Subsidiaries to maintain, its existence
in good standing in the jurisdiction in which it is organized and in each other jurisdiction where
it is required to register or qualify to do business if the failure to do so in such other
jurisdiction might have a material adverse effect on the ability of the Borrower to perform the
Obligations, on the conduct of the Borrower’s operations, on the Borrower’s financial condition, or
on the value of, or the ability of the Lender to realize upon, the Collateral and (b) remain a
Registered Organization under the laws of the jurisdiction stated in the Preamble of this
Agreement.

	 	6.1.5	 	Compliance with Laws.

The Borrower shall comply, and cause each of its Subsidiaries to comply, with all applicable
Laws and observe the valid requirements of Governmental Authorities, the noncompliance with or the
nonobservance of which might have a material adverse effect on the ability of the Borrower to
perform the Obligations, the conduct of the Borrower’s operations, the Borrower’s financial
condition, or the value of, or the ability of the Lender to realize upon, the Collateral.

	 	6.1.6	 	Preservation of Properties.

The Borrower will, and will cause each of its Subsidiaries to, at all times (a) maintain,
preserve, protect and keep its properties, whether owned or leased, in good operating condition,
working order and repair (ordinary wear and tear excepted), and from time to time will make all
proper repairs, maintenance, replacements, additions and improvements thereto needed to maintain
such properties in good operating condition, working order and repair, and (b) do or cause to be
done all things necessary to preserve and to keep in full force and effect its material franchises,
leases of real and personal property, trade names, Patents, Trademarks, Copyrights and permits
which are necessary for the orderly continuance of its business.

	 	6.1.7	 	Line of Business.

The Borrower will continue to engage substantially only in the business of electronic systems
manufacturer and integrator with associated related services.

	 	6.1.8	 	Insurance.

The Borrower will, and will cause each of its Subsidiaries to, at all times maintain with A-or
better rated insurance companies such insurance as is required by applicable Laws and such other
insurance, all in such amounts not less than the Lender shall reasonably determine from time to
time, of such types and against such risks, hazards, liabilities, casualties and contingencies as
are usually insured against in the same geographic areas by business entities engaged in the same
or similar business. Without limiting the generality of the foregoing, the Borrower will, and will
cause each of its Subsidiaries to, keep adequately insured all of its property against loss or
damage resulting from fire or other risks insured against by extended coverage and maintain public
liability insurance against claims for personal injury, death or property damage occurring upon, in
or about any properties occupied or controlled by it, or arising in any manner out of the
businesses carried on by it. The Borrower shall deliver to the Lender on the Closing Date (and
thereafter on each date there is a material change in the insurance coverage) a certificate of a
Responsible Officer of the Borrower containing a detailed list of the insurance then in effect and
stating the names of the insurance companies, the types, the amounts and rates of the insurance,
dates of the expiration thereof and the properties and risks covered thereby. Within thirty (30)
days after notice in writing from the Lender, the Borrower will obtain such additional insurance as
the Lender may reasonably request.

	 	6.1.9	 	Taxes.

Except to the extent that the validity or amount thereof is being contested in good faith and
by appropriate proceedings, the Borrower will, and will cause each of its Subsidiaries to, pay and
discharge all Taxes prior to the date when any interest or penalty would accrue for the nonpayment
thereof. The Borrower shall furnish to the Lender at such times as the Lender may require proof
satisfactory to the Lender of the making of payments or deposits required by applicable Laws
including, without limitation, payments or deposits with respect to amounts withheld by the
Borrower from wages and salaries of employees and amounts contributed by the Borrower on account of
federal and other income or wage taxes and amounts due under the Federal Insurance Contributions
Act, as amended.

	 	6.1.10	 	ERISA.

The Borrower will, and will cause each of its Commonly Controlled Entities to, comply with the
funding requirements of ERISA with respect to Plans for its respective employees. The Borrower
will not permit with respect to any Plan (a) any prohibited transaction or transactions under ERISA
or the Internal Revenue Code, which results, or may result, in any material liability of the
Borrower, or (b) any Reportable Event if, upon termination of the plan or plans with respect to
which one or more such Reportable Events shall have occurred, there is or would be any material
liability of the Borrower to the PBGC. Upon the Lender’s request, the Borrower will deliver to the
Lender a copy of the most recent actuarial report, financial statements and annual report completed
with respect to any Plan.

	 	6.1.11	 	Notification of Events of Default and Adverse Developments.

The Borrower shall promptly notify the Lender upon obtaining knowledge of the occurrence of:

(a) any Event of Default;

(b) any Default;

(c) any litigation instituted or threatened against the Borrower or its Subsidiaries and of
the entry of any judgment or Lien (other than any Permitted Liens) against any of the assets or
properties of the Borrower or any Subsidiary where the claims against the Borrower or any
Subsidiary exceed Five Hundred Thousand Dollars ($500,000) and are not covered by insurance;

(d) any guaranty or other actual or potential contingent liability where the claims against
the Borrower or any Subsidiary exceed Five Hundred Thousand Dollars ($500,000) and are not covered
by insurance;

(e) any event, development or circumstance whereby the financial statements furnished
hereunder fail in any material respect to present fairly, in accordance with GAAP, the financial
condition and operational results of the Borrower;

(f) any judicial, administrative or arbitral proceeding pending against the Borrower or any of
its Subsidiaries and any judicial or administrative proceeding known by the Borrower or any of its
Subsidiaries to be threatened against it which, if adversely decided, could materially adversely
affect its financial condition or operations (present or prospective);

(g) the receipt by the Borrower or any of its Subsidiaries of any notice, claim or demand from
any Governmental Authority which alleges that the Borrower or any of its Subsidiaries is in
violation of any of the terms of, or has failed to comply with any applicable Laws regulating its
operation and business, including, but not limited to, the Occupational Safety and Health Act and
the Environmental Protection Act; and

(h) any other development in the business or affairs of the Borrower or any of its
Subsidiaries that may be materially adverse;

in each case describing in detail satisfactory to the Lender the nature thereof and the action the
Borrower proposes to take with respect thereto.

	 	6.1.12	 	Government Contracts.

The Borrower shall immediately notify the Lender of the execution of any Government Contract
with a contract value equal to or greater than Five Million Dollars ($5,000,000) and shall, if
requested by the Lender, in accordance with Section 3.2 (Grant of Liens) execute any instruments
and take any steps in order that all moneys due and to become due under such Government Contracts
shall be assigned to the Lender and notice thereof given to the Government under the Federal
Assignment of Claims Act of 1940 (31 U.S.C. §3727 and 41 U.S.C. §15) or any other similar
applicable law. On the Lender’s request the Borrower shall assign such other Government Contracts
as the Lender requires in the exercise of its reasonable discretion.

	 	6.1.13	 	Hazardous Materials; Contamination.

The Borrower agrees to:

(a) give notice to the Lender immediately upon the Borrower’s acquiring knowledge of the
presence of any Hazardous Materials and of any Hazardous Materials Contamination on any property
owned or controlled by the Borrower or for which the Borrower is, or is claimed to be, responsible
(provided that such notice shall not be required for Hazardous Materials placed or stored on such
property in accordance with applicable Laws in the ordinary course (including, without limitation,
quantity) of the Borrower’s line of business expressly described in this Agreement) or of any
Hazardous Materials Contamination, with a full description thereof;

(b) promptly comply with any Laws requiring the removal, treatment or disposal of Hazardous
Materials or Hazardous Materials Contamination and provide the Lender with satisfactory evidence of
such compliance;

(c) provide the Lender, within thirty (30) days after a demand by the Lender, with a bond,
letter of credit or similar financial assurance evidencing to the Lender’s satisfaction that the
necessary funds are available to pay the cost of removing, treating, and disposing of such
Hazardous Materials or Hazardous Materials Contamination and discharging any Lien which may be
established as a result thereof on any property owned or controlled by the Borrower or for which
the Borrower is, or is claimed to be, responsible; and

(d) as part of the Obligations, defend, indemnify and hold harmless the Lender and its agents,
employees, trustees, successors and assigns from any and all claims which may now or in the future
(whether before or after the termination of this Agreement) be asserted as a result of the presence
of any Hazardous Materials or any Hazardous Materials Contamination on any property owned or
controlled by the Borrower or for which the Borrower is, or is claimed to be, responsible. The
Borrower acknowledges and agrees that this indemnification shall survive the termination of this
Agreement and the Commitment and the payment and performance of all of the other Obligations.

	 	6.1.14	 	Disclosure of Significant Transactions.

The Borrower shall deliver to the Lender a written notice describing in detail each
transaction by it involving the purchase, sale, lease, or other acquisition or loss or casualty to
or disposition of an interest in Fixed or Capital Assets which exceeds One Million Dollars
($1,000,000.00), said notices to be delivered to the Lender within thirty (30) days of the
occurrence of each such transaction.

	 	6.1.15	 	Financial Covenants.

(a) The Borrower will maintain, on a consolidated basis and tested as of the last day of each
of the Borrower’s fiscal quarters for the four (4) quarter period ending on that date, a ratio of
Funded Debt to EBITDA (the “Funded Debt to EBITDA Ratio”) equal to not more than 1.50 to 1.00;
provided, however, that at all times the Lender is receiving all financial statements required
pursuant to Section 6.1.1 hereof when due pursuant to Section 6.1.1 hereof and no Event of Default
has occurred and is continuing, the Funded Debt to EBITDA Ratio shall only be tested as of the last
day of the Borrower’s second and fourth fiscal quarters.

	 	6.1.16	 	Collection of Receivables.

Until such time that the Lender shall notify the Borrower of the revocation of such privilege,
the Borrower shall at its own expense have the privilege for the account of, and in trust for, the
Lender of collecting its Receivables and receiving in respect thereto all Items of Payment and
shall otherwise completely service all of the Receivables including (a) the billing, posting and
maintaining of complete records applicable thereto, (b) the taking of such action with respect to
the Receivables as the Lender may request or in the absence of such request, as the Borrower may
deem advisable; and (c) the granting, in the ordinary course of business, to any Account Debtor,
any rebate, refund or adjustment to which the Account Debtor may be lawfully entitled, and may
accept, in connection therewith, the return of goods, the sale or lease of which shall have given
rise to a Receivable and may take such other actions relating to the settling of any Account
Debtor’s claim as may be commercially reasonable. The Lender may, at its option, at any time or
from time to time after and during the continuance of an Event of Default hereunder, revoke the
collection privilege given in this Agreement to the Borrower by either giving notice of its
assignment of, and lien on the Collateral to the Account Debtors or giving notice of such
revocation to the Borrower. The Lender shall not have any duty to, and the Borrower hereby
releases the Lender from all claims of loss or damage caused by the delay or failure to collect or
enforce any of the Receivables or to preserve any rights against any other party with an interest
in the Collateral. The Lender shall be entitled at any time and from time to time to confirm and
verify Receivables.

	 	6.1.17	 	Assignments of Receivables.

The Borrower will promptly, upon request, execute and deliver to the Lender written
assignments, in form and content acceptable to the Lender, of specific Receivables or groups of
Receivables; provided, however, the Lien and/or security interest granted to the Lender under this
Agreement shall not be limited in any way to or by the inclusion or exclusion of Receivables within
such assignments. Receivables so assigned shall secure payment of the Obligations and are not sold
to the Lender whether or not any assignment thereof, which is separate from this Agreement, is in
form absolute. The Borrower agrees that neither any assignment to the Lender nor any other
provision contained in this Agreement or any of the other Financing Documents shall impose on the
Lender any obligation or liability of the Borrower with respect to that which is assigned and the
Borrower hereby agrees to indemnify the Lender and hold the Lender harmless from any and all
claims, actions, suits, losses, damages, costs, expenses, fees, obligations and liabilities which
may be incurred by or imposed upon the Lender by virtue of the assignment of and Lien on the
Borrower’s rights, title and interest in, to, and under the Collateral.

	 	6.1.18	 	Insurance With Respect to Equipment.

The Borrower will (a) maintain hazard insurance with fire and extended coverage and naming the
Lender as an additional insured with loss payable to the Lender as its respective interest may
appear on the Equipment in an amount at least equal to the lesser amount of the outstanding
principal amount of the Obligations or the fair market value of the Equipment (but in any event
sufficient to avoid any co-insurance obligations) and with a specific endorsement to each such
insurance policy pursuant to which the insurer agrees to give the Lender at least thirty (30) days
written notice before any alteration or termination of such insurance policy and that no act or
default of the Borrower shall affect the right of the Lender to recover under such policy in the
event of loss or damage; (b) file with the Lender, upon its request, a detailed list of the
insurance then in effect and stating the names of the insurance companies, the amounts and rates of
the insurance, dates of the expiration thereof and the properties and risks covered thereby; and
(c) within thirty (30) days after notice in writing from the Lender, obtain such additional
insurance as the Lender may reasonably request.

	 	6.1.19	 	Maintenance of the Collateral.

The Borrower will maintain the Collateral in good working order, saving and excepting ordinary
wear and tear, and will not permit anything to be done to the Collateral which may materially
impair the value thereof. The Lender, or an agent designated by the Lender, shall be permitted to
enter the premises of the Borrower and examine, audit and inspect the Collateral at any reasonable
time and from time to time without notice. The Lender agrees to act in a commercially reasonable
manner when inspecting the premises of the Borrower and when examining, auditing and/or inspecting
the Collateral. The Lender shall not have any duty to, and the Borrower hereby releases the Lender
from all claims of loss or damage caused by the delay or failure to collect or enforce any of the
Receivables or to, preserve any rights against any other party with an interest in the Collateral.

	 	6.1.20	 	Equipment.

The Borrower shall (a) maintain all Equipment as personalty, (b) not affix any Equipment to
any real estate in such manner as to become a fixture or part of such real estate, and (c) shall
hold no Equipment on a sale on approval basis. The Borrower hereby declares its intent that,
notwithstanding the means of attachment, no goods of the Borrower hereafter attached to any realty
shall be deemed a fixture, which declaration shall be irrevocable, without the Lender’s consent,
until all of the Obligations have been paid in full and all of the Commitments and Letters of
Credit have been terminated.

	 	6.1.21	 	Defense of Title and Further Assurances.

At its expense the Borrower will defend the title to the Collateral (and any part thereof),
and will immediately execute, acknowledge and deliver any renewal, affidavit, deed, assignment,
security agreement, certificate or other document which the Lender may require in order to perfect,
preserve, maintain, continue, protect and/or extend the Lien granted to the Lender under this
Agreement or under any of the other Financing Documents and the first priority of that Lien subject
only to the Permitted Liens. The Borrower hereby authorizes the filing of any financing statement
or continuation statement required under the Uniform Commercial Code. The Borrower will from time
to time do whatever the Lender may require by way of obtaining, executing, delivering, and/or
filing landlords’, mortgagees’ or bailees’ waivers, notices of assignment and other notices and
amendments and renewals thereof and the Borrower will take any and all steps and observe such
formalities as the Lender may require, in order to create and maintain a valid Lien upon, pledge
of, or paramount security interest in, the Collateral, subject to the Permitted Liens. The
Borrower shall pay to the Lender on demand all taxes, costs and expenses incurred by the Lender in
connection with the preparation, execution, recording and filing of any such document or
instrument. To the extent that the proceeds of any of the Accounts or Receivables of the Borrower
are expected to become subject to the control of, or in the possession of, a party other than the
Borrower or the Lender, the Borrower shall cause all such parties to execute and deliver on the
Closing Date security documents or other documents as requested by the Lender and as may be
necessary to evidence and/or perfect the security interest of the Lender in those proceeds. The
Borrower hereby irrevocably appoints the Lender as the Borrower’s attorney-in-fact, with power of
substitution, in the name of the Lender or in the name of the Borrower or otherwise, for the use
and benefit of the Lender, but at the cost and expense of the Borrower and without notice to the
Borrower, to execute and deliver any and all of the instruments and other documents and take any
action which the Lender may require pursuant the foregoing provisions of this Section.

	 	6.1.22	 	Business Names; Locations.

The Borrower will notify the Lender not less than thirty (30) days prior to (a) any change in
the name under which the Borrower conducts its business, (b) any change of the location of the
chief executive office of the Borrower, (c) the opening of any new place of business or the closing
of any existing place of business, and (d) any change in the location of the places where the
Collateral, or any part thereof, or the books and records, or any part thereof, are kept.

	 	6.1.23	 	Use of Premises and Equipment.

The Borrower agrees that until the Obligations are fully paid and the Commitment and the
Letters of Credit have been terminated or have expired, the Lender (a) after and during the
continuance of an Event of Default, may use any of the Borrower’s owned or leased lifts, hoists,
trucks and other facilities or equipment for handling or removing the Collateral; and (b) shall
have, and is hereby granted, a right of ingress and egress to the places where the Collateral is
located, and may proceed over and through any of the Borrower’s owned or leased property.

	 	6.1.24	 	Protection of Collateral.

The Borrower agrees that the Lender may at any time following an Event of Default take such
steps as the Lender deems reasonably necessary to protect the Lender’s interest in, and to preserve
the Collateral, including, the hiring of such security guards or the placing of other security
protection measures as the Lender deems appropriate, may employ and maintain at any of the
Borrower’s premises a custodian who shall have full authority to do all acts necessary to protect
the Lender’s interests in the Collateral and may lease warehouse facilities to which the Lender may
move all or any part of the Collateral to the extent commercially reasonable. The Borrower agrees
to cooperate fully with the Lender’s efforts to preserve the Collateral and will take such actions
to preserve the Collateral as the Lender may reasonably direct. All of the Lender’s expenses of
preserving the Collateral, including any reasonable expenses relating to the compensation and
bonding of a custodian, shall be part of the Enforcement Costs.

	 	6.1.25	 	Primary Banking Relationship.

As a material inducement to the Lender to enter into this Agreement, the Borrower agrees to
maintain their primary operating accounts with the Lender. The Borrower understands that the
failure to maintain their primary operating accounts with the Lender may result in an adjustment of
the Applicable Margin or Fees applicable to the Obligations in order for the Lender to maintain the
rate of return on the Obligations contemplated with such accounts maintained with the Lender.

	 	 	 	Section 6.2 Negative Covenants.

So long as any of the Obligations or the Commitment shall be outstanding hereunder, the
Borrower agrees with the Lender as follows:

	 	6.2.1	 	Capital Structure, Merger, Acquisition or
Sale of Assets.

Except with respect to an Authorized Acquisition, the Borrower will not, without the prior
written consent of the Lender, alter or amend its capital structure, authorize any additional class
of equity, enter into any merger or consolidation or amalgamation, windup or dissolve itself (or
suffer any liquidation or dissolution) or acquire all or substantially all the assets of any
Person, or sell, lease or otherwise dispose of any of its assets if the value of such transaction
exceeds $1,000,000. Any consent of the Lender to the disposition of any assets may be conditioned
on a specified use of the proceeds of disposition. As used herein, an “Authorized Acquisition”
means any acquisition by the Borrower which complies with the acquisition criteria set forth on
EXHIBIT G hereto.

	 	6.2.2	 	Subsidiaries.

Unless the Subsidiary executes an Additional Borrower Joinder Supplement in the form of
EXHIBIT D, the Borrower will not create or acquire any Subsidiaries other than the
Subsidiaries identified on the Collateral Disclosure List.

	 	6.2.3	 	Purchase or Redemption of Securities,
Dividend Restrictions.

The Borrower will not purchase, redeem or otherwise acquire any shares of its capital stock or
warrants now or hereafter outstanding, declare or pay any dividends thereon (other than stock
dividends), apply any of its property or assets to the purchase, redemption or other retirement of,
set apart any sum for the payment of any dividends on, or for the purchase, redemption, or other
retirement of, make any distribution by reduction of capital or otherwise in respect of, any shares
of any class of capital stock of the Borrower, or any warrants, permit any Subsidiary to purchase
or acquire any shares of any class of capital stock of, or warrants issued by, the Borrower, make
any distribution to stockholders or set aside any funds for any such purpose, and not prepay,
purchase or redeem any Funded Debt other than the Obligations; provided, however that the Borrower
may repurchase stock pursuant to stock repurchase agreements so long as (a) a Default has not
occurred and is continuing at the time of such repurchase nor would exist after giving effect to
such repurchase, and (b) such repurchases in the aggregate do not exceed Five Million Dollars
($5,000,000) in any fiscal year.

	 	6.2.4	 	Indebtedness.

The Borrower will not create, incur, assume or suffer to exist any Funded Debt, except:

(a) the Obligations;

(b) current accounts payable arising in the ordinary course;

(c) Indebtedness secured by Permitted Liens;

(d) With the prior written consent of the Lender in each case, Subordinated Indebtedness;

(e) Indebtedness of the Borrower existing on the date hereof and reflected on the financial
statements furnished pursuant to Section 4.1.11 (Financial Condition); and

(f) Capitalized Leases less than Five Hundred Thousand Dollars ($500,000) in the aggregate at
any time.

	 	6.2.5	 	Investments, Loans and Other
Transactions.

Except as otherwise provided in this Agreement, the Borrower will not (a) make, assume,
acquire or continue to hold any investment in any real property (unless used in connection with its
business and treated as a Fixed or Capital Asset of the Borrower) or any Person, whether by stock
purchase, capital contribution, acquisition of indebtedness of such Person or otherwise (including,
without limitation, investments in any joint venture or partnership), (b) guaranty or otherwise
become contingently liable for the indebtedness or obligations of any Person, (c) make any loans or
advances, or otherwise extend credit to any Person except in the ordinary course of business or (d)
pay any bonuses, fees compensation, commissions, salaries, drawing account or other payments,
whether direct or indirect, to any stockholders of the Borrower, or any Affiliate of the Borrower,
other than reasonable compensation for actual services rendered by stockholders in their capacity
as officers, members of the Board of Directors or employees of the Borrower, except:

(a) any advance to an officer of the Borrower for travel or other business expenses in the
ordinary course of business;

(b) the endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business;

(c) any investment in Cash Equivalents, which are pledged to the Lender as collateral and
security for the Obligations; and

(d) trade credit extended to customers in the ordinary course of business.

	 	6.2.6	 	Operating Lease Obligations.

The Borrower will not incur or permit to exist any Lease Obligations except Capital Leases
expressly permitted by this Agreement, if the aggregate amount of all such Lease Obligations would
at any time exceed Ten Million Dollars ($10,000,000) during any fiscal year of the Borrower.

	 	6.2.7	 	Subordinated Indebtedness.

The Borrower will not make:

(a) any payment of principal of, or interest on, any of the Subordinated Indebtedness,
including, without limitation, the Subordinated Debt, if a Default or an Event of Default then
exists hereunder or would result from such payment;

(b) any payment of the principal or interest due on the Subordinated Indebtedness as a result
of acceleration thereunder or a mandatory prepayment thereunder;

(c) any amendment or modification of or supplement to the documents evidencing or securing the
Subordinated Indebtedness; or

(d) payment of principal or interest on the Subordinated Indebtedness other than when due
(without giving effect to any acceleration of maturity or mandatory prepayment).

	 	6.2.8	 	Liens; Confessed Judgment.

The Borrower agrees that it (a) will not create, incur, assume or suffer to exist any Lien
upon any of its properties or assets, whether now owned or hereafter acquired, except for Liens
securing the Obligations and Permitted Liens, (b) will not agree to, assume or suffer to exist any
provision in any instrument or other document for confession of judgment, cognovit or other similar
right or remedy, (c) will not allow or suffer to exist any Permitted Liens to be superior to Liens
securing the Obligations, (d) will not enter into any contracts for the consignment of goods to the
Borrower, (e) will not execute or suffer the filing of any financing statements or the posting of
any signs giving notice of consignments to the Borrower, (f) will not, as a material part of its
business, engage in the sale of goods belonging to others, and (g) will not allow or suffer to
exist the failure of any Lien described in the Security Documents to attach to, and/or remain at
all times perfected on, any of the property described in the Security Documents.

	 	6.2.9	 	Transactions with Affiliates.

The Borrower and its Subsidiaries will not enter into or participate in any transaction with
any Affiliate or, except in the ordinary course of business, with the officers, directors,
employees and other representatives of the Borrower and/or any Subsidiary.

	 	6.2.10	 	Other Businesses.

The Borrower and its Subsidiaries will not engage directly or indirectly in any business other
than its current line of business described elsewhere in this Agreement.

	 	6.2.11	 	ERISA Compliance.

Neither the Borrower nor any Commonly Controlled Entity shall: (a) engage in or permit any
“prohibited transaction” (as defined in ERISA); (b) cause any “accumulated funding deficiency” as
defined in ERISA and/or the Internal Revenue Code; (c) terminate any pension plan in a manner which
could result in the imposition of a lien on the property of the Borrower pursuant to ERISA; (d)
terminate or consent to the termination of any Multi-employer Plan; or (e) incur a complete or
partial withdrawal with respect to any Multi-employer Plan.

	 	6.2.12	 	Prohibition on Hazardous Materials.

The Borrower shall not place, manufacture or store or permit to be placed, manufactured or
stored any Hazardous Materials on any property owned, operated or controlled by the Borrower or for
which the Borrower is responsible other than Hazardous Materials placed or stored on such property
in accordance with applicable Laws in the ordinary course.

	 	6.2.13	 	Method of Accounting; Fiscal Year.

(a) The Borrower shall not change the method of accounting employed in the preparation of any
financial statements furnished to the Lender under the provisions of Section 6.1.1 (Financial
Statements), unless required to conform to GAAP and on the condition that the Borrower’s
accountants shall furnish such information as the Lender may request to reconcile the changes with
the Borrower’s prior financial statements.

(b) The Borrower will not change its fiscal year from a year ending on September 30.

	 	6.2.14	 	Compensation.

The Borrower shall not pay any bonuses, fees, compensation, commissions, salaries, drawing
accounts, or other payments (cash and non-cash), whether direct or indirect, to any stockholders of
the Borrower, or any Affiliate of the Borrower, other than reasonable compensation for actual
services rendered by stockholders in their capacity as officers, members of the Board of Directors
or employees of the Borrower.

	 	6.2.15	 	Transfer of Collateral.

The Borrower will not transfer, or permit the transfer, to another location of any of the
Collateral or the books and records related to any of the Collateral.

	 	6.2.16	 	Sale and Leaseback.

The Borrower will not directly or indirectly enter into any arrangement to sell or transfer
all or any substantial part of its fixed assets and thereupon or within one (1) year thereafter
rent or lease the assets so sold or transferred.

	 	6.2.17	 	Disposition of Collateral.

The Borrower will not sell, discount, allow credits or allowances, transfer, assign, extend
the time for payment on, convey, lease, assign, transfer or otherwise dispose of the Collateral,
except, prior to an Event of Default, dispositions expressly permitted elsewhere in this Agreement,
and the sale of unnecessary or obsolete Equipment, but only if the proceeds of the sale of such
Equipment are (a) used to purchase similar Equipment to replace the unnecessary or obsolete
Equipment or (b) immediately turned over to the Lender for application to the Obligations.

	 	6.2.18	 	Stock of Subsidiaries.

The Borrower will not sell or otherwise dispose of any shares of capital stock of any
Subsidiary (except in connection with a merger or consolidation of a Wholly Owned Subsidiary into
the Borrower or another Wholly Owned Subsidiary or with the dissolution of any Subsidiary) or
permit any Subsidiary to issue any additional shares of its capital stock except pro
rata to its stockholders.

ARTICLE VII

DEFAULT AND RIGHTS AND REMEDIES

	 	 	 	Section 7.1 Events of Default.

The occurrence of any one or more of the following events shall constitute an “Event of
Default” under the provisions of this Agreement:

	 	7.1.1	 	Failure to Pay.

The failure of the Borrower to pay any of the Obligations as and when due and payable in
accordance with the provisions of this Agreement, the Notes and/or any of the other Financing
Documents.

	 	7.1.2	 	Breach of Representations and
Warranties.

Any representation or warranty made in this Agreement or in any report, statement, schedule,
certificate, opinion (including any opinion of counsel for the Borrower), financial statement or
other document furnished in connection with this Agreement, any of the other Financing Documents,
or the Obligations, shall prove to have been false or misleading when made (or, if applicable, when
reaffirmed) in any material respect.

	 	7.1.3	 	Failure to Comply with Covenants.

The failure of the Borrower to perform, observe or comply with any covenant, condition or
agreement contained in this Agreement.

	 	7.1.4	 	Default Under Other Financing Documents or
Obligations.

A default shall occur under any of the other Financing Documents or under any other
Obligations, and such default is not cured within any applicable grace period provided therein.

	 	7.1.5	 	Receiver; Bankruptcy.

The Borrower or any Subsidiary shall (a) apply for or consent to the appointment of a
receiver, trustee or liquidator of itself or any of its property, (b) admit in writing its
inability to pay its debts as they mature, (c) make a general assignment for the benefit of
creditors, (d) be adjudicated a bankrupt or insolvent, (e) file a voluntary petition in bankruptcy
or a petition or an answer seeking or consenting to reorganization or an arrangement with creditors
or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt,
dissolution or liquidation law or statute, or an answer admitting the material allegations of a
petition filed against it in any proceeding under any such law, or take corporate action for the
purposes of effecting any of the foregoing, (f) by any act indicate its consent to, approval of or
acquiescence in any such proceeding or the appointment of any receiver of or trustee for any of its
property, or suffer any such receivership, trusteeship or proceeding to continue undischarged for a
period of sixty (60) days, or (g) by any act indicate its consent to, approval of or acquiescence
in any order, judgment or decree by any court of competent jurisdiction or any Governmental
Authority enjoining or otherwise prohibiting the operation of a material portion of the Borrower’s
or any Subsidiary’s business or the use or disposition of a material portion of the Borrower’s or
any Subsidiary’s assets.

	 	7.1.6	 	Involuntary Bankruptcy, etc.

(a) An order for relief shall be entered in any involuntary case brought against the Borrower
or any Subsidiary under the Bankruptcy Code, or (b) any such case shall be commenced against the
Borrower or any Subsidiary and shall not be dismissed within sixty (60) days after the filing of
the petition, or (c) an order, judgment or decree under any other Law is entered by any court of
competent jurisdiction or by any other Governmental Authority on the application of a Governmental
Authority or of a Person other than the Borrower or any Subsidiary (i) adjudicating the Borrower or
any Subsidiary bankrupt or insolvent, or (ii) appointing a receiver, trustee or liquidator of the
Borrower or of any Subsidiary, or of a material portion of the Borrower’s or any Subsidiary’s
assets, or (iii) enjoining, prohibiting or otherwise limiting the operation of a material portion
of the Borrower’s or any Subsidiary’s business or the use or disposition of a material portion of
the Borrower’s or any Subsidiary’s assets, and such order, judgment or decree continues unstayed
and in effect for a period of thirty (30) days from the date entered.

	 	7.1.7	 	Judgment.

Unless adequately insured in the opinion of the Lender, the entry of a final judgment for the
payment of money involving more than $250,000 against the Borrower, and the failure by the Borrower
to discharge the same, or cause it to be discharged, within thirty (30) days from the date of the
order, decree or process under which or pursuant to which such judgment was entered, or to secure a
stay of execution pending appeal of such judgment.

	 	7.1.8	 	Execution; Attachment.

Any execution or attachment shall be levied against the Collateral, or any part thereof, and
such execution or attachment shall not be set aside, discharged or stayed within thirty (30) days
after the same shall have been levied.

	 	7.1.9	 	Default Under Other Borrowings.

Default shall be made with respect to any Funded Debt (other than the Loan) if the effect of
such default is to accelerate the maturity of such Funded Debt or to permit the holder or obligee
thereof or other party thereto to cause any such Funded Debt to become due prior to its stated
maturity.

	 	7.1.10	 	Challenge to Agreements.

The Borrower shall challenge the validity and binding effect of any provision of any of the
Financing Documents or shall state its intention to make such a challenge of any of the Financing
Documents or any of the Financing Documents shall for any reason (except to the extent permitted by
its express terms) cease to be effective or to create a valid and perfected first priority Lien
(except for Permitted Liens) on, or security interest in, any of the Collateral purported to be
covered thereby.

	 	7.1.11	 	Material Adverse Change.

The Lender in its reasonable discretion determines in good faith that a material adverse
change has occurred in the financial condition of the Borrower.

	 	7.1.12	 	Impairment of Position.

The Lender in its reasonable discretion determines in good faith that an event has occurred
which impairs the prospect of payment of the Obligations and/or the value of the Collateral.

	 	7.1.13	 	Collateral Inadequacy.

The determination in good faith by the Lender that the security for the Obligations is
inadequate.

	 	7.1.14	 	Change in Ownership.

Any change in control of the ownership of the Borrower. For purposes hereof, change in
control of the ownership of the Borrower shall mean change of twenty percent (20%) or more of the
aggregate of the ownership of the Borrower.

	 	7.1.15	 	Contract Default, Debarment or Suspension.

Default shall be made under any Government Contract, or any Government Contract is terminated
for default by any Governmental Authority for any reason whatsoever, or if the Borrower is debarred
or suspended, whether temporarily or permanently, by any Governmental Authority.

	 	7.1.16	 	Liquidation, Termination, Dissolution, Change in Management,
etc.

The Borrower shall liquidate, dissolve or terminate its existence or shall suspend or
terminate a substantial portion of its business operations or any change occurs in the management
or control of the Borrower without the prior written consent of the Lender.

	 	7.1.17	 	Advances to Subsidiaries.

The Borrower shall make any advance, loan, or extension of credit to or any payment on behalf
of or guaranty any obligation of any Subsidiary in excess of $500,000 in the Aggregate without the
Lender’s prior written consent.

	 	7.1.18	 	Swap Default.

An event occurs which gives the Lender the right or option to terminate any Swap Contract
which is secured by the Collateral.

	 	 	 	Section 7.2 Remedies.

Upon the occurrence of any Default or Event of Default, the Lender may at any time thereafter
exercise any one or more of the following rights, powers or remedies:

	 	7.2.1	 	Acceleration.

The Lender may declare the Obligations to be immediately due and payable, notwithstanding
anything contained in this Agreement or in any of the other Financing Documents to the contrary,
without presentment, demand, protest, notice of protest or of dishonor, or other notice of any
kind, all of which the Borrower hereby waives.

	 	7.2.2	 	Further Advances.

The Lender may from time to time without notice to the Borrower suspend, terminate or limit
any further loans or other extensions of credit under this Agreement and under any of the other
Financing Documents. Further, upon the occurrence of an Event of Default or Default specified in
Section 7.1.5 (Receiver; Bankruptcy) or Section 7.1.6 (Involuntary Bankruptcy, etc.), the Revolving
Credit Commitment and any agreement in any of the Financing Documents to provide additional credit
and/or to issue Letters of Credit shall immediately and automatically terminate and the unpaid
principal amount of the Notes (with accrued interest thereon) and all other Obligations then
outstanding, shall immediately become due and payable without further action of any kind and
without presentment, demand, protest or notice of any kind, all of which are hereby expressly
waived by the Borrower.

	 	7.2.3	 	Uniform Commercial Code.

The Lender shall have all of the rights and remedies of a secured party under the applicable
Uniform Commercial Code and other applicable Laws. Upon demand by the Lender, the Borrower shall
assemble the Collateral and make it available to the Lender, at a place designated by the Lender.
The Lender or its agents may without notice from time to time enter upon the Borrower’s premises to
take possession of the Collateral, to remove it, to render it unusable, to process it or otherwise
prepare it for sale, or to sell or otherwise dispose of it.

Any written notice of the sale, disposition or other intended action by the Lender with
respect to the Collateral which is sent by regular mail, postage prepaid, to the Borrower at the
address set forth in Section 8.1 (Notices), or such other address of the Borrower which may from
time to time be shown on the Lender’s records, at least ten (10) days prior to such sale,
disposition or other action, shall constitute commercially reasonable notice to the Borrower. The
Lender may alternatively or additionally give such notice in any other commercially reasonable
manner. Nothing in this Agreement shall require the Lender to give any notice not required by
applicable Laws.

If any consent, approval, or authorization of any state, municipal or other Governmental
Authority or of any other Person or of any Person having any interest therein, should be necessary
to effectuate any sale or other disposition of the Collateral, the Borrower agrees to execute all
such applications and other instruments, and to take all other action, as may be required in
connection with securing any such consent, approval or authorization.

The Borrower recognizes that the Lender may be unable to effect a public sale of all or a part
of the Collateral consisting of Investment Property by reason of certain prohibitions contained in
the Securities Act of 1933, as amended, and other applicable Federal and state Laws. The Lender
may, therefore, in its discretion, take such steps as it may deem appropriate to comply with such
Laws and may, for example, at any sale of the Collateral consisting of securities restrict the
prospective bidders or purchasers as to their number, nature of business and investment intention,
including, without limitation, a requirement that the Persons making such purchases represent and
agree to the satisfaction of the Lender that they are purchasing such securities for their account,
for investment, and not with a view to the distribution or resale of any thereof. The Borrower
covenants and agrees to do or cause to be done promptly all such acts and things as the Lender may
request from time to time and as may be necessary to offer and/or sell the securities or any part
thereof in a manner which is valid and binding and in conformance with all applicable Laws. Upon
any such sale or disposition, the Lender shall have the right to deliver, assign and transfer to
the purchaser thereof the Collateral consisting of securities so sold.

	 	7.2.4	 	Specific Rights With Regard to
Collateral.

In addition to all other rights and remedies provided hereunder or as shall exist at law or in
equity from time to time, the Lender may (but shall be under no obligation to), without notice to
the Borrower, and the Borrower hereby irrevocably appoints the Lender as its attorney-in-fact, with
power of substitution, in the name of the Lender and/or in the name of the Borrower or otherwise,
for the use and benefit of the Lender, but at the cost and expense of the Borrower and without
notice to the Borrower:

(a) request any Account Debtor obligated on any of the Accounts to make payments thereon
directly to the Lender, with the Lender taking control of the Proceeds thereof;

(b) compromise, extend or renew any of the Collateral or deal with the same as it may deem
advisable;

(c) make exchanges, substitutions or surrenders of all or any part of the Collateral;

(d) copy, transcribe, or remove from any place of business of the Borrower or any Subsidiary
all books, records, ledger sheets, correspondence, invoices and documents, relating to or
evidencing any of the Collateral or without cost or expense to the Lender, make such use of the
Borrower’s or any Subsidiary’s place(s) of business as may be reasonably necessary to administer,
control and collect the Collateral;

(e) demand, collect, receipt for and give renewals, extensions, discharges and releases of any
of the Collateral;

(f) institute and prosecute legal and equitable proceedings to enforce collection of, or
realize upon, any of the Collateral;

(g) settle, renew, extend, compromise, compound, exchange or adjust claims in respect of any
of the Collateral or any legal proceedings brought in respect thereof;

(h) endorse or sign the name of the Borrower upon any Items of Payment, certificates of title,
Instruments, Investment Property, stock powers, documents, documents of title, financing
statements, assignments, notices or other writing relating to or part of the Collateral and on any
proof of claim in bankruptcy against an Account Debtor;

(i) notify the Post Office authorities to change the address for the delivery of mail to the
Borrower to such address or Post Office Box as the Lender may designate and receive and open all
mail addressed to the Borrower; and

(j) take any other action necessary or beneficial to realize upon or dispose of the Collateral
or to carry out the terms of this Agreement.

	 	7.2.5	 	Application of Proceeds.

Any proceeds of sale or other disposition of the Collateral will be applied by the Lender to
the payment first of any and all Enforcement Costs, and any balance of such proceeds will be
applied to the Obligations in such order and manner as the Lender shall determine. If the sale or
other disposition of the Collateral fails to fully satisfy the Obligations, the Borrower shall
remain liable to the Lender for any deficiency.

	 	7.2.6	 	Performance by Lender.

Upon the occurrence and continuation of an Event of Default, the Lender without notice to or
demand upon the Borrower and without waiving or releasing any of the Obligations or any Default or
Event of Default, may (but shall be under no obligation to) at any time thereafter make such
payment or perform such act for the account and at the expense of the Borrower, and may enter upon
the premises of the Borrower for that purpose and take all such action thereon as the Lender may
consider necessary or appropriate for such purpose and the Borrower hereby irrevocably appoints the
Lender as its attorney-in-fact to do so, with power of substitution, in the name of the Lender or
in the name of the Borrower or otherwise, for the use and benefit of the Lender, but at the cost
and expense of the Borrower and without notice to the Borrower. All sums so paid or advanced by
the Lender together with interest thereon from the date of payment, advance or incurring until paid
in full at the Post-Default Rate and all costs and expenses, shall be deemed part of the
Enforcement Costs, shall be paid by the Borrower to the Lender on demand, and shall constitute and
become a part of the Obligations.

	 	7.2.7	 	Other Remedies.

The Lender may from time to time proceed to protect or enforce its rights by an action or
actions at law or in equity or by any other appropriate proceeding, whether for the specific
performance of any of the covenants contained in this Agreement or in any of the other Financing
Documents, or for an injunction against the violation of any of the terms of this Agreement or any
of the other Financing Documents, or in aid of the exercise or execution of any right, remedy or
power granted in this Agreement, the Financing Documents, and/or applicable Laws. The Lender is
authorized to offset and apply to all or any part of the Obligations all moneys, credits and other
property of any nature whatsoever of the Borrower now or at any time hereafter in the possession
of, in transit to or from, under the control or custody of, or on deposit with, the Lender or any
Affiliate of the Lender.

ARTICLE VIII

MISCELLANEOUS

	 	 	 	Section 8.1 Notices.

All notices, requests and demands to or upon the parties to this Agreement shall be in writing
and shall be deemed to have been given or made when delivered by hand on a Business Day, or two (2)
days after the date when deposited in the mail, postage prepaid by registered or certified mail,
return receipt requested, or when sent by overnight courier, on the Business Day next following the
day on which the notice is delivered to such overnight courier, addressed as follows:

	 	 	 	Borrower: Argon ST, Inc.

	 	 	 
	12701 Fair Lakes Circle, Suite 800

	Fairfax, Virginia 22033-4907

	Attention:

	 	Joseph T. Houston
	Lender:

	 	Bank of America, N. A.

	 	 	 
	8300 Greensboro Drive

	Mezzanine

	 	

	McLean, Virginia 22102-3604

	Attention:

	 	Commercial Lending

By written notice, each party to this Agreement may change the address to which notice is
given to that party, provided that such changed notice shall include a street address to which
notices may be delivered by overnight courier in the ordinary course on any Business Day.

	 	 	 	Section 8.2 Amendments; Waivers.

This Agreement and the other Financing Documents may not be amended, modified, or changed in
any respect except by an agreement in writing signed by the Lender and the Borrower. No waiver of
any provision of this Agreement or of any of the other Financing Documents, nor consent to any
departure by the Borrower therefrom, shall in any event be effective unless the same shall be in
writing signed by the Lender. No course of dealing between the Borrower and the Lender and no act
or failure to act from time to time on the part of the Lender shall constitute a waiver, amendment
or modification of any provision of this Agreement or any of the other Financing Documents or any
right or remedy under this Agreement, under any of the other Financing Documents or under
applicable Laws.

Without implying any limitation on the foregoing:

(a) Any waiver or consent shall be effective only in the specific instance, for the terms and
purpose for which given, subject to such conditions as the Lender may specify in any such
instrument.

(b) No waiver of any Default or Event of Default shall extend to any subsequent or other
Default or Event of Default, or impair any right consequent thereto.

(c) No notice to or demand on the Borrower in any case shall entitle the Borrower to any other
or further notice or demand in the same, similar or other circumstance.

(d) No failure or delay by the Lender to insist upon the strict performance of any term,
condition, covenant or agreement of this Agreement or of any of the other Financing Documents, or
to exercise any right, power or remedy consequent upon a breach thereof, shall constitute a waiver,
amendment or modification of any such term, condition, covenant or agreement or of any such breach
or preclude the Lender from exercising any such right, power or remedy at any time or times.

(e) By accepting payment after the due date of any amount payable under this Agreement or
under any of the other Financing Documents, the Lender shall not be deemed to waive the right
either to require prompt payment when due of all other amounts payable under this Agreement or
under any of the other Financing Documents, or to declare a default for failure to effect such
prompt payment of any such other amount.

	 	 	 	Section 8.3 Cumulative Remedies.

The rights, powers and remedies provided in this Agreement and in the other Financing
Documents are cumulative, may be exercised concurrently or separately, may be exercised from time
to time and in such order as the Lender shall determine, subject to the provisions of this
Agreement, and are in addition to, and not exclusive of, rights, powers and remedies provided by
existing or future applicable Laws. In order to entitle the Lender to exercise any remedy reserved
to it in this Agreement, it shall not be necessary to give any notice, other than such notice as
may be expressly required in this Agreement. Without limiting the generality of the foregoing and
subject to the terms of this Agreement, the Lender may:

(a) proceed against the Borrower with or without proceeding against any other Person who may
be liable (by endorsement, guaranty, indemnity or otherwise) for all or any part of the
Obligations;

(b) proceed against the Borrower with or without proceeding under any of the other Financing
Documents or against any Collateral or other collateral and security for all or any part of the
Obligations;

(c) without reducing or impairing the obligation of the Borrower and without notice, release
or compromise with any guarantor or other Person liable for all or any part of the Obligations
under the Financing Documents or otherwise;

(i) without reducing or impairing the obligations of the Borrower and without notice
thereof; fail to perfect the Lien in any or all Collateral or to release any or all the
Collateral or to accept substitute Collateral;

(ii) approve the making of advances under the Revolving Loan under this Agreement;

(iii) waive any provision of this Agreement or the other Financing Documents;

(iv) exercise or fail to exercise rights of set-off or other rights; or

(d) accept partial payments or extend from time to time the maturity of all or any part of the
Obligations.

	 	 	 	Section 8.4 Severability.

In case one or more provisions, or part thereof, contained in this Agreement or in the other
Financing Documents shall be invalid, illegal or unenforceable in any respect under any Law, then
without need for any further agreement, notice or action:

(a) the validity, legality and enforceability of the remaining provisions shall remain
effective and binding on the parties thereto and shall not be affected or impaired thereby;

(b) the obligation to be fulfilled shall be reduced to the limit of such validity;

(c) if such provision or part thereof pertains to repayment of the Obligations, then, at the
sole and absolute discretion of the Lender, all of the Obligations of the Borrower to the Lender
shall become immediately due and payable; and

(d) if the affected provision or part thereof does not pertain to repayment of the
Obligations, but operates or would prospectively operate to invalidate this Agreement in whole or
in part, then such provision or part thereof only shall be void, and the remainder of this
Agreement shall remain operative and in full force and effect.

	 	 	 	Section 8.5 Assignments by Lender.

The Lender may, without notice to or consent of the Borrower, assign to any Person (each an
“Assignee” and collectively, the “Assignees”) all or a portion of the Lender’s Commitments. The
Lender and its Assignee shall notify the Borrower in writing of the date on which the assignment is
to be effective (the “Adjustment Date”). On or before the Adjustment Date, the Lender, the
Borrower and the Assignee shall execute and deliver a written assignment agreement in a form
acceptable to the Lender, which shall constitute an amendment to this Agreement to the extent
necessary to reflect such assignment. Upon the request of the Lender following an assignment made
in accordance with this Section 8.5, the Borrower shall issue new Notes to the Lender and its
Assignee reflecting such assignment, in exchange for the existing Notes held by the Lender.

In addition, notwithstanding the foregoing, the Lender may at any time pledge all or any
portion of the Lender’s rights under this Agreement, any of the Commitments or any of the
Obligations to a Federal Reserve Bank.

	 	 	 	Section 8.6 Participations by Lender.

The Lender may at any time sell to one or more financial institutions participating interests
in any of the Lender’s Obligations or Commitments; provided, however, that (a) no such
participation shall relieve the Lender from its obligations under this Agreement or under any of
the other Financing Documents to which it is a party, (b) the Lender shall remain solely
responsible for the performance of its obligations under this Agreement and under all of the other
Financing Documents to which it is a party, and (c) the Borrower shall continue to deal solely and
directly with the Lender in connection with the Lender’s rights and obligations under this
Agreement and the other Financing Documents.

	 	 	 	Section 8.7 Disclosure of Information by Lender.

In connection with any sale, transfer, assignment or participation by the Lender in accordance
with Section 8.5 (Assignments by Lender) or Section 8.6 (Participations by Lender), the Lender
shall have the right to disclose to any actual or potential purchaser, assignee, transferee or
participant all financial records, information, reports, financial statements and documents
obtained in connection with this Agreement and/or any of the other Financing Documents or
otherwise.

	 	 	 	Section 8.8 Successors and Assigns.

This Agreement and all other Financing Documents shall be binding upon and inure to the
benefit of the Borrower and the Lender and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights hereunder or any interest herein without the
prior written consent of the Lender.

	 	 	 	Section 8.9 Continuing Agreements.

All covenants, agreements, representations and warranties made by the Borrower in this
Agreement, in any of the other Financing Documents, and in any certificate delivered pursuant
hereto or thereto shall survive the making by the Lender of the Loans, the issuance of Letters of
Credit and the execution and delivery of the Notes, shall be binding upon the Borrower regardless
of how long before or after the date hereof any of the Obligations were or are incurred, and shall
continue in full force and effect so long as any of the Obligations are outstanding and unpaid.
From time to time upon the Lender’s request, and as a condition of the release of any one or more
of the Security Documents, the Borrower and other Persons obligated with respect to the Obligations
shall provide the Lender with such acknowledgments and agreements as the Lender may require to the
effect that there exists no defenses, rights of setoff or recoupment, claims, counterclaims,
actions or causes of action of any kind or nature whatsoever against the Lender and/or any of its
agents and others, or to the extent there are, the same are waived and released.

	 	 	 	Section 8.10 Enforcement Costs.

The Borrower agrees to pay to the Lender on demand all Enforcement Costs, together with
interest thereon from the date incurred or advanced until paid in full at a per annum rate of
interest equal at all times to the Post-Default Rate. Enforcement Costs shall be immediately due
and payable at the time advanced or incurred, whichever is earlier. Without implying any
limitation on the foregoing, the Borrower agrees, as part of the Enforcement Costs, to pay upon
demand any and all stamp and other Taxes and fees payable or determined to be payable in connection
with the execution and delivery of this Agreement and the other Financing Documents and to save the
Lender harmless from and against any and all liabilities with respect to or resulting from any
delay in paying or omission to pay any Taxes or fees referred to in this Section. The provisions
of this Section shall survive the execution and delivery of this Agreement, the repayment of the
other Obligations and shall survive the termination of this Agreement.

	 	 	 	 	 	 	 
	Section 8.11	 	Applicable Law; Jurisdiction.
	 	 	 
	 	 	 	8.11.1	 	 	Applicable Law.

	 	 	 	 	 	 	 

The Borrower acknowledges and agrees that the Financing Documents, including, this Agreement,
shall be governed by the Laws of the State, as if each of the Financing Documents and this
Agreement had each been executed, delivered, administered and performed solely within the State
even though for the convenience and at the request of the Borrower, one or more of the Financing
Documents may be executed elsewhere. The Lender acknowledges, however, that remedies under certain
of the Financing Documents that relate to property outside the State may be subject to the laws of
the state in which the property is located.

	 	8.11.2	 	Submission to Jurisdiction.

The Borrower irrevocably submits to the jurisdiction of any state or federal court sitting in
the State over any suit, action or proceeding arising out of or relating to this Agreement or any
of the other Financing Documents. The Borrower irrevocably waives, to the fullest extent permitted
by law, any objection that it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding brought in any such court and any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum. Final judgment in
any such suit, action or proceeding brought in any such court shall be conclusive and binding upon
the Borrower and may be enforced in any court in which the Borrower is subject to jurisdiction, by
a suit upon such judgment, provided that service of process is effected upon the Borrower
in one of the manners specified in this Section or as otherwise permitted by applicable Laws.

	 	8.11.3	 	Appointment of Agent for Service of Process.

The Borrower hereby irrevocably designates and appoints CT Corporation Systems, Inc., 4701 Cox
Road, Suite 301, Glen Allen, Virginia 23060, as the Borrower’s authorized agent to receive on the
Borrower’s behalf service of any and all process that may be served in any suit, action or
proceeding of the nature referred to in this Section in any state or federal court sitting in the
State. If such agent shall cease so to act, the Borrower shall irrevocably designate and appoint
without delay another such agent in the State satisfactory to the Lender and shall promptly deliver
to the Lender evidence in writing of such other agent’s acceptance of such appointment and its
agreement that such appointment shall be irrevocable.

	 	8.11.4	 	Service of Process.

The Borrower hereby consents to process being served in any suit, action or proceeding of the
nature referred to in this Section by (a) the mailing of a copy thereof by registered or certified
mail, postage prepaid, return receipt requested, to the Borrower at the Borrower’s address
designated in or pursuant to Section 8.1 (Notices), and (b) serving a copy thereof upon the agent,
if any, designated and appointed by the Borrower as the Borrower’s agent for service of process by
or pursuant to this Section. The Borrower irrevocably agrees that such service (y) shall be deemed
in every respect effective service of process upon the Borrower in any such suit, action or
proceeding, and (z) shall, to the fullest extent permitted by law, be taken and held to be valid
personal service upon the Borrower. Nothing in this Section shall affect the right of the Lender
to serve process in any manner otherwise permitted by law or limit the right of the Lender
otherwise to bring proceedings against the Borrower in the courts of any jurisdiction or
jurisdictions.

	 	 	 	Section 8.12 Duplicate Originals and Counterparts.

This Agreement may be executed in any number of duplicate originals or counterparts, each of
such duplicate originals or counterparts shall be deemed to be an original and all taken together
shall constitute but one and the same instrument.

	 	 	 	Section 8.13 Headings.

The headings in this Agreement are included herein for convenience only, shall not constitute
a part of this Agreement for any other purpose, and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

	 	 	 	Section 8.14 No Agency.

Nothing herein contained shall be construed to constitute the Borrower as the agent of the
Lender for any purpose whatsoever or to permit the Borrower to pledge any of the credit of the
Lender. The Lender shall not be responsible or liable for any shortage, discrepancy, damage, loss
or destruction of any part of the Collateral wherever the same may be located and regardless of the
cause thereof. The Lender shall not, by anything herein or in any of the Financing Documents or
otherwise, assume any of the Borrower’s obligations under any contract or agreement assigned to the
Lender, and the Lender shall not be responsible in any way for the performance by the Borrower of
any of the terms and conditions thereof.

	 	 	 	Section 8.15 Date of Payment.

Should the principal of or interest on the Notes become due and payable on other than a
Business Day, the maturity thereof shall be extended to the next succeeding Business Day and in the
case of principal, interest shall be payable thereon at the rate per annum specified in the Notes
during such extension.

	 	 	 	Section 8.16 Entire Agreement.

This Agreement and the Exhibits and Financing Documents referenced herein are intended by the
Lender and the Borrower to be a complete, exclusive and final expression of the agreements
contained herein. Neither the Lender nor the Borrower shall hereafter have any rights under any
prior agreements pertaining to the matters addressed by this Agreement but shall look solely to
this Agreement for definition and determination of all of their respective rights, liabilities and
responsibilities under this Agreement.

	 	 	 	Section 8.17 Waiver of Trial by Jury.

THE BORROWER AND THE LENDER HEREBY JOINTLY AND SEVERALLY WAIVE TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO WHICH THE BORROWER AND THE LENDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY
PERTAINING TO (A) THIS AGREEMENT, (B) ANY OF THE FINANCING DOCUMENTS, OR (C) THE COLLATERAL. THIS
WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR
PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT.

This waiver is knowingly, willingly and voluntarily made by the Borrower and the Lender, and
the Borrower and the Lender hereby represent that no representations of fact or opinion have been
made by any individual to induce this waiver of trial by jury or to in any way modify or nullify
its effect. The Borrower and the Lender further represent that they have been represented in the
signing of this Agreement and in the making of this waiver by independent legal counsel, selected
of their own free will, and that they have had the opportunity to discuss this waiver with counsel.

	 	 	 	Section 8.18 Liability of the Lender.

The Borrower hereby agrees that the Lender shall not be chargeable for any negligence,
mistake, act or omission of any accountant, examiner, agency or attorney employed by the Lender in
making examinations, investigations or collections, or otherwise in perfecting, maintaining,
protecting or realizing upon any lien or security interest or any other interest in the Collateral
or other security for the Obligations, except for gross negligence or willful misconduct.

By inspecting the Collateral or any other properties of the Borrower or by accepting or
approving anything required to be observed, performed or fulfilled by the Borrower or to be given
to the Lender pursuant to this Agreement or any of the other Financing Documents, the Lender shall
not be deemed to have warranted or represented the condition, sufficiency, legality, effectiveness
or legal effect of the same, and such acceptance or approval shall not constitute any warranty or
representation with respect thereto by the Lender.

[Signature Page Follows.]

IN WITNESS WHEREOF, each of the parties hereto have executed and delivered this Agreement
under their respective seals as of the day and year first written above.

	 	 	 
	WITNESS OR ATTEST:
	 	ARGON ST, INC. formerly known as SensyTech, Inc.

	     
	 	By:       (Seal)

Name:

	 	 	Title:

	WITNESS OR ATTEST:
	 	COHERENT SYSTEMS INTERNATIONAL, LLC

	     
	 	By:       (Seal)

Name:

	 	 	Title:

	WITNESS:
	 	BANK OF AMERICA, N. A.

	     
	 	By:       (Seal)

Jessica Tencza

Senior Vice President

EXHIBIT B

FINANCING AGREEMENT COMPLIANCE CERTIFICATE

THIS CERTIFICATE is made as of       , 201      , by ARGON ST, INC, a corporation
organized under the laws of the State of Delaware (the “Borrower”), to BANK OF AMERICA, N. A., a
national banking association (the “Lender”), pursuant to Section 6.1.1(      ) of the Third Amended
and Restated Financing and Security Agreement dated as of January   , 2010, (as amended, modified,
restated, substituted, extended and renewed at any time and from time to time, the “Financing
Agreement”) by and between the Borrower and the Lender.

I,       , hereby certify that I am the        of the Borrower and am a
Responsible Officer (as that term is defined in the Financing Agreement) authorized to certify to
the Lender on behalf the Borrower as follows:

(a) This Certificate is given to induce the Lender to make advances to the Borrower under the
Financing Agreement.

(b) This Certificate accompanies the        financial statements for the period ended
     , 20       (the “Current Financials”) which the Borrower is furnishing to the
Lender pursuant to Section (      ) of the Financing Agreement. The Current Financials have been
prepared in accordance with GAAP (as that term is defined in the Financing Agreement).

(c) As required by Section (      ) of the Financing Agreement, I have set forth on Schedule 1 a
detailed computation of each financial covenant in Financing Agreement and a cash flow projection
report.

(d) No change has occurred to the information contained in the Collateral Disclosure List
except as set forth on Schedule 2 to this Certificate. By way of example and not
limitation, the Collateral Disclosure List, together with Schedule 2, contains a listing of
all of the Borrower’s Patents, Trademarks, Copyrights (as those terms are defined in the Financing
Agreement), all locations (owned, leased, warehouses or otherwise) where any Collateral (as that
term is defined in the Financing Agreement) is located, all Subsidiaries (as that term is defined
in the Financing Agreement).

(e) As of the date hereof, there exists no Default or Event of Default, as defined in the
(Default and Rights and Remedies) of the Financing Agreement, nor any event which, upon notice or
the lapse of time, or both, would constitute such an Event of Default.

(f) On the date hereof, the representations and warranties contained in Article 4 of the
Financing Agreement are true with the same effect as though such representations and warranties had
been made on the date hereof.

1

WITNESS my signature this        day of       , 201      .

ARGON ST, INC.

By:       

Name:

Title

2

SCHEDULE 1

WORKSHEET

	 
	Funded Debt to EBITDA Argon ST,

Inc.

	 

Section 6.1.15 of Financing and Security Agreement — The Borrower will maintain, tested as of the
last day of each of the Borrower’s fiscal quarters for the preceding four (4) fiscal quarters, a
Funded Indebtedness to EBITDA Ratio of not more than 1.50 to 1.00.

Section 1.1 of Financing and Security Agreement — “Funded Debt,” means all outstanding liabilities
for borrowed money and other interest-bearing liabilities, including current and long-term debt,
issued letters of credit, Capitalized Leases and Subordinated Indebtedness.

Section 1.1 of Financing and Security Agreement — “EBITDA” means as to the Borrower for any period
of determination thereof, the sum of (a) the net profit (or loss) determined in accordance with
GAAP, plus (b) interest and taxes for such period, plus (c) depreciation and amortization of assets
for such period.

Amounts in Thousands

Funded Debt

	 	 	 
	(i)
	 	Debt for Borrowed money

	 
	 	 

	(ii)
	 	Debt evidenced by funds or notes and other similar instruments

	 
	 	 

	(iii)
	 	Letters of Credit

	 
	 	 

	(iv)
	 	Debt consisting of Capital Lease obligations

	 
	 	 

	[v]
	 	Subordinated Indebtedness

	 
	 	 

	Funded Debt numerator =
	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	
 
	 	(a)

PY Period

/ /
	 	(b)

FYE

/ /
	 	(c)

Current period

/ /
	 	[(b)-(a)]+(c)

Totals

	 	 	
 
	 	 
	 	 
	 	 
	 	 
	Denominator	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(a)
	 	Net Income after tax

	 	

	 	

	 	

	 	

	 
	 	 

	 	

	 	

	 	

	 	

	(c)
	 	+ Depreciation Expense

	 	

	 	

	 	

	 	

	 
	 	 

	 	

	 	

	 	

	 	

	(c)
	 	+ Amortization Expense

	 	

	 	

	 	

	 	

	 
	 	 

	 	

	 	

	 	

	 	

	(d)
	 	+ Interest Expense

	 	

	 	

	 	

	 	

	 
	 	 

	 	

	 	

	 	

	 	

	(e)
	 	+ Income Taxes

	 	

	 	

	 	

	 	

	 
	 	 

	 	

	 	

	 	

	 	

	EBITDA denominator =
	 
	 	 	Funded Debt to EBITDA
	 	 
	 	 	Requirement (see above):
	 	 
	 	 	Pass/Fail:
	 	 

EXHIBIT G

REQUIREMENTS FOR AUTHORIZED ACQUISITIONS

Acquisition Criteria:

Acquisition financing shall be available under the Revolving Credit Facility, provided that each
transaction meets the conditions outlined below:

	 	1.	 	Purchase price does not exceed $10,000,000.00.

	 	2.	 	Aggregate purchase price of all acquisitions in each fiscal year does not
exceed $20,000,000.00.

	 	3.	 	The Borrower shall be the surviving entity.

	 	4.	 	The acquisition shall not cause the Borrower to violate any covenants set forth
in this Agreement. Pro-forma compliance certificate must attest to pre- and
post-acquisition compliance with all such covenants. The pro-forma may take into
consideration the EBITDA of the target company for the trailing twelve-month period.

	 	5.	 	Acquisition candidate must have at least two consecutive fiscal years of bottom
line profitability.

	 	6.	 	Acquisition must be in a similar or related line of business of the Borrower,
and may not be “hostile” in nature.

	 	7.	 	Any other debt issued in conjunction with the acquisition shall be subordinated
to the debt to the Lender, in a form deemed acceptable by the Lender and in accordance
with a subordination agreement in form and content satisfactory to the Lender.

	 	8.	 	Acquired subsidiaries will be added as co-borrowers to the Credit Facilities.

	 	9.	 	Acquisition candidate is domiciled in the United States.

	 	10.	 	Prior to entering into the acquisition, the Borrower shall provide to the
Lender a pro-forma Compliance Certificate indicating that no Default exists or will
occur as a result of the acquisition. This is to be accompanied by pro-forma financial
statements, which demonstrate such compliance. The pro-forma may take into
consideration the EBITDA of the targeted acquisition, for the trailing twelve-month
period.

	 	11.	 	Copies of all legal and financial documentation, which, in the Lender’s
reasonable judgment is required to evaluate the proposed acquisition, shall be
submitted to the Lender prior to the occurrence of such an acquisition.

	 	12.	 	The Borrower shall agree to a field exam of the acquired company performed by
an authorized representative of the Lender, satisfactory to the Lender in its sole
discretion.

3EX-10.1

2010 Executive Officer Compensation

On January 22, 2010, the Compensation Committee of the Board of Directors of Volterra Semiconductor
Corporation (the “Company”) approved certain compensation matters for (i) its directors and (ii)
executive officers for whom disclosure was required in the registrant’s most recent filing with the
Commission under the Securities Act or Exchange Act that required disclosure pursuant to Item
402(c) of Regulation S-K (the “Officers”).

For 2010, the Compensation Committee did not change base salaries for the Officers, as previously
disclosed by the Company in its Form 8-K filings. The Compensation Committee approved the
following bonuses under the Company’s Management Bonus Plan for the Officers for 2009 performance:

	 	 	 	 	 
	Name and Title	 	 	 	2009 Bonus
	Jeff Staszak

President and Chief Executive Officer

	 	

 
	 	

$346,015
	Mike Burns

Vice President, Finance and Chief Financial Officer

	 	

 
	 	

$143,798
	David Lidsky

Vice President, Design Engineering

	 	

 
	 	

$100,000
	Bill Numann

Vice President, Marketing

	 	

 
	 	

$126,722
	Craig Teuscher

Vice President, Sales and Applications Engineering

	 	

 
	 	

$143,798

2010 Non-Employee Director Compensation

On January 22, 2010, the Board of Directors of Volterra Semiconductor Corporation (the “Company”),
upon the recommendation of the Compensation Committee, revised the cash compensation of the
non-employee directors as follows:

Annual cash retainer for service as:

	 	 	 	 	 
	Chairman of the Board of Directors:
	 	$	10,000	 
	Member of Board of Directors:*
	 	$	25,000	 
	Member of Audit Committee: *
	 	$	7,000	 
	Member of Compensation Committee: *
	 	$	3,500	 
	Member of Nominating and Governance Committee:*
	 	$	2,500	 
	Audit Committee Chair:*
	 	$	15,000	 
	Compensation Committee Chair:*
	 	$	7,000	 
	Nominating and Governance Committee Chair:*
	 	$	5,000	 

*represents no change from previously approved compensation

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