Document:

CREDIT AGREEMENT

 

EXHIBIT 10.14

 

 

 

$20,000,000

CREDIT AGREEMENT

among

SUNAIR ELECTRONICS, INC.

as Borrower,

ITS DOMESTIC SUBSIDIARIES

FROM TIME TO TIME PARTIES HERETO,

as Guarantors,

THE LENDERS PARTIES HERETO,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent

Dated as of June 7, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I.
	 	DEFINITIONS

	 	 	1	 
	 
	 	 
	 	 	 	 
	Section 1.1

	 	Defined Terms

	 	 	1	 
	 
	 	 
	 	 	 	 
	Section 1.2

	 	Other Definitional Provisions

	 	 	23	 
	 
	 	 
	 	 	 	 
	Section 1.3

	 	Accounting Terms

	 	 	23	 
	 
	 	 
	 	 	 	 
	Section 1.4

	 	Computation of Time Periods

	 	 	24	 
	 
	 	 
	 	 	 	 
	ARTICLE II.
	 	THE LOANS; AMOUNT AND TERMS

	 	 	24	 
	 
	 	 
	 	 	 	 
	Section 2.1

	 	Revolving Loans

	 	 	24	 
	 
	 	 
	 	 	 	 
	Section 2.2

	 	Letter of Credit Subfacility

	 	 	26	 
	 
	 	 
	 	 	 	 
	Section 2.3

	 	Fees

	 	 	29	 
	 
	 	 
	 	 	 	 
	Section 2.4

	 	Commitment Reductions

	 	 	30	 
	 
	 	 
	 	 	 	 
	Section 2.5

	 	Prepayments

	 	 	30	 
	 
	 	 
	 	 	 	 
	Section 2.6

	 	Minimum Principal Amount of Tranches

	 	 	32	 
	 
	 	 
	 	 	 	 
	Section 2.7

	 	Default Rate and Payment Dates

	 	 	32	 
	 
	 	 
	 	 	 	 
	Section 2.8

	 	Conversion Options

	 	 	32	 
	 
	 	 
	 	 	 	 
	Section 2.9

	 	Computation of Interest and Fees

	 	 	33	 
	 
	 	 
	 	 	 	 
	Section 2.10

	 	Pro Rata Treatment and Payments

	 	 	34	 
	 
	 	 
	 	 	 	 
	Section 2.11

	 	Non-Receipt of Funds by the Administrative Agent

	 	 	36	 
	 
	 	 
	 	 	 	 
	Section 2.12

	 	Inability to Determine Interest Rate

	 	 	37	 
	 
	 	 
	 	 	 	 
	Section 2.13

	 	Illegality

	 	 	37	 
	 
	 	 
	 	 	 	 
	Section 2.14

	 	Requirements of Law

	 	 	38	 
	 
	 	 
	 	 	 	 
	Section 2.15

	 	Taxes

	 	 	39	 
	 
	 	 
	 	 	 	 
	Section 2.16

	 	Indemnification; Nature of Issuing Lender’s Duties

	 	 	40	 
	 
	 	 
	 	 	 	 
	ARTICLE III.
	 	REPRESENTATIONS AND WARRANTIES

	 	 	41	 
	 
	 	 
	 	 	 	 
	Section 3.1

	 	Financial Condition

	 	 	41	 
	 
	 	 
	 	 	 	 
	Section 3.2

	 	No Change

	 	 	42	 
	 
	 	 
	 	 	 	 
	Section 3.3

	 	Corporate Existence

	 	 	42	 
	 
	 	 
	 	 	 	 
	Section 3.4

	 	Corporate Power; Authorization; Enforceable Obligations

	 	 	42	 
	 
	 	 
	 	 	 	 
	Section 3.5

	 	Compliance with Laws; No Conflict; No Default

	 	 	43	 
	 
	 	 
	 	 	 	 
	Section 3.6

	 	No Material Litigation

	 	 	43	 
	 
	 	 
	 	 	 	 
	Section 3.7

	 	Investment Company Act; PUHCA, Etc

	 	 	44	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 3.8

	 	Margin Regulations

	 	 	44	 
	 
	 	 
	 	 	 	 
	Section 3.9

	 	ERISA

	 	 	44	 
	 
	 	 
	 	 	 	 
	Section 3.10

	 	Environmental Matters

	 	 	44	 
	 
	 	 
	 	 	 	 
	Section 3.11

	 	Use of Proceeds

	 	 	45	 
	 
	 	 
	 	 	 	 
	Section 3.12

	 	Subsidiaries

	 	 	46	 
	 
	 	 
	 	 	 	 
	Section 3.13

	 	Ownership

	 	 	46	 
	 
	 	 
	 	 	 	 
	Section 3.14

	 	Indebtedness

	 	 	46	 
	 
	 	 
	 	 	 	 
	Section 3.15

	 	Taxes

	 	 	46	 
	 
	 	 
	 	 	 	 
	Section 3.16

	 	Intellectual Property Rights

	 	 	46	 
	 
	 	 
	 	 	 	 
	Section 3.17

	 	Solvency

	 	 	47	 
	 
	 	 
	 	 	 	 
	Section 3.18

	 	Investments

	 	 	47	 
	 
	 	 
	 	 	 	 
	Section 3.19

	 	Location of Collateral

	 	 	47	 
	 
	 	 
	 	 	 	 
	Section 3.20

	 	No Burdensome Restrictions

	 	 	47	 
	 
	 	 
	 	 	 	 
	Section 3.21

	 	Labor Matters

	 	 	48	 
	 
	 	 
	 	 	 	 
	Section 3.22

	 	Accuracy and Completeness of Information

	 	 	48	 
	 
	 	 
	 	 	 	 
	Section 3.23

	 	Material Contracts

	 	 	48	 
	 
	 	 
	 	 	 	 
	Section 3.24

	 	Foreign Assets Control Regulations, Etc

	 	 	48	 
	 
	 	 
	 	 	 	 
	Section 3.25

	 	Compliance with OFAC Rules and Regulations

	 	 	49	 
	 
	 	 
	 	 	 	 
	Section 3.26

	 	Consummation of Acquisition; Representations and
Warranties from Other Documents

	 	 	49	 
	 
	 	 
	 	 	 	 
	Section 3.27

	 	Regulation H

	 	 	49	 
	 
	 	 
	 	 	 	 
	Section 3.28

	 	Security Documents

	 	 	49	 
	 
	 	 
	 	 	 	 
	Section 3.29

	 	Government Contracts

	 	 	49	 
	 
	 	 
	 	 	 	 
	Section 3.30

	 	Assignment of Payments

	 	 	49	 
	 
	 	 
	 	 	 	 
	ARTICLE IV.
	 	CONDITIONS PRECEDENT

	 	 	50	 
	 
	 	 
	 	 	 	 
	Section 4.1

	 	Conditions to Closing Date

	 	 	50	 
	 
	 	 
	 	 	 	 
	Section 4.2

	 	Conditions to All Extensions of Credit

	 	 	54	 
	 
	 	 
	 	 	 	 
	ARTICLE V.
	 	AFFIRMATIVE COVENANTS

	 	 	55	 
	 
	 	 
	 	 	 	 
	Section 5.1

	 	Financial Statements

	 	 	55	 
	 
	 	 
	 	 	 	 
	Section 5.2

	 	Certificates; Other Information

	 	 	57	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 5.3

	 	Payment of Taxes and Other Obligations

	 	 	58	 
	 
	 	 
	 	 	 	 
	Section 5.4

	 	Conduct of Business and Maintenance of Existence

	 	 	58	 
	 
	 	 
	 	 	 	 
	Section 5.5

	 	Maintenance of Property; Insurance

	 	 	58	 
	 
	 	 
	 	 	 	 
	Section 5.6

	 	Inspection of Property; Books and Records; Discussions

	 	 	59	 
	 
	 	 
	 	 	 	 
	Section 5.7

	 	Notices

	 	 	59	 
	 
	 	 
	 	 	 	 
	Section 5.8

	 	Environmental Laws

	 	 	60	 
	 
	 	 
	 	 	 	 
	Section 5.9

	 	Financial Covenants

	 	 	61	 
	 
	 	 
	 	 	 	 
	Section 5.10

	 	Additional Guarantors

	 	 	61	 
	 
	 	 
	 	 	 	 
	Section 5.11

	 	Compliance with Law

	 	 	62	 
	 
	 	 
	 	 	 	 
	Section 5.12

	 	Pledged Assets

	 	 	62	 
	 
	 	 
	 	 	 	 
	Section 5.13

	 	Covenants Regarding Patents, Trademarks and Copyrights

	 	 	62	 
	 
	 	 
	 	 	 	 
	Section 5.14

	 	Lien Waivers

	 	 	64	 
	 
	 	 
	 	 	 	 
	Section 5.15

	 	Deposit Relationship

	 	 	64	 
	 
	 	 
	 	 	 	 
	Section 5.16

	 	Post-Closing Requirements

	 	 	64	 
	 
	 	 
	 	 	 	 
	ARTICLE VI.
	 	NEGATIVE COVENANTS

	 	 	64	 
	 
	 	 
	 	 	 	 
	Section 6.1

	 	Indebtedness

	 	 	65	 
	 
	 	 
	 	 	 	 
	Section 6.2

	 	Liens

	 	 	65	 
	 
	 	 
	 	 	 	 
	Section 6.3

	 	Guaranty Obligations

	 	 	65	 
	 
	 	 
	 	 	 	 
	Section 6.4

	 	Nature of Business

	 	 	66	 
	 
	 	 
	 	 	 	 
	Section 6.5

	 	Consolidation, Merger, Sale or Purchase of Assets, etc

	 	 	66	 
	 
	 	 
	 	 	 	 
	Section 6.6

	 	Advances, Investments and Loans

	 	 	66	 
	 
	 	 
	 	 	 	 
	Section 6.7

	 	Transactions with Affiliates

	 	 	67	 
	 
	 	 
	 	 	 	 
	Section 6.8

	 	Ownership of Subsidiaries; Restrictions

	 	 	67	 
	 
	 	 
	 	 	 	 
	Section 6.9

	 	Fiscal Year; Organizational Documents; Material Contracts

	 	 	67	 
	 
	 	 
	 	 	 	 
	Section 6.10

	 	Limitation on Restricted Actions

	 	 	67	 
	 
	 	 
	 	 	 	 
	Section 6.11

	 	Restricted Payments

	 	 	68	 
	 
	 	 
	 	 	 	 
	Section 6.12

	 	Prepayments of Indebtedness, etc

	 	 	68	 
	 
	 	 
	 	 	 	 
	Section 6.13

	 	Sale Leasebacks

	 	 	68	 
	 
	 	 
	 	 	 	 
	Section 6.14

	 	No Further Negative Pledges

	 	 	68	 
	 
	 	 
	 	 	 	 
	Section 6.15

	 	Acquisition (Post-Closing Adjustments)

	 	 	69	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VII.
	 	EVENTS OF DEFAULT

	 	 	69	 
	 
	 	 
	 	 	 	 
	Section 7.1

	 	Events of Default

	 	 	69	 
	 
	 	 
	 	 	 	 
	Section 7.2

	 	Acceleration; Remedies

	 	 	72	 
	 
	 	 
	 	 	 	 
	ARTICLE VIII.
	 	THE ADMINISTRATIVE AGENT

	 	 	73	 
	 
	 	 
	 	 	 	 
	Section 8.1

	 	Appointment

	 	 	73	 
	 
	 	 
	 	 	 	 
	Section 8.2

	 	Delegation of Duties

	 	 	73	 
	 
	 	 
	 	 	 	 
	Section 8.3

	 	Exculpatory Provisions

	 	 	73	 
	 
	 	 
	 	 	 	 
	Section 8.4

	 	Reliance by Administrative Agent

	 	 	74	 
	 
	 	 
	 	 	 	 
	Section 8.5

	 	Notice of Default

	 	 	74	 
	 
	 	 
	 	 	 	 
	Section 8.6

	 	Non-Reliance on Administrative Agent and Other Lenders

	 	 	75	 
	 
	 	 
	 	 	 	 
	Section 8.7

	 	Indemnification

	 	 	75	 
	 
	 	 
	 	 	 	 
	Section 8.8

	 	The Administrative Agent in Its Individual Capacity

	 	 	76	 
	 
	 	 
	 	 	 	 
	Section 8.9

	 	Successor Administrative Agent

	 	 	76	 
	 
	 	 
	 	 	 	 
	Section 8.10

	 	Other Agents

	 	 	76	 
	 
	 	 
	 	 	 	 
	ARTICLE IX.
	 	MISCELLANEOUS

	 	 	77	 
	 
	 	 
	 	 	 	 
	Section 9.1

	 	Amendments, Waivers and Release of Collateral

	 	 	77	 
	 
	 	 
	 	 	 	 
	Section 9.2

	 	Notices

	 	 	79	 
	 
	 	 
	 	 	 	 
	Section 9.3

	 	No Waiver; Cumulative Remedies

	 	 	80	 
	 
	 	 
	 	 	 	 
	Section 9.4

	 	Survival of Representations and Warranties

	 	 	81	 
	 
	 	 
	 	 	 	 
	Section 9.5

	 	Payment of Expenses and Taxes; Indemnification

	 	 	81	 
	 
	 	 
	 	 	 	 
	Section 9.6

	 	Successors and Assigns; Participations; Purchasing Lenders

	 	 	81	 
	 
	 	 
	 	 	 	 
	Section 9.7

	 	Adjustments; Set-off

	 	 	84	 
	 
	 	 
	 	 	 	 
	Section 9.8

	 	Table of Contents and Section Headings

	 	 	85	 
	 
	 	 
	 	 	 	 
	Section 9.9

	 	Counterparts

	 	 	85	 
	 
	 	 
	 	 	 	 
	Section 9.10

	 	Effectiveness

	 	 	85	 
	 
	 	 
	 	 	 	 
	Section 9.11

	 	Severability

	 	 	86	 
	 
	 	 
	 	 	 	 
	Section 9.12

	 	Integration

	 	 	86	 
	 
	 	 
	 	 	 	 
	Section 9.13

	 	Governing Law

	 	 	86	 
	 
	 	 
	 	 	 	 
	Section 9.14

	 	Consent to Jurisdiction and Service of Process

	 	 	86	 
	 
	 	 
	 	 	 	 
	Section 9.15

	 	Acknowledgments

	 	 	87	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 9.16

	 	Waivers of Jury Trial; Waiver of Consequential Damages

	 	 	87	 
	 
	 	 
	 	 	 	 
	Section 9.17

	 	Patriot Act Notice

	 	 	87	 
	 
	 	 
	 	 	 	 
	Section 9.18

	 	Arbitration

	 	 	87	 
	 
	 	 
	 	 	 	 
	ARTICLE X.
	 	GUARANTY

	 	 	89	 
	 
	 	 
	 	 	 	 
	Section 10.1

	 	The Guaranty

	 	 	89	 
	 
	 	 
	 	 	 	 
	Section 10.2

	 	Bankruptcy

	 	 	89	 
	 
	 	 
	 	 	 	 
	Section 10.3

	 	Nature of Liability

	 	 	90	 
	 
	 	 
	 	 	 	 
	Section 10.4

	 	Independent Obligation

	 	 	90	 
	 
	 	 
	 	 	 	 
	Section 10.5

	 	Authorization

	 	 	90	 
	 
	 	 
	 	 	 	 
	Section 10.6

	 	Reliance

	 	 	91	 
	 
	 	 
	 	 	 	 
	Section 10.7

	 	Waiver

	 	 	91	 
	 
	 	 
	 	 	 	 
	Section 10.8

	 	Limitation on Enforcement

	 	 	92	 
	 
	 	 
	 	 	 	 
	Section 10.9

	 	Confirmation of Payment

	 	 	92	 

 

 

Schedules

	 	 	 
	Schedule 1.1(a)	 	Account Designation Letter

	Schedule 1.1(b)	 	Investments

	Schedule 1.1(c)	 	Form of Acquisition Compliance Certificate

	Schedule 2.1(a)	 	Schedule of Lenders and Commitments

	Schedule 2.1(b)(i)	 	Form of Notice of Borrowing

	Schedule 2.1(e)	 	Form of Revolving Note

	Schedule 2.8	 	Form of Notice of Conversion/Extension

	Schedule 3.3	 	Jurisdictions of Organization and Qualification

	Schedule 3.6	 	Litigation

	Schedule 3.12	 	Subsidiaries

	Schedule 3.16	 	Intellectual Property

	Schedule 3.19(a)	 	Location of Real Property

	Schedule 3.19(b)	 	Location of Collateral

	Schedule 3.19(c)	 	Chief Executive Offices

	Schedule 3.21	 	Labor Matters

	Schedule 3.23	 	Material Contracts

	Schedule 4.1(b)	 	Form of Secretary’s Certificate

	Schedule 4.1(i)	 	Form of Solvency Certificate

	Schedule 5.2(b)	 	Form of Officer’s Compliance Certificate

	Schedule 5.5(b)	 	Insurance

	Schedule 5.10	 	Form of Joinder Agreement

	Schedule 6.1(b)	 	Indebtedness

	Schedule 9.2	 	Lenders’ Lending Offices

	Schedule 9.6(c)	 	Form of Commitment Transfer Supplement

 

 

     CREDIT AGREEMENT, dated as of June 7, 2005 (this “Credit Agreement”), among SUNAIR
ELECTRONICS, INC., a Florida corporation (the “Borrower”), each of those Domestic
Subsidiaries of the Borrower identified as a “Guarantor” on the signature pages hereto and such
other Domestic Subsidiaries of the Borrower as may from time to time become a party hereto
(collectively the “Guarantors” and individually a “Guarantor”), the several banks
and other financial institutions from time to time parties to this Credit Agreement (collectively
the “Lenders” and individually a “Lender”) and WACHOVIA BANK, NATIONAL ASSOCIATION,
a national banking association, as administrative agent for the Lenders hereunder (in such
capacity, the “Administrative Agent” or the “Agent”).

W I T N E S S E T H:

     WHEREAS, the Borrower has requested, and the Lenders have agreed, to extend certain credit
facilities to the Borrower on the terms and conditions set forth herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, such parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Defined Terms.

     As used in this Credit Agreement, terms defined in the preamble to this Credit Agreement have
the meanings therein indicated, and the following terms have the following meanings:

     “AAA” shall mean the American Arbitration Association.

     “Account Designation Letter” shall mean the Notice of Account Designation Letter dated
the Closing Date from the Borrower to the Administrative Agent in substantially the form attached
hereto as Schedule 1.1(a).

     “Acquired Business” shall mean Middleton Pest Control, Inc.

     “Acquisition” shall mean the acquisition of the Acquired Business from the Sellers by
the Borrower, pursuant to the Acquisition Documents.

     “Acquisition Documents” shall mean (a) that certain Stock Purchase Agreement, dated as
of June 7, 2005 (the “Purchase Agreement”), by and among the Sellers and Sunair Southeast
Pest Holdings, Inc., together with any schedules and exhibits thereto and (b) any other material
agreement, document or instrument executed pursuant to the Purchase Agreement (including, without
limitation, any employment agreements and any material contracts), together with any schedules and
exhibits thereto, in each case as amended, restated, modified or supplemented from time to time.

     “Additional Credit Party” shall mean each Person that becomes a Guarantor by execution
of a Joinder Agreement in accordance with Section 5.10.

 

 

     “Administrative Agent” or “Agent” shall have the meaning set forth in the first
paragraph of this Credit Agreement and any successors in such capacity.

     “Affiliate” shall mean as to any Person, any other Person (excluding any Subsidiary)
which, directly or indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a
Person if such Person possesses, directly or indirectly, power either (a) to vote 10% or more of
the securities having ordinary voting power for the election of directors of such Person or (b) to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise.

     “Agreement or Credit Agreement” shall mean this Credit Agreement, as amended, modified
or supplemented from time to time in accordance with its terms.

     “Applicable Percentage” shall mean, for any day, the rate per annum set forth below
opposite the applicable Level then in effect:

	 	 	 	 	 	 	 	 	 
	 	Level

	 	 	Leverage Ratio
	 	 	Applicable Percentage	 
	 	I
	 	 	≥3.0x
	 	 	3.00%	 
	 	II
	 	 	≥2.5x but <3.0x
	 	 	2.75%	 
	 	III
	 	 	<2.5x
	 	 	2.50%	 
	 

     The Applicable Percentage shall, in each case, be determined and adjusted quarterly on
the date three (3) Business Days after the date on which the Administrative Agent has received from
the Borrower the quarterly financial information and certifications required to be delivered to the
Administrative Agent and the Lenders in accordance with the provisions of Sections 5.1(a), 5.1(b)
and 5.2(b) (each an “Interest Determination Date”). Such Applicable Percentage shall be
effective from such Interest Determination Date until the next such Interest Determination Date.
After the Closing Date, if the Borrower shall fail to provide the financial information and
certifications in accordance with the provisions of Sections 5.1(a), 5.1(b) and 5.2(b) or an Event
of Default shall have occurred and be continuing, the Applicable Percentage shall, on the date
three (3) Business Days after the date by which the Borrower was so required to provide such
financial information and certifications to the Administrative Agent and the Lenders, be based on
Level I until such time as such information and certifications are provided, whereupon the Level
shall be determined by the then current Leverage Ratio.

     “Approved Fund” shall mean, with respect to any Lender that is a fund that invests in
bank loans, any other fund that invests in bank loans and is managed by the same investment advisor
as such Lender or by an affiliate of such investment advisor.

     “Arbitration Rules” shall mean the Commercial Financial Disputes Arbitration Rules of
the AAA.

2

 

     “Asset Disposition” shall mean the disposition of any or all of the assets (including,
without limitation, the Capital Stock of a Subsidiary or any ownership interest in a joint venture)
of the Borrower or any Subsidiary whether by sale, lease, transfer or otherwise. The term “Asset
Disposition” shall not include (a) the sale, lease or transfer of assets permitted by Section
6.5(a)(i), (ii) or (iii), or (b) any Equity Issuance.

     “Assignment of Claims Act” shall mean Title 31, United States Code § 3727 and Title
41, United States Code § 15, as revised or amended, and any rules or regulations issued pursuant
thereto, and also shall be deemed to include any other laws, rules or regulations governing the
assignment of government contracts or claims against a Governmental Authority.

     “Bank Products” shall mean any one or more of the following types of services or
facilities extended to any of the Credit Parties by the Agent or any Affiliate of the Agent in
reliance on the Agent’s agreement to indemnify such Affiliate: (i) Automated Clearing House (ACH)
transactions and other similar money transfer services; (ii) cash management, including controlled
disbursement and lockbox services; (iii) establishing and maintaining deposit accounts; (iv) credit
cards or stored value cards; and (v) other similar or related bank products and services.

     “Bankruptcy Code” shall mean the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

     “Borrower” shall have the meaning set forth in the first paragraph of this Credit
Agreement.

     “Borrowing Date” shall mean, in respect of any Loan, the date such Loan is made.

     “Business” shall have the meaning set forth in Section 3.10.

     “Business Day” shall mean a day other than a Saturday, Sunday or other day on which
commercial banks in Charlotte, North Carolina or New York, New York are authorized or required by
law to close; provided, however, that when used in connection with a rate
determination, borrowing or payment, the term “Business Day” shall also exclude any day on which
banks in London, England are not open for dealings in Dollar deposits in the London interbank
market.

     “Capital Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the lessee in accordance
with GAAP.

     “Capital Lease Obligations” shall mean the capitalized lease obligations relating to a
Capital Lease determined in accordance with GAAP.

     “Capital Stock” shall mean (i) in the case of a corporation, capital stock, (ii) in
the case of an association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (iii) in the case of a
partnership, partnership interests (whether general or limited), (iv) in the case of a limited
liability company, membership

3

 

interests and (v) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Cash Equivalents” shall mean (i) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof (provided that
the full faith and credit of the United States of America is pledged in support thereof) having
maturities of not more than twelve months from the date of acquisition (“Government
Obligations”), (ii) U.S. dollar denominated (or foreign currency fully hedged to U.S. dollar)
time deposits, certificates of deposit, Eurodollar time deposits and Eurodollar certificates of
deposit of (y) any domestic commercial bank of recognized standing having capital and surplus in
excess of $250,000,000 or (z) any bank whose short-term commercial paper rating from S&P is at
least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any
such bank being an “Approved Bank”), in each case with maturities of not more than 364 days
from the date of acquisition, (iii) commercial paper and variable or fixed rate notes issued by any
Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or
guaranteed by any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or
P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of
acquisition, (iv) repurchase agreements with a bank or trust company (including a Lender) or a
recognized securities dealer having capital and surplus in excess of $500,000,000 for direct
obligations issued by or fully guaranteed by the United States of America, (v) obligations of any
state of the United States or any political subdivision thereof for the payment of the principal
and redemption price of and interest on which there shall have been irrevocably deposited
Government Obligations maturing as to principal and interest at times and in amounts sufficient to
provide such payment, and (vi) auction preferred stock rated in the highest short-term credit
rating category by S&P or Moody’s.

     “Change of Control” shall mean (a) any Person or two or more Persons acting in concert
shall have acquired “beneficial ownership,” directly or indirectly, of, or shall have acquired by
contract or otherwise, or shall have entered into a contract or arrangement that, upon
consummation, will result in its or their acquisition of, or control over, Voting Stock of the
Borrower (or other securities convertible into such Voting Stock) representing 35% or more of the
combined voting power of all Voting Stock of the Borrower, (b) the sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the assets of the Borrower and its
Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Act of 1934), (c) the adoption by the stockholders of the Borrower of a plan or
proposal for the liquidation or dissolution of the Borrower. As used herein, “beneficial
ownership” shall have the meaning provided in Rule 13d-3 of the Securities and Exchange Commission
under the Securities Act of 1934.

     “Closing Date” shall mean the date of this Credit Agreement.

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

     “Collateral” shall mean a collective reference to the collateral which is identified
in, and at any time covered by, the Security Documents or such other collateral in which a security
interest may be granted in favor of the Agent to secure the Credit Party Obligations.

4

 

     “Commitment” shall mean the Revolving Commitment and the LOC Commitment, individually
or collectively, as appropriate.

     “Commitment Fee” shall have the meaning set forth in Section 2.3(a).

     “Commitment Percentage” shall mean the Revolving Commitment Percentage and/or the LOC
Commitment Percentage, as appropriate.

     “Commitment Period” shall mean the period from and including the Closing Date to but
not including the Revolving Commitment Termination Date.

     “Commitment Transfer Supplement” shall mean a Commitment Transfer Supplement, in
substantially the form of Schedule 9.6(c).

     “Commonly Controlled Entity” shall mean an entity, whether or not incorporated, which
is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of
a group which includes the Borrower and which is treated as a single employer under Section 414 of
the Code.

     “Consolidated” shall mean, when used with reference to financial statements or
financial statement items of the Borrower and its Subsidiaries or any other Person, such statements
or items on a consolidated basis in accordance with the consolidation principles of GAAP.

     “Consolidated Capital Expenditures” shall mean, for any applicable period of
computation, all expenditures of the Borrower and its Subsidiaries on a Consolidated basis for such
period which in accordance with GAAP would be classified as capital expenditures, including without
limitation, Capital Lease Obligations.

     “Consolidated Cash Taxes” shall mean, for any applicable period of computation, the
aggregate of all taxes (including, without limitation, any federal, state, local and foreign
income, value added and similar taxes) paid or payable in cash by the Borrower and its Subsidiaries
on a Consolidated basis during such period.

     “Consolidated EBITDA” shall mean, for any applicable period of computation, (a)
Consolidated Net Income for such period plus (b) the sum of the following to the extent deducted in
calculating Consolidated Net Income: (i) Consolidated Interest Expense for such period, (ii) the
provision for Federal, state, local and foreign income taxes payable by the Borrower and its
Subsidiaries for such period, (iii) depreciation and amortization expense for such period, (iv)
other non-cash expenses of the Borrower and its Subsidiaries and (v) the payment of the management
fee (not to exceed $1,562,500) to RPC Financial Advisers, LLC in the first year after the Closing
Date.

     “Consolidated Fixed Charges” shall mean, for any applicable period of computation, the
sum of (i) Consolidated Interest Expense for such period plus (ii) lease payments under
operating leases for such period plus (iii) Consolidated Scheduled Debt Payments for such
period, of the Borrower and its Subsidiaries on a Consolidated basis.

5

 

     “Consolidated Funded Debt” shall mean, on any date of calculation, Funded Debt of the
Borrower and its Subsidiaries on a Consolidated basis.

     “Consolidated Interest Expense” shall mean, for any applicable period of computation,
all interest expense (excluding amortization of debt discount and premium, but including the
interest component under Capital Leases) for such period of the Borrower and its Subsidiaries on a
Consolidated basis.

     “Consolidated Net Income” shall mean, for any applicable period of computation, the
net income (excluding extraordinary losses and gains and all non-cash income) of the Borrower and
its Subsidiaries on a Consolidated basis for such period.

     “Consolidated Scheduled Debt Payments” shall mean, for any applicable period of
computation, the sum of all scheduled payments of principal on Consolidated Funded Debt for such
period (including the principal component of payments due on Capital Leases during the applicable
period ending on such date); it being understood that scheduled payments on Consolidated Funded
Debt shall not include optional prepayments or the mandatory prepayments required pursuant to
Section 2.5.

     “Consolidated Senior Debt” shall mean, on any date of calculation, all Consolidated
Funded Debt other than Subordinated Debt.

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

     “Copyright Licenses” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right under any Copyright, including, without limitation, any
thereof referred to in Schedule 3.16 to this Credit Agreement.

     “Copyrights” shall mean all copyrights (other than copyrights of de
minimus value) of the Borrower and its Subsidiaries in all works, now existing or hereafter
created or acquired, all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Copyright Office or in any similar office or agency of the
United States, any state thereof or any other country or any political subdivision thereof, or
otherwise, including, without limitation, any thereof referred to in Schedule 3.16 and all
renewals thereof.

     “Credit Documents” shall mean this Credit Agreement, each of the Notes, any Joinder
Agreement, the Letters of Credit, the LOC Documents, the Security Documents and all other
agreements, documents, certificates and instruments delivered to the Administrative Agent or any
Lender by any Credit Party in connection therewith (other than any agreement, document, certificate
or instrument related to a Hedging Agreement).

     “Credit Party” shall mean any of the Borrower or the Guarantors.

     “Credit Party Obligations” shall mean, without duplication, (i) all of the obligations
(including principal, interest, fees, reimbursements, indemnification obligations and other
amounts) of the Credit Parties to the Lenders (including the Issuing Lender) and the

6

 

Administrative Agent, whenever arising, under this Credit Agreement, the Notes or any of the
other Credit Documents (including, but not limited to, any interest accruing after the occurrence
of a filing of a petition of bankruptcy under the Bankruptcy Code with respect to any Credit Party,
regardless of whether such interest is an allowed claim under the Bankruptcy Code), (ii) all
liabilities and obligations, whenever arising, owing from any Credit Party or any of its
Subsidiaries to any Hedging Agreement Provider arising under any Secured Hedging Agreement, and
(iii) all liabilities and obligations, whenever arising, owing from any Credit Party or any of its
Subsidiaries to the Agent or any of its Affiliates in connection with Bank Products.

     “Debt Issuance” shall mean the issuance of any Indebtedness for borrowed money by the
Borrower or any of its Subsidiaries (excluding any Equity Issuance or any Indebtedness of the
Borrower and its Subsidiaries permitted to be incurred pursuant to Section 6.1 hereof).

     “Default” shall mean any of the events specified in Section 7.1, whether or not any
requirement for the giving of notice or the lapse of time, or both, or any other condition, has
been satisfied.

     “Defaulting Lender” shall mean, at any time, any Lender that, at such time (a) has
failed to make a Loan required pursuant to the term of this Credit Agreement, including the funding
of a Participation Interest in accordance with the terms hereof and such default remains uncured,
(b) has failed to pay to the Administrative Agent or any Lender an amount owed by such Lender
pursuant to the terms of this Credit Agreement and such default remains uncured, or (c) has been
deemed insolvent or has become subject to a bankruptcy or insolvency proceeding or to a receiver,
trustee or similar official.

     “Dispute” shall mean any judicial proceeding, any dispute, claim or controversy
arising out of, connected with or relating to this Credit Agreement and other Credit Documents.

     “Dollars” and “$” shall mean dollars in lawful currency of the United States
of America.

     “Domestic Lending Office” shall mean, initially, the office of each Lender designated
as such Lender’s Domestic Lending Office shown on Schedule 9.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Borrower as the office of such Lender at which Floating LIBOR Rate Loans of such Lender are to
be made.

     “Domestic Subsidiary” shall mean any Subsidiary that is organized and existing under
the laws of the United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

     “Environmental Laws” shall mean any and all applicable foreign, federal, state, local
or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority or other Requirement of Law (including common law) regulating,
relating to or imposing liability or standards of conduct concerning protection of human health or
the environment, as now or may at any time be in effect during the term of this Credit Agreement.

7

 

     “Equity Issuance” shall mean any issuance by the Borrower or any Subsidiary to any
Person which is not a Credit Party of (a) shares of its Capital Stock, (b) any shares of its
Capital Stock pursuant to the exercise of options or warrants or (c) any shares of its Capital
Stock pursuant to the conversion of any debt securities to equity. The term “Equity Issuance”
shall not include any Asset Disposition or any Debt Issuance.

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

     “Eurodollar Reserve Percentage” shall mean for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Federal Reserve Board (or any successor) for determining the maximum
reserve requirement (including without limitation any basic, supplemental or emergency reserves) in
respect of Eurocurrency liabilities, as defined in Regulation D of such Board as in effect from
time to time, or any similar category of liabilities for a member bank of the Federal Reserve
System in New York City.

     “Event of Default” shall mean any of the events specified in Section 7.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.

     “Extension of Credit” shall mean, as to any Lender, the making of a Loan by such
Lender or the issuance of, or participation in, a Letter of Credit by such Lender.

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

     “Fixed Charge Coverage Ratio” shall mean, for any date of determination, for the
twelve-month period ending as of such date, the ratio of (i) Consolidated EBITDA for such period
plus lease payments under operating leases for such period minus unfinanced
Consolidated Capital Expenditures for such period minus dividend payments and stock
repurchases that are made during such period to (ii) Consolidated Fixed Charges for such period.

     “Fixed LIBOR” shall mean, for any Fixed LIBOR Rate Loan for any Interest Period
therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing
on Telerate Page 3750 (or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period. If for any reason such rate is not
available, the term “Fixed LIBOR” shall mean, for any Fixed LIBOR Rate Loan for any Interest

8

 

Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period; provided, however,
if more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be the
arithmetic mean of all such rates (rounded upwards, if necessary, to the nearest 1/100 of 1%). If,
for any reason, neither of such rates is available, then “Fixed LIBOR” shall mean the rate per
annum at which, as determined by the Administrative Agent, Dollars in an amount comparable to the
Loans then requested are being offered to leading banks at approximately 11:00 A.M. London time,
two (2) Business Days prior to the commencement of the applicable Interest Period for settlement in
immediately available funds by leading banks in the London interbank market for a period equal to
the Interest Period selected.

     “Fixed LIBOR Rate” shall mean a rate per annum (rounded upwards, if necessary, to the
next higher 1/100th of 1%) determined by the Administrative Agent pursuant to the following
formula:

	 	 	 	 	 
	Fixed LIBOR Rate

	 	=
	 	Fixed LIBOR
	

	 	 	 	 
	

	 	 	 	1.00 — Eurodollar Reserve Percentage

     “Fixed LIBOR Rate Loan” shall mean Loans the rate of interest applicable to which is
based on the Fixed LIBOR Rate.

     “Floating LIBOR Rate” means for any day, the rate for one month Dollar deposits as
reported on Telerate page 3750 as of 11:00 a.m., London time, on such day, or if such day is not a
LIBOR Business Day, then the immediately preceding LIBOR Business Day (or if not so reported, then
as determined by Bank from another recognized source or interbank quotation).

     “Floating LIBOR Rate Loan” shall mean Loans the rate of interest applicable to which
is based on the Floating LIBOR Rate.

     “Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

     “Funded Debt” shall mean, with respect to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of business), (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
purchased by such Person (other than trade debt incurred in the ordinary course of business and due
within six months of the incurrence thereof) which would appear as liabilities on a balance sheet
of such Person, (e) the principal portion of all obligations of such Person under Capital Leases,
(f) the maximum amount of all letters of credit issued or bankers’ acceptances facilities created
for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed), (g) all preferred Capital Stock issued by such Person and which by the terms thereof
could be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund

9

 

payments, redemption or other acceleration, (h) the principal balance outstanding under any
synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product, (i) obligations of such Person under non-compete agreements to the extent such
obligations have been determined, (j) all obligations of such Person under Hedging Agreements,
excluding any portion thereof which would be accounted for as interest expense under GAAP, (k) all
Indebtedness of others of the type described in clauses (a) through (j) hereof secured by (or for
which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on, or payable out of the proceeds of production from, property owned or acquired by
such Person, whether or not the obligations secured thereby have been assumed, (l) all Guaranty
Obligations of such Person with respect to Indebtedness of another Person of the type described in
clauses (a) through (j) hereof, and (m) all Indebtedness of the type described in clauses (a)
through (j) hereof of any partnership or unincorporated joint venture in which such Person is a
general partner or a joint venturer; provided, however, that Funded Debt shall not
include Indebtedness among the Credit Parties.

     “GAAP” shall mean generally accepted accounting principles in effect in the United
States of America applied on a consistent basis, subject, however, in the case of
determination of compliance with the financial covenants set out in Section 5.9 to the provisions
of Section 1.3.

     “Government Acts” shall have the meaning set forth in Section 2.19.

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

     “Government Contract” shall mean any contract entered into between a Credit Party or
any of its Subsidiaries and the government of the United States of America, or any department,
agency, public corporation, or other instrumentality or agent thereof or any state government or
any department, agency or instrumentality or agent thereof.

     “Governmental Authority” shall mean 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.

     “Guaranty Obligations” shall mean, with respect to any Person, without duplication,
any obligations of such Person (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any
Indebtedness of any other Person in any manner, whether direct or indirect, and including without
limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any
property constituting security therefor, (ii) to advance or provide funds or other support for the
payment or purchase of any such Indebtedness or to maintain working capital, solvency or other
balance sheet condition of such other Person (including without limitation keep well agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of
any holder of Indebtedness of such other Person, (iii) to lease or purchase Property, securities or
services primarily for the purpose of assuring the holder of such Indebtedness, or (iv) to
otherwise assure or hold harmless the holder of such Indebtedness against loss in respect thereof.
The amount of any Guaranty Obligation hereunder shall (subject to any limitations set forth
therein) be deemed to be an

10

 

amount equal to the outstanding principal amount (or maximum principal amount, if larger) of
the Indebtedness in respect of which such Guaranty Obligation is made.

     “Guarantor” shall have the meaning set forth in the first paragraph of this Credit
Agreement.

     “Guaranty” shall mean the guaranty of the Guarantors set forth in Article X.

     “Hedging Agreement Provider” shall mean any Person that enters into a Hedging
Agreement with a Credit Party or any of its Subsidiaries so long as such Person is a Lender, an
Affiliate of a Lender or any other Person that was a Lender (or an Affiliate of a Lender) at the
time it entered into the Hedging Agreement but has ceased to be a Lender (or whose Affiliate has
ceased to be a Lender) under the Credit Agreement.

     “Hedging Agreements” shall mean, with respect to any Person, any agreement entered
into to protect such Person against fluctuations in interest rates, or currency or raw materials
values, including, without limitation, any interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more counterparties, commodity purchase or option
agreements or other interest or exchange rate hedging agreements.

     “Indebtedness” shall mean, with respect to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of business), (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
purchased by such Person (other than trade debt incurred in the ordinary course of business and due
within six months of the incurrence thereof) which would appear as liabilities on a balance sheet
of such Person, (e) all obligations of such Person under take-or-pay or similar arrangements or
under commodities agreements, (f) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or
payable out of the proceeds of production from, property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed, (g) all Guaranty Obligations of such
Person with respect to Indebtedness of another Person, (h) the principal portion of all Capital
Lease Obligations of such Person, (i) all obligations of such Person under Hedging Agreements,
excluding any portion thereof which would be accounted for as interest expense under GAAP, (j) the
maximum amount of all letters of credit issued or bankers’ acceptances facilities created for the
account of such Person and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed), (k) all preferred Capital Stock issued by such Person and which by the terms thereof
could be (at the request of the holders thereof or otherwise) subject to mandatory sinking fund
payments, redemption or other acceleration, (l) the principal balance outstanding under any
synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product, (m) the Indebtedness of any partnership or unincorporated joint venture in which
such Person is a general partner or a joint venturer and (n) obligations of such Person under
non-compete agreements.

11

 

     “Insolvency” shall mean, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA.

     “Insolvent” shall mean being in a condition of Insolvency.

     “Intellectual Property” shall mean the Copyrights, Copyright Licenses, Patents, Patent
Licenses, Trademarks and Trademark Licenses of the Borrower and its Subsidiaries (other than
off-the-shelf software products), all goodwill associated therewith and all rights to sue for
infringement thereof.

     “Interest Payment Date” shall mean (a) as to any Floating LIBOR Rate Loan, the 15th
day of each month commencing July 15, 2005 and (b) as to any Fixed LIBOR Rate Loan, the last day of
such Interest Period.

     “Interest Period” shall mean, with respect to any Fixed LIBOR Rate Loan,

     (i) initially, the period commencing on the Borrowing Date or conversion date, as the
case may be, with respect to such Fixed LIBOR Rate Loan and ending one, two or three months
thereafter, as selected by the Borrower in the Notice of Borrowing or Notice of Conversion
given with respect thereto; and

     (ii) thereafter, each period commencing on the last day of the immediately preceding
Interest Period applicable to such Fixed LIBOR Rate Loan and ending one, two or three months
thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent
not less than three Business Days prior to the last day of the then current Interest Period
with respect thereto; provided that the foregoing provisions are subject to the
following:

     (A) if any Interest Period pertaining to a Fixed LIBOR Rate Loan would
otherwise end on a day that is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless the result of such extension
would be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day;

     (B) any Interest Period pertaining to a Fixed LIBOR Rate Loan that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the relevant calendar month;

     (C) if the Borrower shall fail to give notice as provided above, the Borrower
shall be deemed to have selected a Floating LIBOR Rate Loan to replace the affected
Fixed LIBOR Rate Loan;

     (D) no Interest Period may extend beyond the Maturity Date; and

     (E) no more than six (6) Fixed LIBOR Rate Loans may be in effect at any time.
For purposes hereof, Fixed LIBOR Rate Loans with different Interest

12

 

Periods shall be considered as separate Fixed LIBOR Rate Loans, even if they
shall begin on the same date, although borrowings, extensions and conversions may,
in accordance with the provisions hereof, be combined at the end of existing
Interest Periods to constitute a new Fixed LIBOR Rate Loan with a single Interest
Period.

     “Investment” shall mean (a) the acquisition (whether for cash, property, services,
assumption of Indebtedness, securities or otherwise) of assets, shares of Capital Stock, bonds,
notes, debentures, partnership, joint ventures or other ownership interests or other securities of
any Person or (b) any deposit with, or advance, loan or other extension of credit to, such Person
(other than deposits made in connection with the purchase of equipment or other assets in the
ordinary course of business) or (c) any other capital contribution to or investment in such Person,
including, without limitation, any Guaranty Obligation (including any support for a Letter of
Credit issued on behalf of such Person) incurred for the benefit of such Person.

     “Issuing Lender” shall mean Wachovia.

     “Issuing Lender Fees” shall have the meaning set forth in Section 2.3(d).

     “Joinder Agreement” shall mean a Joinder Agreement in substantially the form of
Schedule 5.10, executed and delivered by an Additional Credit Party in accordance with the
provisions of Section 5.10.

     “Lender” shall have the meaning set forth in the first paragraph of this Credit
Agreement.

     “Letters of Credit” shall mean any letter of credit issued by the Issuing Lender
pursuant to the terms hereof as such letter of credit may be amended, modified, extended, renewed
or replaced from time to time.

     “Letter of Credit Fee” shall have the meaning set forth in Section 2.3(c).

     “Leverage Ratio” shall mean, for any date of determination, the ratio of (i)
Consolidated Senior Funded Debt as of such date to (ii) Consolidated EBITDA for the twelve-month
period ending as of such date.

     “LIBOR Lending Office” shall mean, initially, the office of each Lender designated as
such Lender’s LIBOR Lending Office shown on Schedule 9.2; and thereafter, such other office
of such Lender as such Lender may from time to time specify to the Administrative Agent and the
Borrower as the office of such Lender at which the Fixed LIBOR Rate Loans of such Lender are to be
made.

     “LIBOR Business Day” means with respect to all notices and determinations in
connection with, and payments of principal and interest on, any day that is a Business Day and that
is also a day for trading by and between banks in Dollar deposits in the London interbank market.

     “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security interest or any

13

 

preference, priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, any conditional sale or other title retention
agreement and any Capital Lease having substantially the same economic effect as any of the
foregoing).

     “Loan” shall mean a Revolving Loan.

     “LOC Commitment” shall mean the commitment of the Issuing Lender to issue Letters of
Credit and with respect to each Lender that has a Revolving Commitment, the commitment of such
Lender to purchase participation interests in the Letters of Credit up to such Lender’s LOC
Committed Amount as specified in Schedule 2.1(a), as such amount may be reduced from time
to time in accordance with the provisions hereof.

     “LOC Commitment Percentage” shall mean, for each Lender, the percentage identified as
its LOC Commitment Percentage on Schedule 2.1(a), as such percentage may be modified in
connection with any assignment made in accordance with the provisions of Section 9.6(c).

     “LOC Committed Amount” shall have the meaning set forth in Section 2.2(a).

     “LOC Documents” shall mean, with respect to any Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any application
therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for (i) the rights
and obligations of the parties concerned or (ii) any collateral security for such obligations.

     “LOC Obligations” shall mean, at any time, the sum of (i) the maximum amount which is,
or at any time thereafter may become, available to be drawn under Letters of Credit then
outstanding, assuming compliance with all requirements for drawings referred to in such Letters of
Credit plus (ii) the aggregate amount of all drawings under Letters of Credit honored by
the Issuing Lender but not theretofore reimbursed.

     “LOC Participant” shall mean, as of any date of determination, any Lender with a
Revolving Commitment.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, property, assets (including any Governmental Approvals), condition (financial or
otherwise) or prospects of the Borrower and its Subsidiaries taken as a whole, (b) the ability of
the Borrower or any Guarantor to perform its obligations, when such obligations are required to be
performed, under this Credit Agreement, any of the Notes or any other Credit Document or (c) the
validity or enforceability of this Credit Agreement, any of the Notes or any of the other Credit
Documents or the rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

     “Material Contracts” shall mean (a) any contract or other agreement, written or oral,
of the Borrower or any of its Subsidiaries involving monetary liability of or to any such Person in
an amount in excess of $5,000,000 per annum and (b) any other contract, agreement, permit or
license, written or oral, of the Borrower or any of its Subsidiaries the failure to comply with
which could reasonably be expected to have a Material Adverse Effect.

14

 

     “Materials of Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances,
materials or wastes, defined or regulated as such in or under any Environmental Law, including,
without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

     “Maturity Date” shall mean the Revolving Commitment Termination Date.

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

     “Mortgage Instrument” shall mean any mortgage, deed of trust or deed to secure debt
executed by a Credit Party in favor of the Administrative Agent pursuant to the terms of Section
4.1(x)(i), 5.10 or 5.12, as the same may be amended, modified, restated or supplemented from time
to time.

     “Mortgage Policy” shall mean, with respect to any Mortgage Instrument, an ALTA
mortgagee title insurance policy issued by a Title Company in such amount as reasonably approved by
the Administrative Agent, assuring the Administrative Agent that such Mortgage Instrument creates a
valid and enforceable first priority mortgage lien on the applicable Mortgaged Property, free and
clear of all defects and encumbrances except Permitted Liens, which Mortgage Policy shall be in
form and substance reasonably satisfactory to the Administrative Agent and shall provide for
affirmative insurance and such reinsurance as the Administrative Agent may reasonably request.

     “Mortgaged Property” shall mean any owned or leased real property of a Credit Party
with respect to which such Credit Party executes a Mortgage Instrument in favor of the
Administrative Agent.

     “Multiemployer Plan” shall mean a Plan that is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

     “Net Cash Proceeds” shall mean the aggregate cash proceeds received by the Borrower or
any Subsidiary in respect of any Asset Disposition, Equity Issuance or Debt Issuance, net of (a)
direct costs (including, without limitation, legal, accounting and investment banking fees, and
sales commissions) associated therewith, (b) amounts held in escrow to be applied as part of the
purchase price of any Asset Disposition and (c) taxes paid or payable as a result thereof; it being
understood that “Net Cash Proceeds” shall include, without limitation, any cash received upon the
sale or other disposition of any non-cash consideration received by the Borrower or any Subsidiary
in any Asset Disposition, Equity Issuance or Debt Issuance and any cash released from escrow as
part of the purchase price in connection with any Asset Disposition.

     “Note” or “Notes” shall mean the Revolving Notes.

     “Notice of Borrowing” shall mean a request for a Revolving Loan borrowing pursuant to
Section 2.1(b)(i).

     “Notice of Conversion” shall mean the written notice of extension or conversion as
referenced and defined in Section 2.8.

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     “Obligations” shall mean, collectively, Loans and LOC Obligations.

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

     “Participant” shall have the meaning set forth in Section 9.6(b).

     “Participation Interest” shall mean a participation interest purchased by a Revolving
Lender in LOC Obligations as provided in Section 2.2(c).

     “Patent Licenses” shall mean all agreements, whether written or oral, providing for
the grant by or to a Person of any right to manufacture, use or sell any invention covered by a
Patent, including, without limitation, any thereof referred to in Schedule 3.16 to the
Credit Agreement.

     “Patents” shall mean all letters patent (other than letters patent of de
minimus value) of the United States or any other country, now existing or hereafter
arising, and all improvement patents, reissues, reexaminations, patents of additions, renewals and
extensions thereof, including, without limitation, any thereof referred to in Schedule 3.16
to this Credit Agreement, and (ii) all applications for letters patent of the United States or any
other country, now existing or hereafter arising, and all provisionals, divisions, continuations
and continuations-in-part and substitutes thereof, including, without limitation, any thereof
referred to in Schedule 3.16 to this Credit Agreement.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA.

     “Permitted Acquisition” shall mean an acquisition or any series of related
acquisitions by a Credit Party of (a) all or substantially all of the assets or a majority of the
outstanding Voting Stock or economic interests of a Person that is incorporated, formed or
organized in the United States or (b) any division, line of business or other business unit of a
Person that is incorporated, formed or organized in the United States (such Person or such
division, line of business or other business unit of such Person shall be referred to herein as the
“Target”), in each case that is a type of business (or assets used in a type of business)
permitted to be engaged in by the Credit Parties and their Subsidiaries pursuant to Section 6.4
hereof, so long as (i) no Default or Event of Default shall then exist or would exist after giving
effect thereto, (ii) if the aggregate consideration (including without limitation equity
consideration, earn outs or deferred compensation or non-competition arrangements and the amount of
Indebtedness and other liabilities assumed by the Credit Parties and their Subsidiaries) paid by
the Credit Parties and their Subsidiaries in connection with any such acquisition is in excess of
$2,000,000, the Credit Parties shall demonstrate to the reasonable satisfaction of the
Administrative Agent that, both before and after giving effect to the acquisition on a pro forma
basis, the Credit Parties are in compliance with each of the financial covenants set forth in
Section 5.9, (iii) the Administrative Agent, on behalf of the Lenders, shall have received (or
shall receive in connection with the closing of such acquisition) a first priority perfected
security interest in all property (including, without limitation, Capital Stock) acquired with
respect to the Target in accordance with the terms of Sections 5.10 and 5.12 and the Target, if a
Person, shall have executed a Joinder Agreement in accordance with the terms of Section 5.10, and
(iv) the Administrative Agent shall

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have consented to any such acquisition if the aggregate consideration (including without
limitation equity consideration, earn outs or deferred compensation or non-competition arrangements
and the amount of Indebtedness and other liabilities assumed by the Credit Parties and their
Subsidiaries) paid by the Credit Parties and their Subsidiaries in connection with any such
acquisition in any fiscal year when added to the aggregate consideration paid in connection with
all other acquisitions during such fiscal year shall exceed $5,000,000.

     “Permitted Investments” shall mean:

     (i) cash and Cash Equivalents;

     (ii) Investments set forth on Schedule 1.1(b);

     (iii) receivables owing to the Borrower or any of its Subsidiaries or any receivables
and advances to suppliers, in each case if created, acquired or made in the ordinary course
of business and payable or dischargeable in accordance with customary trade terms;

     (iv) Investments in and loans to any Credit Party;

     (v) short-term loans to employees and advances to employees in the ordinary course of
business for the payment of bona fide, properly documented, business
expenses to be incurred on behalf of the Borrower and its Subsidiaries, provided that the
aggregate outstanding amount of all such loans and advances shall not exceed $100,000 in the
aggregate at any time;

     (vi) Investments (including debt obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the ordinary
course of business;

     (vii) Investments, acquisitions or transactions permitted under Section 6.5(b); and

     (viii) Hedging Agreements to the extent permitted pursuant to Section 6.1(d).

     “Permitted Liens” shall mean:

     (i) Liens created by or otherwise existing under or in connection with this Credit
Agreement or the other Credit Documents in favor of the Lenders;

     (ii) Liens in favor of a Hedging Agreement Provider in connection with any Secured
Hedging Agreement, but only (A) to the extent such Liens are on the same collateral as to
which the Administrative Agent on behalf of the Lenders also has a Lien and (B) if such
Hedging Agreement Provider and the Lenders shall share pari passu in the
collateral subject to such Liens;

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     (iii) Liens securing purchase money indebtedness and Capital Lease Obligations (and
refinancings thereof) to the extent permitted under Section 6.1(c); provided, that
(A) any such Lien attaches to such property concurrently with or within 30 days after the
acquisition thereof and (B) such Lien attaches solely to the property so acquired in such
transaction;

     (iv) Liens for taxes, assessments, charges or other governmental levies not yet due or
as to which the period of grace (not to exceed 60 days), if any, related thereto has not
expired or which are being contested in good faith by appropriate proceedings;
provided that adequate reserves with respect thereto are maintained on the books of
the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP (or, in the
case of Subsidiaries with significant operations outside of the United States of America,
generally accepted accounting principles in effect from time to time in their respective
jurisdictions of incorporation);

     (v) statutory Liens such as carriers’, warehousemen’s, mechanics’, materialmen’s,
landlords’, repairmen’s or other like Liens arising in the ordinary course of business which
are not overdue for a period of more than 30 days or which are being contested in good faith
by appropriate proceedings;

     (vi) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements;

     (vii) deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

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

     (ix) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing clauses;
provided that such extension, renewal or replacement Lien shall be limited to all or
a part of the property which secured the Lien so extended, renewed or replaced (plus
improvements on such property).

     “Person” shall mean an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

     “Plan” shall mean, at any particular time, any employee benefit plan which is covered
by Title IV of ERISA and in respect of which the Borrower or a Commonly Controlled Entity is (or,
if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA.

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     “Pledge Agreement” shall mean the Pledge Agreement dated as of the Closing Date
executed by the Borrower and the Guarantors in favor of the Administrative Agent, as the same may
from time to time be amended, supplemented or otherwise modified in accordance with the terms
hereof and thereof.

     “Properties” shall have the meaning set forth in Section 3.10(a).

     “Purchase Agreement” shall have the meaning set forth in the definition of Acquisition
Documents.

     “Purchasing Lenders” shall have the meaning set forth in Section 9.6(c).

     “Recovery Event” shall mean the receipt by the Borrower or any of its Subsidiaries of
any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical
destruction or damage, taking or similar event with respect to any of their respective property or
assets other than obsolete property or assets no longer used or useful in the business of the
Borrower or any of its Subsidiaries.

     “Register” shall have the meaning set forth in Section 9.6(d).

     “Reimbursement Obligation” shall mean the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 2.3(d) for amounts drawn under Letters of Credit.

     “Reorganization” shall mean, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of such term as used in Section 4241 of
ERISA.

     “Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty-day notice period is waived under PBGC Reg. §4043.

     “Required Lenders” shall mean Lenders holding in the aggregate more than 50% of the
sum of (i) all Revolving Loans and LOC Obligations then outstanding at such time plus the
aggregate unused Revolving Commitments at such time (treating for purposes hereof in the case of
LOC Obligations, in the case of the Issuing Lender only the portion of the LOC Obligations of the
Issuing Lender which are not subject to the Participation Interests of the other Lenders and, in
the case of the Lenders other than the Issuing Lender, the Participation Interests of such Lenders
in LOC Obligations hereunder as direct Obligations); provided, however, that if any
Lender shall be a Defaulting Lender at such time, then there shall be excluded from the
determination of Required Lenders, Obligations (including Participation Interests) owing to such
Defaulting Lender and such Defaulting Lender’s Commitments, or after termination of the
Commitments, the principal balance of the Obligations owing to such Defaulting Lender.

     “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation
and By-laws or other organizational or governing documents of such Person, and each law, treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

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     “Reserves” shall mean (a) an amount equal to $500,000 which represents approximately
six (6) months’ rent under all real estate leases of the Acquired Business (provided, however, if
the Acquired Business obtains a lien waiver from any landlord under any of such leases in form
satisfactory to the Agent, such amount shall be reduced by an amount equal to six (6) months’ rent
with respect to such lease as set forth on the schedule to be delivered to the Agent pursuant to
Section 5.2(f) hereof), (b) an amount equal to $803,000 which represents the approximate value of
the assets of Percipia, Inc. and Percipia Networks, Inc. (provided, however, such reserve will be
eliminated upon the termination by Bank One, N.A. of its UCC financing statements filed against
Percipia, Inc. and Percipia Networks, Inc.), and (c) an amount equal to $503,000 representing a
$503,000 letter of credit issued by Bank of America, N.A. for the benefit of the Acquired Business
and secured by a blanket lien on the assets of the Acquired Business (provided, however, such
reserve shall be eliminated upon the termination by Bank of America, N.A. of its UCC financing
statements filed with respect to such blanket lien).

     “Responsible Officer” shall mean, as to (a) the Borrower, the President, the
Vice-President, the Chief Executive Officer or the Chief Operating Officer or (b) any other Credit
Party, any duly authorized officer thereof.

     “Restricted Payment” shall mean (a) any dividend or other distribution, direct or
indirect, on account of any shares of any class of Capital Stock of a Credit Party, now or
hereafter outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of the
Borrower or any of its Subsidiaries, now or hereafter outstanding, (c) any payment made to retire,
or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares
of any class of Capital Stock of the Borrower or any of its Subsidiaries, now or hereafter
outstanding, (d) any payment, prepayment, redemption or similar payment with respect to the
Subordinated Debt of any Credit Party or any of its Subsidiaries and (e) the payment by any Credit
Party of any management or consulting fee to any Person or of any salary, bonus or other form of
compensation to any Person who is directly or indirectly a significant partner, shareholder, owner
or executive officer of any such Person, to the extent such salary, bonus or other form of
compensation is not included in the corporate overhead of such Credit Party.

     “Revolving Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Revolving Loans in an aggregate principal amount at any time outstanding up to such
Lender’s Revolving Committed Amount as specified in Schedule 2.1(a), as such amount may be
reduced from time to time in accordance with the provisions hereof.

     “Revolving Commitment Percentage” shall mean, for each Lender, the percentage
identified as its Revolving Commitment Percentage on Schedule 2.1(a), as such percentage
may be modified in connection with any assignment made in accordance with the provisions of Section
9.6(c).

     “Revolving Commitment Termination Date” shall mean the second anniversary of the
Closing Date.

     “Revolving Committed Amount” shall have the meaning set forth in Section 2.1(a).

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     “Revolving Loans” shall have the meaning set forth in Section 2.1.

     “Revolving Note” or “Revolving Notes” shall mean the promissory notes of the
Borrower in favor of each of the Lenders requesting a Revolving Note evidencing the Revolving Loans
provided pursuant to Section 2.1(e), individually or collectively, as appropriate, as such
promissory notes may be amended, modified, supplemented, extended, renewed or replaced from time to
time.

     “S&P” shall mean Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

     “Sanctioned Country” shall mean a country subject to a sanctions program identified on
the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published
from time to time.

     “Sanctioned Person” shall mean (i) a Person named on the list of “Specially Designated
Nationals and Blocked Persons” maintained by OFAC available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from
time to time, or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization
controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent
subject to a sanctions program administered by OFAC.

     “Secured Hedging Agreement” shall mean any Hedging Agreement between a Credit Party
and a Hedging Agreement Provider that is permitted by Section 6.1(d), as amended, modified,
supplemented, extended or restated from time to time.

     “Security Agreement” shall mean the Security Agreement dated as of the Closing Date
executed by the Borrower and the Guarantors in favor of the Administrative Agent, as amended,
modified or supplemented from time to time in accordance with its terms.

     “Security Documents” shall mean the Security Agreement, the Pledge Agreement, the
Mortgage Instruments and such other documents executed and delivered in connection with the
granting, attachment and perfection of the Administrative Agent’s security interests and liens
arising thereunder, including, without limitation, UCC financing statements and patent, trademark
and copyright filings.

     “Sellers” shall mean (i) Charles P. Steinmetz, (ii) Gregory A. Clendenin, (iii)
Gregory A. Clendenin, as Trustee of the Gregory A. Clendenin Trust, dated 9/11/97, as amended
SunTrust Bank, as Trustee of the Charles P. Steinmetz Irrevocable Trust for the Benefit of Matthew
A. Steinmetz, dated April 22, 2002, and (iv) SunTrust Bank, as Trustee of the Charles P. Steinmetz
Irrevocable Trust for the Benefit of Louis Steinmetz, dated April 22, 2002.

     “Single Employer Plan” shall mean any Plan that is not a Multiemployer Plan.

     “Specified Sales” shall mean (a) the sale, transfer, lease or other disposition of
inventory and materials in the ordinary course of business and (b) the sale, transfer or other
disposition of cash or Cash Equivalents.

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     “Subordinated Debt” shall mean any Indebtedness incurred by any Credit Party which by
its terms is specifically subordinated in right of payment to the prior payment of the Credit Party
Obligations and contains subordination and other terms acceptable to the Required Lenders.

     “Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Credit Agreement shall refer to a Subsidiary or Subsidiaries of the
Borrower.

     “Taxes” shall have the meaning set forth in Section 2.18.

     “Trademark License” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right to use any Trademark, including, without limitation, any
thereof referred to in Schedule 3.16 to this Credit Agreement.

     “Trademarks” shall mean all trademarks, trade names, corporate names, company names,
business names, fictitious business names, service marks, elements of package or trade dress of
goods or services, logos and other source or business identifiers (other than such items that are
of de minimus value), together with the goodwill associated therewith, now existing
or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof or any other country or any political
subdivision thereof, including, without limitation, any thereof referred to in Schedule
3.16 to this Credit Agreement, and (ii) all renewals thereof including, without limitation, any
thereof referred to in Schedule 3.16.

     “Tranche” shall mean the collective reference to (a) Fixed LIBOR Rate Loans whose
Interest Periods begin and end on the same day and (b) Floating LIBOR Rate Loans made on the same
day. A Tranche with respect to Fixed LIBOR Rate Loans may sometimes be referred to as a “Fixed
Eurodollar Tranche”.

     “Transfer Effective Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

     “Type” shall mean, as to any Loan, its nature as a Floating LIBOR Rate Loan or a Fixed
LIBOR Rate Loan, as the case may be.

     “Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote has been suspended by the happening of such a contingency.

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     “Wachovia” shall mean Wachovia Bank, National Association, a national banking
association.

     Section 1.2 Other Definitional Provisions.

     (a) Unless otherwise specified therein, all terms defined in this Credit Agreement
shall have the defined meanings when used in the Notes or other Credit Documents or any
certificate or other document made or delivered pursuant hereto.

     (b) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

     (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Credit Agreement shall refer to this Credit Agreement as a whole and not to any
particular provision of this Credit Agreement, and Section, subsection, Schedule and Exhibit
references are to this Credit Agreement unless otherwise specified.

     (d) The words “include”, “includes” and “including” shall be deemed to be followed by
“without limitation” whether or not they are in fact followed by such words or words of like
import.

     (e) The words “writing”, “written” and comparable terms shall refer to printing,
typing, computer disk, e-mail and other means of reproducing words in a visible form.

     (f) References to any agreement or contract are to such agreement or contract as
amended, restated, supplemented or otherwise modified from time to time in accordance with
the terms hereof and thereof. References to any Person include the successors and permitted
assigns of such Person.

     Section 1.3 Accounting Terms.

     Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be
delivered hereunder shall be prepared in accordance with GAAP applied on a basis consistent with
the most recent audited Consolidated financial statements of the Borrower delivered to the Lenders;
provided that, if the Borrower notifies the Administrative Agent that it wishes to amend
any covenant in Section 5.9 to eliminate the effect of any change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to
amend Section 5.9 for such purpose), then the Borrower’s compliance with such covenant shall be
determined on the basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

     The Borrower shall deliver to the Administrative Agent and each Lender at the same time as the
delivery of any annual or quarterly financial statements given in accordance with the provisions of
Section 5.1, (i) a description in reasonable detail of any material change in the

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application of accounting principles employed in the preparation of such financial statements
from those applied in the most recently preceding quarterly or annual financial statements as to
which no objection shall have been made in accordance with the provisions above and (ii) a
reasonable estimate of the effect on the financial statements on account of such changes in
application.

     For purposes of computing the financial covenants set forth in Section 5.9 for any applicable
test period, any Permitted Acquisition or permitted sale of assets (including a stock sale) shall
have been deemed to have taken place as of the first day of such applicable test period.

     Section 1.4 Computation of Time Periods.

     All time references in this Credit Agreement and the other Credit Documents shall be to
Charlotte, North Carolina time unless otherwise indicated. For purposes of computation of periods
of time hereunder, the word “from” means “from and including” and the words “to” and “until” each
mean “to but excluding.”

ARTICLE II

THE LOANS; AMOUNT AND TERMS

     Section 2.1 Revolving Loans.

     (a) Revolving Commitment. During the Commitment Period, subject to the terms
and conditions hereof, each Lender severally agrees to make revolving credit loans
(“Revolving Loans”) to the Borrower from time to time for the purposes hereinafter
set forth; provided, however, that (i) with regard to each Lender
individually, the sum of such Lender’s share of outstanding Revolving Loans plus
such Lender’s LOC Commitment Percentage of LOC Obligations shall not exceed such Lender’s
Revolving Commitment Percentage of the aggregate Revolving Committed Amount, and (ii) with
regard to the Lenders collectively, the sum of the aggregate amount of outstanding Revolving
Loans plus LOC Obligations shall not exceed the aggregate Revolving Committed Amount
then in effect. For purposes hereof, the aggregate amount available hereunder shall be
TWENTY MILLION DOLLARS ($20,000,000) (as such aggregate maximum amount may be reduced from
time to time as provided in Section 2.4, the “Revolving Committed Amount”).
Revolving Loans may consist of Floating LIBOR Rate Loans or Fixed LIBOR Rate Loans, or a
combination thereof, as the Borrower may request, and may be repaid and reborrowed in
accordance with the provisions hereof; provided, however, the Revolving
Loans made on the Closing Date or on either of the two Business Days immediately following
the Closing Date may only consist of Floating LIBOR Rate Loans. Fixed LIBOR Rate Loans
shall be made by each Lender at its LIBOR Lending Office and Floating LIBOR Rate Loans at
its Domestic Lending Office.

     (b) Revolving Loan Borrowings.

     (i) Notice of Borrowing. The Borrower shall request a Revolving Loan
borrowing by written notice (or telephone notice promptly confirmed in

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writing which confirmation may be by fax) to the Administrative Agent not later
than 11:00 A.M. on the Business Day prior to the date of the requested borrowing in
the case of Floating LIBOR Rate Loans, and on the third Business Day prior to the
date of the requested borrowing in the case of Fixed LIBOR Rate Loans. Each such
request for borrowing shall be irrevocable and shall specify (A) that a Revolving
Loan is requested, (B) the date of the requested borrowing (which shall be a
Business Day), (C) the aggregate principal amount to be borrowed, and (D) whether
the borrowing shall be comprised of Floating LIBOR Rate Loans, Fixed LIBOR Rate
Loans or a combination thereof, and if Fixed LIBOR Rate Loans are requested, the
Interest Period(s) therefor. A form of Notice of Borrowing (a “Notice of
Borrowing”) is attached as Schedule 2.1(b)(i). If the Borrower shall
fail to specify in any such Notice of Borrowing (I) an applicable Interest Period in
the case of a Fixed LIBOR Rate Loan, then such notice shall be deemed to be a
request for an Interest Period of one month, or (II) the type of Revolving Loan
requested, then such notice shall be deemed to be a request for an Floating LIBOR
Rate Loan hereunder. The Administrative Agent shall give notice to each Lender
promptly upon receipt of each Notice of Borrowing, the contents thereof and each
such Lender’s share thereof.

     (ii) Minimum Amounts. Each Revolving Loan which is made as a Fixed
LIBOR Rate Loan shall be in a minimum aggregate amount of $250,000 and integral
multiples of $250,000 in excess thereof (or the remaining amount of the Revolving
Committed Amount, if less).

     (iii) Advances. Each Lender will make its Revolving Commitment
Percentage of each Revolving Loan borrowing available to the Administrative Agent
for the account of the Borrower at the office of the Administrative Agent specified
in Section 9.2, or at such other office as the Administrative Agent may designate in
writing, upon reasonable advance notice by 1:00 P.M. on the date specified in the
applicable Notice of Borrowing, in Dollars and in funds immediately available to the
Administrative Agent. Such borrowing will then be made available to the Borrower by
the Administrative Agent by crediting the account of the Borrower on the books of
such office with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent.

     (c) Repayment. The principal amount of all Revolving Loans shall be due and
payable in full on the Revolving Commitment Termination Date.

     (d) Interest. Subject to the provisions of Section 2.7, Revolving Loans shall
bear interest as follows:

     (i) Floating LIBOR Rate Loans. During such periods as Revolving Loans
shall be comprised of Floating LIBOR Rate Loans, each such Floating LIBOR Rate Loan
shall bear interest at a per annum rate equal to the sum of the Floating LIBOR Rate
plus the Applicable Percentage; and

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     (ii) Fixed LIBOR Rate Loans. During such periods as Revolving Loans
shall be comprised of Fixed LIBOR Rate Loans, each such Fixed LIBOR Rate Loan shall
bear interest at a per annum rate equal to the sum of the Fixed LIBOR Rate
plus the Applicable Percentage.

     (e) Interest on Revolving Loans shall be payable in arrears on each Interest Payment
Date.

     (f) Revolving Notes. The Borrower’s obligation to pay each Lender’s Revolving
Loans shall be evidenced by a Revolving Note made payable to such Lender in substantially
the form of Schedule 2.1(e), if requested by such Lender.

     Section 2.2 Letter of Credit Subfacility.

     (a) Issuance. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender may
reasonably require, during the Commitment Period the Issuing Lender shall issue, and the
Lenders shall participate in, Letters of Credit for the account of the Borrower from time to
time upon request in a form acceptable to the Issuing Lender; provided,
however, that (i) the aggregate amount of LOC Obligations shall not at any time
exceed THREE MILLION DOLLARS ($3,000,000) (the “LOC Committed Amount”), (ii) the sum
of the aggregate amount of Revolving Loans plus LOC Obligations shall not at any
time exceed the aggregate Revolving Committed Amount then in effect, (iii) all Letters of
Credit shall be denominated in Dollars and (iv) Letters of Credit shall be issued for any
lawful corporate purposes and may be issued as standby letters of credit, including in
connection with workers’ compensation and other insurance programs, and trade letters of
credit. Except as otherwise expressly agreed upon by all the Lenders, no Letter of Credit
shall have an original expiry date more than twelve (12) months from the date of issuance;
provided, however, so long as no Default or Event of Default has occurred
and is continuing and subject to the other terms and conditions to the issuance of Letters
of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time on the request of the Borrower or by operation of the terms
of the applicable Letter of Credit to a date not more than twelve (12) months from the date
of extension; provided, further, that no Letter of Credit, as originally
issued or as extended, shall have an expiry date extending beyond the date which is 30 days
prior to the Revolving Commitment Termination Date. Each Letter of Credit shall comply with
the related LOC Documents. The issuance and expiry date of each Letter of Credit shall be a
Business Day.

     (b) Notice and Reports. The request for the issuance of a Letter of Credit
shall be submitted to the Issuing Lender at least five (5) Business Days prior to the
requested date of issuance. The Issuing Lender will promptly upon request provide to the
Administrative Agent for dissemination to the Lenders a detailed report specifying the
Letters of Credit which are then issued and outstanding and any activity with respect
thereto which may have occurred since the date of any prior report, and including therein,
among other things, the account party, the beneficiary, the face amount, expiry date as well
as any payments or expirations which may have occurred. The Issuing Lender will

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further provide to the Administrative Agent promptly upon request copies of the Letters
of Credit. The Issuing Lender will provide to the Administrative Agent promptly upon
request a summary report of the nature and extent of LOC Obligations then outstanding.

     (c) Participations. Each LOC Participant, upon issuance of any Letter of
Credit, shall be deemed to have purchased without recourse a risk participation from the
Issuing Lender in such Letter of Credit and the obligations arising thereunder and any
collateral relating thereto, in each case in an amount equal to its LOC Commitment
Percentage of the obligations under such Letter of Credit and shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as surety, and be
obligated to pay to the Issuing Lender therefor and discharge when due, its LOC Commitment
Percentage of the obligations arising under such Letter of Credit. Without limiting the
scope and nature of each LOC Participant’s participation in any Letter of Credit, to the
extent that the Issuing Lender has not been reimbursed as required hereunder or under any
LOC Document, each such LOC Participant shall pay to the Issuing Lender its LOC Commitment
Percentage of such unreimbursed drawing in same day funds on the day of notification by the
Issuing Lender of an unreimbursed drawing pursuant to the provisions of subsection (d)
hereof. The obligation of each LOC Participant to so reimburse the Issuing Lender shall be
absolute and unconditional and shall not be affected by the occurrence of a Default, an
Event of Default or any other occurrence or event. Any such reimbursement shall not relieve
or otherwise impair the obligation of the Borrower to reimburse the Issuing Lender under any
Letter of Credit, together with interest as hereinafter provided.

     (d) Reimbursement. In the event of any drawing under any Letter of Credit, the
Issuing Lender will promptly notify the Borrower and the Administrative Agent. The Borrower
shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit (either
with the proceeds of a Revolving Loan obtained hereunder or otherwise) in same day funds as
provided herein or in the LOC Documents. If the Borrower shall fail to reimburse the
Issuing Lender as provided herein, the unreimbursed amount of such drawing shall bear
interest at a per annum rate equal to the Default Rate. Unless the Borrower shall
immediately notify the Issuing Lender and the Administrative Agent of its intent to
otherwise reimburse the Issuing Lender, the Borrower shall be deemed to have requested a
Revolving Loan in the amount of the drawing as provided in subsection (e) hereof, the
proceeds of which will be used to satisfy the reimbursement obligations. The Borrower’s
reimbursement obligations hereunder shall be absolute and unconditional under all
circumstances irrespective of any rights of set-off, counterclaim or defense to payment the
Borrower may claim or have against the Issuing Lender, the Administrative Agent, the
Lenders, the beneficiary of the Letter of Credit drawn upon or any other Person, including
without limitation any defense based on any failure of the Borrower to receive consideration
or the legality, validity, regularity or unenforceability of the Letter of Credit. The
Issuing Lender will promptly notify the other LOC Participants of the amount of any
unreimbursed drawing and each LOC Participant shall promptly pay to the Administrative Agent
for the account of the Issuing Lender, in Dollars and in immediately available funds, the
amount of such LOC Participant’s LOC Commitment Percentage of such unreimbursed drawing.
Such payment shall be made on the day such notice is received by such LOC Participant from
the Issuing Lender if such notice is

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received at or before 2:00 P.M., otherwise such payment shall be made at or before
12:00 Noon on the Business Day next succeeding the day such notice is received. If such LOC
Participant does not pay such amount to the Issuing Lender in full upon such request, such
LOC Participant shall, on demand, pay to the Administrative Agent for the account of the
Issuing Lender interest on the unpaid amount during the period from the date of such drawing
until such LOC Participant pays such amount to the Issuing Lender in full at a rate per
annum equal to, if paid within two (2) Business Days of the date of drawing, the Federal
Funds Rate and thereafter at a rate equal to the Floating LIBOR Rate. Each LOC
Participant’s obligation to make such payment to the Issuing Lender, and the right of the
Issuing Lender to receive the same, shall be absolute and unconditional, shall not be
affected by any circumstance whatsoever and without regard to the termination of this Credit
Agreement or the Commitments hereunder, the existence of a Default or Event of Default or
the acceleration of the Credit Party Obligations under the Credit Documents and shall be
made without any offset, abatement, withholding or reduction whatsoever.

     (e) Repayment with Revolving Loans. On any day on which the Borrower shall
have requested, or been deemed to have requested, a Revolving Loan to reimburse a drawing
under a Letter of Credit, the Administrative Agent shall give notice to the LOC Participants
that a Revolving Loan has been requested or deemed requested in connection with a drawing
under a Letter of Credit, in which case a borrowing (each such borrowing, a “Mandatory
Borrowing”) shall be immediately made (without giving effect to any termination of the
Commitments pursuant to Section 7.2) pro rata based on each LOC
Participant’s respective Revolving Commitment Percentage (determined before giving effect to
any termination of the Commitments pursuant to Section 7.2) and in the case of both clauses
(i) and (ii) the proceeds thereof shall be paid directly to the Issuing Lender for
application to the respective LOC Obligations. Each LOC Participant hereby irrevocably
agrees to make such Revolving Loans immediately upon any such request or deemed request on
account of each Mandatory Borrowing in the amount and in the manner specified in the
preceding sentence and on the same such date notwithstanding (i) the amount of
Mandatory Borrowing may not comply with the minimum amount for borrowings of Revolving Loans
otherwise required hereunder, (ii) whether any conditions specified in Section 4.2 are then
satisfied, (iii) whether a Default or an Event of Default then exists, (iv) failure for any
such request or deemed request for Revolving Loan to be made by the time otherwise required
in Section 2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction in the
Revolving Committed Amount after any such Letter of Credit may have been drawn upon. In the
event that any Mandatory Borrowing cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the commencement of a
proceeding under the Bankruptcy Code with respect to the Borrower), then each such LOC
Participant hereby agrees that it shall forthwith fund (as of the date the Mandatory
Borrowing would otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) its Participation Interests in
the outstanding LOC Obligations; provided, further, that in the event any
LOC Participant shall fail to fund its Participation Interest on the day the Mandatory
Borrowing would otherwise have occurred, then the amount of such LOC Participant’s unfunded
Participation Interest therein shall bear interest payable by such LOC Participant to the
Issuing Lender upon

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demand, at the rate equal to, if paid within two (2) Business Days of such date, the
Federal Funds Rate, and thereafter at a rate equal to the Floating LIBOR Rate.

     (f) Modification, Extension. The issuance of any supplement, modification,
amendment, renewal, or extension to any Letter of Credit shall, for purposes hereof, be
treated in all respects the same as the issuance of a new Letter of Credit hereunder.

     (g) Letter of Credit Governing Law. Unless otherwise expressly agreed by the
Issuing Lender and the Borrower, when a Letter of Credit is issued, (i) the rules of the
“International Standby Practices 1998” published by the Institute of International Banking
Law & Practice (or such later version thereof as may be in effect at the time of issuance)
shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance, shall apply to each commercial Letter of Credit.

     Section 2.3 Fees.

     (a) Commitment Fee. In consideration of the Revolving Commitment, the Borrower
agrees to pay to the Administrative Agent, for the ratable benefit of the Lenders holding
Revolving Commitments, a commitment fee (the “Commitment Fee”) in an amount equal to
        .375% per annum on the average daily unused amount of the aggregate Revolving Committed
Amount. For purposes of computation of the Commitment Fee, LOC Obligations shall be
considered usage of the Revolving Committed Amount. The Commitment Fee shall be payable
quarterly in arrears not later than five (5) Business Days following the last day of each
calendar quarter for the prior calendar quarter.

     (b) Upfront Fee. In consideration of the Revolving Commitment, the Borrower
agrees to pay to the Administrative Agent, for the ratable benefit of the holders holding
Revolving Commitments, an upfront fee of $90,000. Such upfront fee shall be due and payable
on the Closing Date.

     (c) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Issuing Lender a fee (the “Letter of Credit Fee”)
equal to the Applicable Percentage per annum on the average daily maximum amount available
to be drawn under each Letter of Credit from the date of issuance to the date of expiration.
The Issuing Lender shall promptly pay over to the Administrative Agent for the ratable
benefit of the Lenders (including the Issuing Lender) the Letter of Credit Fee. The Letter
of Credit Fee shall be payable quarterly in arrears not later than five (5) Business Days
following the last day of each calendar quarter for the prior calendar quarter.

     (d) Issuing Lender Fees. In addition to the Letter of Credit Fees payable
pursuant to subsection (c) hereof, the Borrower shall pay to the Issuing Lender for its own
account without sharing by the other Lenders the reasonable and customary charges from time
to time of the Issuing Lender with respect to the amendment, transfer, administration,
cancellation and conversion of, and drawings under, such Letters of Credit (collectively,
the “Issuing Lender Fees”).

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     Section 2.4 Commitment Reductions.

     (a) Voluntary Reductions. The Borrower shall have the right to terminate or
permanently reduce the unused portion of the Revolving Committed Amount at any time or from
time to time upon not less than five Business Days’ prior written notice to the
Administrative Agent (which shall notify the Lenders thereof as soon as practicable) of each
such termination or reduction, which notice shall specify the effective date thereof and the
amount of any such reduction and shall be irrevocable and effective upon receipt by the
Administrative Agent; provided that no such reduction or termination shall be
permitted if after giving effect thereto, and to any prepayments of the Revolving Loans made
on the effective date thereof, the sum of the then outstanding aggregate principal amount of
the Revolving Loans plus LOC Obligations would exceed the aggregate Revolving
Committed Amount then in effect.

     (b) Mandatory Reductions. The Revolving Commitment Amount shall be reduced by
$1,500,000 on June 30, 2006 and $2,500,000 on June 30, 2007.

     (c) Revolving Commitment Termination Date. The Revolving Commitment, the and
the LOC Commitment shall automatically terminate on the Revolving Commitment Termination
Date.

     (d) Reserves. The Revolving Committed Amount shall be reduced from time to
time by the amount of the Reserves.

     Section 2.5 Prepayments.

     (a) Optional Prepayments. The Borrower shall have the right to prepay Loans in
whole or in part from time to time. The Borrower shall give five Business Days’ irrevocable
notice in the case of Fixed LIBOR Rate Loans and one Business Day’s irrevocable notice in
the case of Floating LIBOR Rate Loans, to the Administrative Agent (which shall notify the
Lenders thereof as soon as practicable). Amounts prepaid under this Section 2.5(a) shall be
applied to the outstanding Loans as the Borrower may elect; provided, that each
Lender shall receive its pro rata share of any such prepayment based on its
Revolving Commitment Percentage. All prepayments under this Section 2.5(a) shall be
otherwise without premium or penalty. Interest on the principal amount prepaid shall be due
and payable on any date that a prepayment is made hereunder through the date of prepayment.
Amounts prepaid on the Loans may be reborrowed in accordance with the terms hereof.

     (b) Mandatory Prepayments.

     (i) Revolving Committed Amount. If at any time after the Closing Date,
the sum of the aggregate principal amount of outstanding Revolving Loans
plus LOC Obligations shall exceed the aggregate Revolving Committed Amount
then in effect, the Borrower immediately shall prepay the Revolving Loans and (after
all Revolving Loans have been repaid) cash collateralize the LOC Obligations, in an
amount sufficient to eliminate such excess.

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     (ii) Asset Dispositions. Promptly following any Asset Disposition, the
Borrower shall prepay the Loans and/or cash collateralize the LOC Obligations in an
aggregate amount equal to 100% of the Net Cash Proceeds derived from such Asset
Disposition (such prepayment to be applied as set forth in clause (vi) below).

     (iii) Debt Issuances. Immediately upon receipt by any Credit Party of
proceeds from any Debt Issuance, the Borrower shall prepay the Loans and/or cash
collateralize the LOC Obligations in an aggregate amount equal to 100% of the Net
Cash Proceeds of such Debt Issuance to the Lenders (such prepayment to be applied as
set forth in clause (vi) below).

     (iv) Issuances of Equity. Immediately upon receipt by a Credit Party
of proceeds from any Equity Issuance received after the occurrence of an Event of
Default, the Borrower shall prepay the Loans and/or cash collateralize the LOC
Obligations in an aggregate amount equal to 50% of the Net Cash Proceeds of such
Equity Issuance (such prepayment to be applied as set forth in clause (vi) below);
provided, however, the foregoing shall not be applicable with respect to Equity
Issuances consummated within four (4) months of the Closing Date.

     (v) Recovery Event. Promptly upon receipt, the Borrower shall prepay
the Loans and/or cash collateralize the LOC Obligations in an aggregate amount equal
to 100% of the cash proceeds received in connection with a Recovery Event (such
prepayment to be applied as set forth in clause (vi) below); provided,
however, that so long as no Default or Event of Default then exists, such
cash proceeds shall not be required to be so applied to the extent the Borrower
delivers to the Administrative Agent a certificate stating that a Credit Party
intends to use such cash proceeds to repair or replace damaged property or to
purchase or otherwise acquire new assets or property within 180 days of the receipt
of such cash proceeds, it being expressly agreed that any such cash proceeds not so
reinvested shall be applied to repay the Loans immediately thereafter.

     (vi) Application of Mandatory Prepayments. All amounts required to be
paid pursuant to this Section 2.5(b) shall be applied as follows: (A) first
to the outstanding Revolving Loans and (B) second to a cash collateral
account in respect of LOC Obligations. All prepayments under this Section 2.5(b)
shall be subject to Section 2.16 and be accompanied by interest on the principal
amount prepaid through the date of prepayment. Within the parameters of the
applications set forth above, prepayments shall be applied first to Floating LIBOR
Rate Loans and then to Fixed LIBOR Rate Loans in direct order of Interest Period
Maturities. Amounts prepaid with respect to the Revolving Loans may be reborrowed
in accordance with the terms and provisions contained in this Agreement.

     (c) Hedging Obligations Unaffected. Any repayment or prepayment made pursuant
to this Section 2.7 shall not affect the Borrower’s obligation to continue to make

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payments under any Secured Hedging Agreement, which shall remain in full force and
effect notwithstanding such repayment or prepayment, subject to the terms of such Secured
Hedging Agreement.

     Section 2.6 Minimum Principal Amount of Tranches.

     All borrowings, payments and prepayments in respect of Revolving Loans shall be in such
amounts and be made pursuant to such elections so that after giving effect thereto the aggregate
principal amount of the Revolving Loans comprising any Tranche shall be with respect to Fixed LIBOR
Rate Loans, $250,000 or a whole multiple of $250,000 in excess thereof.

     Section 2.7 Default Rate and Payment Dates.

     (a) If all or a portion of the principal amount of any Loan which is a Fixed LIBOR Rate
Loan shall not be paid when due or continued as a Fixed LIBOR Rate Loan in accordance with
the provisions of Section 2.8 (whether at the stated maturity, by acceleration or
otherwise), such overdue principal amount of such Loan shall be converted to a Floating
LIBOR Rate Loan at the end of the Interest Period applicable thereto.

     (b) Upon the occurrence, and during the continuance, of any Event of Default hereunder,
the principal of and, to the extent permitted by law, interest on the Loans and any other
amounts owing hereunder or under the other Credit Documents shall bear interest, payable on
demand, at a per annum rate which is (A) in the case of principal, the rate that would
otherwise be applicable thereto plus 2% or (B) in the case of interest, fees or
other amounts, the rate equal to the Floating LIBOR Rate plus the sum of the
Applicable Percentage then in effect and 2% (the “Default Rate”) (after as well as
before judgment). The Required Lenders shall have the right to revoke the imposition of any
default interest imposed under this Section 2.6(b).

     (c) Interest on each Loan shall be payable in arrears on each Interest Payment Date;
provided that interest accruing pursuant to paragraph (a) of this Section 2.6 shall
be payable from time to time on demand.

     Section 2.8 Conversion Options.

     (a) The Borrower may, in the case of Revolving Loans, elect from time to time to
convert Floating LIBOR Rate Loans to Fixed LIBOR Rate Loans by giving the Administrative
Agent at least three Business Days’ prior irrevocable written notice of such election. In
addition, the Borrower may elect from time to time to convert Fixed LIBOR Rate Loans to
Floating LIBOR Rate Loans by giving the Administrative Agent irrevocable written notice by
11:00 a.m. one Business Date prior to the proposed date of conversion. A form of Notice of
Conversion is attached as Schedule 2.8. If the date upon which a Floating LIBOR
Rate Loan is to be converted to a Fixed LIBOR Rate Loan is not a Business Day, then such
conversion shall be made on the next succeeding Business Day. All or any part of
outstanding Floating LIBOR Rate Loans may be converted as provided herein; provided
that (i) no Loan may be converted into a Fixed

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LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing and
(ii) partial conversions shall be in an aggregate principal amount of $250,000 or a whole
multiple of $250,000 in excess thereof. Fixed LIBOR Rate Loans may only be converted to
Floating LIBOR Rate Loans on the last day of the applicable Interest Period. If the date
upon which a Fixed LIBOR Rate Loan is to be converted to a Floating LIBOR Rate Loan is not a
Business Day, then such conversion shall be made on the next succeeding Business Day and
during the period from such last day of an Interest Period to such succeeding Business Day
such Loan shall bear interest as if it were an Floating LIBOR Rate Loan.

     (b) Any Fixed LIBOR Rate Loans may be continued as such upon the expiration of an
Interest Period with respect thereto by compliance by the Borrower with the notice
provisions contained in Section 2.8(a); provided, that no Fixed LIBOR Rate Loan may
be continued as such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to a Floating LIBOR Rate Loan at the
end of the applicable Interest Period with respect thereto. If the Borrower shall fail to
give timely notice of an election to continue a Fixed LIBOR Rate Loan, or the continuation
of Fixed LIBOR Rate Loans is not permitted hereunder, such Fixed LIBOR Rate Loans shall be
automatically converted to Floating LIBOR Rate Loans at the end of the applicable Interest
Period with respect thereto.

     Section 2.9 Computation of Interest and Fees.

     (a) All fees, interest and all other amounts payable hereunder shall be calculated on
the basis of a 360 day year for the actual days elapsed. The Administrative Agent shall as
soon as practicable notify the Borrower and the Lenders of each determination of a Fixed
LIBOR Rate on the Business Day of the determination thereof. Any change in the interest
rate on a Loan resulting from a change in the Floating LIBOR Rate shall become effective as
of the opening of business on the day on which such change in the Floating LIBOR Rate shall
become effective. The Administrative Agent shall as soon as practicable notify the Borrower
and the Lenders of the effective date and the amount of each such change. If any payment on
a Fixed LIBOR Rate Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless the result of
such extension would be to extend such payment into another calendar month, in which event
such payment shall be made on the immediately preceding Business Day.

     (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Credit Agreement shall be conclusive and binding on the Borrower and the
Lenders in the absence of manifest error. The Administrative Agent shall, at the request of
the Borrower, deliver to the Borrower a statement showing the computations used by the
Administrative Agent in determining any interest rate.

     (c) It is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements,

33

 

whether now existing or hereafter arising and whether written or oral. In no way, nor
in any event or contingency (including but not limited to prepayment or acceleration of the
maturity of any Obligation), shall the interest taken, reserved, contracted for, charged, or
received under this Credit Agreement, under the Notes or otherwise, exceed the maximum
nonusurious amount permissible under applicable law. If, from any possible construction of
any of the Credit Documents or any other document, interest would otherwise be payable in
excess of the maximum nonusurious amount, any such construction shall be subject to the
provisions of this paragraph and such interest shall be automatically reduced to the maximum
nonusurious amount permitted under applicable law, without the necessity of execution of any
amendment or new document. If any Lender shall ever receive anything of value which is
characterized as interest on the Loans under applicable law and which would, apart from this
provision, be in excess of the maximum nonusurious amount, an amount equal to the amount
which would have been excessive interest shall, without penalty, be applied to the reduction
of the principal amount owing on the Loans and not to the payment of interest, or refunded
to the Borrower or the other payor thereof if and to the extent such amount which would have
been excessive exceeds such unpaid principal amount of the Loans. The right to demand
payment of the Loans or any other Indebtedness evidenced by any of the Credit Documents does
not include the right to receive any interest which has not otherwise accrued on the date of
such demand, and the Lenders do not intend to charge or receive any unearned interest in the
event of such demand. All interest paid or agreed to be paid to the Lenders with respect to
the Loans shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term (including any renewal or extension)
of the Loans so that the amount of interest on account of such indebtedness does not exceed
the maximum nonusurious amount permitted by applicable law.

     Section 2.10 Pro Rata Treatment and Payments.

     (a) Allocation of Payments Before Event of Default. Each borrowing of
Revolving Loans and any reduction of the Revolving Commitments shall be made pro
rata according to the respective Revolving Commitment Percentages of the Lenders.
Each payment under this Credit Agreement or any Note shall be applied, first, to any
fees then due and owing by the Borrower pursuant to Section 2.3, second, to interest
then due and owing hereunder and under the Notes and, third, to principal then due
and owing hereunder and under the Notes. Each payment on account of any fees pursuant to
Section 2.3 shall be made pro rata in accordance with the respective amounts
due and owing (except as to the Fronting Fees and the Issuing Lender Fees). Each payment
(other than prepayments) by the Borrower on account of principal of and interest on the
Revolving Loans shall be applied to such Loans as directed by the Borrower or otherwise
applied in accordance with the terms of Section 2.5(a) hereof. Each optional prepayment on
account of principal of the Loans shall be applied in accordance with Section 2.5(a). Each
mandatory prepayment on account of principal of the Loans shall be applied in accordance
with Section 2.5(b). All payments (including prepayments) to be made by the Borrower on
account of principal, interest and fees shall be made without defense, set-off or
counterclaim and shall be made to the Administrative Agent for the account of the Lenders at
the Administrative Agent’s office specified on Section 9.2 in Dollars and in

34

 

immediately available funds not later than 2:00 P.M. on the date when due. The
Administrative Agent shall distribute such payments to the Lenders entitled thereto promptly
upon receipt in like funds as received. If any payment hereunder becomes due and payable on
a day other than a Business Day, such payment shall be extended to the next succeeding
Business Day, and, with respect to payments of principal, interest thereon shall be payable
at the then applicable rate during such extension.

     (b) Allocation of Payments After Exercise of Remedies. Notwithstanding any
other provisions of this Credit Agreement to the contrary, after the Commitments shall have
been terminated and the Loans and all other amounts under the Credit Documents shall have
become due and payable in accordance with the terms of Section 7.2 hereof, all amounts
collected or received by the Administrative Agent or any Lender on account of the Credit
Party Obligations under the Credit Documents or any other amounts outstanding under any of
the Credit Documents or in respect of the Collateral shall be paid over or delivered as
follows:

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation reasonable attorneys’ fees) of the Administrative
Agent in connection with enforcing the rights of the Lenders under the Credit
Documents and any protective advances made by the Administrative Agent with respect
to the Collateral under or pursuant to the terms of the Security Documents;

     SECOND, to payment of any fees owed to the Administrative Agent;

     THIRD, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation, reasonable attorneys’ and consultants’ fees) of each
of the Lenders in connection with enforcing its rights under the Credit Documents or
otherwise with respect to the Credit Party Obligations owing to such Lender;

     FOURTH, to the payment of all of the Credit Party Obligations consisting of
accrued fees and interest, including with respect to any Secured Hedging Agreement,
any fees, premiums and scheduled periodic payments due under such Secured Hedging
Agreement and any interest accrued thereon;

     FIFTH, to the payment of the outstanding principal amount of the Credit Party
Obligations and the payment or cash collateralization of the outstanding LOC
Obligations, and including with respect to any Secured Hedging Agreement, any
breakage, termination or other payments due under such Secured Hedging Agreement and
any interest accrued thereon;

     SIXTH, to all other Credit Party Obligations and other obligations which shall
have become due and payable under the Credit Documents or otherwise and not repaid
pursuant to clauses “FIRST” through “FIFTH” above; and

     SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully
entitled to receive such surplus.

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In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of
the Lenders and Hedging Agreement Providers shall receive an amount equal to its pro
rata share (based on the proportion that the then outstanding Loans and LOC
Obligations held by such Lender or the outstanding obligations payable to such Hedging
Agreement Provider bears to the aggregate then outstanding Loans, LOC Obligations and
obligations payable under all Secured Hedging Agreements) of amounts available to be applied
pursuant to clauses “THIRD”, “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent
that any amounts available for distribution pursuant to clause “FIFTH” above are
attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts
shall be held by the Administrative Agent in a cash collateral account and applied (A)
first, to reimburse the Issuing Lender from time to time for any drawings under such Letters
of Credit and (B) then, following the expiration of all Letters of Credit, to all other
obligations of the types described in clauses “FIFTH” and “SIXTH” above in the manner
provided in this Section 2.8(b).

     Section 2.11 Non-Receipt of Funds by the Administrative Agent.

     (a) Unless the Administrative Agent shall have been notified in writing by a Lender
prior to the date a Loan is to be made by such Lender (which notice shall be effective upon
receipt) that such Lender does not intend to make the proceeds of such Loan available to the
Administrative Agent, the Administrative Agent may assume that such Lender has made such
proceeds available to the Administrative Agent on such date, and the Administrative Agent
may in reliance upon such assumption (but shall not be required to) make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact made available
to the Administrative Agent, the Administrative Agent shall be able to recover such
corresponding amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent
will promptly notify the Borrower, and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent. The Administrative Agent shall also be entitled to
recover from the Lender or the Borrower, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was made available by
the Administrative Agent to the Borrower to the date such corresponding amount is recovered
by the Administrative Agent at a per annum rate equal to (i) from the Borrower at the
applicable rate for the applicable borrowing pursuant to the Notice of Borrowing and (ii)
from a Lender at the Federal Funds Rate.

     (b) Unless the Administrative Agent shall have been notified in writing by the
Borrower, prior to the date on which any payment is due from it hereunder (which notice
shall be effective upon receipt) that the Borrower does not intend to make such payment, the
Administrative Agent may assume that such Borrower has made such payment when due, and the
Administrative Agent may in reliance upon such assumption (but shall not be required to)
make available to each Lender on such payment date an amount equal to the portion of such
assumed payment to which such Lender is entitled hereunder, and if the Borrower has not in
fact made such payment to the Administrative Agent, such Lender shall, on demand, repay to
the Administrative Agent the amount made available

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to such Lender. If such amount is repaid to the Administrative Agent on a date after
the date such amount was made available to such Lender, such Lender shall pay to the
Administrative Agent on demand interest on such amount in respect of each day from the date
such amount was made available by the Administrative Agent to such Lender to the date such
amount is recovered by the Administrative Agent at a per annum rate equal to the Federal
Funds Rate.

     (c) A certificate of the Administrative Agent submitted to the Borrower or any Lender
with respect to any amount owing under this Section 2.9 shall be conclusive in the absence
of manifest error.

     Section 2.12 Inability to Determine Interest Rate.

     Notwithstanding any other provision of this Credit Agreement, if (i) the Administrative Agent
shall reasonably determine (which determination shall be conclusive and binding absent manifest
error) that, by reason of circumstances affecting the relevant market, reasonable and adequate
means do not exist for ascertaining Fixed LIBOR for such Interest Period, or (ii) the Required
Lenders shall reasonably determine (which determination shall be conclusive and binding absent
manifest error) that the Fixed LIBOR Rate does not adequately and fairly reflect the cost to such
Lenders of funding Fixed LIBOR Rate Loans that the Borrower has requested be outstanding as a Fixed
LIBOR Tranche during such Interest Period, the Administrative Agent shall forthwith give telephone
notice of such determination, confirmed in writing, to the Borrower, and the Lenders at least two
Business Days prior to the first day of such Interest Period. Unless the Borrower shall have
notified the Administrative Agent upon receipt of such telephone notice that it wishes to rescind
or modify its request regarding such Fixed LIBOR Rate Loans, any Loans that were requested to be
made as Fixed LIBOR Rate Loans shall be made as Floating LIBOR Rate Loans and any Loans that were
requested to be converted into or continued as Fixed LIBOR Rate Loans shall remain as or be
converted into Floating LIBOR Rate Loans. Until any such notice has been withdrawn by the
Administrative Agent, no further Loans shall be made as, continued as, or converted into, Fixed
LIBOR Rate Loans for the Interest Periods so affected.

     Section 2.13 Illegality.

     Notwithstanding any other provision of this Credit Agreement, if the adoption of or any change
in any Requirement of Law or in the interpretation or application thereof by the relevant
Governmental Authority to any Lender shall make it unlawful for such Lender or its LIBOR Lending
Office to make or maintain Fixed LIBOR Rate Loans as contemplated by this Credit Agreement or to
obtain in the interbank eurodollar market through its LIBOR Lending Office the funds with which to
make such Loans, (a) such Lender shall promptly notify the Administrative Agent and the Borrower
thereof, (b) the commitment of such Lender hereunder to make Fixed LIBOR Rate Loans or continue
Fixed LIBOR Rate Loans as such shall forthwith be suspended until the Administrative Agent shall
give notice that the condition or situation which gave rise to the suspension shall no longer
exist, and (c) such Lender’s Loans then outstanding as Fixed LIBOR Rate Loans, if any, shall be
converted on the last day of the Interest Period for such Loans or within such earlier period as
required by law as Floating LIBOR Rate Loans. The Borrower hereby agrees promptly to pay any
Lender, upon its demand, any additional amounts

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necessary to compensate such Lender for actual and direct costs (but not including anticipated
profits) reasonably incurred by such Lender in making any repayment in accordance with this Section
including, but not limited to, any interest or fees payable by such Lender to lenders of funds
obtained by it in order to make or maintain its Fixed LIBOR Rate Loans hereunder. A certificate as
to any additional amounts payable pursuant to this Section submitted by such Lender, through the
Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error. Each
Lender agrees to use reasonable efforts (including reasonable efforts to change its LIBOR Lending
Office) to avoid or to minimize any amounts which may otherwise be payable pursuant to this
Section; provided, however, that such efforts shall not cause the imposition on
such Lender of any additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.

     Section 2.14 Requirements of Law.

     (a) If the adoption of or any change in any Requirement of Law or in the interpretation
or application thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

     (i) shall subject such Lender to any tax of any kind whatsoever with respect to
any Letter of Credit, any participation therein or any application relating thereto,
any Fixed LIBOR Rate Loan made by it, or change the basis of taxation of payments to
such Lender in respect thereof (except for changes in the rate of tax on the overall
net income of such Lender);

     (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of such Lender which is not
otherwise included in the determination of the Fixed LIBOR Rate hereunder; or

     (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making or
maintaining Fixed LIBOR Rate Loans or the Letters of Credit or the participations therein or
to reduce any amount receivable hereunder or under any Note, then, in any such case, the
Borrower shall promptly pay such Lender, upon its demand, any additional amounts necessary
to compensate such Lender for such additional cost or reduced amount receivable which such
Lender reasonably deems to be material as determined by such Lender with respect to its
Fixed LIBOR Rate Loans or Letters of Credit. A certificate as to any additional amounts
payable pursuant to this Section submitted by such Lender, through the Administrative Agent,
to the Borrower shall be conclusive in the absence of manifest error. Each Lender agrees to
use reasonable efforts (including reasonable efforts to change its Domestic Lending Office
or Fixed LIBOR Lending Office, as the case may be) to avoid or to minimize any amounts which
might otherwise be payable pursuant to this paragraph of this Section; provided,
however, that such efforts

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shall not cause the imposition on such Lender of any additional costs or legal or regulatory
burdens deemed by such Lender to be material.

     (b) If any Lender shall have reasonably determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof or compliance by such Lender or any corporation controlling such Lender with any
request or directive regarding capital adequacy (whether or not having the force of law)
from any central bank or Governmental Authority made subsequent to the date hereof does or
shall have the effect of reducing the rate of return on such Lender’s or such corporation’s
capital as a consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount reasonably deemed by such Lender to be material, then from
time to time, within fifteen (15) days after demand by such Lender, the Borrower shall pay
to such Lender such additional amount as shall be certified by such Lender as being required
to compensate it for such reduction. Such a certificate as to any additional amounts
payable under this Section submitted by a Lender (which certificate shall include a
description of the basis for the computation), through the Administrative Agent, to the
Borrower shall be conclusive absent manifest error.

     (c) The agreements in this Section shall survive the termination of this Credit
Agreement and payment of the Notes and all other amounts payable hereunder.

     Section 2.15 Taxes.

     All payments made by the Borrower hereunder or under any Note will be made free and clear of,
and without deduction or withholding for, any present or future taxes, levies, imposts, duties,
fees, assessments or other charges of whatever nature now or hereafter imposed by any Governmental
Authority or by any political subdivision or taxing authority thereof or therein with respect to
such payments (but excluding any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the jurisdiction in
which the principal office or applicable lending office of such Lender is located or any
subdivision thereof or therein) and all interest, penalties or similar liabilities with respect
thereto (all such non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as “Taxes”). If any Taxes are so levied or imposed, the
Borrower agrees to pay the full amount of such Taxes, and such additional amounts as may be
necessary so that every payment of all amounts due under this Credit Agreement or under any Note,
after withholding or deduction for or on account of any Taxes, will not be less than the amount
provided for herein or in such Note. The Borrower will furnish to the Administrative Agent as soon
as practicable after the date the payment of any Taxes is due pursuant to applicable law certified
copies (to the extent reasonably available and required by law) of tax receipts evidencing such
payment by the Borrower. The Borrower agrees to indemnify and hold harmless each Lender, and
reimburse such Lender upon its written request, for the amount of any Taxes so levied or imposed
and paid by such Lender. The agreements in this Section shall survive the termination of this
Credit Agreement and the payment of the Notes and all other amounts payable hereunder.

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     Section 2.16 Indemnification; Nature of Issuing Lender’s Duties.

     (a) In addition to its other obligations under Section 2.2, the Borrower hereby agrees
to protect, indemnify, pay and save the Issuing Lender and each LOC Participant harmless
from and against any and all claims, demands, liabilities, damages, losses, costs, charges
and expenses (including reasonable attorneys’ fees) that the Issuing Lender or such LOC
Participant may incur or be subject to as a consequence, direct or indirect, of (i) the
issuance of any Letter of Credit or (ii) the failure of the Issuing Lender to honor a
drawing under a Letter of Credit as a result of any act or omission, whether rightful or
wrongful, of any present or future de jure or de facto government or governmental authority
(all such acts or omissions, herein called “Government Acts”).

     (b) As between the Borrower and the Issuing Lender and each LOC Participant, the
Borrower shall assume all risks of the acts, omissions or misuse of any Letter of Credit by
the beneficiary thereof. Neither the Issuing Lender nor any LOC Participant shall be
responsible: (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect
of any document submitted by any party in connection with the application for and issuance
of any Letter of Credit, even if it should in fact prove to be in any or all respects
invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity or
sufficiency of any instrument transferring or assigning or purporting to transfer or assign
any Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or
in part, that may prove to be invalid or ineffective for any reason; (iii) for failure of
the beneficiary of a Letter of Credit to comply fully with conditions required in order to
draw upon a Letter of Credit; (iv) for errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise,
whether or not they be in cipher; (v) for errors in interpretation of technical terms; (vi)
for any loss or delay in the transmission or otherwise of any document required in order to
make a drawing under a Letter of Credit or of the proceeds thereof; and (vii) for any
consequences arising from causes beyond the control of the Issuing Lender or any LOC
Participant, including, without limitation, any Government Acts. None of the above shall
affect, impair, or prevent the vesting of the Issuing Lender’s rights or powers hereunder.

     (c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Lender or any LOC
Participant, under or in connection with any Letter of Credit or the related certificates,
if taken or omitted in the absence of gross negligence or willful misconduct, shall not put
such Issuing Lender or such LOC Participant under any resulting liability to the Borrower.
It is the intention of the parties that this Credit Agreement shall be construed and applied
to protect and indemnify the Issuing Lender and each LOC Participant against any and all
risks involved in the issuance of the Letters of Credit, all of which risks are hereby
assumed by the Borrower, including, without limitation, any and all risks of the acts or
omissions, whether rightful or wrongful, of any Government Authority. The Issuing Lender
and the LOC Participants shall not, in any way, be liable for any failure by the Issuing
Lender or anyone else to pay any drawing under any Letter of Credit as a result of any
Government Acts or any other cause beyond the control of the Issuing Lender and the LOC
Participants.

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     (d) Nothing in this Section 2.12 is intended to limit the reimbursement obligation of
the Borrower contained in Section 2.2(d) hereof. The obligations of the Borrower under this
Section 2.12 shall survive the termination of this Credit Agreement. No act or omissions of
any current or prior beneficiary of a Letter of Credit shall in any way affect or impair the
rights of the Issuing Lender and the LOC Participants to enforce any right, power or benefit
under this Credit Agreement.

     (e) Notwithstanding anything to the contrary contained in this Section 2.12, the
Borrower shall have no obligation to indemnify the Issuing Lender or any LOC Participant in
respect of any liability incurred by the Issuing Lender or such LOC Participant arising out
of the gross negligence or willful misconduct of the Issuing Lender (including action not
taken by the Issuing Lender or such LOC Participant), as determined by a court of competent
jurisdiction or pursuant to arbitration.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     To induce the Lenders to enter into this Credit Agreement and to make the Extensions of Credit
herein provided for, each of the Credit Parties hereby represents and warrants to the
Administrative Agent and to each Lender that:

     Section 3.1 Financial Condition.

     (a) (i) The audited Consolidated and consolidating financial statements of the Borrower
and its Subsidiaries for the fiscal years ended December 31, 2002, 2003 and 2004, together
with the related Consolidated and consolidating statements of income or operations, equity
and cash flows for the fiscal years ended on such dates, (ii) the unaudited financials of
the Acquired Business’s historical results for the fiscal years ended December 31, 2002,
2003 and 2004, (iii) the unaudited Consolidated and consolidating financial statements of
the Borrower and its Subsidiaries and of the Acquired Business for the twelve-month period
ending March 31, 2005, together with the related Consolidated and consolidating statements
of income or operations, equity and cash flows for the twelve-month period ending on such
date and (iv) an unaudited opening Consolidated balance sheet of the Borrower and its
Subsidiaries dated March 31, 2005, after giving effect to the making of the Loans and
application of proceeds thereof and the Acquisition:

     (A) were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein;

     (B) fairly present the financial condition of the Borrower and its Subsidiaries
and the Acquired Business as of the date thereof (subject, in the case of the
unaudited financial statements, to normal year-end adjustments) and results of
operations for the period covered thereby; and

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     (C) show all material Indebtedness and other liabilities, direct or contingent,
of the Borrower and its Subsidiaries as of the date thereof, including liabilities
for taxes, material commitments and contingent obligations.

     (b) The 5-year projections of the Borrower and its Subsidiaries through 20___giving
effect to the Acquisition delivered to the Lenders on or prior to the Closing Date have been
prepared in good faith based upon reasonable assumptions.

     Section 3.2 No Change.

     Since December 31, 2004, there has been no development or event which has had or could
reasonably be expected to have a Material Adverse Effect.

     Section 3.3 Corporate Existence.

     Each of the Credit Parties (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (b) has the requisite power and authority and the
legal right to own and operate all its material property, to lease the material property it
operates as lessee and to conduct the business in which it is currently engaged, and (c) is duly
qualified to conduct business and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business requires such
qualification. The jurisdictions in which the Credit Parties as of the Closing Date are organized
and qualified to do business are described on Schedule 3.3.

     Section 3.4 Corporate Power; Authorization; Enforceable Obligations.

     Each of the Credit Parties has full power and authority and the legal right to make, deliver
and perform the Credit Documents to which it is party and has taken all necessary action to
authorize the execution, delivery and performance by it of the Credit Documents to which it is
party. No consent or authorization of, filing with, notice to or other act by or in respect of,
any Governmental Authority or any other Person is required in connection with the borrowings
hereunder or with the execution, delivery or performance of any Credit Document by any of the
Credit Parties (other than those which have been obtained) or with the validity or enforceability
of any Credit Document against any of the Credit Parties (except such filings as are necessary in
connection with the perfection of the Liens created by such Credit Documents) or in connection with
the Acquisition. Each Credit Document to which it is a party has been duly executed and delivered
on behalf of the applicable Credit Party. Each Credit Document to which it is a party constitutes
a legal, valid and binding obligation of each such Credit Party, enforceable against such Credit
Party in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     Section 3.5 Compliance with Laws; No Conflict; No Default.

     (a) The execution, delivery and performance by each Credit Party of the Credit
Documents to which such Credit Party is a party, in accordance with their respective terms,
the borrowings hereunder and the transactions contemplated hereby do

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not and will not, by the passage of time, the giving of notice or otherwise, (i)
require any Governmental Approval (other than such Governmental Approvals that have been
obtained or made and not subject to suspension, revocation or termination) or violate any
Requirement of Law relating to such Credit Party, (ii) conflict with, result in a breach of
or constitute a default under the articles of incorporation, bylaws, articles of
organization, operating agreement or other organizational documents of such Credit Party or
any other indenture, agreement or other instrument to which such Person is a party or by
which any of its properties may be bound or any Governmental Approval relating to such
Person, or (iii) result in or require the creation or imposition of any Lien upon or with
respect to any property now owned or hereafter acquired by such Person other than Liens
arising under the Credit Documents.

     (b) Each Credit Party (i) (x) has, except as set forth in the Purchase Agreement, all
Governmental Approvals required by law for it to conduct its business, each of which is in
full force and effect, (y) each such Governmental Approval is final and not subject to
review on appeal and (z) each such Governmental Approval is not the subject of any pending
or, to the best of its knowledge, threatened attack by direct or collateral proceeding, and
(ii) is in compliance with each Governmental Approval applicable to it and in compliance
with all other Requirements of Law relating to it or any of its respective properties, in
each case except to the extent the failure to obtain such Governmental Approval or failure
to comply with such Governmental Approval or Requirement of Law could not reasonably be
expected to have a Material Adverse Effect.

     (c) None of the Credit Parties is in material default under or with respect to any of
its Material Contracts or under or with respect to any of its other material Contractual
Obligations, or any judgment, order or decree to which it is a party. No Default or Event
of Default has occurred and is continuing.

     Section 3.6 No Material Litigation.

     Except as disclosed on Schedule 3.6, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the best knowledge of the Credit
Parties, threatened by or against any Credit Party or any Subsidiary of a Credit Party or against
any of their respective properties or revenues (a) with respect to the Credit Documents or any Loan
or any of the transactions contemplated hereby, or (b) which, if adversely determined, could
reasonably be expected to have a Material Adverse Effect.

     Section 3.7 Investment Company Act; PUHCA, Etc.

     None of the Credit Parties is (a) an “investment company”, or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940, as amended, (b) a
“holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the
Public Utility Holding Company Act of 1935, or (c) subject to the Federal Power Act, the Interstate
Commerce Act or any other federal or state statute or regulation limiting its ability to incur the
Credit Party Obligations.

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     Section 3.8 Margin Regulations.

     No part of the proceeds of any Extension of Credit hereunder will be used directly or
indirectly for any purpose which violates, or which would be inconsistent with, the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve System as now and from time
to time hereafter in effect. The Credit Parties (a) are not 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 respective meanings of each of such terms under Regulation U
and (b) taken as a group do not own “margin stock” except as identified in the financial statements
referred to in Section 3.1 and the aggregate value of all “margin stock” owned by the Credit
Parties taken as a group does not exceed 25% of the value of their assets.

     Section 3.9 ERISA.

     Neither a Reportable Event nor an “accumulated funding deficiency” (within the meaning of
Section 412 of the Code or Section 302 of ERISA) has occurred during the five-year period prior to
the date on which this representation is made or deemed made with respect to any Plan, and each
Plan has complied in all material respects with the applicable provisions of ERISA and the Code,
except to the extent that any such occurrence or failure to comply could not reasonably be expected
to have a Material Adverse Effect. No termination of a Single Employer Plan has occurred resulting
in any liability that has remained underfunded, and no Lien in favor of the PBGC or a Plan has
arisen, during such five-year period which could reasonably be expected to have a Material Adverse
Effect. The present value of all accrued benefits under each Single Employer Plan (based on those
assumptions used to fund such Plans) did not, as of the last annual valuation date prior to the
date on which this representation is made or deemed made, exceed the value of the assets of such
Plan allocable to such accrued benefits by an amount which, as determined in accordance with GAAP,
could reasonably be expected to have a Material Adverse Effect. Neither the Borrower, nor any
Subsidiary of the Borrower nor any Commonly Controlled Entity is currently subject to any liability
for a complete or partial withdrawal from a Multiemployer Plan that could reasonably be expected to
have a Material Adverse Effect.

     Section 3.10 Environmental Matters.

     (a) Except where such violation or liability could not reasonably be expected to have a
Material Adverse Effect, the facilities and properties owned, leased or operated by any of
the Credit Parties (the “Properties”) do not contain any Materials of Environmental
Concern in amounts or concentrations which (i) constitute a violation of, or (ii) could give
rise to liability under, any Environmental Law.

     (b) Except where such violation could not reasonably be expected to have a Material
Adverse Effect, the Properties and all operations of the Credit Parties at the Properties
are in compliance, and have in the last five years been in material compliance, with all
applicable Environmental Laws, and there is no contamination which violates applicable
Environmental Laws at, under or about the Properties or violation of any Environmental Law
with respect to the Properties or the business operated by the any of the Credit Parties
(the “Business”).

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     (c) None of the Credit Parties has received any written or actual notice of violation,
alleged violation, non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the Properties or the
Business, nor does any of the Credit Parties have knowledge of any such threatened notice.

     (d) Materials of Environmental Concern have not been transported or disposed of from
the Properties in violation of, or in a manner or to a location which could give rise to
material liability under any Environmental Law, nor have any Materials of Environmental
Concern been generated, treated, stored or disposed of at, on or under any of the Properties
in violation of, or in a manner that could give rise to material liability under, any
applicable Environmental Law.

     (e) No judicial proceeding or governmental or administrative action is pending or, to
the knowledge of any Credit Party, threatened, under any Environmental Law to which any of
the Credit Parties is or will be named as a party with respect to the Properties or the
Business, nor are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements outstanding under
any Environmental Law with respect to the Properties or the Business.

     (f) There has been no release or threat of release of Materials of Environmental
Concern at or from the Properties, or arising from or related to the operations of any of
the Credit Parties in connection with the Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner that could give rise to any material
liability under Environmental Laws.

     Section 3.11 Use of Proceeds.

     The proceeds of the Loans will be used (a) to finance in part the Acquisition and to pay
certain costs, fees and expenses in connection therewith, (b) to refinance existing Indebtedness,
(c) to pay transaction costs and expenses and (d) for working capital and other general corporate
purposes, including Capital Expenditures and Permitted Acquisitions.

     Section 3.12 Subsidiaries.

     Set forth on Schedule 3.12 is a complete and accurate list of all Subsidiaries of the
Borrower. Information on such Schedule includes the number of shares of each class of Capital
Stock or other equity interests outstanding; the number and percentage of outstanding shares of
each class of stock owned by the Borrower or any of its Subsidiaries; the number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or purchase and similar
rights. The outstanding Capital Stock and other equity interests of all such Subsidiaries is
validly issued, fully paid and non-assessable and is owned, free and clear of all Liens (other than
those arising under or contemplated in connection with the Credit Documents).

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     Section 3.13 Ownership.

     Each of the Credit Parties is the owner of, and has good and marketable title to, all of its
respective assets, which, together with assets leased or licensed by the Credit Parties, represents
all assets individually or in the aggregate material to the conduct of the businesses of the Credit
Parties, taken as a whole on the date hereof, and none of such assets is subject to any Lien other
than Permitted Liens. Each Credit Party enjoys peaceful and undisturbed possession under all of
its leases and all such leases are valid and subsisting and in full force and effect. The Credit
Parties have delivered complete and accurate copies of all material leases to the Administrative
Agent.

     Section 3.14 Indebtedness.

     Except as otherwise permitted under Section 6.1, the Credit Parties have no Indebtedness.

     Section 3.15 Taxes.

     Each of the Credit Parties has filed, or caused to be filed, all tax returns (federal, state,
local and foreign) required to be filed and paid (a) all amounts of taxes shown thereon to be due
(including interest and penalties) and (b) all other taxes, fees, assessments and other
governmental charges (including mortgage recording taxes, documentary stamp taxes and intangibles
taxes) owing by it, except for such taxes (i) which are not yet delinquent or (ii) that are being
contested in good faith and by proper proceedings, and against which adequate reserves are being
maintained in accordance with GAAP. None of the Credit Parties is aware as of the Closing Date of
any proposed tax assessments against it or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect.

     Section 3.16 Intellectual Property Rights.

     Each of the Borrower and its Subsidiaries owns, or has the legal right to use, all
Intellectual Property necessary for each of them to conduct its business as currently conducted.
Set forth on Schedule 3.16 is a list of all Intellectual Property owned by each of the
Borrower and its Subsidiaries or that the Borrower or any of its Subsidiaries has the right to use.
Except as disclosed in Schedule 3.16 hereto, (a) one or more of the Credit Parties has the
right to use the Intellectual Property disclosed in Schedule 3.16 hereto in perpetuity and
without payment of royalties, (b) all registrations with and applications to Governmental
Authorities in respect of such Intellectual Property are valid and in full force and effect and are
not subject to the payment of any taxes or maintenance fees or the taking of any interest therein,
held by any of the Credit Parties to maintain their validity or effectiveness, and (c) there are no
restrictions on the direct or indirect transfer of any Contractual Obligation, or any interest
therein, held by any of the Credit Parties in respect of such Intellectual Property. None of the
Credit Parties is in default (or with the giving of notice or lapse of time or both, would be in
default) under any license to use such Intellectual Property; no claim has been asserted and is
pending by any Person challenging or questioning the use of any such Intellectual Property or the
validity or effectiveness of any such Intellectual Property, nor does the Borrower or any of its
Subsidiaries know of any such claim; and, to the best knowledge of the Borrower or any of its
Subsidiaries, the use of such Intellectual Property by the Borrower or any of its Subsidiaries does
not infringe on the rights of any Person.

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Schedule 3.16 may be updated from time to time by the Borrower to include new
Intellectual Property acquired after the Closing Date by giving written notice thereof to the
Administrative Agent.

     Section 3.17 Solvency.

     The fair saleable value of each Credit Party’s assets, measured on a going concern basis,
exceeds all probable liabilities, including those to be incurred pursuant to this Credit Agreement.
None of the Credit Parties (a) has unreasonably small capital in relation to the business in which
it is or proposes to be engaged or (b) has incurred, or believes that it will incur after giving
effect to the Acquisition and the other transactions contemplated by this Credit Agreement, debts
beyond its ability to pay such debts as they become due. In executing the Credit Documents and
consummating the transactions contemplated thereby, none of the Credit Parties intends to hinder,
delay or defraud either present or future creditors or other Persons to which one or more of the
Credit Parties is or will become indebted.

     Section 3.18 Investments.

     All Investments of each of the Credit Parties are Permitted Investments.

     Section 3.19 Location of Collateral.

     Set forth on Schedule 3.19(a) is a list of the Properties of the Borrower and its
Subsidiaries with street address, county and state where located. Set forth on Schedule
3.19(b) is a list of all locations where any tangible personal property of the Borrower and its
Subsidiaries is located, including county and state where located. Set forth on Schedule
3.19(c) is the state of formation or organization, chief executive office and principal place
of business of each of the Borrower and its Subsidiaries. Schedule 3.19(a),
3.19(b) and 3.19(c) may be updated from time to time by the Borrower to include new
properties or locations acquired after the Closing Date by giving written notice thereof to the
Administrative Agent.

     Section 3.20 No Burdensome Restrictions.

     None of the Credit Parties is a party to any agreement or instrument or subject to any other
obligation or any charter or corporate restriction or any provision of any applicable law, rule or
regulation which, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

     Section 3.21 Labor Matters.

     There are no collective bargaining agreements or Multiemployer Plans covering the employees of
the Credit Parties as of the Closing Date, other than as set forth in Schedule 3.21 hereto,
and none of the Credit Parties has suffered any strikes, walkouts, work stoppages or other material
labor difficulty within the last five years, other than as set forth in Schedule 3.21
hereto.

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     Section 3.22 Accuracy and Completeness of Information.

     All factual information heretofore, contemporaneously or hereafter furnished by or on behalf
of the Credit Parties to the Administrative Agent or any Lender for purposes of or in connection
with this Credit Agreement or any other Credit Document, or any transaction contemplated hereby or
thereby, is or will be true and accurate in all material respects and not incomplete by omitting to
state any material fact necessary to make such information not misleading. There is no fact now
known to any of the Credit Parties which has, or could reasonably be expected to have, a Material
Adverse Effect which fact has not been set forth herein, in the financial statements of the Credit
Parties furnished to the Administrative Agent and/or the Lenders, or in any certificate, opinion or
other written statement made or furnished by or on behalf of the Credit Parties to the
Administrative Agent and/or the Lenders.

     Section 3.23 Material Contracts.

     Schedule 3.23 sets forth, as of the Closing Date or as of the date such Schedule was
most recently updated in accordance with the terms of Section 5.2(b), a complete and accurate list
of all Government Contracts that produce revenue in excess of $1,000,000 per annum and all other]
Material Contracts of the Borrower and its Subsidiaries in effect as of the Closing Date. Other
than as set forth in Schedule 3.23, each such Material Contract is, and after giving effect
to the transactions contemplated by the Credit Documents will be, in full force and effect in
accordance with the terms thereof. The Borrower and its Subsidiaries have delivered to the
Administrative Agent a true and complete copy of each Material Contract. Schedule 3.23 may
be updated from time to time by the Borrower to include new Material Contracts entered into after
the Closing Date by giving written notice thereof to the Administrative Agent.

     Section 3.24 Foreign Assets Control Regulations, Etc.

     Neither any Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy”
within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America
(50 U.S.C. App. §§ 1 et seq.), as amended. Neither any Credit Party nor any or its Subsidiaries is
in violation of (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto or (c) the Patriot Act (as
defined in Section 9.18). None of the Credit Parties (i) is a blocked person described in section
1 of the Anti-Terrorism Order or (ii) to the best of its knowledge, engages in any dealings or
transactions, or is otherwise associated, with any such blocked person.

     Section 3.25 Compliance with OFAC Rules and Regulations.

     None of the Borrower, any Subsidiary of the Borrower or any Affiliate of the Borrower or any
Guarantor (i) is a Sanctioned Person, (ii) has more than 15% of its assets in Sanctioned Countries,
or (iii) derives more than 15% of its operating income from investments in, or transactions with
Sanctioned Persons or Sanctioned Countries. No part of the proceeds of any Extension of Credit
hereunder will be used directly or indirectly to fund any operations in, finance any investments or
activities in or make any payments to, a Sanctioned Person or a Sanctioned Country.

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     Section 3.26 Consummation of Acquisition; Representations and Warranties from Other
Documents.

     The Acquisition and related transactions have been consummated substantially in accordance
with the terms of the Acquisition Documents. As of the Closing Date, the Acquisition Documents
have not been altered, amended or otherwise modified or supplemented in any material respect or any
material condition thereof waived without the prior written consent of the Administrative Agent.
Each of the representations and warranties made in the Acquisition Documents by the Borrower and
its Subsidiaries or, to the best knowledge of the Borrower, made by any third party is true and
correct, except for any representation or warranty therein the failure of which to be true and
correct, does not have or could not reasonably be expected to have a Material Adverse Effect.

     Section 3.27 Regulation H.

     No Mortgaged Property is a Flood Hazard Property except for the Mortgaged Property located at
3005 S.W. Third Avenue, Fort Lauderdale, FL 33315.

     Section 3.28 Security Documents.

     The Security Documents create valid security interests in, and Liens on, the Collateral
purported to be covered thereby, which security interests and Liens are currently (or will be, upon
the execution of control agreements with respect to deposit and securities accounts and the filing
or recording of appropriate financing statements, Mortgage Instruments and notices of grants of
security interests in Intellectual Property, in each case in favor of the Administrative Agent on
behalf of the Secured Parties) perfected security interests and Liens, prior to all other Liens
other than Permitted Liens.

     Section 3.29 Government Contracts.

     No Credit Party is materially in default as to the terms of any Government Contract or has
received any notices of default or notices to cure under any Government Contract for which the
performance deficiency noted by any Governmental Authority has not been cured or otherwise resolved
to such Governmental Authority’s satisfaction.

     Section 3.30 Assignment of Payments.

     Except with respect to contracts for which the government has determined that a prohibition on
assignment of claims is in the government’s interest, each Credit Party has the right to assign to
the Administrative Agent all payments due or to become due under each of the Credit Party’s
Government Contracts, and there exists no uncancelled prior assignment of payments under any of
such Credit Party’s Government Contracts.

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ARTICLE IV

CONDITIONS PRECEDENT

     Section 4.1 Conditions to Closing Date.

     This Credit Agreement shall become effective upon, and the obligation of each Lender to make
the initial Revolving Loans on the Closing Date is subject to, the satisfaction of the following
conditions precedent:

     (a) Execution of Credit Agreement and Credit Documents. The Administrative
Agent shall have received (i) counterparts of this Credit Agreement, executed by a duly
authorized officer of each party hereto, (ii) for the account of each Lender with a
Revolving Commitment that requests a Revolving Note, a Revolving Note, (iii) counterparts of
the Security Agreement and the Pledge Agreement, in each case conforming to the requirements
of this Credit Agreement and executed by duly authorized officers of the Credit Parties or
other Person, as applicable and (iv) counterparts of any other Credit Document, executed by
the duly authorized officers of the parties thereto.

     (b) Authority Documents. The Administrative Agent shall have received the
following:

     (i) Articles of Incorporation, Etc. Copies of the articles of
incorporation or other charter or formation documents of each Credit Party certified
to be true and complete as of a recent date by the appropriate governmental
authority of the state of its incorporation or formation, as the case may be.

     (ii) Resolutions. Copies of resolutions of the board of directors or
other comparable managing body of each Credit Party approving and adopting the
Credit Documents, the transactions contemplated therein and authorizing execution
and delivery thereof, certified by an officer or the managing member of such Credit
Party as of the Closing Date to be true and correct and in force and effect as of
such date.

     (iii) Bylaws. A copy of the bylaws and/or operating agreement of each
Credit Party certified by an officer or managing member of such Credit Party as of
the Closing Date to be true and correct and in force and effect as of such date.

     (iv) Good Standing. Copies of (i) certificates of good standing,
existence or its equivalent with respect to each Credit Party certified as of a
recent date by the appropriate governmental authorities of the state of
incorporation or formation, as the case may be, and each other state in which such
Credit Party is qualified to do business and (ii) to the extent readily available, a
certificate indicating payment of all corporate, LLC and other franchise taxes
certified as of a recent date by the appropriate governmental taxing authorities.

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     (v) Incumbency. An incumbency certificate of each Credit Party
certified by a secretary or assistant secretary to be true and correct as of the
Closing Date, in substantially the form of Schedule 4.1(b) hereto.

     (c) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent:

     (i) searches of Uniform Commercial Code filings in the jurisdiction of the
chief executive office and state of incorporation of each Credit Party and each
jurisdiction where any Collateral is located or where a filing would need to be made
in order to perfect the Administrative Agent’s security interest in the Collateral,
copies of the financing statements on file in such jurisdictions and evidence that
no Liens exist other than Permitted Liens;

     (ii) UCC financing statements for each appropriate jurisdiction as is
necessary, in the Administrative Agent’s sole discretion, to perfect the
Administrative Agent’s security interest in the Collateral;

     (iii) searches of ownership of Intellectual Property in the appropriate
governmental offices;

     (iv) such patent/trademark/copyright filings as requested by the Administrative
Agent in order to perfect the Administrative Agent’s security interest in the
Intellectual Property;

     (v) all stock certificates, if any, evidencing the Capital Stock pledged to the
Administrative Agent pursuant to the Pledge Agreement, together with duly executed
in blank undated stock powers attached thereto;

     (vi) all instruments and chattel paper in the possession of any of the Credit
Parties, together with allonges or assignments as may be necessary or appropriate to
perfect the Administrative Agent’s security interest in the Collateral;

     (vii) duly executed consents as are necessary, in the Administrative Agent’s
sole discretion, to perfect the Lenders’ security interest in the Collateral;

     (viii) in the case of any personal property Collateral located at premises
leased by a Credit Party, such estoppel letters, consents and waivers from the
landlords on such real property or bailees as may be required by the Administrative
Agent; and

     (ix) duly executed account control agreements with respect to Collateral which
a control agreement is required for perfection of the Administrative Agent’s
security interest under the Uniform Commercial Code.

     (d) Liability and Casualty Insurance. The Administrative Agent shall have
received copies of insurance policies or certificates of insurance evidencing liability and

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casualty insurance (including, but not limited to, business interruption insurance)
meeting the requirements set forth herein or in the Security Documents. The Administrative
Agent shall be named as loss payee on all casualty insurance policies and additional insured
on all liability insurance policies, in each case for the benefit of the Lenders.

     (e) Legal Opinions of Counsel. The Administrative Agent shall have received an
opinion of counsel for the Credit Parties dated the Closing Date and addressed to the
Administrative Agent and the Lenders.

     (f) Fees. The Administrative Agent and the Lenders shall have received all
fees owing pursuant to Section 2.3.

     (g) Litigation. There shall not exist any pending or threatened litigation,
investigation, bankruptcy or insolvency, injunction, order or claim affecting or relating to
any Credit Party or any of its Subsidiaries, the Acquired Business, this Agreement and the
other Credit Documents, or the Acquisition, that has not been settled, dismissed, vacated,
discharged or terminated prior to the Closing Date which could reasonably be expected to
result in a Material Adverse Change.

     (h) Solvency Certificate. The Administrative Agent shall have received an
officer’s certificate prepared by the chief financial officer of the Borrower as to the
financial condition, solvency and related matters of the Borrower and its Subsidiaries,
after giving effect to the Acquisition and the initial borrowings under the Credit
Documents, in substantially the form of Schedule 4.1(h) hereto.

     (i) Account Designation Letter. The Administrative Agent shall have received
the executed Account Designation Letter in the form of Schedule 1.1(a) hereto.

     (j) Corporate Structure. The corporate capital and ownership structure of the
Credit Parties shall be as described in Schedule 3.12. The Administrative Agent
shall be satisfied with management structure, legal structure, voting control, liquidity,
total leverage and total capitalization of the Credit Parties, after giving effect to the
Acquisition.

     (k) Government Consent. The Administrative Agent shall have received evidence
that all governmental, shareholder and material third party consents and approvals necessary
in connection with the Acquisition, and the financings and other transactions contemplated
hereby have been obtained.

     (l) Compliance with Laws. The financings, the Acquisition, and other
transactions contemplated hereby shall be in compliance with all applicable laws and
regulations (including all applicable securities and banking laws, rules and regulations).

     (m) Bankruptcy. There shall be no bankruptcy or insolvency proceedings with
respect to the Borrower or any of its Subsidiaries.

     (n) Existing Indebtedness of the Credit Parties. All of the existing
Indebtedness for borrowed money of the Credit Parties (other than Indebtedness

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permitted to exist pursuant to Section 6.1) shall be repaid in full and all security
interests related thereto shall be terminated on the Closing Date.

     (o) Financial Statements. The Administrative Agent and the Lenders shall have
received copies of the financial statements referred to in Section 3.1 hereof, each in form
and substance satisfactory to it.

     (p) No Material Adverse Change. Since December 31, 2004, there has been no
material adverse change in the business, properties, prospects, operations or condition
(financial or otherwise) of the Acquired Business or the Credit Parties and their
subsidiaries taken as a whole.

     (q) Financial Condition Certificate. The Administrative Agent shall have
received a certificate, in form and substance satisfactory to the Administrative Agent and
certified as accurate by a Responsible Officer, demonstrating compliance by the Borrower and
its Subsidiaries as of the Closing Date with the financial covenants contained in Section
5.9 hereof.

     (r) Officer’s Certificate. The Administrative Agent shall have received a
certificate executed by a Responsible Officer of the Borrower as of the Closing Date stating
that (i) no action, suit, investigation or proceeding is pending or, to the knowledge of any
Credit Party, threatened in any court or before any arbitrator or governmental
instrumentality that purports to affect any Credit Party or the Acquisition or any other
transaction contemplated by the Credit Documents and the Acquisition Documents, if such
action, suit, investigation or proceeding could reasonably be expected to have a Material
Adverse Effect and (ii) immediately after giving effect to this Credit Agreement (including
the initial Extensions of Credit hereunder), the other Credit Documents, the Acquisition and
the Acquisition Documents and all the transactions contemplated therein or thereby to occur
on such date, (A) no Default or Event of Default exists and (B) all representations and
warranties contained herein and in the other Credit Documents are true and correct in all
material respects.

     (s) Acquisition Documents. The Administrative Agent shall have reviewed and
approved in its reasonable discretion certified copies of all of the Acquisition Documents
and there shall not have been any material modification, amendment, supplement or waiver to
the Acquisition Documents without the prior written consent of the Administrative Agent,
including, but not limited to, any modification, amendment, supplement or waiver relating to
the amount or type of consideration to be paid in connection with the Acquisition and the
contents of all disclosure schedules and exhibits. The Acquisition shall have been
consummated in accordance with the terms of the Acquisition Documents (without waiver of any
material conditions precedent to the obligations of any party thereto).

     (t) Subordination Agreements. The Administrative Agent shall have received
subordination agreements from the Sellers and RPC Financial Advisers, LLC in form and
substance satisfactory to the Administrative Agent.

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     (u) Environmental Assessment. The Administrative Agent shall have received an
environmental assessment of the Borrower’s real property, such environmental assessment to
be in form and substance satisfactory to the Administrative Agent and at the Borrower’s
cost.

     (v) Demand Deposit Account. The Borrower shall have established a demand
deposit account with the Administrative Agent into which proceeds of the Loans shall be
credited and from which monthly payments shall be automatically deducted.

     (w) Real Property Collateral. The Administrative Agent shall have received, in
form and substance satisfactory to the Administrative Agent and the Lenders:

     (i) fully executed and notarized Mortgage Instruments encumbering the Mortgaged
Properties listed in Schedule 3.19(a);

     (ii) a title report obtained by the Credit Parties in respect of each of the
Mortgaged Properties listed in Schedule 3.19(a);

     (iii) a Mortgage Policy with respect to each of the Mortgaged Properties listed
in Schedule 3.19(a); and

     (iv) evidence as to (A) whether any Mortgaged Property listed in Schedule
3.19(a) is in an area designated by the Federal Emergency Management Agency as
having special flood or mud slide hazards (a “Flood Hazard Property”) and
(B) if any such Mortgaged Property is a Flood Hazard Property, (1) whether the
community in which such Mortgaged Property is located is participating in the
National Flood Insurance Program, (2) the applicable Credit Party’s written
acknowledgment of receipt of written notification from the Administrative Agent (x)
as to the fact that such Mortgaged Property is a Flood Hazard Property and (y) as to
whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program and (z) copies of insurance
policies or certificates of insurance of the Credit Parties evidencing flood
insurance reasonably satisfactory to the Administrative Agent and naming the
Administrative Agent as sole loss payee on behalf of the Lenders.

     (x) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Credit Agreement shall be reasonably satisfactory
in form and substance to the Administrative Agent and its counsel.

     Section 4.2 Conditions to All Extensions of Credit.

     The obligation of each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such Extension of Credit:

     (a) Representations and Warranties. The representations and warranties made by
the Credit Parties herein, in the Security Documents or which are contained in any
certificate furnished at any time under or in connection herewith shall be true and correct

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in all material respects on and as of the date of such Extension of Credit as if made
on and as of such date (except for those which expressly relate to an earlier date).

     (b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension of Credit to
be made on such date unless such Default or Event of Default shall have been waived in
accordance with this Credit Agreement.

     (c) Compliance with Commitments. Immediately after giving effect to the making
of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum
of the aggregate principal amount of outstanding Revolving Loans plus LOC
Obligations shall not exceed the Revolving Committed Amount then in effect, and (ii) the LOC
Obligations shall not exceed the LOC Committed Amount.

     (d) Additional Conditions to Revolving Loans. If such Loan is made pursuant to
Section 2.1, all conditions set forth in such Section shall have been satisfied.

     (e) Additional Conditions to Letters of Credit. If such Extension of Credit is
made pursuant to Section 2.3, all conditions set forth in such Section shall have been
satisfied.

     Each request for an Extension of Credit and each acceptance by the Borrower of any such
Extension of Credit shall be deemed to constitute a representation and warranty by the Borrower as
of the date of such Extension of Credit that the applicable conditions in paragraphs (a) through
(e) of this Section have been satisfied.

ARTICLE V

AFFIRMATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that on the Closing Date, and thereafter for so
long as this Credit Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Credit Party Obligations under the Credit Documents,
together with interest, Commitment Fees and all other amounts owing to the Agent or any Lender
hereunder, are paid in full, such Credit Party shall, and shall cause each of its Subsidiaries, to:

     Section 5.1 Financial Statements.

     Furnish to the Administrative Agent and each of the Lenders:

     (a) Annual Financial Statements. As soon as available, but in any event within
ninety (90) days after the end of each fiscal year of the Borrower, a copy of the
Consolidated and consolidating balance sheet of the Borrower and its Consolidated
Subsidiaries as at the end of such fiscal year and the related Consolidated and
consolidating statements of income, cash flows and retained earnings of the Borrower and its
Consolidated Subsidiaries for such year, audited by a firm of independent certified public
accountants reasonably acceptable to the Administrative Agent, setting forth in

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each case in comparative form the figures for the preceding fiscal year, reported on
without a “going concern” or like qualification, exception or assumption, or qualification
or assumption indicating that the scope of the audit was inadequate to permit such
independent certified public accountants to certify such financial statements without such
qualification; and

     (b) Quarterly Financial Statements. As soon as available and in any event
within forty-five (45) days after the end of each fiscal quarter of the Borrower, a
company-prepared Consolidated and consolidating balance sheet of the Borrower and its
Consolidated Subsidiaries as at the end of such period and related company-prepared
Consolidated and consolidating statements of income, cash flows and retained earnings for
the Borrower and its Consolidated Subsidiaries for such quarterly period and for the portion
of the fiscal year ending with such period, in each case setting forth in comparative form
the figures for the corresponding period or periods of the preceding fiscal year and the
figures for the corresponding period or periods as set forth in the most recent budget
delivered pursuant to Section 5.1(c) (subject to normal recurring year-end audit
adjustments);

all such financial statements to fairly present in all material respects the financial
condition and results from operations of the entities and for the periods specified and to
be prepared in reasonable detail and in accordance with GAAP (subject, in the case of
interim statements, to normal recurring year-end audit adjustments) applied consistently
throughout the periods reflected therein and further accompanied by a description of, and an
estimation of the effect on the financial statements on account of, a change in the
application of accounting principles as provided in Section 1.3.

     (c) Annual Financial Plans. As soon as practicable and in any event within
ninety (90) days after the end of each fiscal year, a Consolidated and consolidating budget
and cash flow projections on a quarterly basis of the Borrower and its Subsidiaries for the
next succeeding fiscal year, in form and detail reasonably acceptable to the Agent, such
budget to be prepared by the Borrower in a manner consistent with GAAP and to include an
operating and capital budget and a summary of the material assumptions made in the
preparation of such budget. Such budget shall be accompanied by a certificate of the
managing member or chief financial officer of the Borrower to the effect that the budgets
and other financial data are based on reasonable estimates and assumptions, all of which are
fair in light of the conditions which existed at the time the budget was made, have been
prepared on the basis of the assumptions stated therein, and reflect, as of the time so
furnished, the reasonable estimate of the Borrower and its Subsidiaries of the budgeted
results of the operations and other information budgeted therein.

     Section 5.2 Certificates; Other Information.

     Furnish to the Administrative Agent and each of the Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Sections
5.1(a) and 5.1(b) above, (i) an updated copy of Schedule 3.23 if any new Government
Contract that produces revenue in excess of $1,000,000 per annum or any

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other new Material Contract has been entered into since the Closing Date or since
Schedule 3.23 was last updated, as applicable and (ii) a certificate of a
Responsible Officer substantially in the form of Schedule 5.2(a) stating that (A)
such financial statements present fairly the financial position of the Borrower and its
Consolidated subsidiaries for the periods indicated in conformity with GAAP applied on a
consistent basis, (B) each of the Credit Parties during such period observed or performed in
all material respects all of its covenants and other agreements, and satisfied in all
material respects every condition, contained in this Credit Agreement to be observed,
performed or satisfied by it, and (C) such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate, and including
calculations in reasonable detail required to indicate compliance with Section 5.9 as of the
last day of such period;

     (b) within thirty (30) days after the same are sent, copies of all material reports
(other than those otherwise provided pursuant to Section 5.1 and those which are of a
promotional nature) and other material financial information which the Borrower sends to its
shareholders;

     (c) within ninety (90) days after the end of each fiscal year of the Borrower, a
certificate containing information regarding the amount of all Asset Dispositions, Debt
Issuances, and Equity Issuances that were made during the prior fiscal year and amounts
received in connection with any Recovery Event during the prior fiscal year;

     (d) promptly upon receipt thereof, a copy or summary of any other report or “management
letter” submitted or presented by independent accountants to the Borrower or any of its
Subsidiaries in connection with any annual, interim or special audit of the books of such
Person;

     (e) promptly upon their becoming available, copies of (i) all press releases and other
statements made available generally by the Borrower to the public concerning material
developments in the business of the Borrower and its Subsidiaries and (ii) any non-routine
correspondence or official notices received by the Borrower or any of its Subsidiaries from
any federal, state or local governmental authority which regulates the operations of the
Borrower and its Subsidiaries;

     (f) within thirty (30) days after the date hereof, a schedule setting forth (i) each of
the leased real estate locations of the Acquired Business for which the Acquired Business
has not obtained lien waivers from the applicable landlords as of the date hereof and (ii)
the monthly rent for each such location; and

     (g) promptly, such additional financial and other information as the Administrative
Agent, on behalf of any Lender, may from time to time reasonably request.

     Section 5.3 Payment of Taxes and Other Obligations.

     Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, in accordance with industry practice (subject, where applicable,

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to specified grace periods) all its taxes (Federal, state, local and any other taxes) and
other obligations and liabilities of whatever nature and any additional costs that are imposed as a
result of any failure to so pay, discharge or otherwise satisfy such taxes, obligations and
liabilities, except when the amount or validity of any such taxes, obligations and liabilities is
currently being contested in good faith by appropriate proceedings and reserves, if applicable, in
conformity with GAAP with respect thereto have been provided on the books of the Credit Parties.

     Section 5.4 Conduct of Business and Maintenance of Existence.

     Continue to engage in business of the same general type as now conducted by it on the Closing
Date and preserve, renew and keep in full force and effect its existence and good standing and take
all reasonable action to maintain all rights, privileges and franchises necessary or desirable in
the normal conduct of its business and to maintain its goodwill.

     Section 5.5 Maintenance of Property; Insurance.

     (a) Keep all material property useful and necessary in its business in good working
order and condition (ordinary wear and tear and obsolescence excepted).

     (b) Maintain with financially sound and reputable insurance companies insurance on all
its property (including without limitation its tangible Collateral) in at least such amounts
and against at least such risks as are usually insured against in the same geographical area
by companies engaged in the same or a similar business (including, without limitation,
business interruption insurance); and furnish to the Administrative Agent, upon written
request, full information as to the insurance carried. The Administrative Agent shall be
named as loss payee or mortgagee, as its interest may appear, and the Administrative Agent
shall be named as an additional insured with respect to any such insurance providing
coverage in respect of any Collateral, and each provider of any such insurance shall agree,
by endorsement upon the policy or policies issued by it or by independent instruments
furnished to the Administrative Agent, that it will give the Administrative Agent thirty
(30) days prior written notice before any such policy or policies shall be altered or
canceled, and that no act or default of any Credit Party or any other Person shall affect
the rights of the Administrative Agent or the Lenders under such policy or policies. The
present insurance coverage of the Credit Parties is outlined as to carrier, policy number,
expiration date, type and amount on Schedule 5.5(b).

     (c) In case of any material loss, damage to or destruction of the Collateral of any
Credit Party or any part thereof, such Credit Party shall promptly give written notice
thereof to the Administrative Agent generally describing the nature and extent of such
damage or destruction. In case of any loss, damage to or destruction of the Collateral of
any Credit Party or any part thereof, such Credit Party, whether or not the insurance
proceeds, if any, received on account of such damage or destruction shall be sufficient for
that purpose, at such Credit Party’s cost and expense, will promptly repair or replace the
Collateral of such Credit Party so lost, damaged or destroyed unless such Credit Party shall
have reasonably determined that such repair or replacement of the affected

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Collateral is not economically feasible or is not deemed in the best business interest
of such Credit Party.

     Section 5.6 Inspection of Property; Books and Records; Discussions.

     Keep proper books of records and account in which full, true and correct entries in conformity
with GAAP and all Requirements of Law shall be made of all dealings and transactions in relation to
its businesses and activities; and permit, during regular business hours and upon reasonable notice
by the Administrative Agent or any Lender, the Administrative Agent or any Lender to visit and
inspect any of its properties and examine and make abstracts from any of its books and records at
any reasonable time, upon reasonable notice and as often as may reasonably be desired, and to
discuss the business, operations, properties and financial and other condition of the Credit
Parties with officers and employees of the Credit Parties and with their independent certified
public accountants.

     Section 5.7 Notices.

     Immediately upon the occurrence of an event or condition consisting of a Default or Event of
Default, give written notice to the Administrative Agent (which shall promptly transmit such notice
to each Lender) of the occurrence thereof, and promptly (but in no event later than five (5)
Business Days after any Credit Party obtains actual knowledge thereof) give written notice of the
following to the Administrative Agent (which shall promptly transmit such notice to each Lender):

     (a) the occurrence of any default or event of default under any Contractual Obligation
of any of the Credit Parties which could reasonably be expected to have a Material Adverse
Effect or involve a monetary claim in excess of $250,000;

     (b) any litigation, or any investigation or proceeding affecting any of the Credit
Parties which, if adversely determined, could reasonably be expected to have a Material
Adverse Effect;

     (c) (i) the occurrence or expected occurrence of any Reportable Event with respect to
any Plan, a failure to make any required contribution to a Plan, the creation of any Lien in
favor of the PBGC (other than a Permitted Lien) or a Plan or any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution
of proceedings or the taking of any other action by the PBGC or any Credit Party or any
Commonly Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or
the terminating, Reorganization or Insolvency of, any Plan;

     (d) any notice of any violation received by any Credit Party from any Governmental
Authority;

     (e) any labor controversy that has resulted in, or threatens to result in, a strike or
other work action against any Credit Party which could reasonably be expected to have a
Material Adverse Effect;

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     (f) any attachment, judgment, lien, levy or order exceeding $100,000 that may be
assessed against or threatened against any Credit Party other than Permitted Liens; and

     (g) any other development or event which could reasonably be expected to have a
Material Adverse Effect

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer setting forth details of the occurrence referred to therein and stating what action the
Borrower proposes to take with respect thereto. In the case of any notice of a Default or Event of
Default, the Borrower shall specify that such notice is a Default or Event of Default notice on the
face thereof.

     Section 5.8 Environmental Laws.

     (a) Comply with all applicable Environmental Laws and obtain and comply in all material
respects with and maintain any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws except, in each case, to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect.

     (b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply
with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws except to the extent that the same are being contested in good faith by
appropriate proceedings and the pendency of such proceedings could not reasonably be
expected to have a Material Adverse Effect.

     (c) Defend, indemnify and hold harmless the Administrative Agent and the Lenders, and
their respective employees, agents, officers and directors, from and against any and all
claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of
whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any
way relating to the violation of, noncompliance with or liability under, any Environmental
Law applicable to the operations of the Credit Parties or the Properties, or any orders,
requirements or demands of Governmental Authorities related thereto, including, without
limitation, reasonable attorney’s and consultant’s fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that any of the
foregoing arise out of the gross negligence or willful misconduct of the party seeking
indemnification therefor. The agreements in this paragraph shall survive repayment of the
Notes and all other amounts payable hereunder.

     Section 5.9 Financial Covenants.

     Commencing on the Closing Date, comply with the following financial covenants:

     (a) Leverage Ratio. The Leverage Ratio shall be less than or equal to the
following amounts as of the last day of each fiscal quarter ending during the following
periods:

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	 	Period

	 	 	Maximum Ratio	 
	 	Closing Date through December 30, 2006

	 	 	3.25 to 1.0	 
	 	December 31, 2006 through December 30, 2007

	 	 	2.75 to 1.0	 
	 

     (b) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the
end of each quarter of the Borrower, shall be greater than or equal to 1.25 to 1.0.

     (c) Consolidated EBITDA. Consolidated EBITDA shall be at least each of the
following amounts for each of the rolling four fiscal quarterly periods ending as of the
last day of each fiscal quarter ending during the following periods:

	 	 	 	 	 	 	 	 
	 	Period

	 	 	Minimum Amount
	 
	 	Closing Date through December 31, 2005

	 	 	$	3,500,000	 	 
	 	January 1, 2006 through December 31, 2006

	 	 	$	4,500,000	 	 
	 	January 1, 2007 through December 31, 2007

	 	 	$	5,500,000	 	 
	 

     Section 5.10 Additional Guarantors.

     Cause each of their Domestic Subsidiaries, whether newly formed, after acquired or otherwise
existing, to promptly (and in any event within thirty (30) days after such Domestic Subsidiary is
formed or acquired (or such longer period of time as agreed to by the Administrative Agent in its
reasonable discretion)) become a Guarantor hereunder by way of execution of a Joinder Agreement.
In connection therewith, the Credit Parties shall give notice to the Administrative Agent not less
than ten (10) days prior to creating a Domestic Subsidiary (or such shorter period of time as
agreed to by the Administrative Agent in its reasonable discretion), or acquiring the Capital Stock
of any other Person. The Credit Party Obligations shall be secured by, among other things, a first
priority perfected security interest in the Collateral of such new Guarantor and a pledge of 100%
of the Capital Stock of such new Guarantor and its Domestic Subsidiaries and 65% (or such higher
percentage that would not result in material adverse tax consequences for such new Guarantor) of
the voting Capital Stock and 100% of the non-voting Capital Stock of its first-tier Foreign
Subsidiaries. In connection with the foregoing, the Credit Parties shall deliver to the
Administrative Agent, with respect to each new Guarantor to the extent applicable, substantially
the same documentation required pursuant to Sections 4.1 and 5.12 and such other documents or
agreements as the Administrative Agent may reasonably request.

     Section 5.11 Compliance with Law.

     Comply with all laws, rules, regulations and orders, and all applicable restrictions imposed
by all Governmental Authorities, applicable to it and its property, except to the extent
noncompliance with any such law, rule, regulation, order or restriction could not reasonably be
expected to have a Material Adverse Effect.

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     Section 5.12 Pledged Assets.

     (a) Cause each of its Subsidiaries to, cause 100% of the Capital Stock in each of its
direct or indirect Domestic Subsidiaries and 65% of the Capital Stock in each of its Foreign
Subsidiaries to be subject at all times to a first priority, perfected Lien in favor of the
Administrative Agent pursuant to the terms and conditions of the Security Documents or such
other security documents as the Administrative Agent shall reasonably request.

     (b) If, subsequent to the Closing Date, a Credit Party shall acquire any real property
or any securities, instruments, chattel paper or other personal property required for
perfection to be delivered to the Administrative Agent as Collateral hereunder or under any
of the Security Documents, the Borrower shall promptly (and in any event within three (3)
Business Days) after any Responsible Officer of a Credit Party acquires knowledge of same
notify the Administrative Agent of same. Each Credit Party shall, and shall cause each of
its Subsidiaries to, take such action at its own expense as requested by the Administrative
Agent (including, without limitation, any of the actions described in Section 4.1(c) or (d)
hereof) to ensure that the Administrative Agent has a first priority perfected Lien to
secure the Credit Party Obligations in (i) all personal property of the Credit Parties
located in the United States other than personal property which is the subject of a
Permitted Lien, (ii) to the extent deemed to be material by the Administrative Agent or the
Required Lenders in its or their sole reasonable discretion, all other personal property of
the Credit Parties other than personal property which is the subject of a Permitted Lien,
subject in each case only to Permitted Liens and (iii) all real property of the Credit
Parties other than personal property which is the subject of a Permitted Lien located in the
United States. Each Credit Party shall, and shall cause each of its Subsidiaries to, adhere
to the covenants regarding the location of personal property as set forth in the Security
Documents.

     (c) Each Credit Party, upon the Administrative Agent’s request after the occurrence of
a Default or an Event of Default, agrees to promptly assist the Administrative Agent, on
behalf of the Lenders, in completing all documentation relating to the Assignment of Claims
Act or any other similar documentation relating to payments owing with respect to Government
Contracts.

     Section 5.13 Covenants Regarding Patents, Trademarks and Copyrights.

     (a) The Borrower shall notify the Administrative Agent promptly if it knows or has
reason to know that any application, letters patent or registration relating to any Patent,
Patent License, Trademark or Trademark License of the Borrower or any of its Subsidiaries
may become abandoned, or of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in, any proceeding
in the United States Patent and Trademark Office or any court) regarding the Borrower’s or
any of its Subsidiary’s ownership of any Patent or Trademark, its right to patent or
register the same, or to enforce, keep and maintain the same, or its rights under any Patent
License or Trademark License.

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     (b) The Borrower shall notify the Administrative Agent promptly after it knows or has
reason to know of any adverse determination or development (including, without limitation,
the institution of, or any such determination or development in, any proceeding in any
court) regarding any Copyright or Copyright License of the Borrower or any of its
Subsidiaries, whether (i) such Copyright or Copyright License may become invalid or
unenforceable prior to its expiration or termination, or (ii) the Borrower’s or any of its
Subsidiary’s ownership of such Copyright, its right to register the same or to enforce, keep
and maintain the same, or its rights under such Copyright License, may become affected.

     (c) (i) The Borrower shall promptly notify the Administrative Agent of any filing by
the Borrower or any of its Subsidiaries, either itself or through any agent, employee,
licensee or designee (but in no event later than the fifteenth day following such filing),
of any application for registration of any Intellectual Property with the United States
Copyright Office or United States Patent and Trademark Office or any similar office or
agency in any other country or any political subdivision thereof.

     (i) Concurrently, with the delivery of quarterly and annual financial
statements of the Borrower pursuant to Section 5.1 hereof, the Borrower shall
provide the Administrative Agent and its counsel a complete and correct list of all
Intellectual Property owned by or licensed to the Borrower or any of its
Subsidiaries that have not been set forth as annexes of such documents and
instruments showing all filings and recordings for the protection of the security
interest of the Administration Agent therein pursuant to the agreements of the
United States Patent and Trademark Office or the United States Copyright Office.

     (ii) Upon request of the Administrative Agent, the Borrower shall execute and
deliver any and all agreements, instruments, documents, and papers as the
Administrative Agent may reasonably request to evident the Administrative Agent’s
security interest in the Intellectual Property and the general intangibles referred
to in clauses (i) and (ii), including, without limitation, the goodwill of the
Borrower or its Subsidiaries, relating thereto or represented thereby (or such other
Intellectual Property or the general intangibles relating thereto or represented
thereby as the Administrative Agent may reasonably request).

     (d) Except for Intellectual Property the use of which has been discontinued by the
Borrower, the Borrower and its Subsidiaries will take all necessary actions, including,
without limitation, in any proceeding before the United States Patent and Trademark Office
or the United States Copyright Office, to maintain each item of Intellectual Property of the
Borrower and its Subsidiaries, including, without limitation, payment of maintenance fees,
filing of applications for renewal, affidavits of use, affidavits of incontestability and
opposition, interference and cancellation proceedings.

     (e) In the event that any Credit Party becomes aware that any Intellectual Property is
infringed, misappropriated or diluted by a third party in any material respect, the Borrower
shall notify the Administrative Agent promptly after it learns thereof and shall, unless the
Borrower or the relevant Subsidiary, as the case may be, shall reasonably

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determine that such Intellectual Property is not material to the business of the
Borrower and its Subsidiaries taken as a whole, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such infringement,
misappropriation or dilution, and take such other actions as the Borrower or such
Subsidiary, as the case may be, shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property.

     Section 5.14 Lien Waivers.

     Assist the Administrative Agent in obtaining executed lien waivers from each of the landlords
from whom any Credit Party leases real estate.

     Section 5.15 Deposit Relationship. Maintain its primary depository account and cash
management account with the Administrative Agent based upon market pricing and product
availability.

     Section 5.16 Post-Closing Requirements. Within (a) ninety (90) days after the Closing
Date, (i) obtain at the Borrower’s expense a survey for the Mortgaged Property located at 3005 S.W.
Third Avenue, Fort Lauderdale, FL 33315, Florida in form and substance satisfactory to the Agent
and (ii) remove all matters of survey from the Mortgage Policy issued with respect to the Mortgage
Instrument relating to such Mortgaged Property except for such matters as appear on such survey,
(b) within thirty (30) days after the Closing Date, cause the Acquired Business to obtain
replacement preventative termite treatment permits from the State of Florida and (c) within thirty
(30) days after the Closing Date, pledge 65% of the ownership interests of Telecom FM Limited
pursuant to a pledge agreement in form and substance satisfactory to the Agent and take any and all
steps reasonably requested by the Agent to perfect the Agent’s Lien in such ownership interests.

ARTICLE VI

NEGATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that on the Closing Date, and thereafter for so
long as this Credit Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Credit Party Obligations under the Credit Documents,
together with interest, Commitment Fees and all other amounts owing to the Agent or any Lender
hereunder, are paid in full, the Credit Parties shall not, nor shall they permit any of their
Subsidiaries to:

     Section 6.1 Indebtedness.

     Contract, create, incur, assume or permit to exist any Indebtedness, except:

     (a) Indebtedness arising or existing under this Credit Agreement and the other Credit
Documents;

     (b) Indebtedness existing as of the Closing Date as referenced in the financial
statements referenced in Section 3.1(a) (and set out more specifically in Schedule
6.1(b))

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hereto and renewals, refinancings or extensions thereof in a principal amount not in
excess of that outstanding as of the date of such renewal, refinancing or extension;

     (c) Indebtedness (including purchase money indebtedness) incurred after the Closing
Date consisting of Capital Leases or Indebtedness incurred to provide all or a portion of
the purchase price of an asset which is purchased or cost of construction of an asset;
provided that (i) such Indebtedness when incurred shall not exceed the purchase
price or cost of construction of such asset or in connection with the leasing of vehicles;
(ii) no such Indebtedness shall be refinanced for a principal amount in excess of the
principal balance outstanding thereon at the time of such refinancing; and (iii) the total
amount of all such Indebtedness shall not exceed $5,000,000 at any time outstanding
(provided, however, the Indebtedness permitted under this subsection (c) is
in addition to the Indebtedness permitted under subsection (e) below);

     (d) Indebtedness and obligations owing under Secured Hedging Agreements and other
Hedging Agreements entered into in order to manage existing or anticipated interest rate or
exchange rate risks and not for speculative purposes; and

     (e) Subordinated Debt incurred in connection with a Permitted Acquisition to the
sellers of the applicable Target.

     Section 6.2 Liens.

     Contract, create, incur, assume or permit to exist any Lien with respect to any of their
respective property or assets of any kind (whether real or personal, tangible or intangible),
whether now owned or hereafter acquired, except for Permitted Liens. Notwithstanding the
foregoing, if a Credit Party shall grant a Lien on any of its assets in violation of this Section
6.2, then it shall be deemed to have simultaneously granted an equal and ratable Lien on any such
assets in favor of the Administrative Agent for the benefit of the Lenders.

     Section 6.3 Guaranty Obligations.

     Enter into or otherwise become or be liable in respect of any Guaranty Obligations (excluding
specifically therefrom endorsements in the ordinary course of business of negotiable instruments
for deposit or collection) other than (i) those in favor of the Lenders in connection herewith,
(ii) guaranties given by the Borrower or any of its Subsidiaries or by the Borrower or any of its
Subsidiaries in favor of the Borrower or any such Subsidiary in connection with obligations not
constituting Indebtedness including real property leases and other contracts entered into in the
ordinary course of business and (iii) Guaranty Obligations by the Credit Parties permitted under
Section 6.1 (except, as regards Indebtedness permitted under Section 6.1(b), only if and to the
extent such Indebtedness was guaranteed on the Closing Date).

     Section 6.4 Nature of Business.

     Alter the character of their business in any material respect from that conducted as of the
Closing Date.

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     Section 6.5 Consolidation, Merger, Sale or Purchase of Assets, etc.

     (a) dissolve, liquidate or wind up its affairs, sell, transfer, lease or otherwise
dispose of its property or assets or agree to do so at a future time except the following,
without duplication, shall be expressly permitted:

     (i) Specified Sales;

     (ii) the disposition of property or assets as a result of a Recovery Event;

     (iii) the sale, lease or transfer of property or assets from a Credit Party to
another Credit Party (including the liquidation of any Subsidiary into a Credit
Party); and

     (iv) the termination of any Hedging Agreement permitted pursuant to Section
6.1;

provided, that, with respect to clauses (i) and (ii) above, at least 75% of the
consideration received therefor by such Credit Party shall be in the form of cash or Cash
Equivalents; or

     (b) purchase, lease or otherwise acquire (in a single transaction or a series of
related transactions) the property or assets of any Person (other than purchases or other
acquisitions of inventory, leases, materials, property and equipment in the ordinary course
of business, except as otherwise limited or prohibited herein), or enter into any
transaction of merger or consolidation, except for (i) Investments or acquisitions permitted
pursuant to Section 6.6, (ii) Permitted Acquisitions, (iii) the Acquisition and the
transactions related thereto and (iv) the merger or consolidation of the Borrower or one of
its Subsidiaries with and into a Credit Party; provided that if the Borrower is a
party thereto, the Borrower will be the surviving corporation.

     Section 6.6 Advances, Investments and Loans.

     Lend money or extend credit or make advances to any Person, or purchase or acquire any stock,
obligations or securities of, or any other interest in, or make any capital contribution to, any
Person except for Permitted Investments.

     Section 6.7 Transactions with Affiliates.

     Enter into any transaction or series of transactions, whether or not in the ordinary course of
business, with any officer, director, shareholder or Affiliate (other than another Credit Party)
other than on terms and conditions substantially as favorable as would be obtainable in a
comparable arm’s-length transaction with a Person other than an officer, director, shareholder or
Affiliate.

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     Section 6.8 Ownership of Subsidiaries; Restrictions.

     Create, form or acquire any Subsidiaries, except for Domestic Subsidiaries which are joined as
Additional Credit Parties in accordance with the terms hereof. The Credit Parties and their
Subsidiaries will not sell, transfer, pledge or otherwise dispose of any Capital Stock or other
equity interests in any of its Subsidiaries, nor will it permit any of its Subsidiaries to issue,
sell, transfer, pledge or otherwise dispose of any of their Capital Stock or other equity
interests, except in a transaction permitted by Section 6.5(a).

     Section 6.9 Fiscal Year; Organizational Documents; Material Contracts.

     Change its fiscal year. None of the Credit Parties will amend, modify or change its articles
of incorporation (or corporate charter or other similar organizational document) or bylaws (or
other similar document) or operating agreement in any respect adverse to the Lenders without the
prior written consent of the Required Lenders. None of the Credit Parties or their Subsidiaries
will, without the prior written consent of the Administrative Agent, amend, modify, cancel or
terminate or fail to renew or extend or permit the amendment, modification, cancellation or
termination of any of the Material Contracts or the Acquisition Documents, except in the event that
such amendments, modifications, cancellations or terminations or failure to renew could not
reasonably be expected to have a Material Adverse Effect.

     Section 6.10 Limitation on Restricted Actions.

     Create or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Person to (a) pay dividends or make any other distributions
to any Credit Party on its Capital Stock or with respect to any other interest or participation in,
or measured by, its profits, (b) pay any Indebtedness or other obligation owed to any Credit Party,
(c) make loans or advances to any Credit Party, (d) sell, lease or transfer any of its properties
or assets to any Credit Party, or (e) act as a Guarantor and pledge its assets pursuant to the
Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except
(in respect of any of the matters referred to in clauses (a)-(d) above) for such encumbrances or
restrictions existing under or by reason of (i) this Credit Agreement and the other Credit
Documents, (ii) applicable law, (iii) any document or instrument governing Indebtedness incurred
pursuant to Section 6.1(c); provided that any such restriction contained therein relates
only to the asset or assets constructed or acquired in connection therewith or (iv) any Permitted
Lien or any document or instrument governing any Permitted Lien; provided that any such
restriction contained therein relates only to the asset or assets subject to such Permitted Lien.

     Section 6.11 Restricted Payments.

     Directly or indirectly, declare, order, make or set apart any sum for or pay any Restricted
Payment, except (a) to make dividends payable solely in the same class of Capital Stock of such
Person, (b) to make dividends or other distributions payable to the Borrower (directly or
indirectly through its Subsidiaries), (c) to make regularly scheduled current interest payments on
Subordinated Debt so long as no Default or Event of Default exists immediately prior to or after
the making of any such payment, (d) to make payments of the fee to RPC Financial Advisers, LLC so
long as the aggregate amount paid in any fiscal year shall not exceed $1,562,500 and so

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long as no Default or Event of Default exists immediately prior to or after the making of any
such payment, and (e) fees payable to an Affiliate in connection with a merger or acquisition, the
issuance of equity or debt, or any other capital transaction, so long as such fees are
substantially as favorable as would be obtainable in a comparable arm’s length transaction with a
Person other than an Affiliate and so long as such fees for any single transaction (or series of
related transactions) do not exceed the lesser of $250,000 or 3% of the amount of such single
transaction (or related transactions).

     Section 6.12 Prepayments of Indebtedness, etc.

     After the issuance thereof, amend or modify (or permit the amendment or modification of) any
of the terms of any Indebtedness if such amendment or modification would add or change any terms in
a manner adverse to the issuer of such Indebtedness or to the Lenders, or shorten the final
maturity or average life to maturity or require any payment to be made sooner than originally
scheduled or increase the interest rate applicable thereto or change any subordination provision
thereof.

     Section 6.13 Sale Leasebacks.

     Directly or indirectly, become or remain liable as lessee or as guarantor or other surety with
respect to any lease, whether an operating lease or a Capital Lease, of any property (whether real,
personal or mixed), whether now owned or hereafter acquired, (a) which any Credit Party has sold or
transferred or is to sell or transfer to a Person which is not another Credit Party or (b) which
any Credit Party intends to use for substantially the same purpose as any other property which has
been sold or is to be sold or transferred by such Credit Party to another Person which is not
another Credit Party in connection with such lease.

     Section 6.14 No Further Negative Pledges.

     Enter into, assume or become subject to any agreement prohibiting or otherwise restricting the
creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter
acquired, or requiring the grant of any security for such obligation if security is given for some
other obligation, except (a) pursuant to this Credit Agreement and the other Credit Documents, (b)
pursuant to any document or instrument governing Indebtedness incurred pursuant to Section 6.1(c);
provided that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, and (c) in connection with any Permitted Lien or
any document or instrument governing any Permitted Lien; provided that any such restriction
contained therein relates only to the asset or assets subject to such Permitted Lien.

     Section 6.15 Acquisition (Post-Closing Adjustments).

     Permit the post-closing adjustments under Sections 2(c) and (d) of the Purchase Agreement to
(a) exceed $300,000 in the aggregate (upward or downward) or (b) cause the Borrower to be in pro
forma violation of any of the financial covenants set forth in Section 5.9 immediately after giving
effect to such adjustments.

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ARTICLE VII

EVENTS OF DEFAULT

     Section 7.1 Events of Default.

     An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

     (a) Payment Default. The Borrower shall fail to pay any principal on any Loan
or Note when due (whether at maturity, by reason of acceleration or otherwise) in accordance
with the terms thereof or hereof; or the Borrower shall fail to reimburse the Issuing Lender
for any LOC Obligations when due (whether at maturity, by reason of acceleration or
otherwise) in accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or Note or any fee or other amount payable hereunder when due (whether
at maturity, by reason of acceleration or otherwise) in accordance with the terms thereof or
hereof and such failure shall continue unremedied for three (3) Business Days (or any
Guarantor shall fail to pay on the Guaranty in respect of any of the foregoing or in respect
of any other Guaranty Obligations thereunder).

     (b) Misrepresentation. Any representation or warranty made or deemed made
herein, in the Security Documents or in any of the other Credit Documents or which is
contained in any certificate, document or financial or other statement furnished at any time
under or in connection with this Credit Agreement shall prove to have been incorrect, false
or misleading in any material respect on or as of the date made or deemed made.

     (c) Covenant Default. (i) Any Credit Party shall fail to perform, comply with
or observe any term, covenant or agreement applicable to it contained in Sections 5.4 and
5.9 or Article VI hereof; (ii) any Credit Party shall fail to perform, comply with or
observe any term, covenant or agreement applicable to it contained in Sections 5.1, 5.2 and
5.7, and such breach or failure to comply is not cured within five (5) Business Days of its
occurrence, or (iii) any Credit Party shall fail to comply with any other covenant contained
in this Credit Agreement or the other Credit Documents or any other agreement, document or
instrument among any Credit Party, the Administrative Agent and the Lenders or executed by
any Credit Party in favor of the Administrative Agent or the Lenders (other than as
described in Sections 7.1(a), 7.1(c)(i) or 7.1(c)(ii) above), and such breach or failure to
comply is not cured within ten (10) Business Days of its occurrence.

     (d) Debt Cross-Default. (i) any Credit Party shall default in any payment of
principal of or interest on any Indebtedness (other than the Loans, Reimbursement
Obligations and the Guaranty) in a principal amount outstanding of at least $250,000 for the
Borrower and any of its Subsidiaries in the aggregate beyond any applicable grace period
(not to exceed 60 days), if any, provided in the instrument or agreement under which such
Indebtedness was created; (ii) any Credit Party shall default in the observance or
performance of any other agreement or condition relating to any Indebtedness (other

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than the Loans, Reimbursement Obligations and the Guaranty) in a principal amount
outstanding of at least $250,000 in the aggregate for the Borrower and its Subsidiaries or
contained in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness or
beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity; or (iii) any Credit
Party shall breach or default any Secured Hedging Agreement.

     (e) Other Cross-Defaults. The Borrower or any of its Subsidiaries shall
default in the payment when due or in the performance or observance of any obligation or
condition of any Material Contract and such failure to pay or perform or observe such other
obligation or condition continues unremedied for a period of thirty (30) days after notice
of the occurrence of such default unless, but only as long as, the existence of any such
default is being contested by the Borrower or such Subsidiary in good faith by appropriate
proceedings and adequate reserves in respect thereof have been established on the books of
the Borrower or such Subsidiary to the extent required by GAAP.

     (f) Bankruptcy Default. (i) The Borrower or any of its Subsidiaries shall
commence any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to it, or
seeking to have it judged bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its
assets, or the Borrower or any of its Subsidiaries shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against the Borrower or any of
its Subsidiaries any case, proceeding or other action of a nature referred to in clause (i)
above which (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of 30 days; or
(iii) there shall be commenced against the Borrower or any of its Subsidiaries any case,
proceeding or other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets which results in the
entry of an order for any such relief which shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) the Borrower
or any of its Subsidiaries shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii)
or (iii) above; or (v) the Borrower or any of its Subsidiaries shall generally not, or shall
be unable to, or shall admit in writing its inability to, pay its debts as they become due.

     (g) Judgment Default. One or more judgments, orders, decrees or arbitration
awards shall be entered against the Borrower or any of its Subsidiaries involving in the
aggregate a liability (to the extent not paid when due or covered by insurance) of $250,000
or more and all such judgments, orders, decrees or arbitration awards shall not

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have been paid and satisfied, vacated, discharged, stayed or bonded pending appeal
within 30 days from the entry thereof.

     (h) ERISA Default. (i) Any Person shall engage in any “prohibited transaction”
(as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii)
any “accumulated funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC or a Plan
(other than a Permitted Lien) shall arise on the assets of the Borrower, any of its
Subsidiaries or any Commonly Controlled Entity, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event
or commencement of proceedings or appointment of a Trustee is, in the reasonable opinion of
the Required Lenders, likely to result in the termination of such Plan for purposes of Title
IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV of
ERISA, (v) the Borrower, any of its Subsidiaries or any Commonly Controlled Entity shall, or
in the reasonable opinion of the Required Lenders is likely to, incur any liability in
connection with a withdrawal from, or the Insolvency or Reorganization of, any Multiemployer
Plan or (vi) any other similar event or condition shall occur or exist with respect to a
Plan; and in each case in clauses (i) through (vi) above, such event or condition, together
with all other such events or conditions, if any, could have a Material Adverse Effect.

     (i) Change of Control. A Change of Control shall have occurred.

     (j) Failure of Credit Documents. This Credit Agreement (including the
Guaranty) or any other Credit Document or any provision hereof or thereof shall cease to be
in full force and effect or to give the Administrative Agent and/or the Lenders the security
interests, liens, rights, powers and privileges purported to be created thereby, or any
Credit Party or any Person acting by or on behalf of any Credit Party shall deny or
disaffirm such Person’s obligations under this Credit Agreement or any other Credit
Document.

     (k) Hedging Agreement. Any termination payment shall be due by a Credit Party
under any Hedging Agreement and such amount is not paid within the later to occur of ten
(10) Business Days after the due date thereof or the expiration of grace periods, if any, in
such Hedging Agreement.

     (l) Government Contracts. (i) With respect to any Government Contract that
produces revenue in excess of $1,000,000 per annum, receipt of a written termination for
default issued by the applicable Government Authority; or (ii) any Credit Party or any
Subsidiary shall have (A) received a notice of debarment or suspension from contracting with
any Governmental Authority or (B) been debarred or suspended from contracting with any
Governmental Authority; or (iii) receipt of a written termination for default of a
Government Contract issued by the applicable Government Authority based on a finding of
fraud, criminal activity, deception or willful misconduct.

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     Section 7.2 Acceleration; Remedies.

     Upon the occurrence and during the continuation of an Event of Default, then, and in any such
event, (a) if such event is an Event of Default specified in Section 7.1(f) above, automatically
the Commitments shall immediately terminate and the Loans (with accrued interest thereon), and all
other amounts under the Credit Documents (including without limitation the maximum amount of all
contingent liabilities under Letters of Credit) shall immediately become due and payable, and the
Borrower shall immediately pay to the Administrative Agent cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit in an amount equal to
the maximum amount which may be drawn under Letters of Credit then outstanding, and (b) if such
event is any other Event of Default, subject to the terms of Section 8.5, with the written consent
of the Required Lenders, the Administrative Agent may, or upon the written request of the Required
Lenders, the Administrative Agent shall, take any or all of the following actions: (i) by notice
to the Borrower declare the Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; (ii) by notice of default to the Borrower declare the Loans (with accrued
interest thereon) and all other amounts owing under this Credit Agreement and the Notes to be due
and payable forthwith and direct the Borrower to pay to the Administrative Agent cash collateral as
security for the LOC Obligations for subsequent drawings under then outstanding Letters of Credit
in an amount equal to the maximum amount of which may be drawn under Letters of Credit then
outstanding, whereupon the same shall immediately become due and payable; and/or (iii) exercise on
behalf of the Lenders any or all of its other rights and remedies under this Credit Agreement, the
other Credit Documents and applicable law. Except as expressly provided above in this Section 7.2,
presentment, demand, protest and all other notices of any kind are hereby expressly waived by the
Credit Parties. The Lenders and the Hedging Agreement Providers agree that Credit Documents may be
enforced only by the action of the Administrative Agent acting upon the instructions of the
Required Lenders or such Hedging Agreement Provider (only with respect to obligations under the
applicable Secured Hedging Agreement) and that no Lender or Hedging Agreement Provider shall have
any right individually to seek to enforce or to enforce the Credit Documents, it being understood
and agreed that such rights and remedies may be exercised by the Administrative Agent for the
benefit of the Lenders under the terms of this Credit Agreement and for the benefit of any Hedging
Agreement Provider under any Secured Hedging Agreement. The Lenders and the Hedging Agreement
Providers further agree that the Credit Documents may not be enforced against any director,
officer, employee or stockholder of the Borrower.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

     Section 8.1 Appointment.

     Each Lender hereby irrevocably designates and appoints Wachovia as the Administrative Agent of
such Lender under this Credit Agreement, and each such Lender irrevocably authorizes Wachovia, as
the Administrative Agent for such Lender, to take such action on its behalf under the provisions of
this Credit Agreement and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Credit Agreement,

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together with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Credit Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Credit Agreement or otherwise exist against the
Administrative Agent.

     Section 8.2 Delegation of Duties.

     The Administrative Agent may execute any of its duties under this Credit Agreement by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.
Without limiting the foregoing, the Administrative Agent may appoint one of its affiliates as its
agent to perform the functions of the Administrative Agent hereunder relating to the advancing of
funds to the Borrower and distribution of funds to the Lenders and to perform such other related
functions of the Administrative Agent hereunder as are reasonably incidental to such functions.

     Section 8.3 Exculpatory Provisions.

     Neither the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact, Subsidiaries or affiliates shall be (a) liable for any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this Credit Agreement (except
for its or such Person’s own gross negligence or willful misconduct) or (b) responsible in any
manner to any of the Lenders for any recitals, statements, representations or warranties made by
any Credit Party or any officer thereof contained in this Credit Agreement or in any certificate,
report, statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Credit Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any of the Credit Documents or for any
failure of any Credit Party to perform its obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance by any Credit Party of any of the agreements contained in, or conditions
of, this Credit Agreement, or to inspect the properties, books or records of any Credit Party.

     Section 8.4 Reliance by Administrative Agent.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate, affidavit,
letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other
document or conversation believed by it in good faith to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Credit Parties), independent
accountants and other experts selected by the Administrative Agent. The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless
an executed Commitment Transfer Supplement has

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been filed with the Administrative Agent pursuant to Section 9.6(c) with respect to the
Loans evidenced by such Note. The Administrative Agent shall be fully justified in failing
or refusing to take any action under this Credit Agreement unless it shall first receive
such advice or concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from
acting, under any of the Credit Documents in accordance with a request of the Required
Lenders or all of the Lenders, as may be required under this Credit Agreement, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all
the Lenders and all future holders of the Notes.

     (b) For purposes of determining compliance with the conditions specified in Section
4.1, each Lender that has signed this Credit Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a Lender.

     Section 8.5 Notice of Default.

     The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received notice from
a Lender or the Borrower referring to this Credit Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required Lenders;
provided, however, that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders except to the extent that this Credit
Agreement expressly requires that such action be taken, or not taken, only with the consent or upon
the authorization of the Required Lenders, or all of the Lenders, as the case may be.

     Section 8.6 Non-Reliance on Administrative Agent and Other Lenders.

     Each Lender expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representation
or warranty to it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of any Credit Party, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower or any other Credit Party and made its own decision
to make its Loans hereunder and enter into this Credit Agreement. Each Lender also represents that
it will, independently and without reliance upon the Administrative

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Agent or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Credit Agreement, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial and other condition
and creditworthiness of the Borrower and the other Credit Parties. Except for notices, reports and
other documents expressly required to be furnished to the Lenders by the Administrative Agent
hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Borrower or any other Credit Party
which may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

     Section 8.7 Indemnification.

     The Lenders agree to indemnify the Agent in its capacity hereunder (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective Commitment Percentages in effect on the date on which indemnification
is sought under this Section, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time following the payment
of the Notes or any Reimbursement Obligation) be imposed on, incurred by or asserted against the
Agent in any way relating to or arising out of any Credit Document or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by the Agent under or in connection with any of the foregoing; provided,
however, that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements to the extent resulting from the Agent’s gross negligence or willful misconduct, as
determined by a court of competent jurisdiction. The agreements in this Section 8.7 shall survive
the termination of this Credit Agreement and payment of the Notes, any Reimbursement Obligation and
all other amounts payable hereunder.

     Section 8.8 The Administrative Agent in Its Individual Capacity.

     The Administrative Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Borrower and the other Credit Parties as though
the Administrative Agent were not the Administrative Agent hereunder. With respect to the Loans
made or renewed by it and any Note issued to it, the Administrative Agent shall have the same
rights and powers under this Credit Agreement as any Lender and may exercise the same as though it
were not the Administrative Agent, and the terms “Lender” and “Lenders” shall include the
Administrative Agent in its individual capacity.

     Section 8.9 Successor Administrative Agent.

     The Administrative Agent may resign as Administrative Agent upon 30 days’ prior written notice
to the Borrower and the Lenders. If the Administrative Agent shall resign as Administrative Agent
under this Credit Agreement and the other Credit Documents, then the

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Required Lenders shall appoint from among the Lenders a successor administrative agent for the
Lenders, which successor agent shall be approved by the Borrower (such approval not to be
unreasonably withheld) so long as no Default or Event of Default has occurred and is continuing,
whereupon such successor administrative agent shall succeed to the rights, powers and duties of the
Administrative Agent, and the term “Administrative Agent” shall mean such successor administrative
agent effective upon such appointment and approval, and the former Administrative Agent’s rights,
powers and duties as Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to this Credit Agreement
or any holders of the Notes. If no successor Administrative Agent has accepted appointment as
Administrative Agent within thirty (30) days after the retiring Administrative Agent’s giving
notice of resignation, the retiring Administrative Agent shall have the right, on behalf of the
Lenders, to appoint a successor administrative agent, which successor shall be approved by the
Borrower (such approval not to be unreasonably withheld) so long as no Default or Event of Default
has occurred and is continuing; provided that such successor administrative agent has
minimum capital and surplus of at least $500,000,000. If no successor administrative agent has
accepted appointment as Administrative Agent within sixty (60) days after the retiring
Administrative Agent’s giving notice of resignation, the retiring Administrative Agent’s
resignation shall nevertheless become effective and the Lenders shall perform all duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor
administrative agent as provided for above. After any retiring Administrative Agent’s resignation
as Administrative Agent, the indemnification provisions of this Credit Agreement and the other
Credit Documents and the provisions of this Article VIII shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent under this Credit
Agreement.

     Section 8.10 Other Agents.

     None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “syndication agent,” “documentation agent,” “co–agent,” “book manager,” “book
runner,” “lead manager,” “arranger,” “lead arranger” or “co–arranger” shall have any right (except
as expressly set forth herein), power, obligation, liability, responsibility or duty under this
Agreement other than, in the case of such Lenders, those applicable to all Lenders as such.
Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has
not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to
enter into this Credit Agreement or in taking or not taking action hereunder.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Amendments, Waivers and Release of Collateral.

     Neither this Credit Agreement, nor any of the Notes, nor any of the other Credit Documents,
nor any terms hereof or thereof may be amended, supplemented, waived or modified except in
accordance with the provisions of this Section nor may the Borrower or any Guarantor be released
except in accordance with the provisions of this Section 9.1. The Required Lenders

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may, or, with the written consent of the Required Lenders, the Administrative Agent may, from
time to time, (a) enter into with the Borrower or any other Credit Party written amendments,
supplements or modifications hereto and to the other Credit Documents for the purpose of adding any
provisions to this Credit Agreement or the other Credit Documents or changing in any manner the
rights of the Lenders or of the Borrower or any other Credit Party hereunder or thereunder or (b)
waive, on such terms and conditions as the Required Lenders may specify in such instrument, any of
the requirements of this Credit Agreement or the other Credit Documents or any Default or Event of
Default and its consequences; provided, however, that no such waiver and no such
amendment, waiver, supplement, modification or release shall:

     (i) reduce the amount or extend the scheduled date of maturity of any Loan or
Note or any installment thereon, or reduce the stated rate of any interest or fee
payable hereunder (except in connection with a waiver of interest at the increased
post-default rate set forth in Section 2.7(b) which shall be determined by a vote of
the Required Lenders) or extend the scheduled date of any payment thereof or
increase the amount or extend the expiration date of any Lender’s Commitment, in
each case without the written consent of each Lender directly affected thereby;
provided that, it is understood and agreed that no waiver, reduction or deferral of
a mandatory prepayment required pursuant to Section 2.5(b), nor any amendment of
Section 2.5(b) or the definitions of Asset Disposition, Debt Issuance, Equity
Issuance, Excess Cash Flow, or Recovery Event, shall constitute a reduction of the
amount of, or an extension of the scheduled date of, any principal installment of
any Loan or Note; or

     (ii) amend, modify or waive any provision of this Section 9.1 or reduce the
percentage specified in the definition of Required Lenders, without the written
consent of all the Lenders; or

     (iii) amend, modify or waive any provision of Article VIII without the written
consent of the Administrative Agent; or

     (iv) release the Borrower or any material Guarantor from its obligations
hereunder or under the Guaranty, without the written consent of all of the Lenders
and, with respect to such material Guarantor, any Hedging Agreement Provider; or

     (v) release all or substantially all of the Collateral without the written
consent of all of the Lenders and any Hedging Agreement Provider; or

     (vi) subordinate the Loans to any other Indebtedness without the written
consent of all of the Lenders; or

     (vii) permit the Borrower to assign or transfer any of its rights or
obligations under this Credit Agreement or other Credit Documents without the
written consent of all of the Lenders; or

     (viii) amend, modify or waive any provision of the Credit Documents requiring
consent, approval or request of the Required Lenders or all Lenders

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without the written consent of all of the Required Lenders or Lenders as
appropriate; or

     (ix) amend, modify or waive the order in which Credit Party Obligations are
paid in Section 2.10(b) without the written consent of each Lender directly affected
thereby; or

     (x) without the consent of Lenders holding in the aggregate more than 50% of
the outstanding Revolving Commitments (or if the Revolving Commitments have been
terminated, the outstanding Revolving Loans), amend, modify or waive Section 4.2 or
any other provision of this Credit Agreement if the effect of such amendment or
waiver is to require Revolving Lenders to make Revolving Loans when such Revolving
Lenders would not otherwise be required to do so; or

     (xi) amend or modify the definition of Credit Party Obligations to delete or
exclude any obligation or liability described therein without the written consent of
each Lender and each Hedging Agreement Provider directly affected thereby;

     provided, further, that no amendment, waiver or consent affecting the rights
or duties of the Administrative Agent or the Issuing Lender under any Credit Document shall in any
event be effective, unless in writing and signed by the Administrative Agent or the Issuing Lender,
as applicable, in addition to the Lenders required hereinabove to take such action.

     Any such waiver, any such amendment, supplement or modification and any such release shall
apply equally to each of the Lenders and shall be binding upon the Borrower, the other Credit
Parties, the Lenders, the Administrative Agent and all future holders of the Notes. In the case of
any waiver, the Borrower, the other Credit Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the outstanding Loans and Notes
and other Credit Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

     Notwithstanding any of the foregoing to the contrary, the consent of the Borrower shall not be
required for any amendment, modification or waiver of the provisions of Article VIII (other than
the provisions of Section 8.9); provided, however, that the Administrative Agent will provide
written notice to the Borrower of any such amendment, modification or waiver. In addition, the
Borrower and the Lenders hereby authorize the Administrative Agent to modify this Credit Agreement
by unilaterally amending or supplementing Schedule 2.1(a) from time to time in the manner
requested by the Borrower, the Administrative Agent or any Lender in order to reflect any
assignments or transfers of the Loans as provided for hereunder; provided, however,
that the Administrative Agent shall promptly deliver a copy of any such modification to the
Borrower and each Lender.

     Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on
any

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bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersede the unanimous consent provisions set
forth herein and (y) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

     Section 9.2 Notices.

     (a) Except as otherwise provided in Article II, all notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing (including by
telecopy or other electronic communications as provided below), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made (a) when
delivered by hand, (b) when transmitted via telecopy (or other facsimile device) to the
number set out herein, (c) the day following the day on which the same has been delivered
prepaid to a reputable national overnight air courier service, or (d) the third Business Day
following the day on which the same is sent by certified or registered mail, postage
prepaid, in each case, addressed as follows in the case of the Borrower, the other Credit
Parties and the Administrative Agent, and as set forth on Schedule 9.2 in the case
of the Lenders, or to such other address as may be hereafter notified by the respective
parties hereto and any future holders of the Notes:

	 	 	 
	The Borrower

and the other

Credit Parties:

	 	Sunair Electronics, Inc.

3005 SW Third Avenue

Ft. Lauderdale, Florida 33315

Attention: Chief Financial Officer

Telephone: (954) 525-8612

Telecopy: (954) 765-1322
	 
	 	 
	The Administrative Agent:

	 	Wachovia Bank, National Association

350 E. Las Olas, Suite 1800

Ft. Lauderdale, FL 33301

Attention: Karen Leikert

Telecopier: (954) 765-3833

Telephone: (954) 765-3969

provided, that notices given by the Borrower pursuant to Section 2.1 hereof shall be
effective only upon receipt thereof by the Administrative Agent.

     (b) Notices and other communications to the Lenders or the Administrative Agent
hereunder may be delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices to any Lender pursuant to
Article II if such Lender, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Section by electronic communication. The
Administrative Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic

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communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or communications.

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

     Section 9.3 No Waiver; Cumulative Remedies.

     No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

     Section 9.4 Survival of Representations and Warranties.

     All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Credit Agreement and the Notes and the making of the Loans; provided that
all such representations and warranties shall terminate on the date upon which the Commitments have
been terminated and all amounts owing hereunder and under any Notes have been paid in full.

     Section 9.5 Payment of Expenses and Taxes; Indemnification.

     The Borrower agrees (a) to pay or reimburse the Administrative Agent for all reasonable
out-of-pocket costs and expenses incurred in connection with the development, preparation,
negotiation, printing and execution of, and any amendment, supplement or modification to, this
Credit Agreement and the other Credit Documents and any other documents prepared in connection
herewith or therewith, and the consummation and administration of the transactions contemplated
hereby and thereby, together with the reasonable fees and disbursements of counsel to the
Administrative Agent, (b) to pay or reimburse each Lender and the Administrative Agent for all its
costs and expenses incurred in connection with the enforcement or preservation of any rights under
this Credit Agreement, the Notes and any such other documents, including, without limitation, the
reasonable fees and disbursements of counsel to the Administrative Agent and to the Lenders
(including reasonable allocated costs of in-house legal counsel), (c) on demand, to pay, indemnify,
and hold each Lender, the Administrative Agent harmless from, any

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and all recording and filing fees and any and all liabilities with respect to, or resulting
from any delay in paying stamp, excise and other similar taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of, the Credit Documents and any such
other documents, and (d) to pay, indemnify, and hold each Lender and the Administrative Agent and
their Affiliates harmless from and against, any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement, performance and
administration of the Credit Documents and any such other documents and the use, or proposed use,
of proceeds of the Loans (all of the foregoing, collectively, the “indemnified
liabilities”); provided, however, that the Borrower shall not have any
obligation hereunder to the Administrative Agent or any Lender with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of the Administrative Agent or
such Lender, as determined by a court of competent jurisdiction. The agreements in this Section
9.5 shall survive repayment of the Loans, Notes and all other amounts payable hereunder.

     Section 9.6 Successors and Assigns; Participations; Purchasing Lenders.

     (a) This Credit Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Administrative Agent, all future holders of the Notes and their
respective successors and assigns, except that the Borrower may not assign or transfer any
of its rights or obligations under this Credit Agreement or the other Credit Documents
without the prior written consent of each Lender.

     (b) Any Lender may, in the ordinary course of its business and in accordance with
applicable law, at any time sell to one or more banks or other entities
(“Participants”) participating interests in any Loan owing to such Lender, any Note
held by such Lender, any Commitment of such Lender, or any other interest of such Lender
hereunder, in each case in minimum amounts of $1,000,000 (or, if less, the entire amount of
such Lender’s Obligations, Commitments or other interests). In the event of any such sale
by a Lender of participating interests to a Participant, such Lender’s obligations under
this Credit Agreement to the other parties to this Credit Agreement shall remain unchanged,
such Lender shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of any such Note for all purposes under this Credit Agreement, and the
Borrower and the Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Credit Agreement.
No Lender shall transfer or grant any participation under which the Participant shall have
rights to approve any amendment to or waiver of this Credit Agreement or any other Credit
Document except to the extent such amendment or waiver would (i) extend the scheduled
maturity of any Loan or Note or any installment thereon in which such Participant is
participating, or reduce the stated rate or extend the time of payment of interest or fees
thereon (except in connection with a waiver of interest at the increased post-default rate)
or reduce the principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that a waiver of
any Default or Event of Default shall not constitute a change in the terms of such
participation, and that an increase in any Commitment or Loan shall

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be permitted without consent of a Participant if such Participant’s participation is
not increased as a result thereof), (ii) release any material Guarantor from its obligations
under the Guaranty, (iii) release any material portion of the Collateral, or (iv) consent to
the assignment or transfer by the Borrower of any of its rights and obligations under this
Credit Agreement. In the case of any such participation, the Participant shall not have any
rights under this Credit Agreement or any of the other Credit Documents (the Participant’s
rights against such Lender in respect of such participation to be those set forth in the
agreement executed by such Lender in favor of the Participant relating thereto) and all
amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold
such participation; provided that each Participant shall be entitled to the benefits
of Sections 2.11 and 9.5 with respect to its participation in the Commitments and the Loans
outstanding from time to time; provided, that no Participant shall be entitled to
receive any greater amount pursuant to such Sections than the transferor Lender would have
been entitled to receive in respect of the amount of the participation transferred by such
transferor Lender to such Participant had no such transfer occurred.

     (c) Any Lender may, in the ordinary course of its business and in accordance with
applicable law, at any time, sell or assign to any Lender or any affiliate thereof and with
the consent of the Administrative Agent and, so long as no Default or Event of Default has
occurred and is continuing, the Borrower (in each case, which consent shall not be
unreasonably withheld), to one or more additional banks, insurance companies or other
financial institutions or any funds investing in bank loans (“Purchasing Lenders”),
all or any part of its rights and obligations under this Credit Agreement and the Notes in
minimum amounts of $1,000,000 (or, if less, the entire amount of such Lender’s Obligations),
pursuant to a Commitment Transfer Supplement, executed by such Purchasing Lender and such
transferor Lender (and, in the case of a Purchasing Lender that is not then a Lender or an
affiliate thereof, the Administrative Agent and, so long as no Default or Event of Default
has occurred and is continuing, the Borrower), and delivered to the Administrative Agent for
its acceptance and recording in the Register; provided, however, that any
sale or assignment to an existing Lender, an Affiliate of an existing Lender or an Approved
Fund shall not require the consent of the Administrative Agent or the Borrower nor shall any
such sale or assignment be subject to the minimum assignment amounts specified herein. Upon
such execution, delivery, acceptance and recording, from and after the Transfer Effective
Date specified in such Commitment Transfer Supplement, (x) the Purchasing Lender thereunder
shall be a party hereto and, to the extent provided in such Commitment Transfer Supplement,
have the rights and obligations of a Lender hereunder with a Commitment as set forth
therein, and (y) the transferor Lender thereunder shall, to the extent provided in such
Commitment Transfer Supplement, be released from its obligations under this Credit Agreement
(and, in the case of a Commitment Transfer Supplement covering all or the remaining portion
of a transferor Lender’s rights and obligations under this Credit Agreement, such transferor
Lender shall cease to be a party hereto). Such Commitment Transfer Supplement shall be
deemed to amend this Credit Agreement to the extent, and only to the extent, necessary to
reflect the addition of such Purchasing Lender and the resulting adjustment of Commitment
Percentages arising from the purchase by such Purchasing Lender of all or a portion of the
rights and obligations of such transferor Lender under this Credit

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Agreement and the Notes. On or prior to the Transfer Effective Date specified in such
Commitment Transfer Supplement, the Borrower, at its own expense, shall execute and deliver
to the Administrative Agent in exchange for the Notes delivered to the Administrative Agent
pursuant to such Commitment Transfer Supplement new Notes to the order of such Purchasing
Lender in an amount equal to the Commitment assumed by it pursuant to such Commitment
Transfer Supplement and, unless the transferor Lender has not retained a Commitment
hereunder, new Notes to the order of the transferor Lender in an amount equal to the
Commitment retained by it hereunder. Such new Notes shall be dated the Closing Date and
shall otherwise be in the form of the Notes replaced thereby. The Notes surrendered by the
transferor Lender shall be returned by the Administrative Agent to the Borrower marked
“canceled”.

     (d) The Administrative Agent shall maintain at its address referred to in Section 9.2 a
copy of each Commitment Transfer Supplement delivered to it and a register (the
“Register”) for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time.
The entries in the Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all purposes of this
Credit Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior notice.

     (e) Upon its receipt of a duly executed Commitment Transfer Supplement, together with
payment to the Administrative Agent by the transferor Lender or the Purchasing Lender
(except for any assignment by a Lender to an Affiliate of such Lender), as agreed between
them, of a registration and processing fee of $3,500 for each Purchasing Lender listed in
such Commitment Transfer Supplement and the Notes subject to such Commitment Transfer
Supplement, the Administrative Agent shall (i) accept such Commitment Transfer Supplement
and (ii) record the information contained therein in the Register.

     (f) Each Credit Party authorizes each Lender to disclose to any Participant or
Purchasing Lender (each, a “Transferee”) and any prospective Transferee any and all
financial information in such Lender’s possession concerning the Credit Parties and their
Affiliates which has been delivered to such Lender by or on behalf of a Credit Party
pursuant to this Credit Agreement or which has been delivered to such Lender by or on behalf
of a Credit Party in connection with such Lender’s credit evaluation of the Credit Parties
and their Affiliates prior to becoming a party to this Credit Agreement, in each case
subject to Section 9.15.

     (g) At the time of each assignment pursuant to this Section 9.6 to a Person which is
not already a Lender hereunder and which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for federal income tax purposes, the respective
assignee Lender shall provide to the Borrower and the Administrative Agent the appropriate
Internal Revenue Service Forms (and, if applicable, a 2.18 Certificate) described in Section
2.18.

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     (h) Nothing herein shall prohibit any Lender from pledging or assigning any of its
rights under this Credit Agreement (including, without limitation, any right to payment of
principal and interest under any Note) to any Federal Reserve Bank in accordance with
applicable laws.

     Section 9.7 Adjustments; Set-off.

     (a) Each Lender agrees that if any Lender (a “Benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 7.1(e), or otherwise) in a
greater proportion than any such payment to or collateral received by any other Lender, if
any, in respect of such other Lender’s Loans, or interest thereon, such benefited Lender
shall purchase for cash from the other Lenders a participating interest in such portion of
each such other Lender’s Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such benefited
Lender to share the excess payment or benefits of such collateral or proceeds ratably with
each of the Lenders; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such benefited Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest. The Borrower agrees that each Lender so purchasing a
portion of another Lender’s Loans may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such Lender were
the direct holder of such portion.

     (b) In addition to any rights and remedies of the Lenders provided by law (including,
without limitation, other rights of set-off), each Lender shall have the right, without
prior notice to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon the occurrence of any Event of Default, to setoff
and appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held by or owing to such Lender or any branch or agency thereof to or
for the credit or the account of the Borrower or any other Credit Party, or any part thereof
in such amounts as such Lender may elect, against and on account of the Loans and other
Credit Party Obligations of the Borrower and the other Credit Parties to such Lender
hereunder and claims of every nature and description of such Lender against the Borrower and
the other Credit Parties, in any currency, whether arising hereunder, under any other Credit
Document or any Secured Hedging Agreement provided by such Lender pursuant to the terms of
this Agreement, as such Lender may elect, whether or not such Lender has made any demand for
payment and although such obligations, liabilities and claims may be contingent or
unmatured. The aforesaid right of set-off may be exercised by such Lender against the
Borrower, any other Credit Party or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of creditors, receiver or execution, judgment or attachment
creditor of the Borrower or any other Credit Party, or against anyone else claiming through
or against the Borrower, any other Credit Party or any such trustee in bankruptcy, debtor in
possession, assignee for

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the benefit of creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been exercised by such
Lender prior to the occurrence of any Event of Default. Each Lender agrees promptly to
notify the Borrower and the Administrative Agent after any such set-off and application made
by such Lender; provided, however, that the failure to give such notice
shall not affect the validity of such set-off and application.

     Section 9.8 Table of Contents and Section Headings.

     The table of contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Credit Agreement.

     Section 9.9 Counterparts.

     This Credit Agreement may be executed by one or more of the parties to this Credit Agreement
on any number of separate counterparts, and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. A set of the copies of this Credit Agreement signed by
all the parties shall be lodged with the Borrower and the Administrative Agent.

     Section 9.10 Effectiveness.

     This Credit Agreement shall become effective on the date on which all of the parties have
signed a copy hereof (whether the same or different copies) and shall have delivered the same to
the Administrative Agent pursuant to Section 9.2 or, in the case of the Lenders, shall have given
to the Administrative Agent written, telecopied or telex notice (actually received) at such office
that the same has been signed and mailed to it.

     Section 9.11 Severability.

     Any provision of this Credit Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

     Section 9.12 Integration.

     This Credit Agreement and the Notes represent the agreement of the Borrower, the other Credit
Parties, the Administrative Agent and the Lenders with respect to the subject matter hereof, and
there are no promises, undertakings, representations or warranties by the Administrative Agent, the
Borrower, the other Credit Parties or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the Notes.

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     Section 9.13 Governing Law.

     This Credit Agreement and the Notes and the rights and obligations of the parties under this
Credit Agreement and the Notes shall be governed by, and construed and interpreted in accordance
with, the law of the State of North Carolina.

     Section 9.14 Consent to Jurisdiction and Service of Process.

     Any legal action or proceeding with respect to this Credit Agreement or any other Credit
Document shall be brought in the courts of the State of North Carolina in Mecklenburg County or of
the United States for the Western District of North Carolina, and, by execution and delivery of
this Credit Agreement, each of the Borrower and the other Credit Parties accepts, for itself and in
connection with its properties, generally and unconditionally, the non-exclusive jurisdiction of
the aforesaid courts and irrevocably agrees to be bound by any final judgment rendered thereby in
connection with this Credit Agreement from which no appeal has been taken or is available. Each of
the Borrower and the other Credit Parties irrevocably agrees that all service of process in any
such proceedings in any such court may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to it at its address
set forth in Section 9.2 or at such other address of which the Administrative Agent shall have been
notified pursuant thereto, such service being hereby acknowledged by the each of the Borrower and
the other Credit Parties to be effective and binding service in every respect. Each of the
Borrower, the other Credit Parties, the Administrative Agent and the Lenders irrevocably waives any
objection, including, without limitation, any objection to the laying of venue or based on the
grounds of forum non conveniens, which it may now or hereafter have to the bringing of any such
action or proceeding in any such jurisdiction. Nothing herein shall affect the right to serve
process in any other manner permitted by law or shall limit the right of any Lender to bring
proceedings against the Borrower or the other Credit Parties in the court of any other
jurisdiction.

     Section 9.15 Acknowledgments.

     The Borrower and the other Credit Parties each hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower or any other Credit Party arising out of or in connection with this
Credit Agreement and the relationship between Administrative Agent and Lenders, on one hand,
and the Borrower and the other Credit Parties, on the other hand, in connection herewith is
solely that of debtor and creditor; and

     (c) no joint venture exists among the Lenders or among the Borrower or the other Credit
Parties and the Lenders.

     Section 9.16 Waivers of Jury Trial; Waiver of Consequential Damages.

     THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY

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WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN. Each the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
agree not to assert any claim against any other party to this Credit Agreement or any of their
respective directors, officers, employees, attorneys, Affiliates or agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out of or otherwise
relating to any of the transactions contemplated herein.

     Section 9.17 Patriot Act Notice.

     Each Lender and the Administrative Agent (for itself and not on behalf of any other party)
hereby notifies the Borrower that, pursuant to the requirements of the USA Patriot Act, Title III
of Pub. L. 107-56, signed into law October 26, 2001 (the “Patriot Act”), it is required to
obtain, verify and record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act.

     Section 9.18 Arbitration.

     (a) The parties hereto hereby agree to be bound by the provisions of this Section
9.18. Notwithstanding the provisions of Section 9.14 to the contrary, upon
demand of any party hereto, whether made before or after institution of any Dispute between
or among parties to this Credit Agreement shall be resolved by binding arbitration as
provided herein. Institution of a judicial proceeding by a party does not waive the right
of that party to demand arbitration hereunder. Disputes may include, without limitation,
tort claims, counterclaims, disputes as to whether a matter is subject to arbitration,
claims brought as class actions, claims arising from Credit Documents executed in the
future, or claims arising out of or connected with the transaction reflected by this Credit
Agreement.

     Arbitration shall be conducted under and governed by Arbitration Rules of the AAA and
Title 9 of the U.S. Code. All arbitration hearings shall be conducted in Charlotte, North
Carolina. A hearing shall begin within ninety (90) days of demand for arbitration and all
hearings shall be concluded within one hundred twenty (120) days of demand for arbitration.
These time limitations may not be extended unless a party shows cause for extension and then
no more than a total extension of sixty (60) days. The expedited procedures set forth in
Rule 51 et seq. of the Arbitration Rules shall be applicable to claims of
less than $1,000,000. All applicable statutes of limitation shall apply to any Dispute.
The panel from which all arbitrators are selected shall be comprised of licensed attorneys
selected from the Commercial Financial Dispute Arbitration Panel of the AAA. The single
arbitrator selected for expedited procedure shall be a retired judge from the highest court
of general jurisdiction, state or federal, of the state where the hearing will be conducted
or if such person is not available to serve, the single arbitrator may be a licensed
attorney. The parties hereto do not waive applicable Federal or state substantive law
except as provided herein. A judgment upon the award may be entered in any court having
jurisdiction. Notwithstanding the

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foregoing, this arbitration provision does not apply to Disputes under or related to
Hedging Agreements.

     (b) Notwithstanding the preceding binding arbitration provisions, the Administrative
Agent, the Lenders and the Credit Parties agree to preserve, without diminution, certain
remedies that the Administrative Agent on behalf of the Lenders may employ or exercise
freely, independently or in connection with an arbitration proceeding or after an
arbitration action is brought. The Administrative Agent on behalf of the Lenders shall have
the right to proceed in any court of proper jurisdiction or by self-help to exercise or
prosecute the following remedies, as applicable (i) all rights to foreclose against any real
or personal property or other security by exercising a power of sale granted under Credit
Documents or under applicable law or by judicial foreclosure and sale, including a
proceeding to confirm the sale; (ii) all rights of self-help including peaceful occupation
of real property and collection of rents, setoff, and peaceful possession of personal
property; (iii) obtaining provisional or ancillary remedies including injunctive relief,
sequestration, garnishment, attachment, appointment of receiver and filing an involuntary
bankruptcy case; and (iv) when applicable, a judgment by confession of judgment. Any claim
or controversy with regard to the Administrative Agent’s entitlement on behalf of the
Lenders to exercise such remedies is a Dispute. Preservation of these remedies does not
limit the power of an arbitrator to grant similar remedies that may be requested by a party
in a Dispute.

     (c) The parties hereto agree that they shall not have a remedy of punitive or exemplary
damages against the other in any Dispute and hereby waive any right or claim to punitive or
exemplary damages they have now or which may arise in the future in connection with any
Dispute whether the Dispute is resolved by arbitration or judicially.

     (d) Each of the parties hereto accepts, for itself and in connection with its
properties, generally and unconditionally, the non-exclusive jurisdiction relating to any
arbitration proceedings conducted under the Arbitration Rules in North Carolina and
irrevocably agrees to be bound by any final judgment rendered thereby in connection with
this Credit Agreement from which no appeal has been taken or is available.

ARTICLE X

GUARANTY

     Section 10.1 The Guaranty.

     In order to induce the Lenders to enter into this Credit Agreement and any Hedging Agreement
Provider to enter into any Secured Hedging Agreement and to extend credit hereunder and thereunder
and in recognition of the direct benefits to be received by the Guarantors from the Extensions of
Credit hereunder and any Secured Hedging Agreement, each of the Guarantors hereby agrees with the
Administrative Agent and the Lenders as follows: the Guarantor hereby unconditionally and
irrevocably jointly and severally guarantees as primary obligor and not merely as surety the full
and prompt payment when due, whether upon maturity, by acceleration or otherwise, of any and all
indebtedness of the Borrower to the Administrative

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Agent and the Lenders. If any or all of the indebtedness becomes due and payable hereunder or
under any Secured Hedging Agreement, each Guarantor unconditionally promises to pay such
indebtedness to the Administrative Agent, the Lenders, the Hedging Agreement Providers, or their
respective order, or demand, together with any and all reasonable expenses which may be incurred by
the Administrative Agent or the Lenders in collecting any of the Credit Party Obligations. The
word “indebtedness” is used in this Article X in its most comprehensive sense and includes any and
all advances, debts, obligations and liabilities of the Borrower, including specifically all Credit
Party Obligations, arising in connection with this Credit Agreement, the other Credit Documents or
any Secured Hedging Agreement, in each case, heretofore, now, or hereafter made, incurred or
created, whether voluntarily or involuntarily, absolute or contingent, liquidated or unliquidated,
determined or undetermined, whether or not such indebtedness is from time to time reduced, or
extinguished and thereafter increased or incurred, whether the Borrower may be liable individually
or jointly with others, whether or not recovery upon such indebtedness may be or hereafter become
barred by any statute of limitations, and whether or not such indebtedness may be or hereafter
become otherwise unenforceable.

     Notwithstanding any provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of each such
Guarantor hereunder shall be limited to the maximum amount that is permissible under applicable law
(whether federal or state and including, without limitation, the Bankruptcy Code).

     Section 10.2 Bankruptcy.

     Additionally, each of the Guarantors unconditionally and irrevocably guarantees jointly and
severally the payment of any and all Credit Party Obligations of the Borrower to the Lenders and
any Hedging Agreement Provider whether or not due or payable by the Borrower upon the occurrence of
any of the events specified in Section 7.1(e), and unconditionally promises to pay such Credit
Party Obligations to the Administrative Agent for the account of the Lenders and to any such
Hedging Agreement Provider, or order, on demand, in lawful money of the United States. Each of the
Guarantors further agrees that to the extent that the Borrower or a Guarantor shall make a payment
or a transfer of an interest in any property to the Administrative Agent, any Lender or any Hedging
Agreement Provider, which payment or transfer or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, or otherwise is avoided, and/or required to be repaid to
the Borrower or a Guarantor, the estate of the Borrower or a Guarantor, a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or equitable cause, then to
the extent of such avoidance or repayment, the obligation or part thereof intended to be satisfied
shall be revived and continued in full force and effect as if said payment had not been made.

     Section 10.3 Nature of Liability.

     The liability of each Guarantor hereunder is exclusive and independent of any security for or
other guaranty of the Credit Party Obligations of the Borrower whether executed by any such
Guarantor, any other guarantor or by any other party, and no Guarantor’s liability hereunder shall
be affected or impaired by (a) any direction as to application of payment by the Borrower

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or by any other party, or (b) any other continuing or other guaranty, undertaking or maximum
liability of a guarantor or of any other party as to the Credit Party Obligations of the Borrower,
or (c) any payment on or in reduction of any such other guaranty or undertaking, or (d) any
dissolution, termination or increase, decrease or change in personnel by the Borrower, or (e) any
payment made to the Administrative Agent, the Lenders or any Hedging Agreement Provider on the
Credit Party Obligations which the Administrative Agent, such Lenders or such Hedging Agreement
Provider repay the Borrower pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding, and each of the Guarantors waives any right to the
deferral or modification of its obligations hereunder by reason of any such proceeding.

     Section 10.4 Independent Obligation.

     The obligations of each Guarantor hereunder are independent of the obligations of any other
Guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other Guarantor or the Borrower and
whether or not any other Guarantor or the Borrower is joined in any such action or actions.

     Section 10.5 Authorization.

     Each of the Guarantors authorizes the Administrative Agent, each Lender and each Hedging
Agreement Provider without notice or demand (except as shall be required by applicable statute and
cannot be waived), and without affecting or impairing its liability hereunder, from time to time to
(a) renew, compromise, extend, increase, accelerate or otherwise change the time for payment of, or
otherwise change the terms of the Credit Party Obligations or any part thereof in accordance with
this Agreement and any Secured Hedging Agreement, as applicable, including any increase or decrease
of the rate of interest thereon, (b) take and hold security from any Guarantor or any other party
for the payment of this Guaranty or the Credit Party Obligations and exchange, enforce waive and
release any such security, (c) apply such security and direct the order or manner of sale thereof
as the Administrative Agent and the Lenders in their discretion may determine and (d) release or
substitute any one or more endorsers, Guarantors, the Borrower or other obligors.

     Section 10.6 Reliance.

     It is not necessary for the Administrative Agent, the Lenders or any Hedging Agreement
Provider to inquire into the capacity or powers of the Borrower or the officers, directors,
members, partners or agents acting or purporting to act on its behalf, and any Credit Party
Obligations made or created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

     Section 10.7 Waiver.

     (a) Each of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require the Administrative Agent, any Lender or any Hedging
Agreement Provider to (i) proceed against the Borrower, any other guarantor or any other
party, (ii) proceed against or exhaust any security held from the

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Borrower, any other guarantor or any other party, or (iii) pursue any other remedy in
the Administrative Agent’s, any Lender’s or any Hedging Agreement Provider’s power
whatsoever. Each of the Guarantors waives any defense based on or arising out of any
defense of the Borrower, any other guarantor or any other party other than payment in full
of the Credit Party Obligations (other than contingent indemnity obligations), including
without limitation any defense based on or arising out of the disability of the Borrower,
any other guarantor or any other party, or the unenforceability of the Credit Party
Obligations or any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower other than payment in full of the Credit Party Obligations. The
Administrative Agent may, at its election, foreclose on any security held by the
Administrative Agent by one or more judicial or nonjudicial sales (to the extent such sale
is permitted by applicable law), or exercise any other right or remedy the Administrative
Agent or any Lender may have against the Borrower or any other party, or any security,
without affecting or impairing in any way the liability of any Guarantor hereunder except to
the extent the Credit Party Obligations have been paid in full and the Commitments have been
terminated. Each of the Guarantors waives any defense arising out of any such election by
the Administrative Agent or any of the Lenders, even though such election operates to impair
or extinguish any right of reimbursement or subrogation or other right or remedy of the
Guarantors against the Borrower or any other party or any security.

     (b) Each of the Guarantors waives all presentments, demands for performance, protests
and notices, including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence,
creation or incurring of new or additional Credit Party Obligations. Each Guarantor assumes
all responsibility for being and keeping itself informed of the Borrower’s financial
condition and assets, and of all other circumstances bearing upon the risk of nonpayment of
the Credit Party Obligations and the nature, scope and extent of the risks which such
Guarantor assumes and incurs hereunder, and agrees that neither the Administrative Agent nor
any Lender shall have any duty to advise such Guarantor of information known to it regarding
such circumstances or risks.

     (c) Each of the Guarantors hereby agrees it will not exercise any rights of subrogation
which it may at any time otherwise have as a result of this Guaranty (whether contractual,
under Section 509 of the U.S. Bankruptcy Code, or otherwise) to the claims of the Lenders or
any Hedging Agreement Provider against the Borrower or any other guarantor of the Credit
Party Obligations of the Borrower owing to the Lenders or such Hedging Agreement Provider
(collectively, the “Other Parties”) and all contractual, statutory or common law
rights of reimbursement, contribution or indemnity from any Other Party which it may at any
time otherwise have as a result of this Guaranty until such time as the Credit Party
Obligations shall have been paid in full and the Commitments have been terminated. Each of
the Guarantors hereby further agrees not to exercise any right to enforce any other remedy
which the Administrative Agent, the Lenders or any Hedging Agreement Provider now have or
may hereafter have against any Other Party, any endorser or any other guarantor of all or
any part of the Credit Party Obligations of the Borrower and any benefit of, and any right
to participate in, any security or collateral given to or for the benefit of the Lenders
and/or the Hedging Agreement Providers to secure payment of the Credit Party Obligations of
the Borrower

91

 

until such time as the Credit Party Obligations (other than contingent indemnity
obligations) shall have been paid in full and the Commitments have been terminated.

     Section 10.8 Limitation on Enforcement.

     The Lenders and the Hedging Agreement Providers agree that this Guaranty may be enforced only
by the action of the Administrative Agent acting upon the instructions of the Required Lenders or
such Hedging Agreement Provider (only with respect to obligations under the applicable Secured
Hedging Agreement) and that no Lender or Hedging Agreement Provider shall have any right
individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that
such rights and remedies may be exercised by the Administrative Agent for the benefit of the
Lenders under the terms of this Credit Agreement and for the benefit of any Hedging Agreement
Provider under any Secured Hedging Agreement. The Lenders and the Hedging Agreement Providers
further agree that this Guaranty may not be enforced against any director, officer, employee or
stockholder of the Guarantors.

     Section 10.9 Confirmation of Payment.

     The Administrative Agent and the Lenders will, upon request after payment of the indebtedness
and obligations which are the subject of this Guaranty and termination of the Commitments relating
thereto, confirm to the Borrower, the Guarantors or any other Person that such indebtedness and
obligations have been paid and the Commitments relating thereto terminated, subject to the
provisions of Section 10.2.

92

 

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

	 	 	 	 	 
	BORROWER:          	SUNAIR ELECTRONICS, INC.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	GUARANTORS:        	SUNAIR INTERNATIONAL SALES CORP.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	MIDDLETON PEST CONTROL, INC.

 	 
	 	By:  	/s/ John J. Hayes
 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	PERCIPIA, INC.

 	 
	 	By:  	/s/ James E. Laurent
 	 
	 	 	Name:  	James E. Laurent 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PERCIPIA NETWORKS, INC.

 	 
	 	By:  	/s/ James E. Laurent
 	 
	 	 	Name:  	James E. Laurent 	 
	 	 	Title:  	Vice President 	 

93

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNAIR SOUTHEAST PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	SUNAIR PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	SUNAIR SERVICES CORPORATION

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	SUNAIR COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	SUNAIR FLORIDA PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ John J. Hayes 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	CEO 	 

94

 

	 	 	 	 	 

	 	 	 	 	 
	ADMINISTRATIVE AGENT AND LENDERS:       	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and as a Lender

 	 
	 	By:  	/s/ Karen Leckert
 	 
	 	 	Name:  	Karen Leckert 	 
	 	 	Title:  	SVP 	 
	 

95<PAGE>

                                                                   EXHIBIT 10.17

                             THE RESTAURANT COMPANY

                    "SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN"

                          Effective as of April 1, 2004

<PAGE>

                             THE RESTAURANT COMPANY
                    "SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN"

                                    PREAMBLE

      This plan which shall be known as the THE RESTAURANT COMPANY D/B/A PERKINS
RESTAURANT & BAKERY Supplemental Executive Retirement Plan (the "Plan"), is
adopted as of the 1st day of April, 2004, by The Restaurant Company d/b/a
Perkins Restaurant & Bakery, a corporation with principal offices and place of
business in the State of Tennessee (the "Corporation"). The Corporation intends
that the Plan shall at all times be administered and interpreted in such a
manner as to constitute an unfunded Plan for a select group of management and
highly compensated Employees who contribute materially to the continued growth
of the Corporation, so as to qualify for all available exemptions from the
provisions of Title I of ERISA.

                                    ARTICLE 1
                                   DEFINITIONS

      DEFINED TERMS. Certain words and phrases are defined when first used in
later paragraphs of this Plan. In addition, the following words and phrases when
used herein, unless the context clearly requires otherwise, shall have the
following respective meanings.

1.01 ACCOUNT BALANCE. Credits on the records of the Corporation equal to the
Corporation Discretionary Contribution Account balance. The Account Balance
shall be a bookkeeping entry only and shall be utilized solely as a measurement
and determination of the amounts to be paid to a Participant, or his or her
designated Beneficiary, pursuant to this Plan.

1.02 AFFILIATE. Any corporation, partnership, joint venture, association, or
similar organization or entity, which is a member of a controlled group of
companies which include; or which is under common control with the Corporation
under section 414 of the Code and which has duly adopted the Plan.

1.03 BENEFICIARY. One or more persons, trusts, estates, or other entities,
designated in accordance with Section 7 that are entitled to receive benefits
under this Plan upon the death of a Participant.

1.04 BENEFICIARY DESIGNATION FORM. The form established from time to time by the
Corporation that a Participant completes, signs and returns to the Corporation
to designate one or more Beneficiaries.

1.05 CALENDAR YEAR. January 1 to December 31.

1.06 CHANGE IN CONTROL. The first to occur of any of the following events:

Any "person" [as that term is used in Section 13 and 14(d)(2) of the Securities
Exchange Act of 1934 ("Exchange Act")] who becomes the beneficial owner (as that
term is used in Section 13(d) of the Exchange Act), directly or indirectly, of
50% or more of the Corporation's capital stock entitled to vote in the election
of directors;

<PAGE>

During any period of not more than two consecutive years, not including any
period prior to the adoption of this Plan, individuals who at the beginning of
such period constitute the board of directors of the Corporation, and any new
director (other than a director designated by a person who has entered into an
agreement with the Corporation to effect a transaction whose election by the
board of directors or nomination for election by the Corporation's stockholders
was approved by a vote of at least three-fourths (3/4ths) of the directors then
still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for
any reason to constitute a majority thereof; The shareholders of the Corporation
approve any consolidation or merger of the Corporation, other than a
consolidation or merger of the Corporation in which the holders of the common
stock of the Corporation immediately prior to the consolidation or merger hold
more than 50% of the common stock of the surviving corporation immediately after
the consolidation or merger; The shareholders of the Corporation approve any
plan or proposal for the liquidation or dissolution of the Corporation; or the
shareholders of the Corporation approve the sale or transfer of all or
substantially all of the assets of the Corporation to parties that are not
within a "controlled group of corporations" (as defined in Code Section 1563) in
which the Corporation is a member. "Change in Control is further defined as it
is in whole in the Restaurant Holding Corporation Stock Option Plan of 2002 as
restated effective 2004.

1.07 CODE. The Internal Revenue Code of 1986, as may be amended from time to
time.

1.08 CORPORATION DISCRETIONARY CONTRIBUTION ACCOUNT. The sum of (i) all of the
Participant's Annual Corporation Discretionary Contributions, plus (ii) amounts
credited in accordance with all the applicable crediting provisions of this Plan
that relate to the Participant's Corporation Discretionary Contribution Account,
less (iii) all distributions made to the Participant or his or her Beneficiary
pursuant to this Plan that relate to the Participant's Corporation Discretionary
Contribution Account.

1.09 CLAIMANT. Shall have the same meaning set forth in Section 9.7.

1.10 DAY. A calendar day or any part thereof.

1.11 DISABILITY. An illness or injury of a potentially permanent nature, which
lasts for at least 25 weeks, certified by a physician selected by or
satisfactory to the Corporation, which prevents the Participant from engaging in
any occupation for wage or profit for which the Participant is reasonably fitted
by training, education or experience.

1.12 DISABILITY BENEFIT. The benefit set forth in Section 6.3

1.13 ELIGIBLE EMPLOYEE. Any employee of the Corporation or an Affiliate who is
selected to participate herein in accordance with the provisions of Section 2
hereof, and is one of a select group of management and highly compensated
employees.

1.14 ERISA. The Employee Retirement Security Act of 1974, as may be amended from
time to time.

1.15 NORMAL RETIREMENT DATE. The date the Participant attains age 65 or age 60
and completes 10 years of service.

<PAGE>

1.16 PARTICIPANT. Any Eligible Employee (i) who is selected to participate in
the Plan, (ii) who elects to participate in the Plan, (iii) who signs a
Participation Agreement, and a Beneficiary Designation Form, (iv) whose signed
Participation Agreement, and Beneficiary Designation Form are accepted by the
Plan Administrator, and (v) who commences participation in the Plan. A spouse or
former spouse of a Participant shall not be treated as a Participant in the
Plan, even if he or she has an interest in the Participant's benefits under the
Plan as a result of applicable law or property settlements resulting from legal
separation or divorce.

1.17 PARTICIPATION AGREEMENT. A written agreement, as may be amended from time
to time, which is entered into by and between the Corporation and a Participant.

1.18 PLAN. This Plan shall have the meaning as provided for in the preamble.

1.19 PLAN ADMINISTRATOR. The Chairman and CEO of the Corporation or their
designee.

1.20 PLAN YEAR. The Calendar Year.

1.21 RETIREMENT BENEFIT. The benefit set forth in Article 6.

1.22 TERMINATION BENEFIT. The benefit set forth in Article 5.

1.23 TERMINATION OF EMPLOYMENT. The severing of employment with the Corporation,
voluntary or involuntary, for any reason other than Retirement, Disability,
death or an authorized leave of absence.

1.24 YEAR OF PLAN PARTICIPATION. A period of twelve months of continuous
employment with the Corporation following the date of entry into this Plan. (The
entry date for initial Participants shall be January 1, 2004)

                                    ARTICLE 2
                          ELIGIBILITY AND PARTICIPATION

2.1 SELECTION. Participation in the Plan shall be limited to any Eligible
Employee, as determined by the Plan Administrator in its sole discretion.

2.2 ENROLLMENT. As a condition to participate, each Eligible Employee shall
complete, execute, and return to the Plan Administrator a Participation
Agreement, and Beneficiary Designation Form, all within 30 days after he or she
is selected to participate in the Plan. In addition, the Plan Administrator
shall establish from time to time such other enrollment requirements as it
determines in its sole discretion are necessary.

2.3 ELIGIBILITY. Provided an Eligible Employee has met all enrollment
requirements set forth in this Plan and required by the Plan Administrator,
including returning all required documents to the Plan Administrator within the
specified time period, an Eligible Employee shall commence participation in the
Plan on the first day of the month following the month in which the Eligible
Employee completes all enrollment requirements. If an Eligible Employee fails to
meet all such requirements within the period required, in accordance with
Section 2.2, that Eligible Employee shall not be eligible to participate in the
Plan until the first day of the Plan Year following the delivery to and
acceptance by the Plan Administrator of the required documents. Once an

<PAGE>

Eligible Employee becomes a Participant, he or she shall remain a Participant
until the earlier of his or her Termination of Employment with the Corporation
or an Affiliate for any reason other than Disability, Retirement, or death.

                                    ARTICLE 3
                            CONTRIBUTIONS AND CREDITS

3.1 ANNUAL CORPORATION DISCRETIONARY CONTRIBUTION AMOUNT. A Participant's Annual
Corporation Discretionary Contribution Amount shall be determined by the Plan
Administrator in their sole and absolute discretion.

                                    ARTICLE 4
                          BENEFIT MEASUREMENT ACCOUNTS

4.1 Solely for the purpose of measuring the amount of the Corporation's
obligation to the Participant or to the Participant's beneficiaries under this
Agreement, the Corporation will establish and maintain a separate memorandum
account (the "Account") for each Participant, to which amounts will be credited
as provided for under 3.1 above. At its sole discretion, the Corporation may
also credit the Accounts with interest. The Participant may from time to time
inquire of the Corporation the value of the "Accounts" and the Corporation will
make reasonable efforts to provide the Participant with such information on a
timely basis.

                                    ARTICLE 5
                                     VESTING

5.1 TERMINATION "FOR CAUSE". If a Participant's employment with the Corporation
is terminated prior to his or her Normal Retirement Date "for cause" the
Participant shall not be entitled to benefits of any kind. For purposes of this
Agreement, termination "for cause" shall mean (i) conviction of robbery,
bribery, extortion, embezzlement, fraud, grand larceny, burglary, perjury,
income tax evasion, misapplication of company funds, false statements in
violation of 18 U.S.C. Sec. 1001, and any other felony that is punishable by a
term of imprisonment of more than one year, or (ii) any breach of the
Participant's duty of loyalty to the corporation, any acts of omission in the
performance of his company duties not in good faith or which involve intentional
misconduct or a knowing violation of law, or any transaction in the performance
of his company duties from which the Participant derived an improper personal
benefit.

5.2 OTHER TERMINATION. In the event of the Participant's termination of
employment for any reason other than "for cause", the contributions to his or
her Annual Deferral Account will vest, on a cumulative basis, according to the
following table:

<TABLE>
<CAPTION>
Years of Plan Participation         Percentage Vested
---------------------------         -----------------
<S>                                 <C>
Less than 1                              00.00%
1 but less than 3                        25.00%
3 but less than 5                        50.00%
5 or more                               100.00%
</TABLE>

<PAGE>

5.3 Termination Benefits payable under paragraph 5.2 above shall be payable in a
lump sum on or about the first day of the third month following the date of
termination.

                                    ARTICLE 6
                            DISTRIBUTION OF BENEFITS

6.1 RETIREMENT BENEFIT. From and after the retirement of the Participant from
the service of the Corporation or an Affiliate, upon reaching his or her Normal
Retirement Date, the Corporation shall thereafter pay to the Participant, his or
her Account Balance. Such benefits shall be payable in equal quarterly
installments for a period of ten (10) years. The amount of the annual
installment shall be determined at the sole discretion of the Plan Administrator
based on the value of the Participant's Accrued Benefit at the date of
retirement and on prevailing interest rates at that time. Such payments shall
commence on or about the first day of the first month following the
Participant's retirement.

6.2 ACCELERATED PAYMENTS. The Plan Administrator may make payment of all or a
part of the Participant's Retirement Account balance before any payments would
otherwise be due, if, based on a change in the federal tax or revenue laws, a
published ruling or similar announcement issued by the Internal Revenue Service,
a regulation issued by the Secretary of the Treasury, a decision by a court of
competent jurisdiction involving a Participant or a beneficiary, or a closing
agreement made under 7121 of the Code that is approved by the Internal Revenue
Service and involves a Participant, the Plan Administrator determines that a
Participant has or will receive income under the Plan for federal income tax
purposes with respect to amounts that are or will be payable under the Plan
before they are to be paid to the Participant. In the event any such accelerated
payment is determined to be necessary, all Participants will receive such
accelerated payments in the same form of distribution. A Change in Control will
also accelerate payments of the Participant's Retirement Account and if
applicable, the Participant will vest 100% in all payments.

6.3 DISABILITY BENEFIT. The Participant shall be entitled to receive payments
hereunder prior to his or her Normal Retirement Date if he or she is determined
to be disabled. Upon determination by the Plan Administrator of a qualifying
disability that lasts for at least 25 weeks, the Corporation shall thereafter
pay to the Participant, his or her Account Balance. Such benefit shall be
payable in a lump sum. The Disability Benefit shall be the Participant's Vested
Account based on full credit for a Year of Plan Participation for the year in
which the disability occurred.

6.4 DEATH BENEFIT PRIOR TO COMMENCEMENT OF RETIREMENT BENEFITS. In the event of
the Participant's death while in the employment of the Corporation or an
Affiliate and prior to commencement of benefit payments, the Corporation shall
pay a death benefit equal to the Participant's Account Balance as of the date of
his or her death. The death benefit payable under this Section shall be
distributed to the Participant's beneficiary in a lump sum in accordance with
the last Beneficiary designation received by the Plan Administrator from the
Participant prior to his or her death. If no such designation has been received
by the Corporation, such payment shall be made to the Participant's surviving
legal spouse. If such spouse dies before receiving payment to which he or she is
entitled hereunder, then payment shall be made to such person or persons,
including his or her estate, as he or she may designate in the last Beneficiary
designation received by the Corporation from such spouse prior to his or her
death. If the Participant is not survived by a legal spouse, or if such spouse
shall fail to so appoint, the said payment shall be made to the then living
children of the Participant, if any, in equal shares. If there are no
<PAGE>

surviving children, the payment will be made to the estate of the later to die
of the Participant and (if any) his or her legal spouse. Such payment shall be
made on or about the first day of the fourth month following the Participant's
death.

6.5 DEATH BENEFIT AFTER COMMENCEMENT OF RETIREMENT BENEFIT. In the event of the
Participant's death after the commencement of retirement benefit payments, but
prior to the completion of all such payments due and owing hereunder, the
Corporation shall continue to make such payments, in installments over the
remainder of the period specified in Section 6.1 hereof that would have been
applicable to the Participant had he or she survived. Such continuing payments
shall be made to the Participant's designated beneficiary in accordance with the
last such designation received by the Plan Administrator from the Participant
prior to his or her death. If no such designation has been received by the Plan
Administrator, such payments shall be made to the Participant's surviving legal
spouse. If such spouse dies before receiving all payments to which he or she is
entitled hereunder, then payments shall continue, for the remainder of the
payment period, to such person or persons, including his or her estate, as he or
she may designate in the last beneficiary designation received by the
Corporation from such spouse prior to his or her death. If the Participant is
not survived by a legal spouse, or if such spouse shall fail to so appoint, then
said payments shall be made to the then living children of the Participant, if
any, in equal shares. If there are no surviving children, the payments will be
made to the estate of the later to die of the Participant and (if any) his or
her legal spouse. Such continuing payments shall commence as of the first day of
the first month following the Participant's death.

6.6 REQUEST FOR LUMP SUM PAYMENT. In lieu of receiving installment payments
under any of the above numbered paragraphs, the Participant (or the
Participant's beneficiary in the event of the death of said Participant) may
petition the Plan Administrator to receive a lump sum benefit. The value of the
lump sum benefit shall be the actuarial equivalent present value of the
remaining installment payments; it being understood that the Plan Administrator
shall have the final authority to either grant or reject said request, and if
granted, the actuarial equivalent shall be determined at the sole direction of
the Plan Administrator."

                                    ARTICLE 7
                             BENEFICIARY DESIGNATION

7.1 BENEFICIARY. Each Participant shall have the right, at any time, to
designate his or her Beneficiary(ies) (both primary as well as contingent) to
receive any benefits payable under the Plan to a beneficiary upon the death of a
Participant. The Beneficiary designated under this Plan may be the same as or
different from the Beneficiary designation under any other plan of the
Corporation in which the Participant participates.

7.2 BENEFICIARY DESIGNATION; CHANGE. A Participant shall designate his or her
Beneficiary by completing and signing the Beneficiary Designation Form as
attached hereto as EXHIBIT B, and returning it to the Plan Administrator. A
Participant shall have the right to change a Beneficiary by completing, signing
and otherwise complying with the terms of the Beneficiary Designation Form and
the Plan Administrator's rules and procedures, as in effect from time to time.
The Plan Administrator shall be entitled to rely on the last Beneficiary
Designation Form filed by the Participant and accepted by the Plan Administrator
prior to his or her death.

<PAGE>

7.3 ACKNOWLEDGEMENT. No designation or change in designation of a Beneficiary
shall be effective until received and acknowledged in writing by the Plan
Administrator.

7.4 NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
Beneficiary as provided in Sections 7.1, 7.2, and 7.3 above or, if all
designated Beneficiaries predecease the Participant or die prior to complete
distribution of the Participant's benefits, then the Participant's designated
Beneficiary shall be deemed to be his or her surviving spouse. If the
Participant has no surviving spouse or no surviving children, the benefits
remaining under the Plan to be paid to a Beneficiary shall be payable to the
executor or personal representative of the Participant's estate.

7.5 DOUBT AS TO BENEFICIARY. If the Plan Administrator has any doubt as to the
proper Beneficiary to receive payments pursuant to this Plan, the Plan
Administrator shall have the right, exercisable in its discretion, to cause the
Participant's employer to withhold such payments until this matter is resolved
to the Plan Administrator's satisfaction.

7.6 DISCHARGE OF OBLIGATION. The payment of benefits under the Plan to a
Beneficiary shall fully and completely discharge the Corporation and the Plan
Administrator from all further obligations under the Plan with respect to the
Participant, and that Participant's Plan Agreement shall terminate upon such
full payment of benefits.

                                    ARTICLE 8
                                 ADMINISTRATION

8.1 RESPONSIBILITY FOR ADMINISTRATION OF THE PLAN. (a) The Plan Administrator
shall be responsible for the management, operation and administration of the
Plan. The Plan Administrator may employ others to render advice with regard to
its responsibilities under this Plan. It may also allocate its responsibilities
to others and may exercise any other powers necessary for the discharge of its
duties. (b) The primary responsibility of the Plan Administrator is to
administer the Plan for the benefit of the Participants and their Beneficiaries,
subject to the specific terms of the Plan. The Plan Administrator shall
administer the Plan in accordance with its terms and shall have the power to
determine all questions arising in connection with the administration,
interpretation and application of the Plan. Any such determination shall be
conclusive and binding upon all persons. The Plan Administrator shall have all
powers necessary or appropriate to accomplish its duties under the Plan.

8.2 INFORMATION FROM CORPORATION. The Corporation and each Affiliate shall
supply full and timely information to the Plan Administrator on all matters as
may be required to properly administer the Plan. The Plan Administrator may rely
upon the correctness of all such information as is so supplied and shall have no
duty or responsibility to verify such information. The Plan Administrator shall
also be entitled to rely conclusively upon all tables, valuations,
certifications, opinions and reports furnished by any actuary, accountant,
controller, counsel or other person employed or engaged by the Plan
Administrator with respect to the Plan.

                                    ARTICLE 9
                        ARBITRATION AND CLAIMS PROCEDURES

9.1 APPLICABLE RULES AND LAWS. Any controversy relating to a claim arising out
of or in relation to this Plan, including, but not limited to claims for
benefits due under this Plan, claims

<PAGE>

for the enforcement of ERISA, claims based on the federal common law of ERISA,
claims alleging discriminatory discharge under ERISA, claims based on state law,
and assigned claims related to this Plan shall be settled by arbitration in
accordance with the then current Employee Benefit Claims Arbitration Rules of
the American Arbitration Association (the "AAA") or any successor rules which
are hereby incorporated into the Plan by this reference; provided, however, both
the Corporation and the Participant shall have the right at any time to seek
equitable relief in court without submitting the issue to arbitration.

9.2 EXHAUSTION OF ADMINISTRATIVE REMEDY. Neither the Participant (or his
beneficiary) nor the Plan may be required to submit such claim or controversy to
arbitration until the Participant (or his beneficiary) has first exhausted the
Plan's initial appeals procedures set forth in Section 9.7. However, if the
Participant (or his beneficiary) and the Corporation agree to do so, they may
submit the claim or controversy to arbitration at any point during the
processing of the dispute.

9.3 COSTS. The Corporation will bear all costs of an arbitration, except that
the Participant will pay the filing fee set by the AAA and the arbitrator shall
have the power to apportion among the parties expenses such as pre-hearing
discovery, travel, experts' fees, accountants' fees, and attorneys' fees except
as otherwise provided herein. The decision of the arbitrator shall be final and
binding on all parties, and judgment on the arbitrator's award may be entered in
any court of competent jurisdiction.

9.4 STATUTE OF LIMITATIONS. If there is a dispute as to whether a claim is
subject to arbitration, the arbitrator shall decide that issue. The claim must
be filed with the AAA within the applicable statute of limitations period. The
arbitrator shall issue a written determination sufficient to ensure consistent
application of the Plan in the future.

9.5 PLACE OF HEARING AND SELECTION OF ARBITRATOR. Any arbitration will be
conducted in accordance with the following provisions, notwithstanding the Rules
of the AAA. The arbitration will take place in a neutral location within the
metropolitan area in which the Participant was or is employed by the
Corporation. The arbitrator will be selected from the attorney members of the
Commercial Panel of the AAA who reside in the metropolitan area where the
arbitration will take place and have at least 5 years of ERISA experience. If an
arbitrator meeting such qualifications is unavailable, the arbitrator will be
selected from the attorney members of the National Panel of Employee Benefit
Claims Arbitrators established by the AAA.

9.6 DISCOVERY. In any such arbitration, each party shall be entitled to
discovery of any other party as provided by the Federal Rules of Civil Procedure
then in effect; provided, however, that discovery shall be limited to a period
of 60 days. The arbitrator may make orders and issue subpoenas as necessary. The
arbitrator shall apply ERISA, as construed in the federal Circuit in which the
arbitration takes place, to the interpretation of the Plan and the Federal
Arbitration Act to the interpretation of this arbitration provision.

9.7 CLAIM PROCEDURE. A person who believes that he or she is being denied a
benefit to which he or she is entitled under the Plan (hereinafter referred to
as a "Claimant") may file a written request for such benefit with the
Corporation, setting forth his or her claim. The request must be addressed to
the Vice President, Human Resources of the Corporation at its then principal
place of business.

<PAGE>

9.8 CLAIM DECISION. Upon receipt of a claim, the Corporation shall advise the
Claimant that a reply will be forthcoming within 90 days and the Plan
Administrator shall, in fact, deliver such reply within such period. The Plan
Administrator may, however, extend the reply period for an additional 90 days
for reasonable cause. If the claim is denied in whole or in part, the Plan
Administrator shall adopt a written opinion, using language calculated to be
understood by the Claimant, setting forth:

      i.    The specific reason or reasons for such denial;

      ii.   Specific reference to pertinent provisions of this Plan on which
            such denial is based;

      iii.  A description of any additional material or information necessary
            for the Claimant to perfect his or her claim and an explanation why
            such material or such information is necessary;

      iv.   Appropriate information as to the steps to be taken if the Claimant
            wishes to submit the claim for review; and

      v.    The time limits for requesting a review under subsection iii and for
            review under subsection iv hereof.

9.9 REQUEST FOR REVIEW. Within 60 days after receipt by the Claimant of the
written opinion described above, the Claimant may request in writing that the
Corporation review the Plan Administrator's determination. Such request must be
addressed to the Secretary of the Corporation at its then principal place of
business. The Claimant or his or her duly authorized representative may, but
need not, review the pertinent documents and submit issues and comments in
writing for consideration by the Corporation. If the Claimant does not request a
review of the determination within such 60 day period, he or she shall be barred
and estopped from challenging the determination.

9.10 REVIEW OF DECISION. Within 60 days after the Corporation's receipt of a
request for review, it will review the Plan Administrator's determination. After
considering all materials presented by the Claimant, the Corporation will render
a written opinion, written in a manner calculated to be understood by the
Claimant, setting forth the specific reasons for the decision and containing
specific references to the pertinent provisions of this Plan on which the
decision is based. If special circumstances require that the 60 day time period
be extended, the Corporation will so notify the Claimant and will render the
decision as soon as possible, but no later than 120 days after receipt of the
request for review.

                                   ARTICLE 10
                                  MISCELLANEOUS

10.1 NO TRUST CREATED. Nothing contained in this Plan, and no action taken
pursuant to its provisions by any person shall create, or be construed to
create, a trust of any kind, or a fiduciary relationship between the Corporation
and any other person.

10.2 BENEFITS PAYABLE ONLY FROM GENERAL CORPORATE ASSETS: (UNSECURED GENERAL
CREDITOR STATUS OF PARTICIPANT). (a) Payments to the Participant or any
Beneficiary hereunder shall be made from assets which shall continue, for all
purposes, to be part of the general, unrestricted assets of the Corporation no
person shall have any interest in any such asset by virtue of any provision of
this Plan. The Corporation's obligation hereunder shall be an unfunded and
unsecured promise to pay money in the future. To the extent that any person
acquires a right to receive payments from the Corporation under the provisions
hereof, such right

<PAGE>

shall be no greater than the right of any unsecured general creditor of the
Corporation; no such person shall have or acquire any legal or equitable right,
interest or claim in or to any property or assets of the Corporation. (b) In the
event that, in its discretion, the Corporation purchases an insurance policy or
policies insuring the life of a Participant (or any other property), to allow
the Corporation to recover or meet the cost of providing benefits, in whole or
in part, hereunder, no Participant or Beneficiary shall have any rights
whatsoever therein or in the proceeds therefrom. The Corporation shall be the
sole owner and beneficiary of any such insurance policy or property and shall
possess and may exercise all incidents of ownership therein.

10.3 CAPTIONS. The captions of the articles, sections and paragraphs of this
Plan are for convenience only and shall not control or affect the meaning or
construction of any of its provisions.

10.4 FURNISHING INFORMATION. A Participant or his or her Beneficiary will
cooperate with the Plan Administrator by furnishing any and all information
requested by the Plan Administrator and take such other actions as may be
requested in order to facilitate the administration of the Plan and the payments
of benefits hereunder, including but not limited to taking such physical
examinations as the Plan Administrator may deem necessary.

10.5 NO CONTRACT OF EMPLOYMENT. Nothing contained herein shall be construed to
be a contract of employment for any term of years, nor as conferring upon the
Participant the right to continue to be employed by the Corporation in his or
her present capacity or in any capacity. It is expressly understood that this
Plan relates to the payment of deferred compensation for the Participant's
services, payable after termination of his or her employment with the
Corporation, and is not intended to be an employment contract.

10.6 BENEFITS NOT TRANSFERABLE. No Participant or beneficiary under this Plan
shall have any power or right to transfer, assign, anticipate, hypothecate or
otherwise encumber any part of all of the amounts payable hereunder. No such
amounts shall be subject to seizure by any creditor of any such Participant or
Beneficiary, by a proceeding at law or in equity, nor shall such amounts be
transferable by operation of law in the event of bankruptcy, insolvency or death
of the Participant or Beneficiary. Any such attempted assignment shall be void.

10.7 SUCCESSORS. The provisions of this Plan shall bind and inure to the benefit
of the Participant's employer and its successors and assigns and the Participant
and the Participant designated Beneficiaries.

10.8 SPOUSE'S INTEREST. The interest in the benefits hereunder of a spouse of a
Participant who predeceases the Participant shall automatically pass to the
Participant and shall not be transferable by such spouse in any manner,
including but not limited to such spouse's will, nor shall such interest pass
under the laws of intestate succession.

10.9 LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Corporation and
each employer is aware that upon the occurrence of a Change in Control, the
Board or the board of directors of a Participant's employer (which might then be
composed of new members) or a shareholder of the Corporation, or any successor
corporation might then cause or attempt to cause the Corporation, or such
successor to cause the Corporation to institute, or may institute, litigation
seeking to deny Participants the benefits intended under the Plan. In these
circumstances, the purpose of the Plan could be frustrated. Accordingly, if,
following a Change in Control, it should appear to any Participant that the
Corporation or any successor corporation

<PAGE>

has failed to comply with any of its obligations under the Plan or any agreement
thereunder or, if the Corporation or any other person takes any action to
declare the Plan void or unenforceable or institute any litigation or other
legal action designed to deny, diminish or to recover from any Participant the
benefits intended to be provided, then the Corporation and the Participant's
employer irrevocably authorize such Participant to retain counsel of his or her
choice at the expense of the Corporation and the Participant's employer (who
shall be jointly and severally liable) to represent such Participant in
connection with the initiation or defense of any litigation or other legal
action, whether by or against the Corporation, the Participant's employer or any
director, officer, shareholder or other person affiliated with the Corporation,
the Participant's employer or any successor thereto in any jurisdiction.

10.10 AMENDMENT. This Plan may be amended or terminated by the Corporation at
any time, without notice to or consent of any person, pursuant to resolutions
adopted by the Corporation. Any such amendment or termination shall take effect
as of the date specified therein and, to the extent permitted by law, may have
retroactive effect. However, no such amendment or termination shall reduce (i)
the amount then credited to the Participant's Account Balance under Section 4.
If the Plan is terminated, benefits will be distributed in accordance with
Section 6, as if the termination date were the Participant's Normal Retirement
Date. Any other provision of this Plan to the contrary notwithstanding, the Plan
may be amended by the Corporation at any time, and retroactively if required to
the extent that, in the opinion of the Corporation, such amendment shall be
necessary in order to ensure that the Plan will be characterized as a plan
maintained for a select group of management or highly compensated employees, as
described in sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or to conform
the Plan to the requirements of any applicable law, including ERISA and the
Code. No such amendment shall be considered prejudicial to any interest of a
Participant or Beneficiary hereunder.

10.11 NOTICE. Any notice, consent or demand required or permitted to be given
under the provisions of this Plan shall be in writing, and shall be signed by
the party giving or making the same. If such notice, consent or demand is
mailed, it shall be sent by United States certified mail, postage prepaid,
addressed to: THE RESTAURANT COMPANY, 6075 Poplar Avenue, Suite 800, Memphis, TN
38119, Attention Vice President, Human Resources. The date of such mailing shall
be deemed the date of notice consent or demand. Any person may change the
address to which notice is to be sent by giving notice of the change of address
in the manner aforesaid.

10.12 FACILITY OF PAYMENT. If a distribution is to be made to a minor, or to a
person who is otherwise incompetent, then the Plan Administrator may, in its
discretion, make such distribution (i) to the legal guardian, or if none, to a
parent of a minor payee with whom the payee maintains his or her residence, or
(ii) to the conservator or committee or, if none, to the person having custody
of an incompetent payee. Any such distribution shall fully discharge the Plan
Administrator, the Corporation and Plan from further liability on account
thereof.

10.13 GOVERNING LAW. The Plan and the right and obligations of all persons
hereunder shall be governed by and construed in accordance with the laws of the
State of Tennessee other than its laws regarding choice of law, to the extent
that such state law is not preempted by federal law.

<PAGE>

      IN WITNESS WHEREOF, the Corporation has executed this Plan as of the day
and year above first written.

ATTEST:                                             THE RESTAURANT COMPANY

                                            By: ________________________________

______________________, Secretary          Title: ______________________________

<PAGE>

                                    EXHIBIT A
                             THE RESTAURANT COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                           --PARTICIPATION AGREEMENT--

Name of Participant: ________________________________________________

Effective Date of Participation: _____________, 200__

The Corporation and the undersigned Plan Administrator have designated the
undersigned employee as a Participant in the above Plan. In consideration of his
or her designation as a Participant, the undersigned employee hereby agrees and
acknowledges as follows:

1. That he or she has received a copy of the Plan, as currently in effect;

2. That he or she agrees to be bound by all of the terms and conditions of the
Plan, and to perform any and all acts required from him or her thereunder;

3. That he or she has the right to designate the Beneficiary or Beneficiaries,
and thereafter to change the Beneficiary or Beneficiaries, of any vested benefit
payable under the Plan, by completing and delivering to the Corporation a
Beneficiary Designation in the form specified by the Plan Administrator.

IN WITNESS WHEREOF, this Agreement has been executed by the parties this
______day of _______________, 200__.

_________________________________         ______________________________________
           Witness                                       Employee

                                          ______________________________________
                                                     Plan Administrator

___________________________               By: __________________________________
          Witness                     Its Duly Authorized Officer/Representative

<PAGE>

                                    EXHIBIT B
                             THE RESTAURANT COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                        --BENEFICIARY DESIGNATION FORM --

      TO: THE RESTAURANT COMPANY D/B/A PERKINS RESTAURANT & BAKERY
(hereinafter referred to as the "Corporation"),

I, _________________________, in accordance with the rights granted to me in the
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN Agreement, between the Corporation and
me, do hereby nominate as Beneficiary thereunder to receive payments thereunder
in the event of my death:

      PRIMARY Beneficiary: _____________________________________________________
      Relationship: ______________________ Social Security Number ______________

      1ST CONTINGENT Beneficiary: ______________________________________________
      Relationship: ______________________ Social Security Number(s) ___________

I further reserve the privilege of changing the Beneficiary herein named at any
time or times without the consent of any such beneficiary. This nomination is
made upon the following terms and conditions:

1. The word "Beneficiary" as used herein shall include the plural,
Beneficiaries, wherever the Agreement permits.

2. For purposes of this Beneficiary Designation, no person shall be deemed to
have survived the participant if that person dies within thirty (30) days of the
participant's death.

3. Beneficiary shall mean the Primary Beneficiary if such Primary Beneficiary
survives the participant by at least thirty (30) days, and shall mean the 1st
Contingent Beneficiary if the Primary Beneficiary does not survive the
participant by at least thirty (30) days.

4. If the Primary Beneficiary shall be deceased on any annual payment date
provided in said Agreement, any and all remaining annual payments shall be
payable to the 1st Contingent Beneficiary unless the executors or administrators
of said deceased Beneficiary are named as Primary Beneficiary herein above.

5. If more than one Beneficiary is named within the same class (i.e., Primary or
1st Contingent), then annual payments shall be made equally to such
Beneficiaries unless otherwise provided herein above. If any such Beneficiary
dies while receiving annual payments under said Agreement, any and all remaining
payments shall continue to be made to the surviving Beneficiaries of such class
and to the legal heirs of the deceased Beneficiary, which legal heirs shall
receive the amount which was being received by said deceased Beneficiary. If all
of the Beneficiaries of a class shall die, any and all remaining payments shall
be made to the next class of Beneficiaries, as provided under Paragraph 4 above.
At the Plan Administrator's option, a lump sum may be paid to a beneficiary to
close the Account of the deceased Participant.

6. If none of the Beneficiaries named herein above are living on any said annual
payment date, any and all remaining payments shall be made to my executors or
administrators, or upon their written request, to any person or persons so
designated by them.

7. If any such annual payments shall be payable to any trust, the Corporation
shall not be liable to see to the application by the Trustee of any payment
hereunder at any time, and may rely upon the sole signature of the Trustee to
any receipt, release or waiver, or to any transfer or other instrument to
whomsoever made purporting to affect this nomination or any right hereunder.

      THIS NOMINATION CANCELS AND SUPERSEDES ANY NOMINATION OF BENEFICIARY
HERETOFORE MADE BY ME WITH RESPECT TO SAID AGREEMENT AND THE RIGHT TO RECEIVE
PAYMENTS THEREUNDER.

Dated: ______________________             Participant: _________________________

Received this ____ day of _______, ______     By: ______________________________

<PAGE>

                                   (SPECIMEN)

                     DEPARTMENT OF LABOR NOTIFICATION LETTER
                    (TO BE COMPLETED ON CORPORATE LETTERHEAD)

TO:      Top Hat Plan Exemption
         Pension and Welfare Benefits Administration
         Room N-1513 - Public Disclosure Room
         U.S. Department of Labor
         200 Constitution Avenue, N.W.
         Washington, DC 20210

FROM:    ABC CORPORATION, INC.
         EMPLOYER IDENTIFICATION NUMBER:  72-7713918
         1000 PARK AVENUE, SUITE C-17
         ANYWHERE, USA  77777

________________ DATE

            This document constitutes the statement required by 29 C. F. R. Sec.
2520 104-23 (a) (1) to be filed with the Secretary of Labor in respect to a
Non-Qualified Deferred Compensation Plan maintained by the above employer.

            The employer currently maintains _____ Nonqualified Deferred
Compensation Plan for employees who are members of a select group of management
or who are highly compensated. There are currently _____ participants in the
plan. A copy of the plan document will be furnished upon request.

Respectfully submitted,

(To be signed by an officer of the Corporation)

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