Document:

exv10wh

Exhibit 10(h)

CREDIT AGREEMENT

Dated as of December 23, 2010

among

VIDEO DISPLAY CORPORATION, LEXEL IMAGING SYSTEMS, INC., FOX INTERNATIONAL LTD., INC., Z-AXIS, INC.,

TELTRON TECHNOLOGIES, INC., and AYDIN DISPLAYS, INC.

as Borrowers,

RBC BANK (USA)

as Administrative Agent

and

The Other Lenders Party Hereto

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	7	 
	 
	 	 	 	 
	1.01 Defined Terms
	 	 	7	 
	1.02 Other Interpretive Provisions
	 	 	26	 
	1.03 Accounting Terms
	 	 	26	 
	1.04 Rounding
	 	 	27	 
	1.05 Times of Day
	 	 	27	 
	1.06 Dealings With Multiple Borrowers
	 	 	27	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND BORROWINGS
	 	 	27	 
	 
	 	 	 	 
	2.01 Amounts and Terms of Commitments
	 	 	27	 
	2.02 Borrowings of Revolving Loans
	 	 	28	 
	2.03 Prepayments
	 	 	29	 
	2.04 Termination or Reduction of Commitments
	 	 	30	 
	2.05 Repayment of Loans
	 	 	30	 
	2.06 Interest
	 	 	31	 
	2.07 Fees
	 	 	31	 
	2.08 Computation of Interest and Fees
	 	 	32	 
	2.09 Evidence of Debt
	 	 	32	 
	2.10 Payments Generally; Agent’s Clawback
	 	 	32	 
	2.11 Sharing of Payments
	 	 	34	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	35	 
	 
	 	 	 	 
	3.01 Taxes
	 	 	35	 
	3.02 Illegality
	 	 	39	 

1

 

	 	 	 	 	 
	Section	 	Page	 
	3.03 Inability to Determine Rates
	 	 	39	 
	3.04 Increased Costs
	 	 	40	 
	3.05 Compensation for Losses
	 	 	41	 
	3.06 Mitigation Obligations
	 	 	41	 
	3.07 Survival
	 	 	42	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO BORROWINGS
	 	 	42	 
	 
	 	 	 	 
	4.01 Conditions of Initial Borrowing
	 	 	42	 
	4.02 Conditions to all Borrowings
	 	 	44	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	45	 
	 
	 	 	 	 
	5.01 Existence, Qualification and Power
	 	 	45	 
	5.02 Authorization; No Contravention
	 	 	45	 
	5.03 Governmental Authorization; Other Consents
	 	 	46	 
	5.04 Binding Effect
	 	 	46	 
	5.05 Financial Statements; No Material Adverse Effect
	 	 	46	 
	5.06 Litigation
	 	 	46	 
	5.07 No Default
	 	 	47	 
	5.08 Ownership of Property; Liens
	 	 	47	 
	5.09 Environmental Compliance
	 	 	47	 
	5.10 Insurance
	 	 	47	 
	5.11 Taxes
	 	 	47	 
	5.12 ERISA Compliance
	 	 	47	 
	5.13 Subsidiaries; Ownership of Borrowers
	 	 	48	 
	5.14 Margin Regulations; Investment Company Act
	 	 	48	 
	5.15 Disclosure
	 	 	49	 
	5.16 Compliance with Laws
	 	 	49	 

2

 

	 	 	 	 	 
	Section	 	Page	 
	5.17 Taxpayer Identification Number
	 	 	49	 
	5.18 Intellectual Property; Licenses, Etc.
	 	 	49	 
	5.19 Collateral
	 	 	49	 
	5.20 Solvency
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	50	 
	 
	 	 	 	 
	6.01 Financial Statements
	 	 	50	 
	6.02 Certificates; Other Information
	 	 	51	 
	6.03 Notices
	 	 	52	 
	6.04 Payment of Obligations
	 	 	53	 
	6.05 Preservation of Existence, Etc.
	 	 	53	 
	6.06 Maintenance of Properties
	 	 	53	 
	6.07 Maintenance of Insurance
	 	 	53	 
	6.08 Compliance with Laws
	 	 	53	 
	6.09 Books and Records
	 	 	53	 
	6.10 Inspection Rights
	 	 	54	 
	6.11 Use of Proceeds
	 	 	54	 
	6.12 Collateral Records
	 	 	54	 
	6.13 Deposit Accounts
	 	 	54	 
	6.13 Field Examinations
	 	 	54	 
	6.15 Financial Covenantss
	 	 	54	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	55	 
	 
	 	 	 	 
	7.01 Liens
	 	 	55	 
	7.02 Investments
	 	 	56	 

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	Section	 	Page	 
	7.03 Indebtedness
	 	 	56	 
	7.04 Fundamental Changes
	 	 	57	 
	7.05 Dispositions
	 	 	58	 
	7.06 Restricted Payments
	 	 	58	 
	7.07 Change in Nature of Business
	 	 	58	 
	7.08 Transactions with Affiliates
	 	 	58	 
	7.09 Burdensome Agreements
	 	 	58	 
	7.10 Use of Proceeds
	 	 	59	 
	7.11 Anti-Money Laundering and Anti-Terrorism
	 	 	59	 
	7.12 Accounts
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	59	 
	 
	 	 	 	 
	8.01 Events of Default
	 	 	59	 
	8.02 Remedies Upon Event of Default
	 	 	61	 
	8.03 Application of Funds
	 	 	62	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	63	 
	 
	 	 	 	 
	9.01 Appointment and Authorization of Administrative Agent
	 	 	63	 
	9.02 Rights as a Lender
	 	 	63	 
	9.03 Exculpatory Provisions
	 	 	63	 
	9.04 Reliance by Administrative Agent
	 	 	64	 
	9.05 Delegation of Duties
	 	 	65	 
	9.06 Resignation of Agent
	 	 	65	 
	9.07 Non-Reliance on Agent and Other Lenders
	 	 	66	 
	9.08 No Other Duties, Etc.
	 	 	66	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	67	 

4

 

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE X. MISCELLANEOUS
	 	 	70	 
	 
	 	 	 	 
	10.01 Amendments, Etc.
	 	 	70	 
	10.02 Notices; Effectiveness; Electronic Communications
	 	 	71	 
	10.03 No Waiver; Cumulative Remedies; Enforcement
	 	 	73	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	73	 
	10.05 Payments Set Aside
	 	 	75	 
	10.06 Successors and Assigns
	 	 	76	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	79	 
	10.08 Right of Setoff
	 	 	79	 
	10.09 Interest Rate Limitation
	 	 	80	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	80	 
	10.11 Survival of Representations and Warranties
	 	 	80	 
	10.12 Severability
	 	 	81	 
	10.13 Governing Law; Jurisdiction; Etc.
	 	 	81	 
	10.14 Waiver of Jury Trial
	 	 	82	 
	10.15 No Advisory or Fiduciary Responsibility
	 	 	82	 
	10.16 Electronic Execution of Assignments and Certain Other Documents
	 	 	83	 
	10.17 USA PATRIOT Act Notice
	 	 	83	 
	10.18 Time of the Essence
	 	 	83	 

5

 

SCHEDULES

	 	 	 	 	 	 	 

	 

	 	 	2.01	 	 	Commitments and Applicable Percentages
	 
	 	 	 	 	 	 
	 

	 	 	5.06	 	 	Litigation
	 
	 	 	 	 	 	 
	 

	 	 	5.09	 	 	Environmental Matters
	 

	 	 	5.13	 	 	Subsidiaries and Other Equity Investments
	 
	 	 	 	 	 	 
	 

	 	 	5.21	 	 	Leases
	 
	 	 	 	 	 	 
	 

	 	 	7.01	 	 	Existing Liens
	 

	 	 	7.03	 	 	Existing Indebtedness
	 

	 	 	10.02	 	 	Administrative Agent’s Office, Certain Addresses for Notices

EXHIBITS Form of

	 	 	 	 	 

	 

	 	A
	 	Draw Certificate
	 
	 	 	 	 
	 

	 	B-1
	 	Revolving Note
	 
	 	 	 	 
	 

	 	B-2
	 	Term Note A
	 
	 	 	 	 
	 

	 	B-2
	 	Term Note B
	 
	 	 	 	 
	 

	 	C
	 	Compliance Certificate
	 
	 	 	 	 
	 

	 	D
	 	Assignment and Assumption
	 
	 	 	 	 
	 

	 	E
	 	Borrowing Base Certificate

6

 

CREDIT AGREEMENT

CREDIT AGREEMENT (this “Agreement”) is entered into as of December 23, 2010, among VIDEO
DISPLAY CORPORATION, a Georgia corporation (“Parent”), LEXEL IMAGING SYSTEMS, INC. (“Lexel”), FOX
INTERNATIONAL LTD., INC. (“Fox”), Z-AXIS, INC. (“Z-Axis”), TELTRON TECHNOLOGIES, INC. (“Teltron”),
and AYDIN DISPLAYS, INC. (“Aydin” and together with Lexel, Fox, Z-Axis, and Teltron , collectively,
the “Subsidiaries”; and the Subsidiaries, together with Parent, collectively, the “Borrowers” and
each a “Borrower”), each lender from time to time party hereto (collectively,
“Lenders” and individually, a “Lender”), and RBC BANK (USA), as Administrative
Agent.

Each Borrower has requested that Lenders provide credit extensions under the credit facilities
described below, and Lenders are willing to do so on the terms and conditions set forth herein. In
consideration of the mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

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

     “Account” has the meaning given the term under the UCC as in effect from time to time.

     “Account Debtor” means an “account debtor” as defined in the UCC from time to time.

     “Adjusted LIBOR Rate” means an interest rate per annum (rounded upwards if necessary
to the nearest 1/16th of 1%) equal to (a) the LIBOR Rate for an Interest Period of one
month times (b) the Statutory Reserve Rate.

     “Administrative Agent” or “Agent” means RBC Bank (USA) in its capacity as
administrative agent under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means Agent’s address and, as appropriate, account as
set forth on Schedule 10.02, or such other address or account as Agent may from time to
time notify Borrowers and Lenders.

     “Administrative Questionnaire” means the administrative questionnaire provided by
Agent to each new Lender, if any, in such form as may be required by Agent.

7

 

     “Advance” means the extension of credit or lending of funds by one Person to another
Person (including a pre-payment of anticipated future obligations) regardless of the repayment
terms.

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

     “Aggregate Net Cash Proceeds” means the cumulative aggregate cash proceeds received by
any Borrower or any of their respective Subsidiaries in respect of any Asset Disposition and/or
Casualty Loss, net of (i) reasonable direct costs, (ii) Indebtedness that is satisfied as a result
thereof, and (iii) taxes paid or payable as a result thereof; it being understood that “Aggregate
Net Cash Proceeds” shall include, without limitation, any non-cash consideration received by any
Borrower or any of their respective Subsidiaries in any Asset Disposition and shall be determined
cumulatively for any fiscal year for all transactions, regardless of whether related.

     “Aggregate Revolving Loan Commitment” means the combined Revolving Loan Commitments of
all Lenders, which shall initially be in the amount of (i) Seventeen Million Five Hundred Thousand
and 00/100 Dollars ($17,500,000) from the date hereof through November 29, 2011, (ii) Sixteen
Million Seven Hundred Fifty Thousand and 00/100 Dollars ($16,750,000) from November 30, 2011
through November 29, 2012, (iii) Sixteen Million and 00/100 Dollars ($16,000,000) from November 30,
2012 through the Revolving Loan Termination Date.

     “Aggregate Term Loan A Commitment” means the combined Term Loan A Commitments of all
Lenders, which shall initially be in the amount of Three Million Five Hundred Thousand and 00/100
Dollars ($3,500,000).

     “Aggregate Term Loan B Commitment” means the combined Term Loan B Commitments of all
Lenders, which shall initially be in the amount of Three Million and 00/100 Dollars ($3,000,000).

     “Agreement” means this Credit Agreement.

     “Applicable Fiscal Period” means a period of four (4) consecutive, trailing fiscal
quarters ending at the end of each prescribed fiscal quarter of the Borrowers.

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

8

 

     “Applicable Margin” means the percent per annum set forth below, based on the ratio of
Borrowers’ Fixed Charge Coverage Ratio, as set forth in the most recent Compliance Certificate
received by Agent. Based upon the ratio, the “Applicable Margin” over the Adjusted LIBOR Rate
will be determined as follows:

	 	 	 	 	 
	Level	 	Fixed Charge Coverage Ratio	 	Applicable Margin
	I
	 	Greater than or equal to 1.20 to 1.00,	 	3.25%
	 
	 	but less than 1.50 to 1.00	 	 
	 
	 	 	 	 
	II
	 	Greater than or equal to 1.50 to 1.00,	 	3.00%
	 
	 	but less than 1.75 to 1.00	 	 
	 
	 	 	 	 
	III
	 	Greater than 1.75 to 1.00	 	2.75%

The Applicable Margin will be determined from Borrower’s most recent quarterly Compliance
Certificate received by Agent, as required hereunder. The ratio will be measured as of February
28th, May 31st, August 31st and November 30th of each year (each a
“Measurement Date”); adjustments in the Applicable Margin will occur as of the first day of the
month immediately following Agent’s receipt of Borrower’s quarterly Compliance Certificate required
under Section 6.02(b) hereof (i.e., February 1st, May 1st, August 1st and
November 1st) for the immediately preceding Measurement Date (each an “Adjustment Date”). The
Applicable Margin will be in effect from the then applicable Adjustment Date until the next
Adjustment Date. Until Agent receives the first Compliance Certificate and related financial
statements due on January 15, 2011 for the November 30, 2010 Measurement Date, the Applicable
Margin will be 3.00%. The first Adjustment Date will occur on the first day of the month
immediately following Bank’s receipt of the Compliance Certificate due on January 15, 2011 and be
based on the November 30, 2010 Measurement Date financial statements, and shall apply until the
next Adjustment Date. Thereafter if any quarterly Compliance Certificate and applicable financial
statements are not delivered on time, the Applicable Margin from the date such Compliance
Certificate and applicable financial statement were due until Agent receives it will be the highest
level set forth above, or at Agent’s option, the Agent may impose the Default Rate.

     “Asset Disposition” means (other than the sale of Inventory in the ordinary course of
business) (i) the sale, transfer, lease or other disposition of all or a substantial part of
Borrowers’ and their respective Subsidiaries’ property and/or assets or (ii) the sale or
disposition of any equity ownership interests in any Borrower or any Subsidiary of a Borrower.

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

9

 

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by Agent, in substantially the form of Exhibit D or
any other form approved by Agent.

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

     “Audited Financial Statements” means the audited consolidated and consolidating
balance sheet of Parent and the other Borrowers for the fiscal year ended February 28, 2010, and
the related consolidated and consolidating statements of income or operations, shareholders’ equity
and cash flows for such fiscal year of Parent and the other Borrowers, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Revolving Loan Termination Date, (b) the date of termination of the Aggregate
Revolving Loan Commitment pursuant to Section 2.04, and (c) the date of termination of the
Revolving Loan Commitment of each Lender pursuant to Section 8.02.

     “Borrower” and “Borrowers” have the meanings specified in the introductory
paragraph hereto.

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

     “Borrowing” means a borrowing consisting of simultaneous Loans made by each of the
Lenders pursuant to Section 2.01.

     “Borrowing Base” means, as of any date of determination thereof, an amount equal to
the sum of up to (i) 80% of Borrowers’ Eligible Accounts, plus (ii) 35% of Borrowers’
Eligible Inventory (but subject to the Inventory Cap), less (iii) any Reserves from time to
time, in each case as determined by Bank with reference to the most recent Borrowing Base Report
delivered by Borrower. Borrowers acknowledge and agree that Agent shall conduct an initial field
examination within 90 days of the date hereof, and that Agent may, upon review of the results of
any such field examination, adjust the advance rates under the Borrowing Base and/or the
eligibility requirements for Eligible Accounts and/or Eligible Inventory.

     “Borrowing Base Certificate” means a certificate from a Responsible Officer
substantially in the form of Exhibit E.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, Georgia or
Texas and, if such day relates to any LIBOR Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar market.

10

 

     “Casualty Loss” means any asset or property owned or used by Borrowers and/or their
Subsidiaries that is (i) materially damaged or destroyed, or suffers any other loss or (ii) is
condemned, confiscated or otherwise taken, in whole or in part, or the use thereof is otherwise
diminished so as to render impracticable or unreasonable the use of such asset or property for the
purpose to which such asset or property were used immediately prior to such condemnation,
confiscation or taking, by exercise of the powers of condemnation or eminent domain or otherwise,
and in either case the amount of the damage, destruction, loss or diminution in value of the
Collateral.

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

     “Change of Control” means, (i) with respect to Parent (“Target Person”), (a) an event
or series of events or a transaction or series of transactions in which any other Person or Persons
who do not, as of the Closing Date own any of the stock of Target Person ordinarily entitled to
vote in the election of directors, become individually or in the aggregate the beneficial owner or
owners, directly or indirectly, of more than ten (10%) percent of the shares of any class or
classes of stock then outstanding of such Target Person ordinarily entitled to vote in the election
of directors, or (b) an event or series of events or a transaction or series of transactions in
which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of
stock then outstanding of such Target Person ordinarily entitled to vote in the election of
directors, empowering such “person” or “group” to elect a majority of the Board of Directors of
such Target Person, who did not have such power before such transaction, or (c) an event or series
of events or a transaction or series of transactions in which any other Person or Persons who do
not, as of the Closing Date, possess, directly or indirectly, the power to direct, or cause the
direction of, the management or policies of such Target Person, whether through the ability to
exercise voting power, by contract or otherwise, so acquire, directly or indirectly such power and
(ii) with respect to any of the other Borrowers, Parent fails to own 100% of the outstanding equity
interests of each such other Borrower, free of all Liens.

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

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Collateral” means any and all property or assets, whether real, personal or mixed,
and whether tangible or intangible and interests therein and proceeds thereof now or hereafter
acquired by any Borrower or any other Person as debtor who has granted a Lien to Agent for the
benefit of the Lenders pursuant to the Collateral Documents.

11

 

     “Collateral Documents” means, collectively, the Security Agreement, each Mortgage, and
all other security agreements, assignments, mortgages and other similar agreements by or between
any one or more of any Borrower or any other Person pledging or granting a Lien on Collateral and
any Lender or Agent for the benefit of Agent and the Lenders now or hereafter delivered to the
Lenders or Agent pursuant to or in connection with the transactions contemplated hereby and all
financing statements or comparable documents now or hereafter filed in accordance with the
UCC or comparable law against any Borrower or any such other Person.

     “Commitment” means, as to each Lender, the sum of its Revolving Loan Commitment, its
Term Loan A Commitment and its Term Loan B Commitment.

     “Compliance Certificate” means a certificate from a Responsible Officer substantially
in the form of Exhibit C.

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

     “Control” means (i) the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise or (ii) the possession, directly or indirectly of
25% or more of the economic or voting equity interests in such Person or of which such Person owns
25% or more of such economic or voting equity interests. “Controlling” and
“Controlled” have meanings correlative thereto.

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

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

     “Default Rate” means, with respect to any Loan, an interest rate equal to the interest
rate (including the highest Applicable Margin) otherwise applicable to such Loan, plus 5.00% per
annum.

     “Defaulting Lender” means (a) any Lender that has failed to fund a disbursement of
Loan proceeds within one (1) Business Day after such funding is required pursuant to this
Agreement; or (b) any Lender that has (i) breached any other term or condition of this Agreement or
(ii) failed to make any other payment to Agent (whether such payment is a reimbursement for costs,
expenses or attorneys’ fees, an indemnity payment, the repayment of erroneously paid funds, a
portion of any set-off to be turned over to Agent or otherwise) when such payment is due and
payable under this Agreement or any other Loan Document, if such breach or failure has not been
cured or paid within five (5) Business Days after notice thereof from Agent to such Lender; or (c)
any Lender that has repudiated any obligation to make any Loan hereunder or otherwise repudiated
any other obligation hereunder; or (d) any Lender that has been

12

 

deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding or is placed under regulatory supervision

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

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

     “Draw Certificate” means a draw certificate from a Responsible Officer in the form
attached hereto as Exhibit A.

     “EBITDA” means, as of any date of calculation, calculated on a consolidated basis for
Borrowers and in accordance with GAAP, net income (excluding extraordinary gains or losses),
plus interest expense, plus income tax expense, plus depreciation and
amortization, each for the Applicable Fiscal Period.

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

     “Eligible Accounts” means only those Accounts that are within the meaning of the term
“account” as defined under the UCC, that are in existence and have arisen in the ordinary course of
a Borrower’s business, in which Agent, on behalf of the Lenders, has a perfected first priority
Lien and that comply with all of such Borrower’s representations and warranties to Agent and
Lenders set forth in this Agreement and the other Loan Documents; provided, Agent may change the
standards of eligibility by giving Borrowers thirty (30) days’ prior written notice. Unless
otherwise agreed to by Agent and the Lenders, Eligible Accounts shall not include the following:
(i) Accounts that the Account Debtor has failed to pay within ninety (90) days of the original
invoice date; (ii) Accounts with respect to an Account Debtor, twenty five percent (25%) of whose
Accounts the Account Debtor has failed to pay within ninety (90) days of the original invoice date
or which are otherwise deemed ineligible hereunder; (iii) Accounts with respect to which the
Account Debtor is an officer, employee or agent of a Borrower; (iv) Accounts with respect to which
goods are placed on consignment, guaranteed sale, sale or return, sale on approval, bill and hold,
or other terms by reason of which the payment by the Account Debtor may be conditional; (v)
Accounts with respect to which the Account Debtor is an Affiliate or Subsidiary of a Borrower, or
another Borrower; (vi) Accounts with respect to which the Account Debtor does not have its
principal place of business in the United States; (vii) any Account with respect to which the
Account Debtor is the United States, a State, or any department, agency or instrumentality of the
United States or a State, but only if Agent has required an Assignment of Claims Act (or similar
state law) filing with respect thereto and Borrowers have not provided the same within 30 days of
the Agent’s request therefor; (viii) Accounts with respect to which a Borrower is liable to the
Account Debtor for goods sold or services rendered by the Account Debtor to a Borrower, but only to
the extent of any amounts owing to the Account Debtor against amounts owed to such Borrower; (xi)
Accounts with respect to an Account Debtor, including its

13

 

Subsidiaries and Affiliates, whose total obligations to any Borrower(s) exceed thirty percent
(30%) of all Accounts, to the extent such obligations exceed the aforementioned percentage, except
as approved in writing by Agent; (x) Accounts with respect to which the Account Debtor disputes
liability or makes any claim with respect thereto as to which Agent believes, in its sole
discretion, that there may be a basis for dispute (but only to the extent of the amount subject to
such dispute or claim), or is subject to any Debtor Relief Laws, or becomes insolvent, or goes out
of business; and (xi) Accounts the collection of which Agent reasonably determines after inquiry to
be doubtful. Borrowers acknowledge and agree that Agent may, upon review of the results of its
post-closing field examination, adjust the eligibility requirements for Eligible Accounts as
provided in Section 6.14 hereof.

     “Eligible Inventory” means, as applied to any person, goods, as defined under the UCC,
which are owned and held for sale by that person in the ordinary course of that person’s business
and in which the Bank has a perfected, first priority Lien, but excludes the following, unless
otherwise specifically approved in writing as being eligible by Agent: (i) goods held for lease;
(ii) goods that are to be furnished under a contract of service; (iii) raw materials; (iv) work in
process; (v) supplies, packaging and materials used or consumed in a Borrower’s business; (vi) farm
products; (vii) goods which have been held for sale by that a Borrower for a period of 12 or more
months; (viii) damaged, broken, flawed, imperfect, inoperable, discounted, returned, repossessed or
reclaimed goods; (ix) goods held for sale to an Affiliate or a Subsidiary of a Borrower, or to
another Borrower; (x) good being sold by other Persons on “sale or return” or under some other
consignment arrangement with that Person; (xi) goods of another Person being sold on consignment by
that Person; (xii) goods located outside of the borders of the United States of America; (xiii)
goods located in the borders of the United States of America but in the possession of another
Person without that Person having appropriate warehouse receipts or other negotiable documentation
evidencing a valid bailment and the ownership of the goods by that Person; and (xiv) goods which
are subject to a Lien in favor of someone other than Agent and Lenders, whether a superior Lien or
an inferior Lien. Borrowers acknowledge and agree that Agent may, upon review of the results of
its post-closing field examination, adjust the eligibility requirements for Eligible Inventory as
provided in Section 6.14 hereof.

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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

14

 

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

     “ERISA” means the Employee Retirement Income Security Act of 1974.

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

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

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

     “Excluded Taxes” means, with respect to Agent, any Lender, or any other recipient of
any payment to be made by or on account of any obligation of any Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated), and franchise taxes imposed
on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof)
under the Laws of which such recipient is organized or in which its principal office is located or,
in the case of any Lender, in which its applicable Lending Office is located, (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in
which any Borrower is located, (c) any backup withholding tax that is required by the Code to be
withheld from amounts payable to a Lender that has failed to comply with clause (A) of Section
3.01(e)(ii)and (d) in the case of a Foreign Lender, any United States withholding tax that (i)
is required to be imposed on amounts payable to such Foreign Lender pursuant to the Laws in force
at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or (ii)
is attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with clause (B) of Section 3.01(e)(ii), except to the
extent that such

15

 

Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending
Office (or assignment), to receive additional amounts from any Borrower with respect to such
withholding tax pursuant to Section 3.01(a)(ii).

     “Federal Funds Rate”  means, for any day, an interest rate per annum equal
to the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published for such day
(or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations at approximately 10:00 a.m. (Houston time) on such day on such
transactions received by Agent from three Federal funds brokers of recognized standing selected by
Agent.

     “Fixed Charge Coverage Ratio” means, as of any date of calculation, calculated on a
consolidated basis for Borrowers in accordance with GAAP, the sum of (i) EBITDA , plus
lease and rent expense, less cash income taxes, less any dividends and
distributions, each for the Applicable Fiscal Period, divided by (ii) the sum of lease and rent
expense, plus the current maturities of long term debt (excluding current maturities of
long term debt resulting from the maturity of the Revolving Loan and required reductions in the
Revolving Loan Commitments, and excluding that portion of the current maturities of long term debt
resulting from balloon payments in excess of scheduled principal amortizations due to the maturity
of amortizing term debt), plus interest expense, each for the Applicable Fiscal Period.

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

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

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

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

     “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or
other obligation payable or performable by another Person (the “primary obligor”) in any
manner, whether directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or

16

 

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

     “Guarantor” means Ordway and any other Person who executes a Guaranty.

     “Guaranty” means the Unconditional Limited Guaranty Agreement, dated as of even date
herewith, made by Ordway in favor of the Agent, for itself and for the benefit of the Lenders, and
any guarantee or other similar instrument made by any other Guarantor in favor of Agent and for the
benefit of the Lenders, as each may be amended, modified, supplemented or restated from time to
time.

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

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

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

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

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

(d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business and, in each
case, not past due for more than 60 days after the date on which such trade account payable
was created);

17

 

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

(f) capital leases and Synthetic Lease Obligations;

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

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

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

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

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

     “Information” has the meaning specified in Section 10.07.

     “Interest Period” means (i) initially, the period commencing on the date any Loan is
disbursed and ending on the last day of such month and (ii) thereafter, the period from the first
day of each month to the last day of such month; provided that: no Interest Period with
respect to any Revolving Loan shall extend beyond the Revolving Loan Termination Date, and no
Interest Period with respect to the Term Loan A or the Term Loan B shall extend beyond the Term
Loan Maturity Date.

     “Inventory” has the meaning given the term under the UCC as in effect from time to
time.

     “Inventory Cap” means, as of any date in determining Borrowers’ availability under the
Borrowing Base with respect to amounts advanced against Inventory, (i) 70% of the applicable
Aggregate Revolving Loan Commitment from the date hereof through November 29, 2011, (ii) 60% of the
applicable Aggregate Revolving Loan Commitment from November 30, 2011
through November 29, 2012, and (iii) 50% of the applicable Aggregate Revolving Loan Commitment
from November 30, 2012 through the Revolving Loan Termination Date.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of

18

 

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

     “IRS” means the United States Internal Revenue Service.

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

     “Lender” has the meaning specified in the introductory paragraph hereto.

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

     “LIBOR Rate” is the London Interbank Offer Rate for United States Dollars for a term
of one month which appears on Telerate Page 3750, Bloomberg Professional Screen BBAM (or any
generally recognized successor method or means of publication) as of 11:00 a.m., London time, two
(2) London Business Days prior to the day on which the rate will become effective. If for any
reason the London Interbank Offer Rate is not available, then the “LIBOR Rate” shall mean the rate
per annum which banks charge each other in a market comparable to England’s eurodollar market on
short-term money in U.S. Dollars for an amount substantially equivalent to the principal amount due
under this Agreement as determined at 11:00 A.M., London time, two (2) London Business Days prior
to the day on which the rate will become effective, as determined in the Agent’s sole discretion.
Agent’s determination of such interest rate shall be conclusive, absent manifest error.

     “LIBOR Loan” means any Loan that bears interest at a rate based on the Adjusted LIBOR
Rate.

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

19

 

     “Loan” means an extension of credit by a Lender to the Borrowers under Article
II.

     “Loan Documents” means this Agreement, each Note, each Collateral Document, each Draw
Certificate, each Borrowing Base Certificate, each Guaranty, each Mortgage, the Security Agreement,
and any other documents, agreements or certificates executed or delivered by any of the Loan
Parties in favor of the Agent and/or the Lenders.

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

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent),
condition (financial or otherwise) or prospects of any Loan Party individually or the Loan Parties
and their respective Subsidiaries taken as a whole; (b) a material impairment of the ability of any
Loan Party to perform its obligations under any Loan Document to which it is a party; or (c) a
material adverse effect upon the legality, validity, binding effect or enforceability against any
Loan Party of any Loan Document to which it is a party.

     “Minimum Rate” means a rate equal to four percent (4.00%) per annum.

     “Mortgage” means each deed to secure debt, deed of trust and mortgage (or other
similar Lien instrument) from the applicable Borrower to the Agent, for the benefit of the Lenders,
each dated as of even date herewith, with respect to the Mortgaged Property, and any other similar
Lien instrument on real property interests made by any Person in favor of Agent and for the benefit
of the Lenders with respect to the Mortgaged Property, as each may be amended, modified,
supplemented or restated from time to time.

     “Mortgaged Property” means the properties of any Loan Party subject to a Mortgage
securing the Obligations.

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

     “Note” means a Revolving Note, a Term Note A or a Term Note B, and “Notes”
means all such Notes.

     “Obligations” means all Indebtedness, including principal, interest, fees, premiums,
penalties, charges, collection expenses and other amounts now or hereafter owed to by any one or
more of the Loan Parties to any one or more of the Agent and the Lenders pursuant to this
Agreement, the other Loan Documents and any other agreement, document and record, both absolute and
contingent, due and to become due, now existing and hereafter arising, including all Indebtedness
under any Swap Contract(s) with any one or more of the Agent and the Lenders (or any of their
respective Affiliates), all Indebtedness arising under or with respect to any letters of credit,
any corporate credit cards, any acceptances, any

20

 

checking account overdrafts, any remote deposit
exposure, any foreign exchange exposure and any automated clearing house exposure, and any interest
and fees that accrue after the commencement of any proceeding under any Debtor Relief Laws, and
including any indebtedness, liability and obligation now owing, and any indebtedness, liability and
obligation hereafter arising and owing, from any one or more of the Loan Parties to others that any
one or more of the Agent and the Lenders has obtained or may in the future obtain by assignment or
otherwise, and any other Indebtedness, now owing or hereafter arising and owing to any one or more
of the Agent and the Lenders, howsoever evidenced or incurred.

     “Ordway” means Ronald D. Ordway, an individual resident of the State of Georgia.

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

     “Other Taxes” means all present or future stamp, intangible or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

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

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

     “PBGC” means the Pension Benefit Guaranty Corporation.

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

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

21

 

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

     “Platform” has the meaning specified in Section 6.02.

     “Public Lender” has the meaning specified in Section 6.02.

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

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

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

     “Required Lenders” means, as of any date of determination, (a) Lenders having more
than 66 2/3rds% of the Aggregate Revolving Loan Commitment, plus the aggregate unpaid principal
balance of the Term Loan A, plus the aggregate unpaid principal balance of the Term Loan B, (b) if
the Revolving Loan Commitment of each Lender has been terminated pursuant to Section 8.02,
Lenders holding in the aggregate more than 66 2/3rds% of the Total Revolving Loan Outstandings,
plus the aggregate unpaid principal balance of the Term Loan A, plus the aggregate unpaid principal
balance of the Term Loan B; provided that the Revolving Loan Commitment of, and the portion
of the Total Revolving Loan Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders; provided,
further, that at any time there are only two Lenders (with Affiliates of any Lender being
counted collectively with such Lender as one Lender), each such percentage set forth above shall be
increased to 100%.

     “Reserves” means such amounts as may be required by Agent at any time and from time to
time in its sole and absolute discretion without prior notice to any Borrower, to reserve against
any Borrower’s obligations to Agent and Lenders or any other obligations by any Borrower, whether
direct or contingent.

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

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Subordinated Debt or capital stock or other
Equity Interest of any Borrower or any Subsidiary, or any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition,

22

 

cancellation or termination of any Subordinated Debt or such
capital stock or other Equity Interest or on account of any return of capital to any Borrower’s
stockholders, partners or members (or the equivalent Person thereof).

     “Revolving Loan” has the meaning given to such term in Section 2.01(c).

     “Revolving Loan Commitment” has the meaning given to such term in Section
2.01(c).

     “Revolving Loan Termination Date” means December 1, 2013; provided,
however, that if such date is not a Business Day, the Revolving Loan Termination Date shall
be the immediately preceding Business Day.

     “Revolving Note” means a promissory note made by the Borrowers in favor of a Lender
evidencing Revolving Loans made or to be made by such Lender, substantially in the form of
Exhibit B-1.

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

     “Security Agreement” means the Security Agreement, dated as of even date herewith,
made by Borrowers in favor of the Agent, for itself and for the benefit of the Lenders, and any
other similar Lien instrument on personal property made by any Person in favor of Agent and for the
benefit of the Lenders, as each may be amended, modified, supplemented or restated from time to
time.

     “Senior Funded Debt” means, as of any date of calculation, calculated on a
consolidated basis for Borrowers and in accordance with GAAP, all obligations for borrowed money
which bear interest or to which interest is imputed plus, without duplication, all
obligations for the deferred payment of the purchase of property, all capitalized lease
obligations, indebtedness secured by purchase money security interests and letters of credit,
less the non-current portion of Subordinated Debt.

     “Senior Funded Debt to EBITDA Ratio” means, as of any date of calculation,
calculated on a consolidated basis for Borrowers and in accordance with GAAP, the ratio of the
Borrowers’ (i) Senior Funded Debt as of such date to (ii) EBITDA for the Applicable Fiscal Period.

     “Solvent” means, as to any Person, that such Person has capital sufficient to carry on
its business and transactions in which it is currently engaged and all business and transactions in
which it is about to engage, is able to pay its debts as they mature, and has assets having a fair
valuation greater than its liabilities, at fair valuation.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal) which is (i) the
number one divided by (ii) the number one minus the maximum reserve percentages (including any
marginal, special, emergency, or supplemental reserves) established by the FRB to which the Agent
or Lenders are subject.

     “Subordinated Debt” means Indebtedness of a Borrower (or Borrowers) that is
subordinated to the Obligations pursuant to a written subordination agreement satisfactory to Agent
and the Lenders in all

23

 

respects; provided, in no event shall any such “Subordinated Indebtedness be
secured or have a maturity date prior to six month prior to the then current Term Loan Maturity
Date or Revolving Loan Termination Date (whichever is later).

     “Subordination Agreement” means the Amended and Restated Subordination Agreement,
dated as of even date herewith, among the Borrowers, Ordway, [OTHERS?] and the Agent, for itself
and on behalf of the Lenders, as the same may be amended, modified, supplemented or restated from
time to time.

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

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

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or
other readily available quotations provided by any recognized dealer in such Swap Contracts
(which may include a Lender or any Affiliate of a Lender).

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the

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insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Tangible Net Worth” means, as of any date of calculation, calculated on a
consolidated basis for Borrowers and in accordance with GAAP, shareholders’ equity, less
intangible assets, less amounts due from Related Parties, plus the non-current
portion of any Subordinated Debt.

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

     “Term Loan A” has the meaning given to such term in Section 2.01(a).

     “Term Loan B” has the meaning given to such term in Section 2.01(b).

     “Term Loan A Commitment” has the meaning given to such term in Section
2.01(a).

     “Term Loan B Commitment” has the meaning given to such term in Section
2.01(b).

     “Term Loan Maturity Date” means December 1, 2013; provided, however,
that if such date is not a Business Day, the Term Loan Maturity Date shall be the immediately
preceding Business Day.

     “Term Note A” means a promissory note made by the Borrowers in favor of a Lender
evidencing a Term Loan A made by such Lender, substantially in the form of Exhibit B-2.

     “Term Note B” means a promissory note made by the Borrowers in favor of a Lender
evidencing a Term Loan B made by such Lender, substantially in the form of Exhibit B-3.

     “Threshold Amount” means $250,000.

     “Total Liabilities” means, as of any date of calculation, calculated on a consolidated
basis for Borrowers and in accordance with GAAP, total liabilities, less the non-current
portion of any Subordinated Debt.

     “Total Revolving Loan Outstandings” means the aggregate Outstanding Amount of all
Revolving Loans.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
Georgia.

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

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

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

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

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

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

     1.03 Accounting Terms.

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

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either any Borrower or
the Required Lenders shall so request, Agent, Lenders and the Borrowers shall negotiate in good
faith to

26

 

amend such ratio or requirement to preserve the original intent thereof in light of such
change in GAAP (subject to the approval of the Required Lenders); provided that,
until so amended, (i) such ratio or requirement shall continue to be computed in accordance with
GAAP prior to such change therein and (ii) Borrowers shall provide or cause to be provided to Agent
and Lenders financial statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

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

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

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

     1.06 Dealings With Multiple Borrowers. For so long as more than one Person is named as a
Borrower hereunder, all Obligations, representations, warranties, covenants and indemnities set
forth in the Loan Documents to which such Person is a party shall be joint and several. The Agent
and any Lender shall have the right to deal with any individual of any Borrower with regard to all
matters concerning the rights and obligations of the Agent and any Lender hereunder and pursuant to
applicable law with regard to the transactions contemplated under the Loan Documents. All actions
or inactions of the officers, managers, members and/or agents of any Borrower with regard to the
transactions contemplated under the Loan Documents shall be deemed with full authority and binding
upon all Borrowers hereunder. Each Borrower hereby appoints each other Borrower as its true and
lawful attorney-in-fact, with full right and power, for purposes of exercising all rights of such
Person hereunder and under applicable law with regard to the transactions contemplated under the
Loan Documents. The foregoing is a material inducement to the agreement of the Agent and each
Lender to enter into the terms hereof and to consummate the transactions contemplated hereby.

ARTICLE II. THE COMMITMENTS AND BORROWINGS

     2.01 Amounts and Terms of Commitments.

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     (a) The Term Loan A. Subject to the terms and conditions set forth herein, each
Lender with a Term Loan A Commitment severally and not jointly agrees, on the terms and conditions
hereinafter set forth, to lend to the Borrowers on the Closing Date, the amount set forth opposite
such Lender’s name in Schedule 2.01 under the heading “Term Loan A Commitment” (such amount
being referred to herein as such Lender’s “Term Loan A Commitment”). Amounts borrowed
under this Section 2.01(a) are referred to as the “Term Loan A.” Amounts borrowed
as a Term Loan A which are repaid or prepaid may not be reborrowed.

     (b) The Term Loan B. Subject to the terms and conditions set forth herein, each
Lender with a Term Loan B Commitment severally and not jointly agrees, on the terms and conditions
hereinafter set forth, to lend to the Borrowers on the Closing Date, the amount set forth opposite
such Lender’s name in Schedule 2.01 under the heading “Term Loan B Commitment” (such amount
being referred to herein as such Lender’s “Term Loan B Commitment”). Amounts borrowed
under this Section 2.01(b) are referred to as the “Term Loan B.” Amounts borrowed
as a Term Loan B which are repaid or prepaid may not be reborrowed.

     (b) The Revolving Credit. Subject to the terms and conditions set forth herein, each
Lender with a Revolving Loan Commitment severally and not jointly agrees to make loans (each such
loan, a “Revolving Loan”) to the Borrowers from time to time, on any Business Day during
the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount
set forth opposite such Lender’s name in Section 2.01 under the heading “Revolving Loan
Commitment” (such amount being referred to herein as such Lender’s “Revolving Loan
Commitment”); provided, however, that after giving effect to any Borrowing of
Revolving Loans, (i) the Total Revolving Loans Outstanding shall not exceed the lesser of (A) the
Borrowing Base and (B) the Aggregate Revolving Loan Commitment, and (ii) the aggregate Outstanding
Amount of Revolving Loans of any Lender shall not exceed such Lender’s Revolving Loan Commitment.
Within the limits of each Lender’s Revolving Loan Commitment and subject to the other terms and
conditions hereof, the Borrowers may borrow under this Section 2.01(c), prepay under
Section 2.03, and reborrow under this Section 2.01(c).

     2.02 Borrowings of Revolving Loans.

     (a) Each Borrowing of Revolving Loans shall be made upon any Borrower’s irrevocable written
notice to Agent (which may be made by facsimile), appropriately completed and signed by a
Responsible Officer. Each such notice must be received by Agent not later than 11:00 a.m. three
Business Days prior to the requested date of any Borrowing of Revolving Loans. Each notice by any
Borrower pursuant to this Section 2.02(a) (including by facsimile) must be in the form
attached hereto as Exhibit A. Each Borrowing of Revolving Loans shall be in a principal
amount of $100,000 or a whole multiple of $25,000 in excess thereof. Each Draw
Certificate shall specify (i) the requested date of the Borrowing of Revolving Loans (which
shall be a Business Day) and (ii) the principal amount of Revolving Loans to be borrowed.

     (b) Following receipt of a Draw Certificate, Agent shall promptly notify each Lender of the
amount of its Applicable Percentage of the applicable Revolving Loans. In the case of a Borrowing
of Revolving Loans, each Lender shall make the amount of its Revolving Loan available to Agent in

28

 

immediately available funds at Administrative Agent’s Office not later than 1:00 p.m. on the
Business Day specified in the applicable Draw Certificate. Upon satisfaction of the applicable
conditions set forth in Section 4.02 (and, if such Borrowing is the initial Borrowing of
Revolving Loans, Section 4.01), Agent shall make all funds so received available to the
Borrowers in like funds as received by Agent either by (i) crediting the account of the Borrowers
on the books of Agent with the amount of such funds or (ii) wire transfer of such funds, in each
case in accordance with instructions provided to (and reasonably acceptable to) Agent by the
Borrowers.

     2.03 Prepayments.

     (a) Voluntary. The Borrowers may, upon notice to Agent, at any time or from time to
time voluntarily prepay Loans in whole or in part without premium or penalty; provided that
(i) such notice must be received by Agent not later than 11:00 a.m. three Business Days prior to
any date of prepayment of Loans; and (ii) (x) any prepayment of the Term Loan A shall be in a
principal amount of $100,000 or a whole multiple of $25,000 in excess thereof or, if less, the
entire principal amount thereof then outstanding and (y) any prepayment of the Term Loan B shall be
in a principal amount of $100,000 or a whole multiple of $25,000 in excess thereof or, if less, the
entire principal amount thereof then outstanding. Each such notice shall specify the date and
amount of such prepayment. Agent will promptly notify each Lender of its receipt of each such
notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If such
notice is given by the Borrowers, the Borrowers shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein. Any prepayment of
a Loan shall be accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to Section 3.05. Each such prepayment shall be
applied to the Loans of Lenders in accordance with their respective Applicable Percentages, in
inverse order of maturity thereof.

     (b) Overadvances. If for any reason the Total Revolving Loans Outstanding at any time
exceeds the lesser of (the Borrowing Base and (ii) the Aggregate Revolving Loan Commitment then in
effect, the Borrowers shall immediately prepay Revolving Loans in an aggregate amount equal to such
excess.

     (c) Mandatory. (i) Promptly and in any event within three Business Days following the
occurrence (whether in one or more transactions or events, and regardless of whether related) of
any Asset Disposition and/or Casualty Loss with Aggregate Net Cash Proceeds that exceeds of
$250,000 in the aggregate in any fiscal year, Borrowers shall prepay the Loans in an aggregate
amount by which the Aggregate Net Cash Proceeds of the related Asset Disposition or Casualty Loss
exceeds such $250,000 threshold, which amounts shall be payable in accordance with Subsection (ii)
below plus accrued interest on the amount of such prepayment. Borrowers shall
notify Agent of the allocation of such Aggregate Net Cash Proceeds between real property
Collateral and tangible Collateral other than real estate.

     (ii) Such Aggregate Net Cash Proceeds (x) relating to any real property Collateral shall be
applied first to the outstanding principal balance of the Term Loan B, then to the outstanding
principal balance of the Term Loan A, and then to the outstanding balance of the Revolving Loan,
with a dollar-for-dollar reduction in the Revolving Loan Commitment and (y) relating to any
tangible Collateral other

29

 

than real estate shall be applied first to the outstanding principal
balance of the Term Loan A, then to the outstanding principal balance of the Term Loan B, and then
to the outstanding balance of the Revolving Loan, with a dollar-for-dollar reduction in the
Revolving Loan Commitment. Agent will promptly notify each Lender of its receipt of any such
Aggregate Net Cash Proceeds, the allocation thereof between real estate Collateral and non-real
estate Collateral, and of the amount of such Lender’s Applicable Percentage of such prepayment.
Any prepayment of a Loan shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05. Each such
prepayment shall be applied to the Loans of Lenders in accordance with their respective Applicable
Percentages, in inverse order of maturity thereof.

     2.04 Termination or Reduction of Commitments. The Borrowers may, upon notice to Agent,
terminate the Aggregate Revolving Loan Commitment, or from time to time permanently reduce the
Aggregate Revolving Loan Commitment; provided that (i) any such notice shall be received by
Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of $500,000 or any whole multiple
of $100,000 in excess thereof, and (iii) the Borrowers shall not terminate or reduce the Aggregate
Revolving Loan Commitment if, after giving effect thereto and to any concurrent prepayments
hereunder, the Total Revolving Loans Outstanding would exceed the lesser of (A) the Borrowing Base
and (B) the Aggregate Revolving Loan Commitment. Agent will promptly notify the Lenders of any
such notice of termination or reduction of the Aggregate Revolving Loan Commitment. Any reduction
of the Aggregate Revolving Loan Commitment shall be applied to the Revolving Loan Commitment of
each Lender according to its Applicable Percentage of Revolving Loans. All fees accrued until the
effective date of any termination of the Aggregate Revolving Loan Commitment shall be paid on the
effective date of such termination.

     2.05 Repayment of Loans.

     (a) Scheduled Term Loan A Repayments. The principal amount of the Term Loan A shall
be paid in monthly payments of principal in the amount of $58,333.33, plus accrued interest, on the
on the fifth (5th) day of each calendar month, commencing January 5, 2011, and at such other times
as may be specified herein, with a final payment of all outstanding principal, plus accrued
interest, on the Term Loan Maturity Date.

     (b) Scheduled Term Loan B Repayments. The principal amount of the Term Loan B shall
be paid in monthly payments of principal in the amount of $16,666.67, plus accrued interest, on the
on the fifth (5th) day of each calendar month, commencing January 5, 2011, and
at such other times as may be specified herein, with a final payment of all outstanding
principal, plus accrued interest, on the Term Loan Maturity Date.

     (c) Revolving Loan. The Borrowers shall repay to Lenders on the Revolving Loan
Termination Date the aggregate principal amount of Revolving Loans outstanding on such date, plus
accrued interest.

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     2.06 Interest.

     (a) Subject to the provisions of subsection (b) below, each Loan shall bear interest on the
outstanding principal amount thereof at a rate per annum equal to the Adjusted LIBOR Rate,
plus the Applicable Margin. In no event shall the interest rate applicable to any Loan be
less than the Minimum Rate.

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

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

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

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

     (c) Interest on the unpaid principal balance of the Loans that has accrued through the last
day of each calendar month shall be due and payable monthly in the arrears, on the fifth (5th) day
of the next calendar month. The first monthly interest payment will be due and payable on January
5, 2011 and monthly interest payments will thereafter be due and payable on the fifth (5th) day of
each calendar month throughout the term of the Loan, and on the Term Loan Maturity Date (in the
case of the Term Loans) and the Revolving Loan Termination Date (in the case of the Revolving Loan)
and at such other times as may be specified herein. Interest hereunder shall be due and payable in
accordance with the terms hereof before and after judgment, and before and after the commencement
of any proceeding under any Debtor Relief Law.

     2.07 Fees.

     (a) Annual Agent Fee. On the Closing Date and on each anniversary thereof, Borrowers
shall pay to Agent, for its own account, an annual administration fee of $5,000, which fee shall be
deemed fully earned as of each such date and shall be nonrefundable.

31

 

     (b) Revolving Loan Commitment Fee. On the Closing Date, Borrowers shall pay to Agent
for the ratable benefit of the Revolving Lenders having Revolving Loan Commitments, a fee of
$61,250 for the Aggregate Revolving Loan Commitment, which fee shall be nonrefundable.

     (c) Term Loan A Commitment Fee. On the Closing Date, Borrowers shall pay to Agent for
the ratable benefit of the Lenders having Term Loan A Commitments, a fee of $12,250 for the
Aggregate Term Loan Commitment, which fee shall be nonrefundable.

     (d) Term Loan B Commitment Fee. On the Closing Date, Borrowers shall pay to Agent for
the ratable benefit of the Lenders having Term Loan B Commitments, a fee of $10,500 for the
Aggregate Term Loan Commitment, which fee shall be nonrefundable.

     (e) Late Charge Fee. Borrowers shall pay to Agent, upon demand by Agent for the
ratable benefit of the applicable Lenders, for each payment past due for fifteen (15) or more
calendar days, a late fee in an amount equal to the lesser of (i) five percent (5%) of the amount
of the payment past due or (ii) the maximum percentage of the payment past due permitted by
applicable law, or the maximum amount if not expressed in a percentage.

     2.08 Computation of Interest and Fees. All computations of fees and interest shall be made on
the basis of a 360-day year and actual days. Interest shall accrue on each Loan for the day on
which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid, provided that any Loan that is repaid on the same
day on which it is made shall, subject to Section 2.10(a), bear interest for one day. Each
determination by Agent of an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

     2.09 Evidence of Debt. The Borrowings shall be evidenced by one or more accounts or records
maintained by such Lender and by Agent in the ordinary course of business. The accounts or records
maintained by Agent and each Lender shall be conclusive absent manifest error of the amount of the
Borrowings made by Lenders to Borrowers and the interest and payments thereon. Any failure to so
record or any error in doing so shall not, however, limit or otherwise affect the obligation of
Borrowers hereunder to pay any amount owing with respect to the Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the accounts and records of
Agent in respect of such matters, the accounts and records of Agent shall control in the absence of
manifest error. Upon the request of any Lender made through Agent, Borrowers shall execute and
deliver to such Lender (through Agent) a Note, which shall evidence such Lender’s Loans in addition
to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the
date, amount and maturity of its Loans and payments with respect thereto.

     2.10 Payments Generally; Agent’s Clawback.

     (a) (i) General. All payments to be made by Borrowers shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by Borrowers hereunder shall be made to Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars
and in

32

 

immediately available funds not later than 12:00 noon on the date specified herein. Agent
will promptly distribute to each Lender its Applicable Percentage (or other applicable share as
provided herein) of such payment in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by Agent after 12:00 noon shall be deemed received on the
next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any
payment to be made by Borrowers shall come due on a day other than a Business Day, payment shall be
made on the next following Business Day, and such extension of time shall be reflected in computing
interest or fees, as the case may be.

     (ii) On each date when the payment of any principal, interest or fees are due hereunder
or under any Note, Borrowers agree to maintain on deposit in an ordinary checking account
maintained by any Borrower with Agent (as such account shall be designated by Borrowers in a
written notice to Agent from time to time, the “Borrower Account”) an amount
sufficient to pay such principal, interest or fees in full on such date. Each Borrower
hereby authorizes Agent (A) to deduct automatically all principal, interest or fees when due
hereunder or under any Note from the Borrower Account, and (B) if and to the extent any
payment of principal, interest or fees under this Agreement or any Note is not made when due
to deduct any such amount from any or all of the accounts of any Borrower maintained at
Agent. Agent agrees to provide written notice to Borrowers of any automatic deduction made
pursuant to this Section 2.10(a)(ii) showing in reasonable detail the amounts of
such deduction. Lenders agree to reimburse Borrowers based on their Applicable Percentage
for any amounts deducted from such accounts in excess of amount due hereunder and under any
other Loan Documents.

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

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

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

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

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

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

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

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

Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against such Borrower rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Borrower in the amount of
such participation.

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.

     (i) Any and all payments by any Borrower to or on account of any obligation of any
Borrower hereunder or under any other Loan Document shall to the extent permitted by
applicable Laws be made free and clear of and without reduction or withholding for any
Taxes. If, however, applicable Laws require any Borrower or Agent to withhold or deduct
any Tax, such Tax shall be withheld or deducted in accordance with such Laws as determined
by such Borrower or Agent, as the case may be, upon the basis of the information and
documentation to be delivered pursuant to subsection (e) below.

     (ii) If any Borrower or Agent shall be required by the Code to withhold or deduct any
Taxes, including both United States Federal backup withholding and withholding taxes, from
any payment, then (A) Agent shall withhold or make such deductions as are determined by
Agent to be required based upon the information and documentation it has received pursuant
to subsection (e) below, (B) Agent shall timely pay the full amount withheld or deducted to
the relevant Governmental Authority in accordance with the Code, and (C) to the extent that
the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by such Borrower shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to
additional sums payable under this Section), Agent or Lender, as the case may be, receives
an amount equal to the sum it would have received had no such withholding or deduction been
made.

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     (b) Payment of Other Taxes by Borrowers. Without limiting the provisions of
subsection (a) above, each Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable Laws.

     (c) Tax Indemnifications.

     (i) Without limiting the provisions of subsection (a) or (b) above, each Borrower
shall, and does hereby, indemnify Agent and each Lender, and shall make payment in respect
thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes
or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) withheld or deducted by any Borrower or
Agent or paid by Agent or such Lender, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. Each Borrower shall also, and does hereby, indemnify
Agent, and shall make payment in respect thereof within 10 days after demand therefor, for
any amount which a Lender for any reason fails to pay indefeasibly to Agent as required by
clause (ii) of this subsection. A certificate as to the amount of any such payment or
liability delivered to any Borrower by a Lender (with a copy to Agent), or by Agent on its
own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

     (ii) Without limiting the provisions of subsection (a) or (b) above, each Lender shall,
and does hereby, indemnify Borrowers and Agent, and shall make payment in respect thereof
within 10 days after demand therefor, against any and all Taxes and any and all related
losses, claims, liabilities, penalties, interest and expenses (including the fees, charges
and disbursements of any counsel for the Borrowers or Agent) incurred by or asserted against
Borrowers or Agent by any Governmental Authority as a result of the failure by such Lender
to deliver, or as a result of the inaccuracy, inadequacy or deficiency of, any documentation
required to be delivered by such Lender to Borrowers or Agent pursuant to subsection (e).
Each Lender hereby authorizes Agent to set off and apply any and all amounts at any time
owing to such Lender under this Agreement or any other Loan Document against any amount due
to Agent under this clause (ii). The agreements in this clause (ii) shall survive the
resignation and/or replacement of Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the
Commitments and the repayment, satisfaction or discharge of all other Obligations.

     (d) Evidence of Payments. Upon request by any Borrower or Agent, as the case may be,
after any payment of Taxes by any Borrower or by Agent to a Governmental Authority as provided in
this Section 3.01, such Borrower shall deliver to Agent or Agent shall deliver to such
Borrower, as the case

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may be, the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of any return required by Laws to report
such payment or other evidence of such payment reasonably satisfactory to such Borrower or Agent,
as the case may be.

     (e) Status of Lenders.

     (i) Each Lender shall deliver to the Borrowers and to Agent, at the time or times
prescribed by applicable Laws or when reasonably requested by Borrowers or Agent, such
properly completed and executed documentation prescribed by applicable Laws or by the taxing
authorities of any jurisdiction and such other reasonably requested information as will
permit such Borrower or Agent, as the case may be, to determine (A) whether or not payments
made hereunder or under any other Loan Document are subject to Taxes, (B) if applicable, the
required rate of withholding or deduction, and (C) such Lender’s entitlement to any
available exemption from, or reduction of, applicable Taxes in respect of all payments to be
made to such Lender by such Borrower pursuant to this Agreement or otherwise to establish
such Lender’s status for withholding tax purposes in the applicable jurisdiction.

     (ii) Without limiting the generality of the foregoing, if any Borrower is resident for
tax purposes in the United States,

     (A) any Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the Borrowers and Agent executed originals
of Internal Revenue Service Form W-9 or such other documentation or information
prescribed by applicable Laws or reasonably requested by Borrowers or Agent as will
enable such Borrower or Agent, as the case may be, to determine whether or not such
Lender is subject to backup withholding or information reporting requirements; and

     (B) Each Foreign Lender agrees that it will, not more than ten (10) Business
Days after the date of this Agreement, (X) deliver to each Borrower and the Agent
two duly completed copies of United States Internal Revenue Service Form W-8BEN or
W-8ECI, certifying in either case that such Lender is entitled to receive payments
under this Agreement without deduction or withholding of any United States federal
income taxes, and (Y) deliver to each of the Borrower and the Agent a United States
Internal Revenue Form W-8 or W-9, as the case may be, and certify that it is
entitled to an exemption from United States backup withholding tax. Each Foreign
Lender further undertakes to deliver to each Borrower and the Agent (i) renewals or
additional copies of such form (or any successor form) on or before the date that
such form expires or becomes obsolete, and (ii) after the occurrence of any event
requiring a change in the most recent forms so delivered by it, such additional
forms or amendments thereto as may be reasonably requested by Borrowers or the
Agent. All forms or amendments described in the preceding sentence

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shall certify
that such Lender is entitled to receive payments under this Agreement and the Loan
Documents without deduction or withholding of any United States federal income
taxes, unless an event (including, without limitation, any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would
otherwise be required which renders all such forms inapplicable or which would
prevent such Lender from duly completing and delivering any such form or amendment
with respect to it and such Lender advises Borrowers and the Agent that it is not
capable of receiving payments without any deduction or withholding of United States
federal income tax

     (iii) For any period during which a Foreign Lender has failed to provide Borrowers with
an appropriate form pursuant to Subsection (ii)(B) above (unless such failure is due
to a change in treaty, law or regulation, or any change in the interpretation or
administration thereof by any Governmental Authority, occurring subsequent to the date on
which a form originally was required to be provided), such Foreign Lender shall not be
entitled to indemnification under Subsection 3.01(c) with respect to Taxes imposed
by the United States; provided that, should a Foreign Lender which is otherwise exempt from
or subject to a reduced rate of withholding tax become subject to Taxes because of its
failure to deliver a form required hereunder, Borrowers shall take such steps as such
Foreign Lender shall reasonably request to assist such Foreign Lender to recover such Taxes.

     (iv) Each Lender shall promptly (A) notify the Borrowers and Agent of any change in
circumstances which would modify or render invalid any claimed exemption or reduction, and
(B) take such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the re-designation of
its Lending Office) to avoid any requirement of applicable Laws of any jurisdiction that any
Borrower or Agent make any withholding or deduction for taxes from amounts payable to such
Lender.

     (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any
obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the
account of such Lender. If Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by any Borrower
or with respect to which any Borrower has paid additional amounts pursuant to this Section, it
shall pay to such Borrower an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by such Borrower under this Section with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses incurred by
Agent or such Lender, as the case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund), provided that each Borrower,
upon the request of Agent or such Lender, agrees to repay the amount paid over to any Borrower
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to
Agent or such Lender in the event Agent or such Lender is required to repay such refund to such
Governmental Authority. This subsection shall not be construed to require Agent or any Lender to
make available its tax returns (or any other information relating to its taxes that it deems
confidential) to any Borrower or any other Person.

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     (g) Exemptions. Any Lender that is entitled to an exemption from or reduction of
withholding tax with respect to payments under this Agreement, the Loan Documents or any Note
pursuant to the law of any relevant jurisdiction or any treaty shall deliver to Borrowers (with a
copy to the Agent), at the time or times prescribed by applicable law, such properly completed and
executed documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate.

     (h) Claims Against Agent Regarding Withholding. If the U.S. Internal Revenue Service
or any other Governmental Authority of the United States or any other country or any political
subdivision thereof asserts a claim that the Agent did not properly withhold tax from amounts paid
to or for the account of any Lender (because the appropriate form was not delivered or properly
completed, because such Lender failed to notify the Agent of a change in circumstances which
rendered its exemption from withholding ineffective, or for any other reason), such Lender shall
indemnify the Agent fully for all amounts paid, directly or indirectly, by the Agent as tax,
withholding therefor, or otherwise, including penalties and interest, and including taxes imposed
by any jurisdiction on amounts payable to the Agent under this subsection, together with all costs
and expenses related thereto (including attorneys fees and time charges of attorneys for the Agent,
which attorneys may be employees of the Agent). The obligations of the Lenders under this
Subsection (h) shall survive the payment of the Obligations and termination of this
Agreement and the Loan Documents

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund LIBOR Loans, or to determine or charge interest rates based upon
the LIBOR Rate or Adjusted LIBOR Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, then, on notice thereof by such Lender to the Borrowers through
Agent, any obligation of such Lender to make or continue LIBOR Loans shall be suspended until such
Lender notifies Agent and the Borrowers that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, each Borrower shall, upon demand from such Lender (with
a copy to Agent), prepay, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such LIBOR Loans to such day, or immediately, if such Lender may
not lawfully continue to maintain such LIBOR Loans. Upon any such prepayment or conversion, each
Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due
under Section 3.05 in accordance with the terms thereof due to such prepayment or
conversion.

     3.03 Inability to Determine Rates. If Agent determines in connection with any request for a
LIBOR Loan or a conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank eurodollar market for the applicable amount and Interest
Period of such LIBOR Loan, (b) adequate and reasonable means do not exist for determining the LIBOR Rate or the
Adjusted LIBOR Rate for any requested Interest Period with respect to a proposed LIBOR Loan, or (c)
the Adjusted LIBOR Rate for any requested Interest Period with respect to a proposed LIBOR Loan
does not adequately and fairly reflect the cost to such Lenders of funding such Loan, Agent will
promptly so notify the Borrowers and each Lender. Thereafter, the obligation of Lenders to make or
maintain LIBOR

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Loans shall be suspended until Agent (upon the instruction of the Required Lenders)
revokes such notice. Upon receipt of such notice, any Borrower may revoke any pending request for
a Borrowing.

     3.04 Increased Costs.

     (a) Increased Costs Generally. If any Change in Law shall:

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

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

     (iii) impose on any Lender or the London interbank market any other condition, cost or
expense affecting this Agreement or LIBOR Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any LIBOR Loan (or of maintaining its obligation to make any such Loan), or to reduce
the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount) then, upon request of such Lender, Borrowers will pay to such Lender
such additional amount or amounts as will compensate such Lender for such additional costs incurred
or reduction suffered.

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

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

     (d) Delay in Requests. Failure or delay on the part of any Lender to demand
compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of
such Lender’s right to demand such compensation, provided that no Borrower shall be
required to compensate a Lender pursuant to the foregoing provisions of this Section for any
increased costs incurred or reductions suffered more than nine months prior to the date that such
Lender notifies the Borrowers of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month
period referred to above shall be extended to include the period of retroactive effect thereof).

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

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

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

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. Borrowers shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing. For purposes of
calculating amounts payable by Borrowers to Lenders under this Section 3.05, each Lender
shall be deemed to have funded each LIBOR Loan made by it at the Adjusted LIBOR Rate for such Loan
by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable
amount and for a comparable period, whether or not such LIBOR Loan was in fact so funded.

     3.06 Mitigation Obligations. If any Lender requests compensation under Section 3.04,
or Borrowers are required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall, as applicable, use reasonable efforts to
designate a different Lending Office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender such designation or assignment (i)

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would eliminate or reduce amounts
payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. Each Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

     3.07 Survival. All of each Borrower’s obligations under this Article III shall
survive termination of the Commitments, repayment of all Obligations hereunder and resignation of
Agent.

ARTICLE IV. CONDITIONS PRECEDENT TO BORROWINGS

     4.01 Conditions of Initial Borrowing. The obligation of each Lender to make its initial
Loans hereunder is subject to satisfaction of the following conditions precedent:

     (a) Agent’s receipt of the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer
of the signing Borrower, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form and substance
satisfactory to Agent and each of the Lenders:

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

     (ii) a Note executed by each Borrower in favor of each Lender requesting a Note;

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

     (iv) such documents and certifications as Agent may reasonably require to evidence that
each Borrower is duly organized or formed, and that each Borrower is validly existing, in
good standing and qualified to engage in business in each jurisdiction where its ownership,
lease or operation of properties or the conduct of its business requires such qualification,
except to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect;

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

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

     (vii) a certificate signed by a Responsible Officer certifying (A) that the conditions
specified in Sections 4.02(a) and (b) have been satisfied, and (B) that
there has been no event or circumstance since the date of the Audited
Financial Statements that has had or could be reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect;

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

     (ix) a copy of the Audited Financial Statements and the financial statements referred
to in Section 5.05(b);

     (x) satisfactory surveys, appraisals (which shall demonstrate an aggregate value for
the Mortgaged Property of not less than $3,750,000), environmental reports, title reports,
title commitments, and other items related to the Collateral as the Agent and the Lenders
shall require;

     (xi) Borrowers and the holders of its Subordinated Debt shall have executed the
Subordination Agreement, all Subordinated Debt shall be unsecured and have a maturity date
no earlier than six (6) months after the Term Loan Maturity Date or Revolving Loan
Termination Date (whichever is later), and Agent shall have received copies of all documents
related to any Subordinated Debt, which documents shall be satisfactory to Agent and Lenders
in their respective sole discretion;

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     (xii) a completed Borrowing Base Certificate, in form, scope and substance satisfactory
to Agent and the Lenders; and

     (xiii) such other assurances, certificates, documents, consents or opinions as Agent or
the Required Lenders reasonably may require.

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

     (c) Borrowers shall have paid all fees, charges and disbursements of counsel to Agent and each
Lender (directly to such counsel if requested by Agent or such Lender) to the extent invoiced prior
to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as
shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate shall not thereafter
preclude a final settling of accounts between any Borrower and Agent or such Lender).

     (d) The Closing Date shall have occurred on or before December 30, 2010.

     (e) Agent shall have received (i) Term Loan A Commitments from Lenders in an aggregate amount
of $3,500,000, with the Term Loan A Commitment of RBC Bank (USA) to be not more than $2,100,000,
(ii) Term Loan B Commitments from Lenders in an aggregate amount of $3,000,000, with the Term Loan
B Commitment of RBC Bank (USA) to be not more than $1,800,000, and (iii) Revolving Loan Commitments
from Lenders in an aggregate amount of $17,500,000, with the Revolving Loan Commitment of RBC Bank
(USA) to be not more than $10,500,000.

Without limiting the generality of the provisions of the last sentence of Section 9.03(d),
for purposes of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Lender unless Agent shall have received notice
from such Lender prior to the proposed Closing Date specifying its objection thereto.

     4.02 Conditions to all Borrowings. The obligation of each Lender to make any Loan is subject
to the following conditions precedent:

     (a) The representations and warranties of each Borrower and each other Loan Party contained in
Article V or any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct on and as of the
date of such Borrowing, except to the extent that such representations and warranties specifically
refer to an

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earlier date, in which case they shall be true and correct as of such earlier date, and
except that for purposes of this Section 4.02, the representations and warranties contained
in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01.

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

     (c) For a Borrowing of Revolving Loans, Agent shall have received a Draw Certificate in
accordance with the requirements hereof, and Agent shall have received a current Borrowing Base
Certificate.

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

Each Draw Certificate submitted by any Borrower shall be deemed to be a representation and warranty
that the conditions specified in Sections 4.02(a) and (b) have been satisfied on
and as of the date of the applicable Borrowing.

ARTICLE V. REPRESENTATIONS AND WARRANTIES

     Each Borrower represents and warrants to Agent and the Lenders that:

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

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

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     5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Borrower of this Agreement or any other Loan Document.

     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Borrower that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Borrower, enforceable against each Borrower that is
party thereto in accordance with its terms.

     5.05 Financial Statements; No Material Adverse Effect.

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

     (b) The unaudited consolidated balance sheets of Borrowers and their Subsidiaries dated August
31, 2010, and the related consolidated statements of income or operations, shareholders’ equity and
cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of Borrowers and their Subsidiaries as of
the date thereof and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

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

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

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

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

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

     5.10 Insurance. The properties of each Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of any Borrower, in such amounts
(after giving effect to any self-insurance compatible with the following standards), with such
deductibles and covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where any Borrower or the applicable
Subsidiary operates.

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

     5.12 ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state Laws. Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from the IRS or an
application for such a letter is currently being processed by the IRS with respect thereto and, to
the best knowledge of any Borrower, nothing has occurred which would prevent, or cause the loss of,
such qualification. Each Borrower and each ERISA Affiliate have made all required contributions to
each Plan subject to Section 412 of the Code, and no application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Code has been made with respect
to any Plan.

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

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

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

     5.14 Margin Regulations; Investment Company Act.

     (a) No Borrower is engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock. Following the application of the proceeds of any Loan, not more than 25% of the
value of the assets (either of any Borrower only or of such Borrower and its Subsidiaries on a
consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or
subject to any restriction contained in any agreement or instrument between any Borrower and any
Lender or any Affiliate of any Lender relating to Indebtedness and within the scope of Section
8.01(e) will be margin stock.

     (b) None of any Borrower, any Person Controlling any Borrower, or any Subsidiary is, or is
required to be registered as, an “investment company” under the Investment Company Act of 1940.

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     5.15 Disclosure. Each Borrower has disclosed to Agent and Lenders all agreements, instruments
and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all
other matters known to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. No report, financial statement, certificate or other
information furnished (whether in writing or orally) by or on behalf of any Borrower to Agent or
any Lender in connection with the transactions contemplated hereby and the negotiation of this
Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, each Borrower represents only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time.

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

     5.17 Taxpayer Identification Number. Each Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02.

     5.18 Intellectual Property; Licenses, Etc. Each Borrower and its Subsidiaries own, or possess
the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent
rights, franchises, licenses and other intellectual property rights that are reasonably necessary
for the operation of their respective businesses, without conflict with the rights of any other
Person. To the best knowledge of each Borrower, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now contemplated to be
employed, by such Borrower or any Subsidiary infringes upon any rights held by any other Person.
No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of any
Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

     5.19 Rights in Collateral; Priority of Liens. Each Borrower owns the property granted by it
as Collateral under the Collateral Documents free and clear of any and all Liens in favor of third
parties. Upon the proper filing of UCC financing statements and the taking of other actions
required by the Required Lenders, the Liens granted pursuant to the Collateral Documents will
constitute valid and enforceable first, prior and perfected Liens and Collateral in favor of Agent
for the benefit of Agent and Lenders.

     5.20. Accounts; Inventory. (i) Each Account, instrument, chattel paper and other writing
constituting any portion of the Collateral (a) is genuine and enforceable in accordance with its
terms except for such limits thereon arising from bankruptcy and similar laws relating to
creditors’ rights; (b) is not subject to any deduction or discount (other than as stated in the
invoice), defense, set off, claim or counterclaim of a material nature against it except as to
which it has notified the Agent in writing; (c) is

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not subject to any other circumstances that
would impair the validity, enforceability or amount of such Collateral except as to which it has
notified the Agent in writing; (d) arises from a bona fide sale of goods or delivery of services in
the ordinary course and in accordance with the terms and conditions of any applicable purchase
order, contract or agreement; (e) is free of all Liens other than Permitted Liens; and (f) is for a
liquidated amount maturing as stated in the invoice therefor; (ii) each Account included in any
Borrowing Base Certificate, report or other document as an Eligible Account meets all the
requirements of an Eligible Account set forth herein; and (iii) (ii) all Inventory included in any
Borrowing Base Certificate, report or other document as a Eligible Inventory meets all the
requirements of Eligible Inventory set forth herein.

     5.20 Solvency. Each Borrower is, and after giving effect to any Loans and each Borrowing,
will remain, Solvent.

ARTICLE VI. AFFIRMATIVE COVENANTS

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

     6.01 Financial Statements. Deliver to Agent and each Lender, in form and detail satisfactory
to Agent and each Lender:

     (a) Borrowers’ Annual Statements. As soon as available, but in any event within 150
days after the end of each fiscal year of Parent and the other Borrowers, a consolidated balance
sheet of Parent and the other Borrowers as at the end of such fiscal year, and the related
consolidated statements of income or operations, changes in shareholders’ equity and cash flows for
such fiscal year, setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP, such consolidated
statements to be audited and accompanied by an unqualified report and opinion of an independent
certified public accountant of nationally recognized standing reasonably acceptable to the Agent,
which report and opinion shall be prepared in accordance with generally accepted auditing
standards;

     (b) Borrowers’ Quarterly Statements. As soon as available, but in any event within 45
days after the end of each fiscal quarter of Parent and the other Borrowers, an internal,
management-prepared consolidated balance sheet of Parent and the other Borrowers as at the end of
such fiscal quarter, and the related consolidated statements of income or operations, for such
fiscal quarter and the related consolidated statements of changes in shareholders’ equity and cash
flows for the fiscal quarter then ended, in each case setting forth in comparative form, as
applicable the figures for the corresponding previous fiscal quarter, all in reasonable detail,
such consolidated statements to be certified by a Responsible Officer as fairly presenting the
financial condition, results of operations, shareholders’ equity and cash flows of Parent and the
other Borrowers in accordance with GAAP, subject only to normal year-end audit adjustments;

     (c) Ordway Financial Statements. As soon as available, but in any event (a) within 120
days after each fiscal year end of Borrowers, Ordway’s personal financial statements, on the form
provided by

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Agent (or otherwise in a form reasonably satisfactory to Agent and certified to Agent
and Lenders as true and correct in all material respects, and (ii) within 30 days of filing
thereof, copies of Ordway’s federal income tax returns (including all schedules, attachments and
exhibits) and, if any extension request is filed, copies of such extension requests within 30 days
of the filing thereof.

     (d) Borrower’s Annual Budget. As soon as available, but in any event within 30 days
after the end of each fiscal year, an annual budget for the Borrowers for the upcoming fiscal year,
in form and substance satisfactory to Agent and the Lenders.

     6.02 Certificates; Other Information. Deliver to Agent and each Lender, in form and detail
satisfactory to Agent and the Lenders:

     (a) within thirty (30) days of the end of each month (or more frequently if required by
Agent), a completed Borrowing Base Certificate in the form attached hereto as Exhibit E or such
other form as Agent shall require; it shall attach the following to the Borrowing Base Certificate,
which shall be certified by a Responsible Officer to be accurate and complete and in compliance
with the terms of the Loan Documents: (i) a report listing all of its Accounts and all Eligible
Accounts as of the last Business Day of such month (an “Accounts Receivable Report”) which shall
include the amount and age of each Account, the name and mailing address of each Account Debtor, a
detailing of all credits due such Account Debtor by Borrowers stated in the number of days which
have elapsed since the date each such credit was issued by it, and such other information as Agent
may require in order to verify the Eligible Accounts, all in reasonable detail and in form
acceptable toAgent, (ii) a report listing all Inventory and all of its Eligible Inventory as of
the last Business Day of such month, the cost thereof, specifying raw materials, work-in-process,
finished goods and all Inventory which has not been timely sold by it in the ordinary course of
business, and such other information as Bank may require relating thereto, all in form acceptable
to Agent (an “Inventory Report”), and (iii) a report reconciling (x) its Accounts and Inventory as
set forth on the Accounts Receivable Report and the Inventory Report attached to the Borrowing Base
Certificate to (y) the aggregate Accounts and Inventory set forth in the financial statements
delivered to Agent pursuant to Section 6.01 hereof;

     (b) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible
Officer;

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

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

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

Each Borrower hereby acknowledges that (a) Agent may in its sole discretion make available to
Lenders materials and/or information provided by or on behalf of any Borrower hereunder
(collectively, “Borrower Materials”) by posting Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a
“Public Lender”) may have personnel who do not wish to receive material non-public
information with respect to any Borrower or its Affiliates or the respective securities of any of
the foregoing, and who may be engaged in investment and other market-related activities with
respect to such Persons’ securities. Each Borrower hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof; (x) by marking Borrower Materials “PUBLIC,” each Borrower shall be deemed to have
authorized Agent, and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to such Borrower or its securities for purposes of United
States Federal and state securities laws (provided, however, that to the extent
such Borrower Materials constitute Information, they shall be treated as set forth in Section
10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a
portion of the Platform that is designated “Public Side Information;” and (z) Agent shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Side Information.”

     6.03 Notices. Promptly notify Agent and each Lender:

     (a) of the occurrence of any Default or Event of Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of any Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between any Borrower or any Subsidiary and any Governmental Authority; or
(iii) the commencement of, or any material development in, any litigation or proceeding affecting
any Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event;

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

     (e) of the occurrence of any contingent liability (or liabilities), or the occurrence
of any event or condition that could reasonably lead to any contingent liability (or liabilities),
in excess of $100,000.

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 any Borrower
has taken and

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proposes to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions
of this Agreement and any other Loan Document that have been breached.

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

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

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

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of any Borrower, with key ratings of A- or better (Excellent or Superior),
and Class IX or better, in A.M. Best’s Insurance Reports, insurance with respect to its properties
and business against loss or damage of the kinds customarily insured against by Persons engaged in
the same or similar business, of such types and in such amounts (after giving effect to any
self-insurance compatible with the following standards) as are customarily carried under similar
circumstances by such other Persons and providing for not less than 30 days’ prior notice to Agent
of termination, lapse or cancellation of such insurance.

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

     6.09 Books and Records. (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied shall be made of all financial

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transactions and matters involving the assets and business of any Borrower or such Subsidiary,
as the case may be; and (b) maintain such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over any Borrower or
such Subsidiary, as the case may be. Each Borrower shall maintain at all times books and records
pertaining to the Collateral in such detail, form and scope as Agent or any Lender shall reasonably
require.

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

     6.11 Use of Proceeds. Use the proceeds of (a) the Revolving Loan to refinance debt owing to
RBC Bank (USA) and for working capital and (b) the Term Loan A and the Term Loan B to refinance
existing debt owing to RBC Bank (USA).

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

     6.13 Deposit Accounts. Maintain all of each Borrower’s and its Subsidiaries depository and
cash management accounts with Agent and the Lenders.

     6.14 Field Examinations. Shall permit inspections of the Collateral and the records of
Borrowers pertaining thereto and verification of the Accounts and Inventory (including the
eligibility of all Accounts and Inventory included as Eligible Accounts and Eligible Inventory in
any Borrowing Base Certificate), at such times and in such manner as may be reasonably required by
Agent and shall further permit such inspections, reviews and field examinations of its other
records and its properties by Agent (with such reasonable frequency and at such reasonable times as
Agent may desire) as Agent may deem necessary or desirable from time to time, and the cost of such
field examinations, reviews, verifications and inspections shall be borne by Borrowers; Borrowers
acknowledge and agree that Agent shall conduct an initial field examination within 90 days of the
date hereof, and that Agent may, upon review of the results of any such field examination, adjust
the advance rates under the Borrowing Base and/or the eligibility requirements for Eligible
Accounts and/or Eligible Inventory.

     6.15 Financial Covenants. Shall comply with the following financial covenants:

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     (a) Fixed Charge Coverage Ratio. The Borrowers shall maintain, on a consolidated
basis, a Fixed Charge Coverage Ratio of not less than 1.20 to 1.00 as of each fiscal quarter end.

     (b) Total Liabilities to Tangible Net Worth Ratio. The Borrowers shall maintain, on a
consolidated basis, a ratio of (i) Total Liabilities to (ii) Tangible Net Worth of not more than
2.00 to 1.00 as of each fiscal quarter end.

     (c) Senior Funded Debt to EBITDA Ratio. The Borrowers shall maintain, on a
consolidated basis, a Senior Funded Debt to EBITDA Ratio of not more than (i) 3.50 to 1.00 for each
fiscal quarter end from February 28, 2011 through February 27, 2012 and (ii) 3.00 to 1.00 for each
fiscal quarter end on and after February 28, 2012.

ARTICLE VII. NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, no Borrower shall, nor shall it permit any Subsidiary
to, directly or indirectly:

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

     (a) Liens pursuant to any Loan Document;

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

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

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

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

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

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

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

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

     7.02 Investments. Make any Investments, except:

     (a) Investments held by any such Borrower or such Subsidiary in Agent’s or any Lender’s money
market accounts;

     (b) Investments consisting of travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business up to an aggregate of $50,000 at any one
time;

     (c) Investments of any such Borrower in any wholly-owned Subsidiary existing on the Closing
Date or in any other Borrower;

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

     (e) Guarantees permitted by Section 7.03; and

     (f) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other
disputes with, customers or suppliers arising in the ordinary course of any such Borrower’s
business.

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

     (a) Indebtedness under the Loan Documents;

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

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

     (d) obligations (contingent or otherwise) of any Borrower or any Subsidiary existing or
arising under any Swap Contract, provided that (i) such obligations are (or were) entered
into by such Person in the ordinary course of business for the purpose of directly mitigating risks
associated with liabilities and commitments by such Person, and not for purposes of speculation or
taking a “market view;” (ii) such Swap Contract does not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding transactions to the
defaulting party, and (iii) any such Swap Contract must be with a Lender or an Affiliate of a
Lender (or another Person acceptable to Agent and Lenders in their sole discretion); and

     (e) Indebtedness in respect of capital leases, Synthetic Lease Obligations and purchase money
obligations for fixed or capital assets within the limitations set forth in Section
7.01(i); provided, however, that the aggregate amount of all such Indebtedness
at any one time outstanding shall not exceed $1,500,000.

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

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

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

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

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

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

     (c) Dispositions of equipment (not to exceed $500,000 in the aggregate in any fiscal year) or
real property to the extent that (i) such property is exchanged for credit against the purchase
price of similar replacement property within 90 days or (ii) the proceeds of such Disposition are
reasonably promptly (but not more than 90 days) applied to the purchase price of such replacement
property;

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

     (e) Dispositions permitted by Section 7.04.

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

     7.06 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity Interests, if
any Default or Event of Default shall have occurred and be continuing at the time of any such
Restricted Payment or would result therefrom.

     7.07 Change in Nature of Business. Engage in any material line of business different from
those lines of business conducted by any Borrower, its Subsidiaries and its Affiliates on the date
hereof or any business substantially related or incidental thereto, consistent with its business
plan provided to the Agent.

     7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate
of any Borrower, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to any Borrower or such Subsidiary as would be
obtainable by any Borrower or such Subsidiary at the time in a comparable arm’s length transaction
with a Person other than an Affiliate, provided that the foregoing restriction shall not apply to
transactions between any Borrower and any Guarantor, as long as such Borrower and any such
Guarantor comply with the provisions of Sections 7.06, 7.09, 7.10,
7.11 and 7.12 hereof.

     7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Restricted
Payments to any Borrower or to otherwise transfer property to any Borrower, (ii) of any Subsidiary
to Guarantee the Indebtedness of any Borrower or (iii) of any Borrower or any Subsidiary to create,
incur, assume or suffer to exist Liens on property of such Person; provided,
however, that this clause (iii) shall not prohibit any negative pledge incurred or provided
in favor of any holder of

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Indebtedness permitted under Section 7.03(e) solely to the extent
any such negative pledge relates to the property financed by or the subject of such Indebtedness;
or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to
secure another obligation of such Person.

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

     7.11 Anti-Money Laundering and Anti-Terrorism. (a) Become a Person whose property or interest
in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (b) engage in any dealings or
transactions prohibited by Section 2 of such executive order, and shall not otherwise become
associated with any such Person in any manner violative of Section 2, (c) become a Person on the
list of Specially Designated Nationals and Blocked Persons, and (d) become subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order; (2) become out of compliance, in all material respects, with
(a) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations
of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto, and (b) the Uniting And Strengthening
America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot
Act of 2001); and (3) use all or any part of the proceeds, advances or other amounts or sums
evidenced by any Note, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

     7.12 Accounts. (a) Sell, assign or discount any of its Accounts, chattel paper or any
promissory notes held by it other than the discount of such notes in the ordinary course of
business for collection; and (b) fail to notify Agent promptly in writing of any discount, offset
or other deductions not shown on the face of an Account invoice and any dispute over an Account,
and any information relating to an adverse change in any Account Debtor’s financial condition or
ability to pay its obligations.

ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES

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

     (a) Non-Payment. Any Borrower or any other Loan Party fails to pay when and as
required to be paid herein, (i) any amount of principal of any Loan, or (ii) any interest on any
Loan, or any fee due hereunder, and the same is not cured within five (5) days of written notice
thereof from the Agent of a Lender, or (iii) any other amount payable hereunder or under any other
Loan Document, and the same is not cured within ten (10) days of written notice thereof from the
Agent of a Lender; or

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     (b) Specific Covenants. Any Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.01, 6.02, 6.04 6.05,
6.06, 6.07, 6.08, 6.09, 6.10, 6.11, 6.12,
6.13, 6.14, 6.15 or Article VII, or any Guarantor fails to perform
or observe any term, covenant or agreement contained in the Guaranty; or

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

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

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

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

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

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

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

     (j) Invalidity of Loan Documents. Any Loan Document or any provision thereof, at any
time after its execution and delivery and for any reason other than as expressly permitted
hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force
and effect; or any Loan Party or any other Person contests in any manner the validity or
enforceability of any Loan Document or any provision thereof; or any Loan Party denies that it has
any or further liability or obligation under any Loan Document, or purports to revoke, terminate or
rescind any Loan Document or any provision thereof; or

     (k) Change of Control. There occurs any Change of Control with respect to any
Borrower; or

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

     8.02 Remedies Upon Event of Default. If any Default or Event of Default shall occur, Agent
shall, at the request of, or may (unless directed in writing to the contrary by the Required
Lenders), without notice to Borrowers, withhold further Advances under the Revolving Loan to
Borrowers. If any Event of Default occurs and is continuing, Agent shall, at the request of, or may
(unless directed in writing to the contrary by the Required Lenders) take any or all of the
following actions:

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     (a) declare the Aggregate Revolving Loan Commitment to be terminated, whereupon such
commitments and obligations shall be terminated;

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

     (c) exercise on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Loan Party under the Bankruptcy Code of the United States, the
obligation of each Lender holding a Revolving Loan Commitment to make Revolving Loans shall
automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and
other amounts as aforesaid shall automatically become due and payable (with interest accruing at
the Default Rate), in each case without further act of Agent or any Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable), any amounts
received on account of the Obligations shall be applied by Agent in the following order:

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

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

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans and other Obligations, ratably among Lenders in proportion to the respective
amounts of their then funded and outstanding Commitments described in this clause Third
payable to them (i.e., as to any Lender, (i) the outstanding funded balance of its Revolving Loans,
plus the outstanding funded balance of its Term Loan A, plus the outstanding funded balance of its
Term Loan B, divided by (ii) the outstanding funded balance of all Revolving Loans of all the
Lenders, plus the outstanding funded balance of the Term Loan A of all the Lenders, plus the
outstanding funded balance of the Term Loan A of all the Lenders);

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, ratably among Lenders in proportion to the respective amounts of their then funded and
outstanding

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Commitments described in this clause Fourth held by them (and calculated as set
forth in the foregoing paragraph “Third”); and

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

ARTICLE IX. ADMINISTRATIVE AGENT

     9.01 Appointment and Authorization of Administrative Agent.

     (a) Each of the Lenders hereby irrevocably appoints Agent to act on its behalf as
Administrative Agent hereunder and under the other Loan Documents and authorizes Agent to take such
actions on its behalf and to exercise such powers as are delegated to Agent by the terms hereof and
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of Agent and the Lenders, and no Loan Party
shall have rights as a third party beneficiary of any of such provisions.

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

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

     9.03 Exculpatory Provisions. Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents. Without limiting the generality of the
foregoing, Agent:

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

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

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

     (d) Agent shall not be liable for any action taken or not taken by it (i) with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary, or as Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Sections 8.02 and 10.01) or (ii) in the absence of its own gross
negligence or willful misconduct. Agent shall be deemed not to have knowledge of any Default
unless and until written notice describing such Default is given to Agent by a Borrower or a
Lender. Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to Agent.

     9.04 Reliance by Administrative Agent; Right to Consult.

     (a) Reliance by Administrative Agent. Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. Agent also may rely upon any statement made to it
orally or by telephone and believed by it to have been made by the proper Person, and shall not
incur any liability for relying thereon. In determining compliance with any condition hereunder to
the making of a Loan, that by its terms must be

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fulfilled to the satisfaction of a Lender, Agent
may presume that such condition is satisfactory to such Lender unless Agent shall have received
notice to the contrary from such Lender prior to the making of such Loan. Agent may consult with
legal counsel (who may be counsel for any Loan Party), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts. Each Lender that has signed this Agreement
shall be deemed to have consented to, approved or accepted or to be satisfied with, each document
or other matter required thereunder to be consented to or approved by or acceptable or satisfactory
to a Lender unless the Agent shall have received notice from such Lender prior to the date hereof
specifying its objection thereto.

     (b) Rights to Consult and Seek Approvals. With respect to any matter for which Agent
is given discretion or is entitled to act pursuant to this Agreement, Agent will have the right (in
the sole and absolute discretion of Agent) to consult with or act at the direction of all or any
combination of the Lenders, provided that Agent will only be obligated to so consult with the
Lenders to the extent provided in this Agreement. In no event will Agent be deemed to have acted
unreasonably or in violation of this Agreement if Agent withholds any consent, approval or other
matter, or acts or refrains from acting, at the direction of all or any combination of the Lenders
or because a certain number of the Lenders have failed to approve such action, consent, approval or
other matter.

     9.05 Delegation of Duties. Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any one or more
sub-agents appointed by Agent. Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related Parties. The exculpatory
provisions of this Article shall apply to any such sub-agent and to the Related Parties of Agent
and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities as Agent.

     9.06 Resignation of Agent.

     (a) Resignation Upon Notice. Agent may at any time in its sole and absolute discretion
give notice of its resignation to Lenders and the Borrowers. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with the Borrowers, to
appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of
any such bank with an office in the United States. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of Lenders,
appoint a successor Agent meeting the qualifications set forth above; provided that if
Agent shall notify the Borrowers and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in accordance with such
notice and (1) the retiring Agent shall be discharged from its duties and obligations hereunder and

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under the other Loan Documents (except that in the case of any collateral security held by Agent on
behalf of the Lenders under any of the Loan Documents, the retiring Agent shall continue to hold
such collateral security until such time as a successor Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through Agent shall instead be made
by or to each Lender directly, until such time as the Required Lenders appoint a successor Agent as
provided for above in this Section. Upon the acceptance of a successor’s appointment as Agent
hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this Section). The fees payable by any
Borrower to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between any Borrower and such successor. After the retiring Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and
Section 10.04 shall continue in effect for the benefit of such retiring Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

     (b) Resignation Pursuant to Governmental Order. If any Governmental Authority issues
an order or directive or otherwise makes a determination (a “Governmental Order”), the
effect of which is to determine or provide that the performance by Agent of its duties pursuant to
this Agreement violates applicable laws, rules, or regulations or is otherwise prohibited, Agent
may resign as agent without the consent of any of the Lenders by giving sixty (60) days prior
written notice of such resignation to Lenders unless Agent is prohibited by such Governmental Order
from continuing to act as Agent during such sixty (60) day period. If, by making one or more
changes in Agent’s administration of the Advances or in Agent’s duties under this Agreement or the
Loan Documents or that otherwise relate solely and exclusively to the credit facility made
available pursuant to the Loan Documents (a “Conforming Change”), Agent would be permitted
to continue to serve as Agent under the Governmental Order and if the Required Lenders approve the
Conforming Change, Agent will implement the Conforming Change and will not resign under this
Section

     9.07 Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that it has,
independently and without reliance upon Agent or any other Lender or any of their Related Parties
and based on such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will,
independently and without reliance upon Agent or any other Lender or any of their Related Parties
and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document furnished hereunder or
thereunder.

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

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

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

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of Lenders and Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of
Lenders and Agent and their respective agents and counsel and all other amounts due Lenders and
Agent under Sections 2.07 and 10.04) allowed in such judicial proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to Agent
and, in the event that Agent shall consent to the making of such payments directly to Lenders, to
pay to Agent any amount due for the reasonable compensation, expenses, disbursements and advances
of Agent and its agents and counsel, and any other amounts due Agent under Sections 2.07
and 10.04. Nothing contained herein shall be deemed to authorize Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize
Agent to vote in respect of the claim of any Lender in any such proceeding.

     9.10 Collateral Matters. The Lenders hereby empower and authorize Agent to execute and
deliver to Borrowers on their behalf any agreements, documents or instruments as shall be necessary
or appropriate to effect any partial releases which shall be permitted or required by, or approved
under, the terms of this Agreement or of any other Loan Document. In addition, the Lenders
irrevocably authorize the Agent, at its option and in its discretion, to release any lien on any
property granted to or held by the Agent under any Loan Document upon termination of the Commitment
and payment in full of all Obligations (other than contingent indemnification obligations). Upon
request by the Agent at any time, the Required Lenders will confirm in writing the Agent’s
authority to release its interest in particular types or items of property pursuant to this
Section 9.10.

     9.11 Defaulting Lenders. In the event that any Lender becomes a Defaulting Lender, then, in
addition to any rights and remedies that may be available to the other Lenders and Agent (such
other Lenders and Agent being called the “Non-Defaulting Lenders”) at law or in equity:

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     (a) Participation and Administration. The Defaulting Lender’s rights to participate
in the administration of the Commitment and the Loan Documents, including any right to vote upon,
approve, disapprove, consent to or direct any action of Agent, or to consent to any assignment of
participation, shall be suspended and such rights shall not be reinstated unless and until such
Lender ceases to be a Defaulting Lender (and all decisions which are to be based on a vote of the
Lenders shall be resolved based upon a decision or determination made by the required percentage of
the Non-Defaulting Lenders).

     (b) Funding of Defaulted Amount. Any or all of the Non-Defaulting Lenders shall be
entitled (but shall not be obligated) to: (a) fund the aggregate amount that the Defaulting Lender
has failed to fund or pay to Agent (such amount being called the “Defaulted Amount”); and (b)
collect interest at the Default Rate on the Defaulted Amount (after crediting all interest actually
paid by the Borrower on the Defaulted Amount from time to time), either directly from the
Defaulting Lender or from amounts otherwise payable to the Defaulting Lender, for the period from
the date on which the Defaulted Amount was funded by the Non-Defaulting Lenders until the date on
which payment is made. If Agent has funded the Defaulted Amount, Agent shall be entitled to
collect interest at the Default Rate from the Defaulting Lender on the Defaulted Amount as set
forth above, as if Agent were a Non-Defaulting Lender that had elected to fund the Defaulted
Amount.

     (c) Subordination of Defaulting Lender. In the event the Defaulted Amount is funded
by any Non-Defaulting Lenders or Agent pursuant to Subsection 9.11 (b), the Defaulting
Lender’s interest in the Obligations and proceeds thereof shall be subordinated to any Defaulted
Amount funded by any Non-Defaulting Lenders or Agent pursuant to Subsection 9.11(b), plus
all interest which may be due in accordance with Subsection 9.11(b) (to be applied pari
passu among the Non-Defaulting Lenders (including Agent) funding the Defaulted Amount), without
necessity for executing any further documents; provided that such Defaulting Lender’s interest in
the Obligations and the proceeds thereof shall no longer be so subordinated if the Defaulted Amount
funded by the Non-Defaulting Lenders or Agent (and all interest which has accrued pursuant to
Subsection 9.11(b)) shall be repaid in full.

     (d) Payment to Defaulting Lender. To achieve such subordination: (a) Agent shall
deduct from the interest due to the Defaulting Lender on its interest in the Obligations and the
Loan Documents, the excess of (i) interest on the Defaulted Amount at the rate specified in
Subsection 9.11(b) over (ii) the interest actually received from Borrowers by the
Non-Defaulting Lenders (including Agent) which funded the Defaulted Amount on account of their
portion of the Defaulted Amount for the same time period; and (b) all amounts received by Agent on
account of principal, Rate Management Obligations or reimbursements for amounts otherwise
advanced, in each case, which would otherwise be payable to the Defaulting Lender, shall be paid
pari passu to the Non-Defaulting Lenders (including Agent) until the Defaulted Amount and all
interest thereon has been repaid in full.

     (e) Subordination of Unfunded Defaulted Amount. If, following the payment in full of
all amounts due pursuant to Section 9.11(c) to the Non-Defaulting Lenders (including Agent)
who have funded all or any portion of any Defaulted Amount, there remains any unfunded Defaulted
Amount which has not been funded by the Non-Defaulting Lenders, Agent or the Defaulting Lender (the
“Unfunded Defaulted Amount”), then a portion of the Defaulting Lender’s interest in the Obligations
and the proceeds thereof equal to the amount of the Unfunded Defaulted Amount (together with
interest thereon

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at the rate applicable to the Defaulted Amount from time to time pursuant to the
Loan Documents) shall be subordinated to the interests of the Non-Defaulting Lenders (including
Agent) unless and until such Unfunded Defaulted Amount is funded either by one or more
Non-Defaulting Lenders, Agent or the Defaulting Lender. Such portion of the Defaulting Lender’s
interest, including any proceeds or distributions related thereto, may be used to fund to the Agent
the Unfunded Defaulted Amount if and when needed for costs in connection with the Loan. Agent is
hereby authorized to withhold or setoff amounts otherwise payable to any Defaulting Lender
hereunder and under the Loan Documents against the Defaulting Lender’s defaulted payment and
related accrued interest (and any other amount). Agent may, in its sole discretion, use any such
amounts so offset to make Advance(s) to Borrower, to pay or reimburse itself of any Non-Defaulting
Lender for costs and expenses incurred, to pay interest to any Non-Defaulting Lender, or for any
other permitted purpose(s) hereunder.

     (f) Defaulting Lenders. Each Defaulting Lender shall indemnify, defend and hold Agent
and Lenders harmless for, from and against any and all claims, damages, loss, liability, judgments,
costs and expenses (including, but not limited to, reasonable attorneys’ fees and interest at the
Default Rate set forth in the Loan Documents for funds advanced on account of a Defaulting Lender)
which they may sustain or incur by reason or in consequence of the Defaulting Lender’s failure or
refusal to abide by its obligations under this Agreement or the other Loan Documents.

     (g) No Waiver. Nothing herein contained shall be deemed or construed to waive,
diminish, limit, prevent or estop Agent or any Lender from exercising or enforcing any rights or
remedies which may be available at law or in equity as a result of or in connection with any
default under this Agreement or the Loan Documents by a Lender (including the right to bring suit
against the Defaulting Lender to recover the Defaulted Amount and interest thereon at the rate
provided in this Subsection 9.11).

     9.12 Agent in its Individual Capacity. Agent and its Affiliates may make loans to, issue
letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with each of the Borrowers and their respective Affiliates as though Agent were not the “Agent” and
without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such
activities, Agent and/or its Affiliates may receive information regarding any Borrower or its
Affiliates (including information that may be subject to confidentiality obligations in favor of
such Borrower or such Affiliate) and acknowledge that the Agent shall be under no obligation to
provide such information to them. With respect to Advances, Agent shall have the same rights and
powers under this Agreement as any other Lender and may exercise such rights and powers as though
it were not the Agent, and the terms “Lender” and “Lenders” include Agent in its individual
capacity.

     9.13 Ownership and Possession of Loan Documents. Each of the Lenders will own an undivided
interest in the Obligations and the Loan Documents equal to its pro rata interest therein. Agent
will hold in its possession, as agent, at 11011 Richmond Avenue, Suite 850, Houston, Texas 77042,
or at such other location as Agent designates in writing to the Lenders, the Loan Documents for the
pro rata benefit of itself as one of the Lenders and each of the other Lenders; provided that each
Lender will receive an original Note in its favor. Agent will keep and maintain files and records
of matters pertaining to the Obligations that are complete and accurate in all material respects.
Upon reasonable prior notice to

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Agent by the Lenders, the files and records will be made available
to the Lenders and their representatives and agents for inspection and copying during normal
business hours.

ARTICLE X. MISCELLANEOUS

     10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any
other Loan Document, and no consent to any departure by any Loan Party therefrom, shall be
effective unless in writing signed by the Required Lenders and such Loan Party and acknowledged by
Agent, and each such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that if there are at any time
three (3) or more Lenders no such amendment, waiver or consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender; provided, however, in the sole discretion of Agent, only a waiver by
Agent shall be required with respect to immaterial matters or items specified in Section
4.01(a) (iii) or (iv) with respect to which any Borrower has given assurances
satisfactory to Agent that such items shall be delivered promptly following the Closing Date;

     (b) (i) extend or increase the Commitment of any Lender (or reinstate any Revolving Loan
Commitment terminated pursuant to Section 8.02) without the written consent of each
Lender, or (ii) extend the Revolving Loan Termination Date or Term Loan Maturity Date without the
written consent of each Lender;

     (c) (i) postpone any date fixed by this Agreement or any other Loan Document for any payment
(excluding mandatory prepayments) of principal, interest, fees or other amounts due to Lenders (or
any of them) hereunder or under any other Loan Document (or otherwise extend the Maturity Date)
without the written consent of each Lender directly affected thereby, or (ii) postpone or extend
any date by which any Obligations of any Borrower hereunder must be performed without the written
consent of each Lender;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan, or any
fees or other amounts payable hereunder or under any other Loan Document, without the written
consent of each Lender directly affected thereby; provided, however, that only the
consent of the Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or
to waive any obligation of the Borrowers to pay interest at the Default Rate or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or to reduce any fee payable
hereunder;

     (e) change Section 2.11 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender;

     (f) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise

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modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender; or

     (g) release any Guarantor from the Guaranty, or release all or substantially all of the
Collateral, or subordinate the Agent’s and Lenders’ interest in the Collateral to the interests of
any other Person, in each case in any transaction or series of related transactions without the
written consent of each Lender;

and, provided further, that no amendment, waiver or consent shall, unless in
writing and signed by Agent in addition to the Lenders required above, affect the rights or duties
of Agent under this Agreement or any other Loan Document. Notwithstanding anything to the contrary
herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or
consent hereunder, except that the Commitments of such Lender may not be increased or extended
without the consent of such Lender.

     10.02 Notices; Effectiveness; Electronic Communications.

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

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

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

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

     (b) Electronic Communications. Notices and other communications to Lenders hereunder
may be delivered or furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by Agent, provided that the foregoing shall not
apply to notices to any Lender pursuant to Article II if such Lender has notified the Agent
that it is incapable of receiving notices under such Article by electronic communication. Agent or
any Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided that
approval of such procedures may be limited to particular notices or communications. Unless Agent
otherwise prescribes, (i) notices and other

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

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

     (d) Change of Address, Etc. Each of any Borrower and Agent may change its address,
telecopier or telephone number for notices and other communications hereunder by notice to the
other parties hereto. Each Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the Borrowers and Agent. In addition, each
Lender agrees to notify Agent from time to time to ensure that Agent has on record (i) an effective
address, contact name, telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire instructions for such Lender.
Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such
Public Lender to at all times have selected the “Private Side Information” or similar designation
on the content declaration screen of the Platform in order to enable such Public Lender or its
delegate, in accordance with such Public Lender’s compliance procedures and applicable Law,
including United States Federal and state securities Laws, to make reference to Borrower Materials
that are not made available through the “Public Side Information” portion of the Platform and that
may contain material non-public information with respect to any Loan Party or its securities for
purposes of United States Federal or state securities laws.

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     (e) Reliance by Agent and Lenders. Agent and Lenders shall be entitled to rely and
act upon any notices (including Draw Certificates) purportedly given by or on behalf of any
Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. Each Borrower shall
indemnify Agent, each Lender and the Related Parties of each of them from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each notice purportedly
given by or on behalf of any Borrower. All telephonic notices to and other telephonic
communications with Agent may be recorded by Agent, and each of the parties hereto hereby consents
to such recording.

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

     Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law
in connection with such enforcement shall be instituted and maintained exclusively by, Agent in
accordance with Section 8.02 for the benefit of all Lenders; provided,
however, that the foregoing shall not prohibit (a) Agent from exercising on its own behalf
the rights and remedies that inure to its benefit (solely in its capacity as Agent) hereunder and
under the other Loan Documents, (b) any Lender from exercising setoff rights in accordance with
Section 10.08 (subject to the terms of Section 2.11), or (c) any Lender from filing
proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a
proceeding relative to any Loan Party under any Debtor Relief Law; and provided,
further, that if at any time there is no Person acting Agent hereunder and under the other
Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to Agent
pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c)
and (d) of the preceding proviso and subject to Section 2.11, any Lender may, with the
consent of the Required Lenders, enforce any rights and remedies available to it and as authorized
by the Required Lenders.

     10.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. Each Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by Agent, each Lender and their respective Affiliates (including the reasonable
fees, charges and disbursements of counsel for Agent or such Lender), in connection with the
syndication of the credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated),

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and (ii) all out-of-pocket expenses incurred
by Agent or any Lender (including the fees, charges and disbursements of any counsel for Agent or
any Lender), and shall pay all fees and time charges for attorneys who may be employees of Agent or
any Lender, in connection with the enforcement or protection of its rights (A) in connection with
this Agreement and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans.

     (b) Indemnification by Borrowers. Each Borrower shall indemnify Agent (and any
sub-agent thereof), each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each
Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of
any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or
by any Loan Party arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective obligations hereunder
or thereunder, or the consummation of the transactions contemplated hereby or thereby, or, in the
case of Agent (and any sub-agent thereof) and its Related Parties only, the administration of this
Agreement and the other Loan Documents (including in respect of any matters addressed in
Section 3.01), (ii) any Loan or the use or proposed use of the proceeds therefrom,
(iii) any actual or alleged presence or release of Hazardous Materials on or from any property
owned or operated by any Loan Party or any of its Subsidiaries, or any Environmental Liability
related in any way to any Loan Party or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Loan Party, and
regardless of whether any Indemnitee is a party thereto IN ALL CASES, WHETHER OR NOT CAUSED BY OR
ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE
INDEMNITEE; provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by any
Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
or under any other Loan Document, if any Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

     (c) Reimbursement by Lenders. To the extent that any Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to Agent (or any sub-agent thereof), or any Related Party of any of the foregoing, each Lender
severally agrees to pay to Agent (or any such sub-agent) or such Related Party, as the case may be,
such Lender’s Applicable

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Percentage (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against Agent (or any such sub-agent) in its capacity as such,
or against any Related Party of any of the foregoing acting for Agent (or any such sub-agent) in
connection with such capacity. The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.10(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and each Borrower hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. No
Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed to such unintended
recipients by such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from
the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

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

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

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is
made to Agent or any Lender, or Agent or any Lender exercises its right of setoff, and such payment
or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such
setoff had not occurred, and (b) each Lender severally agrees to pay to Agent upon demand its
applicable share (without duplication) of any amount so recovered from or repaid by Agent, plus
interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect. The

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obligations of the Lenders under
clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

     10.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Loan Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of Agent and each Lender, and no
Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way
of pledge or assignment of a security interest subject to the restrictions of subsection (f) of
this Section (and any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitments and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

     (i) Minimum Amounts

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

(B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitments (which for this purpose includes Loans
outstanding thereunder) or, if such Commitments are not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to each
such assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to Agent or, if “Trade Date” is specified in
the Assignment and Assumption, as of the Trade Date, shall not be less than
$1,000,000 unless each of Agent and, so long as no Default or Event of Default has
occurred and is continuing, each Borrower otherwise consents (each such consent not
to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent assignments
from members of an Assignee Group to a single Eligible Assignee (or to an Eligible
Assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met;

76

 

     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans or the Commitment assigned;

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

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

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

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to Agent an Assignment and Assumption, together with a processing and
recordation fee in the amount of $3,500.00; provided, however, that the
Agent may, in its sole discretion, elect to waive such processing and recordation fee in the
case of any assignment. The assignee, if it is not a Lender, shall deliver to Agent an
Administrative Questionnaire.

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

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

Subject to acceptance and recording thereof by Agent pursuant to subsection (c) of this Section,
from and after the effective date specified in each Assignment and Assumption, the assignee
thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to
facts and circumstances occurring prior to the effective date of such assignment. Upon request,
and with all due haste, each Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

77

 

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

     (d) Participations. Any Lender may at any time, (x) without the consent of, or notice
to, any Borrower, any other Lender or Agent if any Default or Event of Default then exists and (y)
with the written consent of Borrowers, Agent and the other Lenders (other than a Defaulting Lender)
if no Default or Event of Default then exists, sell participations to any Person (other than a
natural person or any Loan Party or any of such any Loan Party’s Affiliates or Subsidiaries) (each,
a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitments and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) each Borrower, Agent, and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant. Subject to subsection (e) of this Section,
each Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.11 as
though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with each Borrower’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to
the benefits of Section 3.01 unless the Borrowers are notified of the participation sold to
such Participant and such Participant agrees, for the benefit of each Borrower, to comply with
Section 3.01(e) as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

78

 

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

     (h) Defaulting Lenders. Notwithstanding anything to the contrary herein, no Defaulting
Lender shall have any right to approve or disapprove any transfer, assignment or participation
hereunder.

     10.07 Treatment of Certain Information; Confidentiality. Each of Agent and Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be
disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, trustees, advisors and representatives (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory authority, purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to the extent required
by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other
party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to any Loan Party and its obligations, (g) with the consent of any Loan Party
or (h) to the extent such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to Agent, any Lender, or any of their respective
Affiliates on a nonconfidential basis from a source other than any Loan Party. For purposes of
this Section, “Information” means all information received from any Loan Party or any
Subsidiary relating to any Loan Party or any Subsidiary or any of their respective businesses,
other than any such information that is available to Agent or Lender on a nonconfidential basis
prior to disclosure by any Loan Party or any Subsidiary, provided that, in the case of
information received from any Loan Party or any Subsidiary after the date hereof, such information
is clearly identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information. Each of Agent and the Lenders and acknowledges that (a) the Information may include
material non-public information concerning any Loan Party or a Subsidiary, as the case may be, (b)
it has developed compliance procedures regarding the use of material non-public information and (c)
it will handle such material non-public information in accordance with applicable Law, including
federal and state securities Laws.

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to

79

 

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

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

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by
Agent and when Agent shall have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy or other electronic imaging means shall be effective as delivery
of a manually executed counterpart of this Agreement.

     10.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by Agent and each Lender,
regardless of any investigation made by Agent or any Lender or on their behalf and notwithstanding
that Agent or any Lender may have had notice or knowledge of any Default at the time of any
Borrowing, and shall

80

 

continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied.

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

     10.13 Governing Law; Jurisdiction; Etc.

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

     (b) SUBMISSION TO JURISDICTION. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF GEORGIA SITTING IN FULTON COUNTY AND OF THE UNITED STATES DISTRICT COURT OF
THE NORTHERN DISTRICT OF GEORGIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH GEORGIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT OR ANY LENDER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

     (c) WAIVER OF VENUE. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF
THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW,

81

 

THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT.

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

     10.14 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     10.15 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document), each Loan Party acknowledges and agrees and
acknowledges its Affiliates’ understanding that that: (i) (A) the services regarding this
Agreement provided by Agent are arm’s-length commercial transactions between each Loan Party and
its Affiliates, on the one hand, and Agent, on the other hand, (B) each Loan Party has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and
(C) each Loan Party is capable of evaluating and understanding, and understands and accepts, the
terms, risks and conditions of the transactions contemplated hereby and by the other Loan
Documents; (ii) (A) Agent is and has been acting solely as a principal and, except as expressly
agreed in writing by the relevant parties, has not been, is not, and will not be acting as an
advisor, agent or fiduciary, for any Loan Party or any of its Affiliates or any other Person and
(B) Agent does not have any obligation to any Loan Party or any of its Affiliates with respect to
the transactions contemplated hereby except those obligations expressly set forth herein and in the
other Loan Documents; and (iii) Agent and its Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of any Loan Party and its Affiliates,
and Agent has no obligation to disclose any of such interests to any Loan Party of any of its
Affiliates. To the fullest extent permitted by law, each Borrower hereby waives and releases, any
claims that it may have against Agent with respect to any breach or alleged breach of agency or
fiduciary duty in connection with any aspect of any transaction contemplated hereby.

82

 

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

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

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

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

	 	 	 	 	 	 	 	 

	 	 	 	 	Borrowers:	 
	 
	 	 	 	 	VIDEO DISPLAY CORPORATION	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	LEXEL IMAGING SYSTEMS, INC.	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	FOX INTERNATIONAL LTD., INC.	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 

84

 

	 	 	 	 	 	 	 	 

	 	 	 	 	Z-AXIS, INC.	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	TELTRON TECHNOLOGIES, INC.	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	AYDIN DISPLAYS, INC.	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 

85

 

	 	 	 	 	 	 	 	 

	 	 	 	 	Administrative Agent:	 
	 
	 	 	 	 	RBC BANK (USA), as Administrative Agent	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 

86

 

	 	 	 	 	 	 	 	 

	 	 	 	 	Lenders:	 
	 
	 	 	 	 	RBC BANK (USA), as a Lender	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	COMMUNITY & SOUTHERN BANK, as a Lender	 
	 
	 	 	 	 	By: 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	Name: 	 	 
	 	 	 	 	 	Title:	 	 

87

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Lender	 	Revolving

Commitment	 	 	Applicable

Percentage	 
	RBC Bank (USA)
	 	$	10,500,000	 	 	 	60.00	%
	Community & Southern
Bank
	 	$	7,000,000	 	 	 	40.00	%
	Total
	 	$	17,500,000	 	 	 	100.00	%

	 	 	 	 	 	 	 	 	 
	Lender	 	Term Loan A

Commitment	 	 	Applicable

Percentage	 
	RBC Bank (USA)
	 	$	2,100,000	 	 	 	60.00	%
	Community & Southern
Bank
	 	$	1,400,000	 	 	 	40.00	%
	Total
	 	$	3,500,000	 	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Lender	 	Term Loan B

Commitment	 	 	Applicable

Percentage	 
	RBC Bank (USA)
	 	$	1,800,000	 	 	 	60.00	%
	Community & Southern
Bank
	 	$	1,200,000	 	 	 	40.00	%
	Total
	 	$	3,000,000	 	 	 	100.00	%

 

 

SCHEDULE 5.06

LITIGATION

 

 

SCHEDULE 5.09

ENVIRONMENTAL MATTERS

 

 

SCHEDULE 5.13

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

[AND EQUITY INTERESTS IN BORROWER]

Part (a). Subsidiaries.

Part (b). Other Equity Investments.

Part (c). Owners of Equity Interests in each Borrower.

 

 

SCHEDULE 7.01

EXISTING LIENS

 

 

SCHEDULE 7.03

EXISTING INDEBTEDNESS

 

 

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

BORROWERS:

VIDEO DISPLAY CORPORATION

LEXEL IMAGING SYSTEMS, INC.

FOX INTERNATIONAL LTD., INC.

Z-AXIS, INC.

TELTRON TECHNOLOGIES, INC.

AYDIN DISPLAYS, INC.

1868 Tucker Industrial Road

Tucker, GA 30084

Attention: ________________________

Telephone: _______________________

Telecopier: _______________________

Electronic Mail: _______________________

Website Address: _______________________

U.S. Taxpayer Identification Number: _______________________

 

 

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Draw Certificate):

RBC Bank (USA)

75 5th Street, 9th Floor

Atlanta, Georgia 30308

Attention: _______________________

Telephone: _______________________

Telecopier: _______________________

Electronic Mail: _______________________

Wire To:

RBC Bank (USA)

Atlanta, Georgia

ABA# 053100850

Account No.:_________________

Ref: Video Display Corporation

Other Notices as Administrative Agent:

RBC Bank (USA)

75 5th Street, 9th Floor

Atlanta, Georgia 30308

Attention: _______________________

Telephone: _______________________

Telecopier: _______________________

Electronic Mail: _______________________

 

 

EXHIBIT A

FORM OF DRAW CERTIFICATE

Form of Draw Certificate

A-1

 

 

EXHIBIT B-1

FORM OF REVOLVING NOTE

Form of Term Note

B-1

 

 

EXHIBIT B-2

FORM OF TERM NOTE A

Form of Term Note

B-

 

 

EXHIBIT B-3

FORM OF TERM NOTE B

Form of Term Note

B-

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                    ,

To: RBC Bank (USA), as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement, dated as of December 23, 2010 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), among VIDEO
DISPLAY CORPORATION, a Georgia corporation (“Parent”), LEXEL IMAGING SYSTEMS, INC. (“Lexel”), FOX
INTERNATIONAL LTD., INC. (“Fox”), Z-AXIS, INC. (“Z-Axis”), TELTRON TECHNOLOGIES, INC. (“Teltron”),
and AYDIN DISPLAYS, INC. (“Aydin”) (each a “Borrower” and collectively the
“Borrowers”), the Lenders from time to time party thereto, and RBC BANK (USA), as
Administrative Agent.

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

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

     1. Borrowers have caused to be delivered the year-end audited financial statements required by
Section 6.01(a) of the Agreement for the fiscal year of Parent and the other Borrowers
ended as of the above date, together with the report and opinion of an independent certified public
accountant required by such section.

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

     1. Borrowers have caused to be delivered the unaudited financial statements required by
Section 6.01(b) of the Agreement for the fiscal quarter of Parent and the other Borrowers
ended as of the above date. Such financial statements fairly present the financial condition,
results of operations and cash flows of Parent and the other Borrowers in accordance with GAAP as
at such date and for such period, subject only to normal year-end audit adjustments and the absence
of footnotes.

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

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

Form of Compliance Certificate

C-1

 

 

[select one:]

     [to the best knowledge of the undersigned during such fiscal period, each Borrower performed
and observed each covenant and condition of the Loan Documents applicable to it, and no Default has
occurred and is continuing.] —or—

     [to the best knowledge of the undersigned, during such fiscal period, the following covenants
or conditions have not been performed or observed and the following is a list of each such Default
and its nature and status:]

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

     5. The Borrowers are in compliance, as of the last day of the fiscal quarter covered by the
financial statements attached hereto, with all financial covenants set forth in Section 7.14 of the
Credit Agreement, as demonstrated by the calculations of such covenants below, except as set forth
in Schedule 1 hereto;

Form of Compliance Certificate

C-2

 

 

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

	 	 	 	 	 
	 	VIDEO DISPLAY CORPORATION

LEXEL IMAGING SYSTEMS, INC.

FOX INTERNATIONAL LTD., INC.

Z-AXIS, INC.

TELTRON TECHNOLOGIES, INC.

AYDIN DISPLAYS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  		 
	 	 	Title:		 

Form of Compliance Certificate

C-3

 

SCHEDULE 1 TO COMPLIANCE CERTIFICATE

[Insert calculations of financial covenants]

Form of Compliance Certificate

C-4

 

 

EXHIBIT D

FORM

OF

ASSIGNMENT AND ASSUMPTION

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

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

Form of Assignment and Assumption

D-1

 

	1.	 	Assignor[s]: ____________________
	 
	2.	 	Assignee[s]: ____________________ for each Assignee, indicate Affiliate of [identify Lender]]
	 
	3.	 	Borrowers: VIDEO DISPLAY CORPORATION, a Georgia corporation (“Parent”), LEXEL IMAGING
SYSTEMS, INC. (“Lexel”), FOX INTERNATIONAL LTD., INC. (“Fox”), Z-AXIS, INC. (“Z-Axis”),
TELTRON TECHNOLOGIES, INC. (“Teltron”) and AYDIN DISPLAYS, INC. (“Aydin”) (collectively, the
“Borrowers”)
	 
	4.	 	Administrative Agent: RBC Bank (USA), as the administrative agent under the Credit Agreement
	 
	5.	 	Credit Agreement: Credit Agreement, dated as of December 23, 2010 among Borrowers, the
Lenders from time to time party thereto, and RBC Bank (USA) as Administrative Agent
	 
	6.	 	Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	 	 	 
	 	 	 	 	 	 	Amount of	 	Amount of	 	Percentage
	 	 	 	 	 	 	Commitment/	 	Commitment/	 	Assigned of
	 	 	 	 	 	 	Loans	 	Loans	 	Commitment/
	Assignor[s]	 	Assignee[s]	 	Facility Assigned	 	for all Lenders	 	Assigned	 	Loans
	 
	 	 
	 	 
	 	 
	 	 
	 	 

Form of Assignment and Assumption

D-2

 

[7. Trade Date: __________________]

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

Form of Assignment and Assumption

D-3

 

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

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 

Form of Assignment and Assumption

D-4

 

[Consented to and] Accepted:

	 	 	 	 	 
	RBC Bank (USA), as

  Administrative Agent

 	 
	By:  	 	 
	 	Title: 	 
	 	 	 
	[Consented to:]

VIDEO DISPLAY CORPORATION

LEXEL IMAGING SYSTEMS, INC.

FOX INTERNATIONAL LTD., INC.

Z-AXIS, INC.

TELTRON TECHNOLOGIES, INC.

AYDIN DISPLAYS, INC.,

as Borrowers

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Form of Assignment and Assumption

D-5

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

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

          1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all the requirements to be an assignee under Section
10.06(b)(iii),(v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be
required under Section 10.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender
thereunder, and (iv) it is sophisticated with respect to decisions to acquire assets of the type
represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in
making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of
such type, (v) it has received a copy of the Credit Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial statements delivered
pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it
deems appropriate to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such] Assigned Interest (vi) it has independently and without
reliance upon Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase [the][such]
Assigned Interest and (vii) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and
executed by [the][such]

Form of Assignment and Assumption

D-6

 

 Assignee; and (b) agrees that (i) it will, independently and without
reliance upon Agent, [the][any] Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

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

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

Form of Assignment and Assumption

D-7

 

EXHIBIT E

FORM OF BORROWING BASE CERTIFICATE

Form of Assignment and Assumption

D-8exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (hereinafter referred to as “Agreement”) dated as of January 1,
2011 (the “Effective Date”), by and between Vicor Technologies, Inc. (hereinafter referred to as
the “Company”) and Richard M. Cohen, Ph.D. with an address of 2300 Corporate Blvd., N.W., Suite 123, Boca Raton, FL 33431 (hereinafter referred to as “Executive”).

     WHEREAS, the Company desires to secure the services of the Executive upon the terms and
conditions hereinafter set forth: and

     WHEREAS, the Executive desires to render services to the Company upon the terms and conditions
hereinafter set forth which replaces his consulting agreement dated January 1, 2010.

     NOW, THEREFORE, the parties mutually agree as follows:

1. Employment. The Company hereby employs Executive and the Executive hereby accepts such
employment as Chief Operating Officer, subject to the terms and conditions set forth in this
Agreement.

2. Duties. The Executive shall serve as the Chief Operating Officer of the Company as set
forth in Section 1 above. During the term of this Agreement, Executive shall devote all of his
business time to the performance of his duties hereunder. The Executive shall report directly to
the Chief Executive Officer.

3. Term of Employment.

     (a) The term of the Executive’s employment shall be for a period of thirty-six (36) months
commencing on the date hereof, subject to earlier termination by the Company pursuant to Section 6
hereof (the “Term”)

4. Compensation of Executive.

     a. Base Salary. The Company shall pay to Executive a base salary (the “Base Salary”) of
$150,000 Dollars per annum, less such deductions as shall be required to be withheld by applicable
law and regulations. Executive’s Base will be adjusted upward on each anniversary of the Effective
Date (or more frequently, at the Company’s discretion) by a percentage equal to not less than the
higher of the increase in the consumer price index for the preceding year or the increase in the
core rate of inflation for the preceding year, each as reported by the United Sates government, to
reflect cost of living increases.

     b. Other Benefits. Executive will be entitled to participate in such incentive plans, bonus
plans and other benefits as are offered from time to time by the Company to its executive level
Executives, including medical coverage or reimbursement therefore for the Executive and his family
and an extended disability insurance plan, each at the Company’s cost, including any right to
receive any stock options. Executive will also be entitled to participate in any other benefits
that the Company may maintain from time to time for all Executives, provided that Executive meets
the respective eligibility requirements.

 

 

     c. Expense Reimbursement. The Company agrees to reimburse Executive for all reasonable
expenses incurred by him in the discharge of his duties hereunder. The Executive agrees to
maintain records of such expenses in such form as the Company may request and make such records
available to the Company as and when requested.

     d. Taxes. All sums payable to the Executive hereunder shall be subject to all federal, state
and municipal laws or governmental regulations now or hereafter in existence requiring the
withholding, deduction, or payment therefrom of sums for income or other taxes payable by or for or
assessable against the Executive.

     e. Vacation. The Executive may take a maximum of four (4) weeks vacation during each twelve
(12) month period during the Term at times to be reasonably determined by mutual agreement between
the Company and Executive. Executive shall be entitled to carryover up to one (1) week per year of
unused vacation to future periods.

5. Inability to Perform Job Duties. If Executive becomes unable to substantially perform
his employment duties pursuant to this Agreement due to mental or physical incapacity (a
“Disability”), the Company shall continue his compensation under this Agreement at one-half of his
regular rate during the first three months of such Disability. Thereafter no compensation shall be
payable until such time as Executive becomes able to resume his job duties for the Company, except
to the extent any amounts are payable pursuant to any Company-maintained disability insurance. In
the event that Executive is Disabled for a cumulative period of greater than six (6) months within
any span of twelve (12) months, this Agreement and Executive’s employment may be terminated by the
Company. For purposes of this Agreement, Disability shall be determined by a medical doctor who is
mutually agreeable to the Company and the Executive; in the event that Company and Executive cannot
agree on a medical doctor, then each of Company and Executive shall select a medical doctor, and
the selected medical doctors shall select a third medical doctor who shall individually determine
whether Disability exists pursuant to this Section. Following a termination of this Agreement by
Company pursuant to this Section 5, Company shall pay to Executive all accrued compensation and
benefits and all normal post-termination benefits available under any of Company’s retirement plan,
insurance programs or other benefit plans.

6. Termination By Company For Cause. The Company may terminate this Agreement, and
Executive’s employment “for cause” at any time. As used herein, “for cause” shall mean any one of
the following:

     a. The death of the Executive; or

     b. The Executive has a guardian of his person or estate appointed by a court of competent
jurisdiction; or

     c. The Executive is Disabled for a cumulative period of greater than six (6) months in any
twelve (12) month period; or

     d. The conviction of the Executive of a felony or of any crime involving moral turpitude (but
excluding any offenses involving operation of a motor vehicle); or

 

 

     e. The misuse, misappropriation or embezzlement of Company funds or property by Executive, or

     f. Any willful gross neglect or willful gross misconduct of Executive resulting in material
economic harm to the Company; provided that the Company shall give Executive thirty (30) days’
written notice thereof during which thirty (30) day period Executive may cure same; or

     g. The habitual and sustained use of alcohol or drugs by Executive which interferes with the
performance of Executive’s duties for the Company or.

     h. The violation of Company written policy subject to cure provisions, if any, provided all
employees or executives under such written policy..

     In the event the Company terminates Executive’s employment for cause, Executive’s right to
continued payment of salary and other compensation shall automatically terminate and be forfeited,
and the Company shall pay to Executive all compensation and benefits accrued through the date of
termination. In addition, Executive shall be entitled to any post-termination benefits to which
Executive would otherwise be entitled under any retirement plans, insurance programs or other
benefit plans.

7. Termination By Executive Without Cause. Executive may terminate this Agreement and his
employment with the Company without cause upon thirty (30) days prior written notice to the
Company. Executive may be required to perform his job duties and will be paid his regular
compensation up to the date of the termination. At the option of the Company, the Company may
require Executive to immediately terminate employment upon receiving said thirty (30) days’ notice
from Executive of the termination of this Agreement. In such event, the Company will pay to
Executive an amount equal to thirty (30) calendar days of his Base Salary.

8. Termination by the Company Without Cause or by the Executive for Good Reason.

     a. The Executive may resign (and thereby terminate his employment under this Agreement) at any
time for Good Reason (as defined below), upon not less than thirty (30) days’ prior written notice
to the Company specifying in reasonable detail the reason therefor, provided, however, that if the
reason for resignation for Good Reason is susceptible of a cure, the Company shall have a period of
thirty (30) days after such written notice to effect a cure. For purposes of this Agreement, “Good
Reason” shall mean (a) any material failure by the Company to comply with any material obligation
imposed by this Agreement (including the failure of a successor to the Company to assume this
Agreement or any purported termination hereof which is not in compliance with any applicable notice
provisions hereof); (b) a reduction of Executive’s Base or a material reduction in the Executive’s
title, position, duties or responsibilities; (c) the Executive’s assignment to an office of the
Company located more than fifty (50) miles from the Company’s current Boca Raton, Florida office;
or (d) the Company’s creation of working conditions that a reasonable person in the Executive’s
position would consider unreasonable or intolerable, as conclusively determined by the Compensation
Committee. The Company may terminate the employment of Executive without cause and the Executive
may terminate the Agreement with Good Reason, in each case, at any time upon 30 days’ prior written
notice,

 

 

provided that in either such event the Company shall be obligated to pay Executive, in a lump
sum within fifteen (15) days of the date of termination of employment, an amount equal to 100% of
the sum of (a) Executive’s then current Base Salary, and (b) any bonuses paid to Executive during
the 12 month period preceding the date of such termination. In addition, the Company shall maintain
the Executive’s health insurance, life insurance and disability insurance at its expense on the
same terms and conditions as existed during the Executive’s employment for the unexpired Term of
this Agreement; provided, that such benefits will not be continued in the event that Executive
obtains similar benefits in connection with any future employment. Moreover, in such event,
Executive shall be entitled to receive all other customary post-termination benefits under the
Company’s retirement plans, insurance programs, and other benefit plans, and Executive shall be
entitled to acceleration of any vesting under any long-term incentive plans, including the vesting
of any unvested stock options or stock warrants.

9. Agreement Not to Use or Disclose Confidential or Proprietary Information. During the
term of this Agreement and a period of two (2) years thereafter, Executive promises and agrees that
he will not disclose or utilize any confidential or proprietary information acquired during the
course of service with the Company and/or its related business entities, Executive shall not
divulge, communicate, use to the detriment of the Company or for the benefit of any other person or
persons, or misuse in any way, any confidential or proprietary information pertaining to the
business of the Company. Any confidential or proprietary information or data now or hereafter
acquired by Executive with respect to the business of the Company (which shall include, but not be
limited to, information concerning the Company’s financial condition, prospects, technology,
customers, suppliers, methods of doing business and promotion of the Company’s products and
services) shall be deemed a valuable, special and unique asset of the Company that is received by
Executive in confidence and as a fiduciary. For purposes of this Agreement “confidential or
proprietary information” means information disclosed to Executive as a consequence of or through
his/her employment by the Company (including information conceived, originated, discovered or
developed by Executive) prior to or after the date hereof and not generally known or in the public
domain, about the Company or its business. This Section 12 is effective regardless of the reason
for the termination of the Agreement and regardless of whether the Agreement is terminated by the
Executive, the Company or by its own terms. This restrictive covenant may be assigned to and
enforced by any of the Company’s assignees or successors.

10. Covenant Not to Compete. 

     (a) Executive recognizes that the services to be performed by him hereunder are special,
unique and extraordinary. The parties confirm that it is reasonably necessary for the protection of
Company that Executive agree, and accordingly, Executive does hereby agree, that he shall not,
directly or indirectly, at any time during the term of the Agreement and the “Restricted Period”
(as defined in Section 10(e) below):

          (i) except as provided in Subsection (d) below, be engaged in the research,
development/creation, marketing, sale or distribution of pharmaceutical and/or medical products
that compete directly or indirectly with the Company’s products or proposed products, or provide
technical assistance, advice or counseling regarding such competing products in any state in the
United States, either on his own behalf or as an officer, director, stockholder, partner,

 

 

consultant, associate, Executive, owner, agent, creditor, independent contractor, or
co-venturer of any third party; or

          (ii) employ or engage, or cause or authorize, directly or indirectly, to be employed or
engaged, for or on behalf of himself or any third party, any Executive or agent of Company or any
affiliate thereof in a manner which directly or indirectly competes with the Company.

     (b) Executive hereby agrees that he will not, directly or indirectly, for or on behalf of
himself or any third party, at any time during the term of the Agreement and during the Restricted
Period solicit any customers of the Company or any affiliate thereof in a manner which directly or
indirectly competes with the Company.

     (c) If any of the restrictions contained in this Section 10 shall be deemed to be
unenforceable by reason of the extent, duration or geographical scope thereof, or otherwise, then
the court making such determination shall have the right to reduce such extent, duration,
geographical scope, or other provisions hereof, and in its reduced form this Section shall then be
enforceable in the manner contemplated hereby.

     (d) This Section 10 shall not be construed to prevent Executive from owning, directly or
indirectly, in the aggregate, an amount less than or equal to one percent (I%) of the issued and
outstanding voting securities of any class of any company that directly or indirectly competes with
the Company whose voting capital stock is traded on a national securities exchange or on the
over-the-counter market other than securities of the Company. Furthermore, this Section 9 shall not
be construed to prevent Executive from owning, directly or indirectly, any number of issued and
outstanding voting securities of any company that does not directly or indirectly compete with the
Company.

     (e) The term “Restricted Period,” as used in this Section 10, shall mean the period of
Executive’s actual employment hereunder plus a period of twelve (12) months thereafter.

     (f) The provisions of this Section 10 shall survive the end of the Term as provided in Section
10(e) hereof.

11. Executive Conceptions and Developments. The Company shall own all Intellectual
Property Rights (as defined below) in and to, and, for the duration of such Intellectual Property
Rights shall have the exclusive rights to the commercial exploitation with respect to, all
Conceptions and Developments (as defined below) made individually or jointly by Executive during
the period while employed at Company (the “Covered Period”). Any Intellectual Property Rights as
to which Executive was an inventor, author or assignee, whether patentable or not, shall be
presumed to have been originally made during the Covered Period and subject to Company’s ownership.
For purposes hereof, the term “Conceptions and Developments” means all creative, expressive,
branding or technological conceptions, discoveries and developments related to the business of the
Company and the development of the Company’s products of any nature, including, without limitation,
conceptions for products and process, inventions, designs, writings, graphics, animations and other
works of authorship, specifications, drawings, methods,

 

 

formulas and branding proposals, and any implementations, improvements, derivative works or
modifications thereof and without regard to whether are patentable or copyrightable, and the term
“Intellectual Property Rights” means all U.S. and foreign patents, copyrights, trademarks, service
marks, tradenames, corporate names, trade secrets, rights of publicity and similar rights
(including without limitation all common law rights), domain names and all rights of priority under
international conventions to make application with respect thereto. All Conceptions and
Developments arising during the Covered Period are referred to as the “Covered Conceptions and
Developments”. In addition to any previous assignments, Executive assigns to the Company all
Intellectual Rights included the Covered Conceptions and Developments without regard to their being
patentable or copyrightable. All works of authorship included in the Covered Conceptions and
Developments that are eligible for protection under the Copyright Act shall be deemed “works made
for hire” to the extent they may qualify as such under 17 U.S.C. Section 101, and otherwise the
copyright therein shall be assigned by Executive to the Company at the time such works were made.
All Covered Conceptions and Developments, whether or not patentable, shall be promptly disclosed to
the Company in writing and shall be held in confidence by the Executive and treated as
“Confidential Information”, until such time as the Company, in its sole determination, shall elect
to make the subject matter thereof publicly known. Executive agrees that, at the expense of the
Company, he will, without additional compensation, take any such further action, including the
rendering of all lawful testimony and assistance; and the execution and delivery to such
instruments as the Company may require from time to time, to perfect, effectuate, register, record
or enforce the Company’s rights or interests in any of the Covered Conceptions and Developments.
Executive hereby irrevocably appoints the Company to be Executive attorney-in-fact to act in
Executive’s name, place and stead to do and execute any such act or instrument for the purpose of
this Section. The Company shall be under no liability to account to Executive for any revenue or
profit derived or resulting from the use, exploitation or licensing of any of the covered
Conceptions or Developments subject in this Section.

12. Injunctive Relief. In recognition of the unique services to be performed by Executive
and the possibility that any violation by Executive of Section 9, Section 10 or Section 11 of this
Agreement may cause irreparable or indeterminate damage or injury to Company, Executive expressly
stipulates and agrees that the Company shall be entitled, upon ten (10) days written notice to
Executive, to obtain an injunction from any court of competent jurisdiction restraining any
violation or threatened violation of this Agreement. Such right to an injunction shall be in
addition to, and not in limitation of, any other rights or remedies the Company may have for
damages.

13. Judicial Modification of Agreement. The Company and Executive specifically agree that
a court of competent jurisdiction (or an arbitrator, as appropriate) may modify or amend Section 9,
Section 10 or Section 11 of this Agreement if absolutely necessary to conform with relevant law or
binding judicial decisions in effect at the time the Company seeks to enforce any or all of said
provisions.

14. Resolution of Disputes by Arbitration. Any claim or controversy that arises out of or
relates to Executive’s employment, this Agreement, or the breach of this Agreement, will be
resolved by arbitration in Palm Beach County in accordance with the rules of the American
Arbitration Association. Judgment upon the award rendered by the arbitrator may be entered in

 

 

any court possessing jurisdiction over arbitration awards. This Section shall not limit or
restrict the Company’s right to obtain injunctive relief for violations of Section 9, Section 10 or
Section 11 of this Agreement directly from a court under Section 12 of this Agreement.

15. Miscellaneous.

     a. Costs and Expenses. Each party hereto agrees to pay its own costs and expenses incurred in
negotiating this Agreement and consummating the transactions described herein. In the event either
party is required to seek legal counsel to enforce the terms and provisions of this Agreement, the
prevailing party in any action (including arbitration) shall be entitled to recover attorneys fees
and costs (including on appeal).

     b. Choice of Law. This Agreement will be interpreted, construed and enforced in accordance
with the laws of the State of Florida and the proper jurisdiction and venue shall be the Circuit
Court in Palm Beach County, Florida.

     c. Construction. The parties hereto and their respective legal counsel participated in the
preparation of this Agreement; therefore, this Agreement shall be construed neither against nor in
favor of any of the parties hereto, but rather in accordance with the fair meaning thereof.

     d. Effect of Waiver. The failure of any party at any time or times to require performance of
any provision of this Agreement will in no manner affect the right to enforce the same. The waiver
by any party of any breach of any provision of this Agreement will not be construed to be a waiver
by any such party of any succeeding breach of that provision or a waiver by such party of any
breach of any other provision.

     e. Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed an original and all of which together will constitute one and the same instrument.

     f. Entire Agreement. This Agreement sets forth the entire agreement between the parties, and
supersedes any prior agreements or understanding between the Company and Executive. This Agreement
may be amended only in writing, signed by both parties.

     g. Severability. If any provision of this Agreement is held invalid for any reason, such
invalidity shall not affect the enforceability of the remainder of this Agreement.

     h. Notices. Any notices required or permitted or given pursuant to this Agreement to the
Company or Executive shall be in writing and shall be deemed given upon delivery in person or three
(3) days after sending by U.S. certified mail or registered mail, return receipt requested, first
class postage and registration fees prepaid, to the addresses listed below. The parties hereto
shall notify each other whenever their addresses shall change during the Term.

[SIGNATURES ON NEXT PAGE]

 

 

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the date set forth
below.

	 	 	 	 	 	 	 	 	 

	Company	 	 	 	Executive	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By: /s/ David H. Fater	 	 	 	/s/ Richard M. Cohen	 	 
	 	 	 	 	 	 	 
	Name:

	 	David H. Fater
	 	 	 	Richard M. Cohen, Ph. D.	 	 
	 

	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	December 23, 2010
	 	 	 	Date:     December 23, 2010	 	 
	 
	 	 	 	 	 	 	 	 
	2300 Corporate Blvd., N.W., Suite 123	 	 	 	2300 Corporate Blvd., N.W., Suite 123	 	 
	 	 	 	 	 	 	 
	Boca Raton, FL 33431	 	 	 	Boca Raton, FL 33431	 	 
	 	 	 	 	 	 	 
	(Address for Notices)	 	 	 	(Address for Notices)

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