Document:

Exhibit 4.1

 

Exhibit 4.1

AMENDED AND RESTATED LOAN AGREEMENT

among

LASALLE BANK NATIONAL ASSOCIATION

as Administrative Agent

HARRIS N.A.

as Syndication Agent

and

NATIONAL CITY BANK OF INDIANA

as Documentation Agent

and

LASALLE BANK NATIONAL ASSOCIATION

and

THE OTHER LENDERS LISTED ON EXHIBIT 3

as Lenders

and

LAYNE CHRISTENSEN COMPANY

as Borrower

September 28, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. Effective Date
	 	 	1	 
	2. Definitions and Rules of Construction
	 	 	1	 
	2.1. Listed Definitions
	 	 	1	 
	2.2. Other Definitions
	 	 	1	 
	2.3. References to Covered Person
	 	 	1	 
	2.4. References to Required Lenders
	 	 	1	 
	2.5. Accounting Terms
	 	 	1	 
	2.6. Meaning of Satisfactory
	 	 	2	 
	2.7. Harris N.A. Appointment as Syndication Agent
	 	 	2	 
	2.8. National City Bank of Indiana Appointment as Documentation Agent
	 	 	2	 
	2.9. Computation of Time Periods
	 	 	2	 
	2.10. General
	 	 	2	 
	2.11. Reaffirmation
	 	 	2	 
	2.12. Patriot Act Notice
	 	 	3	 
	3. Lenders’ Commitments
	 	 	3	 
	3.1. Revolving Loan Commitments
	 	 	3	 
	3.1.1. Aggregate Amount; Reductions
	 	 	3	 
	3.1.2. Increases in Revolving Loan Commitment
	 	 	3	 
	3.1.3. Limitation on Revolving Loan Advances
	 	 	4	 
	3.1.4. Revolving Notes
	 	 	5	 
	3.2. Swingline Commitment
	 	 	5	 
	3.2.1. Swingline Advances
	 	 	5	 
	3.2.2. Limitations on Swingline Advances
	 	 	5	 
	3.2.3. Swingline Note
	 	 	5	 
	3.3. Letter of Credit Commitment
	 	 	5	 
	4. Interest
	 	 	6	 
	4.1. Interest on Draws on Letters of Credit
	 	 	6	 
	4.2. Interest on the Swingline Loan
	 	 	6	 
	4.3. Interest on Aggregate Loans
	 	 	6	 
	4.4. Adjusted Base Rate
	 	 	6	 
	4.5. Adjusted LIBOR Rate
	 	 	6	 
	4.6. Base Rate Margins and LIBOR Margins
	 	 	7	 
	4.7. Interest Periods for LIBOR Loans
	 	 	7	 
	4.8. Time of Accrual
	 	 	8	 
	4.9. Computation
	 	 	8	 
	4.10. Rate After Maturity
	 	 	8	 
	5. Fees
	 	 	8	 
	5.1. Revolving Loan Unused Fee
	 	 	8	 
	5.2. Letter of Credit Fee
	 	 	8	 
	5.3. Letter of Credit Fronting Fee
	 	 	9	 
	5.4. Other Letter of Credit Fees
	 	 	9	 
	5.5. Calculation of Fees
	 	 	9	 
	6. Payments
	 	 	9	 
	6.1. Scheduled Payments on Aggregate Revolving Loan and Swingline Loan
	 	 	9	 
	6.1.1. Interest
	 	 	9	 
	6.1.2. Principal
	 	 	9	 
	6.2. Application
	 	 	9	 

i

 

	 	 	 	 	 
	6.3. Prepayments
	 	 	10	 
	6.3.1. Voluntary Prepayment
	 	 	10	 
	6.3.2. Mandatory Prepayments When Over-Advances Exist
	 	 	10	 
	6.4. Reimbursement Obligations of Borrower
	 	 	10	 
	6.5. Manner of Payments and Timing of Application of Payments
	 	 	10	 
	6.5.1. Payment Requirement
	 	 	10	 
	6.5.2. Application of Payments and Proceeds
	 	 	11	 
	6.5.3. Interest Calculation
	 	 	11	 
	6.6. Returned Instruments
	 	 	11	 
	6.7. Compelled Return of Payments or Proceeds
	 	 	11	 
	6.8. Due Dates Not on Business Days
	 	 	11	 
	7. Procedure for Obtaining Advances and Letters of Credit
	 	 	11	 
	7.1. Initial Advances
	 	 	11	 
	7.2. Subsequent Revolving Loan Advances
	 	 	12	 
	7.2.1. Borrower Requests
	 	 	12	 
	7.2.2. Revolving Loan Advances to Repay the Swingline Loan
	 	 	12	 
	7.2.3. Administrative Agent’s Right to Make Other Revolving Loan Advances
	 	 	13	 
	7.3. Letters of Credit
	 	 	13	 
	7.4. Fundings
	 	 	13	 
	7.4.1. Revolving Advances
	 	 	13	 
	7.4.2. Draws on Letters of Credit
	 	 	13	 
	7.4.3. All Fundings Ratable
	 	 	14	 
	7.5. Administrative Agent’s Availability Assumption
	 	 	14	 
	7.6. Disbursement
	 	 	15	 
	7.7. Restrictions on Advances
	 	 	15	 
	7.8. Restriction on Number of LIBOR Loans
	 	 	15	 
	7.9. Each Advance Request and Letter of Credit Request a Certification
	 	 	15	 
	7.10. Requirements for Every Advance Request
	 	 	15	 
	7.11. Conversion
	 	 	16	 
	7.12. Requirements for Every Letter of Credit Request
	 	 	16	 
	7.13. Exoneration of Administrative Agent and Lenders
	 	 	16	 
	8. Conditions of Lending
	 	 	16	 
	8.1. Conditions to Initial Advance
	 	 	16	 
	8.1.1. Listed Documents and Other Items
	 	 	16	 
	8.1.2. Financial Condition
	 	 	16	 
	8.1.3. Current Acquisition
	 	 	17	 
	8.1.4. Capitalization
	 	 	17	 
	8.1.5. No Default
	 	 	17	 
	8.1.6. Representations and Warranties
	 	 	17	 
	8.1.7. No Material Adverse Change
	 	 	17	 
	8.1.8. Pending Material Proceedings
	 	 	17	 
	8.1.9. Payment of Fees and Expenses
	 	 	17	 
	8.1.10. Insurance
	 	 	17	 
	8.1.11. Closing Certificate
	 	 	18	 
	8.1.12. Minimum EBITDA
	 	 	18	 
	8.1.13. Leverage
	 	 	18	 
	8.1.14. Other Items
	 	 	18	 
	8.1.15. Fees and Expenses
	 	 	18	 
	8.2. Conditions to Subsequent Advances
	 	 	18	 
	8.2.1. General Conditions
	 	 	18	 
	8.2.2. Representations and Warranties
	 	 	18	 

ii

 

	 	 	 	 	 
	8.2.3. No Prohibitions
	 	 	18	 
	8.2.4. No Default
	 	 	19	 
	9. Conditions to Issuance of Letters of Credit
	 	 	19	 
	9.1. Letter of Credit Application/Reimbursement Agreement
	 	 	19	 
	9.2. No Prohibitions
	 	 	19	 
	9.3. Representations and Warranties
	 	 	19	 
	9.4. No Default
	 	 	19	 
	9.5. Other Conditions
	 	 	19	 
	10. Representations and Warranties
	 	 	19	 
	10.1. Organization and Existence
	 	 	19	 
	10.2. Authorization
	 	 	20	 
	10.3. Due Execution
	 	 	20	 
	10.4. Enforceability of Obligations
	 	 	20	 
	10.5. Burdensome Obligations; Defaults
	 	 	20	 
	10.6. Legal Restraints
	 	 	20	 
	10.7. Labor Contracts and Disputes
	 	 	20	 
	10.8. No Material Proceedings
	 	 	21	 
	10.9. Material Licenses
	 	 	21	 
	10.10. Compliance with Material Laws
	 	 	21	 
	10.11. Prior Transactions
	 	 	21	 
	10.12. Solvency
	 	 	21	 
	10.13. Projections; Pro Forma Balance Sheet
	 	 	21	 
	10.14. Financial Statements
	 	 	21	 
	10.15. No Change in Condition
	 	 	21	 
	10.16. No Defaults
	 	 	22	 
	10.17. Investments
	 	 	22	 
	10.18. Indebtedness
	 	 	22	 
	10.19. Indirect Obligations
	 	 	22	 
	10.20. Security Interests
	 	 	22	 
	10.21. Tax Liabilities; Governmental Charges
	 	 	22	 
	10.22. Pension Benefit Plans
	 	 	22	 
	10.22.1. Prohibited Transactions
	 	 	22	 
	10.22.2. Claims
	 	 	22	 
	10.22.3. Reporting and Disclosure Requirements
	 	 	22	 
	10.22.4. Accumulated Funding Deficiency
	 	 	23	 
	10.22.5. Multi-employer Plan
	 	 	23	 
	10.23. Welfare Benefit Plans
	 	 	23	 
	10.24. Retiree Benefits
	 	 	23	 
	10.25. State of Property
	 	 	23	 
	10.26. Negative Pledges
	 	 	23	 
	10.27. Affiliates; Subsidiaries
	 	 	23	 
	10.28. Margin Stock
	 	 	24	 
	10.29. Tax Matters
	 	 	24	 
	10.30. Securities Matters
	 	 	24	 
	10.31. Investment Company Act, Etc
	 	 	24	 
	10.32. No Improper Payment or Influence
	 	 	24	 
	10.33. Foreign Enemies and Regulations
	 	 	24	 
	10.34. No Material Misstatements or Omissions
	 	 	25	 
	10.35. Filings
	 	 	25	 
	11. Modification and Survival of Representations
	 	 	25	 
	12. Affirmative Covenants
	 	 	25	 

iii

 

	 	 	 	 	 
	12.1. Use of Proceeds
	 	 	25	 
	12.2. Corporate Existence
	 	 	25	 
	12.3. Maintenance of Property and Leases
	 	 	26	 
	12.4. Insurance
	 	 	26	 
	12.5. Payment of Taxes and Other Obligations
	 	 	26	 
	12.6. Compliance With Laws
	 	 	26	 
	12.7. Termination of Pension Benefit Plan
	 	 	27	 
	12.8. Notice to Administrative Agent of Material Events
	 	 	27	 
	12.9. Borrowing Officer
	 	 	28	 
	12.10. Accounting System; Tracing of Proceeds
	 	 	28	 
	12.11. Financial Statements
	 	 	28	 
	12.11.1. Annual Financial Statements
	 	 	28	 
	12.11.2. Monthly Financial Statements; Quarterly Compliance Certificate
	 	 	28	 
	12.12. Other Financial Information; Tax Information
	 	 	29	 
	12.12.1. Stockholder Reports
	 	 	29	 
	12.12.2. Pension Benefit Plan Reports
	 	 	29	 
	12.12.3. Tax Returns
	 	 	29	 
	12.12.4. Tax Matters
	 	 	29	 
	12.13. Annual Projections
	 	 	29	 
	12.14. Other Information
	 	 	30	 
	12.15. Access to Officers and Auditors
	 	 	30	 
	12.16. Acquisition Documents
	 	 	30	 
	12.17. Further Assurances
	 	 	30	 
	12.18. Covered Persons
	 	 	30	 
	12.19. Parity with other Indebtedness
	 	 	30	 
	12.20. Guarantees
	 	 	30	 
	12.21. UCC Filings
	 	 	31	 
	12.22. Merger
	 	 	31	 
	13. Negative Covenants
	 	 	31	 
	13.1. Investments
	 	 	31	 
	13.2. Indebtedness
	 	 	32	 
	13.3. Indirect Obligations
	 	 	33	 
	13.4. Prepayment
	 	 	33	 
	13.5. Security Interests
	 	 	33	 
	13.5.6
	 	 	34	 
	13.5.7
	 	 	34	 
	13.6. Acquisitions
	 	 	35	 
	13.7. Disposal of Property
	 	 	36	 
	13.8. Guaranties
	 	 	36	 
	13.9. Distributions; Redemptions
	 	 	37	 
	13.10. Change of Control
	 	 	37	 
	13.11. Amendment to Charter Documents; Amendments to Term Indebtedness Documents; Current Acquisition Documents
	 	 	37	 
	13.12. Capital Structure; Equity Securities
	 	 	37	 
	13.13. Change of Business
	 	 	38	 
	13.14. Conflicting Agreements
	 	 	38	 
	13.15. Sale and Leaseback Transactions
	 	 	38	 
	13.16. Fiscal Year
	 	 	38	 
	13.17. Transactions Having a Material Adverse Effect on Covered Person
	 	 	38	 
	13.18. Transactions with Affiliates
	 	 	38	 
	13.19. Subsidiaries
	 	 	38	 

iv

 

	 	 	 	 	 
	13.20. Most Favored Lender
	 	 	39	 
	13.21. Seller Earn Out
	 	 	40	 
	14. Financial Covenants
	 	 	40	 
	14.1. Special Definitions
	 	 	40	 
	14.2. Minimum Fixed Charge Coverage
	 	 	42	 
	14.3. Maximum Ratio of Total Funded Indebtedness to EBITDA
	 	 	42	 
	14.4. Minimum Tangible Net Worth
	 	 	43	 
	15. Default
	 	 	43	 
	15.1. Events of Default
	 	 	43	 
	15.1.1. Failure to Pay Principal or Interest
	 	 	43	 
	15.1.2. Failure to Pay Amounts Owed to Other Persons
	 	 	43	 
	15.1.3. Representations or Warranties
	 	 	43	 
	15.1.4. Certain Covenants
	 	 	43	 
	15.1.5. Other Covenants
	 	 	43	 
	15.1.6. Acceleration and Default of Other Indebtedness
	 	 	43	 
	15.1.7. Default Under Other Agreements
	 	 	44	 
	15.1.8. Bankruptcy; Insolvency; Etc
	 	 	44	 
	15.1.9. Judgments; Attachment; Settlement; Etc
	 	 	44	 
	15.1.10. Pension Benefit Plan Termination, Etc
	 	 	44	 
	15.1.11. Liquidation or Dissolution
	 	 	45	 
	15.1.12. Seizure of Assets
	 	 	45	 
	15.1.13. Racketeering Proceeding
	 	 	45	 
	15.1.14. Loss to Assets
	 	 	45	 
	15.1.15. Guaranty; Guarantor
	 	 	45	 
	15.1.16. Material Adverse Change
	 	 	45	 
	15.2. Cross Default
	 	 	45	 
	15.3. Rights and Remedies
	 	 	45	 
	15.3.1. Termination of Commitments
	 	 	45	 
	15.3.2. Acceleration
	 	 	45	 
	15.3.3. Right of Setoff
	 	 	46	 
	15.3.4. Rights Generally
	 	 	46	 
	15.3.5. Joint and Several
	 	 	46	 
	15.4. Application of Funds
	 	 	46	 
	16. Administrative Agent and Lenders
	 	 	47	 
	16.1. Appointment, Powers, and Immunities
	 	 	47	 
	16.2. Reliance by Administrative Agent
	 	 	47	 
	16.3. Employment of Agents and Counsel
	 	 	47	 
	16.4. Defaults
	 	 	48	 
	16.5. Rights as Lender
	 	 	48	 
	16.6. Indemnification
	 	 	48	 
	16.7. Notification of Lenders
	 	 	49	 
	16.8. Non-Reliance on Agent and Other Lenders
	 	 	49	 
	16.9. Resignation
	 	 	49	 
	16.10. Collections and Distributions to Lenders by Administrative Agent
	 	 	50	 
	17. Change in Circumstances
	 	 	50	 
	17.1. Compensation for Increased Costs and Reduced Returns
	 	 	50	 
	17.1.1. Law Changes or Tax Impositions
	 	 	50	 
	17.1.2. Capital Adequacy
	 	 	51	 
	17.1.3. Notice to Borrower
	 	 	51	 
	17.2. Market Failure
	 	 	51	 
	17.3. Illegality
	 	 	52	 

v

 

	 	 	 	 	 
	17.4. Compensation
	 	 	52	 
	17.5. Treatment of Affected Loans
	 	 	52	 
	17.6. Taxes
	 	 	53	 
	17.6.1. Gross-Up
	 	 	53	 
	17.6.2. Lenders’ Undertakings
	 	 	54	 
	17.6.3. Survival of Borrower’s Obligations
	 	 	54	 
	17.7. Usury
	 	 	54	 
	18. General
	 	 	55	 
	18.1. Lenders’ Right to Cure
	 	 	55	 
	18.2. Rights Not Exclusive
	 	 	55	 
	18.3. Survival of Agreements
	 	 	55	 
	18.4. Assignments
	 	 	55	 
	18.4.1. Permitted Assignments
	 	 	55	 
	18.4.2. Consequences and Effect of Assignments
	 	 	56	 
	18.4.3. Agreements Upon Assignment
	 	 	56	 
	18.4.4. Register
	 	 	57	 
	18.4.5. Notice to Borrower of Assignment
	 	 	57	 
	18.4.6. Assignment to Federal Reserve Bank
	 	 	57	 
	18.5. Sale of Participations
	 	 	58	 
	18.6. Information; Confidentiality
	 	 	58	 
	18.7. Payment of Expenses
	 	 	59	 
	18.8. General Indemnity
	 	 	59	 
	18.9. Letters of Credit
	 	 	60	 
	18.10. Changes in Accounting Principles
	 	 	61	 
	18.11. Loan Records
	 	 	61	 
	18.12. Other Security and Guaranties
	 	 	61	 
	18.13. Loan Obligations Payable in Dollars
	 	 	61	 
	19. Miscellaneous
	 	 	62	 
	19.1. Notices
	 	 	62	 
	19.2. Amendments and Modifications; Waivers and Consents
	 	 	62	 
	19.3. Rights Cumulative
	 	 	63	 
	19.4. Successors and Assigns
	 	 	63	 
	19.5. Severability
	 	 	63	 
	19.6. Counterparts
	 	 	63	 
	19.7. Governing Law; No Third Party Rights
	 	 	64	 
	19.8. Counterpart Facsimile Execution
	 	 	64	 
	19.9. Effect of Merger of Bank
	 	 	64	 
	19.10. Negotiated Transaction
	 	 	64	 
	19.11. CHOICE OF FORUM
	 	 	64	 
	19.12. SERVICE OF PROCESS
	 	 	65	 
	19.13. WAIVER OF JURY TRIAL
	 	 	65	 
	19.14. Incorporation By Reference
	 	 	65	 
	19.15. Statutory Notice — Insurance
	 	 	65	 
	19.16. Statutory Notice — Oral Commitments
	 	 	66	 

vi

 

AMENDED AND RESTATED LOAN AGREEMENT

     In consideration of the mutual agreements herein and other sufficient consideration, the
receipt of which is hereby acknowledged, Layne Christensen Company, a Delaware corporation
(Borrower) and LaSalle Bank National Association (LaSalle), as Administrative Agent, and LaSalle
and the other lenders listed on Exhibit 3 to this Agreement, as Lenders, agree as follows:

A. The Borrower, Administrative Agent, and LaSalle (the “Existing Lender”), entered into a Loan
Agreement dated as of July 31, 2003 (as amended from time to time, the “Existing Loan Agreement”).

B. The Borrower, Administrative Agent and the Lenders desire to, and have agreed to, amend and
restate the Existing Loan Agreement into this Agreement, and this Agreement is not a novation of
the Existing Loan Agreement.

C. As a condition to the execution and delivery of this Agreement, the Administrative Agent, the
Existing Lender and the Lenders have executed a Master Assignment and Acceptance Agreement, as
acknowledged by the Borrower, of even date herewith, which such Master Assignment and Acceptance
Agreement is effective simultaneously with the effectiveness of this Agreement.

1. Effective Date. This Agreement is effective September 28, 2005.

2. Definitions and Rules of Construction.

2.1. Listed Definitions. Capitalized words defined in the Glossary attached hereto as
Exhibit 2.1 shall have such defined meanings wherever used in this Agreement and the other
Loan Documents. The inclusion of a defined term in the Glossary that is not used elsewhere
in this Agreement or in the other Loan Documents shall not affect the interpretation or
construction of this Agreement or the other Loan Documents.

2.2. Other Definitions. If a capitalized word in this Agreement is not defined in the
Glossary, it shall have such meaning as defined elsewhere herein, or if not defined
elsewhere herein, the meaning defined in the UCC. Terms are italicized in this Agreement
where they are defined.

2.3. References to Covered Person. The words Covered Person, a Covered Person, any Covered
Person, each Covered Person and every Covered Person refer to Borrower, each Guarantor and
each of their now existing or later acquired, created or organized Subsidiaries (including,
without limitation, all direct and indirect Subsidiaries of Borrower and all Guarantors)
separately. The words Covered Persons refers to Borrower, Guarantors, and their now
existing or later acquired, created or organized Subsidiaries collectively.

2.4. References to Required Lenders. The words Required Lenders means any one or more
Lenders whose shares of Lenders’ Exposure at the relevant time aggregate at least
51.000000000%.

2.5. Accounting Terms.
Unless the context otherwise requires, accounting terms herein that are not defined herein
shall be determined under GAAP. All financial measurements contemplated hereunder respecting
Borrower shall be made and calculated for Borrower and all of its now existing or later
acquired, created or organized Subsidiaries, if any, on a consolidated and consolidating
basis in accordance with GAAP unless expressly provided otherwise herein.

 

 

2.6. Meaning of Satisfactory. Whenever herein a document or matter is required to be
satisfactory to Administrative Agent or satisfactory to Lenders or satisfactory to Required
Lenders, unless expressly stated otherwise such document must be satisfactory to
Administrative Agent, Lenders or Required Lenders (as applicable) in both form and
substance, and unless expressly stated otherwise Administrative Agent, Lenders or Required
Lenders (as applicable) shall have the commercially reasonable discretion to determine
whether the document or matter is satisfactory.

2.7. Harris N.A. Appointment as Syndication Agent. Harris, N.A. is given the title
“Syndication Agent” under the Loan Agreement and Loan Documents. Nothing contained in the
foregoing sentence, shall give Harris N.A. any additional rights or obligations under the
Loan Agreement or the Loan Documents.

2.8. National City Bank of Indiana Appointment as Documentation Agent. National City Bank
of Indiana is given the title “Documentation Agent” under the Loan Agreement and Loan
Documents. Nothing contained in the foregoing sentence, shall give National City Bank of
Indiana any additional rights or obligations under the Loan Agreement or the Loan Documents.

2.9. Computation of Time Periods. In computing or defining periods of time from a specified
date to a later specified date, and in computing the accrual of interest or fees, the word
from shall mean from and including and the words to and until shall each mean to but
excluding. Periods of days referred to in this Agreement shall be counted in calendar days
unless Business Days are expressly prescribed, and references in this Agreement to months
and years are to calendar months and calendar years unless otherwise specified.

2.10. General. Unless the context of this Agreement clearly requires otherwise: (i)
references to the plural include the singular and vice versa; (ii) references to any Person
include such Person’s successors and assigns but, if applicable, only if such successors and
assigns are permitted by this Agreement; (iii) references to one gender include all genders;
(iv) including is not limiting; (v) or has the inclusive meaning represented by the phrase
and/or; (vi) the words hereof, herein, hereby, hereunder and similar terms in this Agreement
refer to this Agreement as a whole, including its Exhibits, and not to any particular
provision of this Agreement; (vii) the word Section or section and Page or page refer to a
section or page, respectively, of, and the word Exhibit refers to an Exhibit to, this
Agreement unless it expressly refers to something else; (viii) reference to any agreement,
document, or instrument (including this Agreement and any other Loan Document or other
agreement, document or instrument defined herein), means such agreement, document, or
instrument as amended, modified, restated or replaced and in effect from time to time in
accordance with the terms thereof and, if applicable, the terms hereof, and includes all
attachments thereto and documents incorporated therein, if any; and (ix) general and
specific references to any Law means such Law as amended, modified, codified or reenacted,
in whole or in part, and in effect from time to time. Section captions and the Table of
Contents are for
convenience only and shall not affect the interpretation or construction of this Agreement
or the other Loan Documents.

2.11. Reaffirmation. Borrower hereby unconditionally reaffirms, acknowledges and confirms
that as of the Effective Date (i) Borrower has no defenses to its obligations under the
Existing Loan Agreement, this Agreement and the other Loan Documents, (ii) Borrower has no
claim against Administrative Agent or the Existing Lender arising from or in connection with
the Existing Loan Agreement, this Agreement or the other Loan Documents and any and all such
claims are waived, released and discharged (the foregoing is not intended to waive any
manifest errors in the Administrative Agent’s or any Lender’s records with respect to the
Loan

2

 

Obligations), and (iii) each of the Loan Documents are hereby reaffirmed without
qualification and are and remain in full force and effect and constitute the legal, valid
and binding obligations of Borrower enforceable against Borrower in accordance with their
terms, except to the extent that the enforceability thereof against such Borrower may be
limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors
rights generally or by equity principles of general application.

2.12. Patriot Act Notice. Administrative Agent, each Lender and LaSalle (for itself and not
on behalf of any other party) hereby notifies the Borrower, each Guarantor, and each other
Covered Person 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 the Borrower, each Guarantor, and each other Covered
Person, which information includes the name and address of the Borrower, each Guarantor and
each other Covered Person and other information that will allow Administrative Agent, such
Lender or LaSalle, as applicable, to identify the Borrower, each Guarantor and each other
Covered Person in accordance with the Act.

3. Lenders’ Commitments. Subject to the terms and conditions hereof, and in reliance upon the
Representations and Warranties, Lenders make the following commitments to Borrower:

3.1. Revolving Loan Commitments.

3.1.1. Aggregate Amount; Reductions. Subject to the limitations in Section 3.1.3
and elsewhere herein, each Lender commits to make available to Borrower, from the
Effective Date to the Revolving Loan Maturity Date, such Lender’s pro-rata share (as
listed on Exhibit 3 hereto) of an Aggregate Revolving Loan Commitment of One Hundred
Thirty Million Dollars ($130,000,000.00), by funding such Lender’s pro-rata share of
Revolving Loan Advances made from time to time by Administrative Agent as provided
herein. Subject to the limitations in Section 3.1.3 and elsewhere herein, payments
and prepayments that are applied to reduce the Aggregate Revolving Loan may be
re-borrowed through Revolving Loan Advances. Borrower may reduce the amount of the
Aggregate Revolving Loan Commitment in whole multiples of $500,000 at any time and
from time to time, but only if (i) Borrower gives Administrative Agent written
notice of Borrower’s intention to make such reduction at least three (3) Business
Days prior to the effective date of the reduction, and (ii) Borrower makes on the
effective date of the reduction any payment on the Aggregate Revolving Loan required
hereunder as a consequence of the reduction, including, principal, interest and
LIBOR breakage fees (if any). Any such reduction of the amount of the Aggregate
Revolving Loan Commitment, whether scheduled or voluntary, shall be permanent. Each
Lender’s initial Revolving Loan Commitment is its pro-rata share of
the Aggregate Revolving Loan Commitment. Upon any reduction of the Aggregate
Revolving Loan Commitment, each Lender’s Revolving Loan Commitment will
automatically reduce by such Lender’s pro-rata share of the reduction of the
Aggregate Revolving Loan Commitment.

3.1.2. Increases in Revolving Loan Commitment. Borrower may, at its option at any
time and from time to time on or before the third annual anniversary of the
Effective Date, seek to increase the Aggregate Revolving Loan Commitment by up to an
aggregate amount not exceeding Twenty Million Dollars ($20,000,000) (resulting in a
maximum Aggregate Revolving Loan Commitment of One Hundred Fifty Million Dollars
($150,000,000)) upon written notice to the Administrative Agent, which notice shall
specify the amount of any such incremental increase (which shall not be less than

3

 

$10,000,000 and in $5,000,000 increments in excess thereof) and shall be delivered
at a time when no Default or Event of Default has occurred and is continuing. The
Administrative Agent, subject to the consent of the Borrower, which shall not be
unreasonably withheld or delayed, may allocate, as it determines in Administrative
Agent’s sole discretion, the incremental increase in the Aggregate Revolving Loan
Commitment on either a ratable basis to the Lenders (which may be declined by any
Lender in its sole discretion) or on a non pro-rata basis to one or more Lenders
(which may be declined by any Lender in its sole discretion) and/or to other banks
or entities reasonably acceptable to the Administrative Agent and the Borrower which
have expressed a desire to commit to the increase in its Revolving Loan Commitment
or become a Lender hereunder and commit to a Revolving Loan Commitment. The
Administrative Agent will then notify each existing and potential new Lender of such
revised allocations of the Aggregate Revolving Loan Commitment, including the
desired increase. No increase in the Aggregate Revolving Loan Commitment shall
become effective until each of the existing or new Lenders extending such
incremental increase in its Revolving Loan Commitment and the Borrower shall have
delivered to the Administrative Agent one or more documents, notes, opinions, and
other agreements in form reasonably satisfactory to the Administrative Agent
pursuant to which any such existing Lender states, inter alia, the amount of its
Revolving Loan Commitment increase, any such new Lender states its Revolving Loan
Commitment amount and agrees to assume and accept the obligations and rights of a
Lender hereunder, the Borrower accepts such new Revolving Loan Commitments, and
Borrower certifies that no Default or Event of Default has occurred and is
continuing. After giving effect to such increase in the Aggregate Revolving Loan
Commitment, all Loans and all such other credit exposure shall be held ratably by
the Lenders in proportion to their respective Revolving Loan Commitments, as revised
to accommodate the increase in the Aggregate Revolving Loan Commitment. Upon any
increase in the Aggregate Revolving Loan Commitment pursuant to this Section, the
Borrower shall pay Administrative Agent for the ratable benefit of only the Lenders
(including any new Lender) whose Revolving Loan Commitments are increased an upfront
fee in an amount equal to what is mutually agreed to among the Borrower, the Lenders
whose Revolving Loan Commitments are increased and the Administrative Agent. Upon
any such increase and any new Lenders, Exhibit 3 shall be deemed to be amended to
reflect such increase and any new Lenders, and the Administrative Agent shall
promptly deliver a copy of the revised Exhibit 3 to each Lender and the Borrower.

3.1.3. Limitation on Revolving Loan Advances. No Revolving Loan Advance will be
made which would result in the Aggregate Revolving Loan exceeding the Maximum
Available Amount and no Revolving Loan
Advance will be made on or after the Revolving Loan Maturity Date. Lenders may,
however, in their absolute discretion make such Revolving Loan Advances, but shall
not be deemed by doing so to have increased the Maximum Available Amount and shall
not be obligated to make any such Revolving Loan Advances thereafter. At any time
that there is an Existing Default, the Aggregate Revolving Loan Commitment may be
canceled as provided in Section 15.3. The Maximum Available Amount on any date shall
be a Dollar amount equal to (i) the Aggregate Revolving Loan Commitment, minus (ii)
the sum of (a) the Letter of Credit Exposure on such date (except to the extent that
a Revolving Loan Advance will be used immediately to reimburse Letter of Credit
Issuer for unreimbursed draws on a Letter of Credit), and (b) the Swingline Loan.

4

 

3.1.4. Revolving Notes. The obligation of Borrower to repay each Lender’s Revolving
Loan shall be evidenced by a promissory note payable to the order of such Lender in
a maximum principal amount equal to the amount of its Revolving Loan Commitment and
otherwise in substantially the form of Exhibit 3.1.4 attached hereto.

3.2. Swingline Commitment.

3.2.1. Swingline Advances. In order to reduce the frequency of fundings of
Revolving Loan Advances by Lenders, but subject to the limitations in Section 3.2.2
and elsewhere herein, Administrative Agent may in its absolute discretion make
Swingline Advances to Borrower from time to time from the Effective Date to the
Revolving Loan Maturity Date. Subject to the limitations in Section 3.2.2 and
elsewhere herein, payments and prepayments that are applied to reduce the Swingline
Loan may be re-borrowed through Swingline Advances. Administrative Agent may
terminate the foregoing Swingline Commitment at any time in its absolute discretion.

3.2.2. Limitations on Swingline Advances. Administrative Agent shall not be
obligated to make any particular Swingline Advance, the making of any particular
Swingline Advance at any particular time being absolutely discretionary. At anytime
Administrative Agent may choose to suspend Swingline Advances and treat all
subsequent requests for an Advance as Revolving Loan Advances. In any event, no
Swingline Advance will be made on or after the Revolving Loan Maturity Date, and no
Swingline Advance will be made which would result in the Swingline Loan exceeding
the Maximum Swingline Amount. No Swingline Advance will be made which would result
in the Swingline Loan plus the Lender acting as Administrative Agent’s Revolving
Loans and such Lender’s pro-rata share of the Letter of Credit Exposure to exceed
such Lender’s Revolving Loan Commitment; provided, however, Administrative Agent
may, in its absolute discretion make such Swingline Advances, but shall not be
deemed by doing so to have increased the Maximum Swingline Amount and shall not be
obligated to make any such Swingline Advance thereafter; and provided further,
however, that after making a requested Swingline Loan, the sum of the Swingline
Lender’s pro rata share of the Aggregate Revolving Loan and all outstanding
Swingline Loans, may exceed the Swingline Lender’s pro rata share of the Revolving
Commitment. The Maximum Swingline Amount on any date shall be a Dollar amount equal
to the lesser of (i) $7,500,000 or (ii) an amount equal to (a) the Aggregate
Revolving Loan Commitment, minus (b) the sum of (i) the Letter of Credit Exposure
and (ii) the Aggregate Revolving Loan immediately prior to the making of such
Swingline Advance.

3.2.3. Swingline Note. The obligation of Borrower to repay the Swingline Loan shall
be evidenced by a promissory note payable to the order of Administrative Agent in a
maximum principal amount of $7,500,000 and otherwise in substantially the form of
Exhibit 3.2.3 attached hereto. Until such time as there is more than one Lender a
party hereto, Borrower shall not execute a Swingline Note.

3.3. Letter of Credit Commitment. The Borrower shall execute and deliver to the Letter of
Credit Issuer the Master Letter of Credit Agreement from time to time in effect. Letter of
Credit Issuer commits to issue standby letters of credit and commercial (documentary)
letters of credit for the account of Borrower from time to time from the Effective Date to
the Revolving Loan Maturity Date, but only if the Letter of Credit Exposure will not as a
result of such issuance exceed the lesser of (i) $30,000,000 and (ii) an amount equal to the
difference between (a) the Aggregate Revolving Loan Commitment, and (b) the Aggregate
Revolving Loan plus the

5

 

Swingline Loan. The expiration date of any Letter of Credit will be
a Business Day that will be no more than one (1) year from the date of issuance but in no
event shall such date be later than the date which is twenty-five days prior to the
Revolving Loan Maturity Date; provided, however, that the expiration date for a Letter of
Credit may be later than the date that is twenty-five (25) days prior to the Revolving Loan
Maturity Date if Letter of Credit Issuer consents to such issuance and Borrower provides to
Letter of Credit Issuer cash collateral satisfactory to Letter of Credit Issuer as security
for Borrower’s obligation to reimburse Letter of Credit Issuer for all draws thereunder.
Immediately upon the issuance by Letter of Credit Issuer of a Letter of Credit in accordance
with the terms and conditions of this Agreement, Letter of Credit Issuer shall be deemed to
have sold and transferred to each other Lender, and such other Lender shall be deemed to
have purchased and received from Letter of Credit Issuer, a pro-rata undivided interest and
participation in such Letter of Credit, the reimbursement obligation of Borrower with
respect thereto, and any guaranty thereof or collateral therefor. Such other Lender’s
pro-rata undivided interest shall be the same as its pro-rata share of the Aggregate
Revolving Loan Commitment. In the event of a direct and irreconcilable conflict between the
terms of this Agreement and the terms of the documents executed by Borrower in connection
with the issuance of any Letter of Credit including, without limitation, any letter of
credit application, Master Letter of Credit Agreement or reimbursement agreement, the terms
of this Agreement will control.

4. Interest.

4.1. Interest on Draws on Letters of Credit. The unreimbursed amount of each draw on a
Letter of Credit shall bear interest at a rate per annum equal to the Adjusted Base Rate
applicable to Revolving Loans.

4.2. Interest on the Swingline Loan. The entire Swingline Loan shall be a Base Rate Loan
and shall bear interest at the Adjusted Base Rate.

4.3. Interest on Aggregate Loans. Borrower may, as provided in Section 7, designate the
whole of an Advance or any part of an Advance (other than, in either case, a Swingline
Advance) to be either a Base Rate Advance or a LIBOR Advance; provided, however, during the
existence of an Existing Default, Borrower may not designate an Advance or part of an
Advance as a LIBOR Advance. Each Base Rate Advance when made will become a Base Rate Loan,
which shall bear interest at the Adjusted Base Rate.
Each LIBOR Advance when made will become a LIBOR Loan, which shall bear interest at the
Adjusted LIBOR Rate. Borrower may also, as provided herein, convert some or all of a Base
Rate Loan into a LIBOR Loan and some or all of a LIBOR Loan into a Base Rate Loan. For each
LIBOR Loan, Borrower shall select an Interest Period as provided in Section 4.7. A LIBOR
Loan shall bear interest at the Adjusted LIBOR Rate throughout the applicable Interest
Period designated by Borrower.

4.4. Adjusted Base Rate. The Adjusted Base Rate for any Base Rate Loan which is a Revolving
Loan or a Swingline Loan shall be the Base Rate plus the applicable Base Rate Margin
determined from the table in Section 4.6.

4.5. Adjusted LIBOR Rate. The Adjusted LIBOR Rate for any LIBOR Loan which is a Revolving
Loan shall be the LIBOR Rate plus the applicable LIBOR Margin determined from the table in
Section 4.6.

6

 

4.6. Base Rate Margins and LIBOR Margins.

	 	 	 	 	 	 	 	 	 
	If the ratio of Borrower’s Total Funded	 	 	 	 	 	 	 	 
	Indebtedness to EBITDA (for the four fiscal	 	LIBOR	 	Base Rate	 	Unused	 	Reference
	quarter period of Borrower most recently ended) is	 	Margin	 	Margin	 	Fee Rate	 	Level
	 
	greater than or equal to 2.50 to 1.00
	 	2.00%
	 	0.50%
	 	0.300%
	 	I
	 	 	 	 	 	 	 	 	 
	greater than or equal to 2.00 to 1.00 but

less than 2.50 to 1.00
	 	1.75%
	 	0.25%
	 	0.275%
	 	II
	 	 	 	 	 	 	 	 	 
	greater than or equal to 1.50 to 1.00 but

less than 2.00 to 1.00
	 	1.50%
	 	0.00%
	 	0.250%
	 	III
	 	 	 	 	 	 	 	 	 
	greater than or equal to 1.00 to 1.00 but

less than 1.50 to 1.00
	 	1.25%
	 	0.00%
	 	0.250%
	 	IV
	 	 	 	 	 	 	 	 	 
	less than 1.00 to 1.00
	 	1.00%
	 	0.00%
	 	0.225%
	 	V

The Increments applicable on the Effective Date shall be those of Level II through the
computation date (as set forth in the next sentence) for the January 31, 2006 Financial
Statements and Compliance Certificate. Thereafter, the applicable Increments shall be
re-determined by Administrative Agent based on the ratio of Borrower’s Total Funded
Indebtedness to EBITDA for the four fiscal quarter period of Borrower most recently ended,
promptly after each delivery by Borrower to Administrative Agent of Borrower’s Financial
Statements (and accompanying Compliance Certificate) as required in Section 12.11 and will
become applicable on the third Business Day following the day when Borrower delivers such
Financial Statements and accompanying Compliance Certificate (the computation date) to
Administrative Agent.

4.7. Interest Periods for LIBOR Loans. For each LIBOR Loan, Borrower shall select an
Interest Period that is either 14 days, one month, two months, three months or six months;
provided that:

(i) every such Interest Period for a LIBOR Advance shall commence on the date of the
Advance or on the date of the conversion or continuation of any Loan as a LIBOR
Loan;

(ii) if any Interest Period would otherwise expire on a day of a calendar month
which is not a Business Day, then such Interest Period shall expire on the next
succeeding Business Day in that calendar month; provided, however, that if the next
succeeding Business Day would be in the following calendar month, it shall expire on
the first preceding Business Day;

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

(iv) no Interest Period for a LIBOR Loan that is part of the Aggregate Revolving
Loan shall extend beyond the Revolving Loan Maturity Date.

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4.8. Time of Accrual. Interest shall accrue on all principal amounts outstanding from the
date when first outstanding to the date when no longer outstanding. Amounts shall be deemed
outstanding until payments are applied thereto as provided herein.

4.9. Computation. Interest shall be computed for the actual days elapsed over a year deemed
to consist of 360 days. Interest rates that are based on the Base Rate shall change
simultaneously with any change in the Base Rate and shall be effective for the entire day on
which such change becomes effective. The Base Rate will be determined by Administrative
Agent before the initial Advances on the Effective Date and on each Business Day thereafter
when the Base Rate changes.

4.10. Rate After Maturity. Borrower shall pay interest on the Aggregate Loans, the
Swingline Loan and any Obligations with respect to Letters of Credit after their Maturity,
and, at the option of Administrative Agent or at the direction of the Required Lenders, on
the Aggregate Loans, the Swingline Loan and on the other Loan Obligations after the
occurrence of an Event of Default, at a rate per annum of two percent (2%) plus the
then-applicable rates. Past due fees and other amounts past due and owing hereunder shall
bear interest at two percent (2%) above the then-current Adjusted Base Rate.

5. Fees.

5.1. Revolving Loan Unused Fee. Borrower shall pay to Administrative Agent for the account
of Lenders a non-refundable, recurring Revolving Loan Unused Fee calculated by applying the
daily equivalent of an annual Unused Fee Rate determined pursuant to the table set forth in
Section 4.6 to the Unused Revolving Loan Commitment on each day during the period from the
Effective Date to the Revolving Loan Maturity Date. The Unused Revolving Loan Commitment on
any day shall be the difference between (i) the amount of the Aggregate Revolving Loan
Commitment and (ii) the sum of (a) the Aggregate Revolving Loan, and (b) the face amount of
all outstanding Letters of Credit and (c) without duplication of clause (b), the total of
all amounts drawn on the outstanding Letters of Credit but not reimbursed to the Letter of
Credit Issuer by Borrower as of the close of business on such day, but excluding in all
cases the Swingline Loan. The Revolving Loan Unused Fee shall be payable quarterly in
arrears commencing on the last day of the first calendar quarter ending after the Effective
Date and continuing on the last day of each calendar quarter thereafter and on the Revolving
Loan Maturity Date. The Unused Fee Rate shall be determined
from the chart in Section 4.6 of this Agreement under the heading “Unused Fee Rate.” The
Unused Fee Rate applicable on the Effective Date shall be Level II through the computation
date (as set forth in the next sentence) for the January 31, 2006 Financial Statements and
Compliance Certificate. Thereafter, the Borrower’s ratio of Total Funded Indebtedness to
EBITDA for the four fiscal quarter period of Borrower most recently ended will be calculated
and applied to determine the applicable Unused Fee Rate in the same manner used for
determination of the applicable Base Rate Margin, and LIBOR Margin as described in Section
4.6.

5.2. Letter of Credit Fee. Borrower shall pay to Administrative Agent for the account of
Letter of Credit Issuer and each other Lender with a Revolving Loan Commitment, a
non-refundable recurring Letter of Credit Fee for each Letter of Credit issued by Letter of
Credit Issuer. The Letter of Credit Fee for any Letter of Credit shall be an amount equal
to the aggregate undrawn amount of such Letter of Credit multiplied by the LIBOR Margin in
effect on the date such Letter of Credit Fee is due. The Letter of Credit Fee for each
Letter of Credit shall be payable in arrears on the last day of the quarter in which it was
issued for the remaining portion of such quarter when issued and quarterly in arrears
thereafter on the last day of each full calendar quarter thereafter while such Letter of
Credit is outstanding and upon maturity or termination thereof pro-

8

 

rata for the remaining
portion of the quarter in which such maturity or termination occurs. All Letter of Credit
Fees are to be paid to the Lenders pro-rata in accordance with their respective pro-rata shares as set forth on Exhibit 3.

5.3. Letter of Credit Fronting Fee. Borrower shall pay to Letter of Credit Issuer (for its
own account) a non-refundable, one-time Fronting Fee equal to 0.125% of the face amount of
each Letter of Credit issued by Letter of Credit Issuer. The Fronting Fee due for any
Letter of Credit shall be payable in advance, commencing on the issuance date of such Letter
of Credit. The fronting fee shall be due and payable only if there are two or more Lenders.

5.4. Other Letter of Credit Fees. Borrower shall pay to Letter of Credit Issuer such Letter
of Credit Issuer’s other customary fees for issuance, amendment, or renewal of a Letter of
Credit and, as Letter of Credit Issuer and Borrower may agree with respect to each Letter of
Credit, and for each negotiation of a draft drawn under such Letter of Credit.

5.5. Calculation of Fees. All of the foregoing fees and all other fees payable to
Administrative Agent or any Lender that are based on an annual percentage shall be
calculated on the basis of a year deemed to consist of 360 days and for the actual number of
days elapsed.

6. Payments.

6.1. Scheduled Payments on Aggregate Revolving Loan and Swingline Loan.

6.1.1. Interest. Borrower shall pay interest accrued on each Base Rate Loan
included in the Aggregate Revolving Loan and on the Swingline Loan monthly in
arrears beginning on the last day of the first month ending after the Effective Date
and continuing on the last day of each calendar month thereafter, and on the
Revolving Loan Maturity Date. Borrower shall pay interest accrued on each LIBOR
Loan included in the Aggregate Revolving Loan at the end of its Interest Period and,
in addition, for each such LIBOR Loan with an Interest
Period longer than three months, Borrower shall pay interest accrued thereon
quarterly on the same date of each quarter as the date such LIBOR Loan was made.
Borrower shall pay interest accrued thereon on each day that would have been the end
of an Interest Period with respect to such LIBOR Loan had successive Interest
Periods of three months’ duration been applicable to such LIBOR Loan. Borrower
shall pay interest accrued on each Revolving Loan and the Swingline Loan after the
Revolving Loan Maturity Date on demand.

6.1.2. Principal. Borrower shall repay the entire amount of the Aggregate Revolving
Loan as then outstanding on September 24, 2010 (the Revolving Loan Maturity Date),
and Borrower shall repay the entire amount of the Swingline Loan on demand, or if no
demand is made, on the Revolving Loan Maturity Date.

6.2. Application.

6.2.1. Payments shall be paid or applied by the Administrative Agent (in each case
up to the outstanding principal amount of the applicable Loan) (i) first, to reduce
the Swingline Loan to zero, and then (ii) second, as set forth in Section 16.10.

9

 

6.3. Prepayments.

6.3.1. Voluntary Prepayment. Subject to the limitations in the following sentences,
Borrower may wholly prepay any Base Rate Loan, or LIBOR Loan that is included in the
Aggregate Revolving Loan at any time and may make a partial prepayment thereon from
time to time, without penalty or premium, but only if (i) Borrower gives
Administrative Agent written notice (which may be mailed, personally delivered or
telecopied as provided in Section 19.1) or telephonic notice (promptly confirmed in
writing in the manner provided in Section 19.1) of Borrower’s intention to make such
prepayment by 12:00 noon Local Time on the day of such prepayment, (ii) the total
amount of such prepayment is a whole multiple of $100,000, and (iii) Borrower pays
any amount that is due under Section 17.4 as a consequence of the prepayment.
Unless there is an Existing Default, all payments on the Revolving Loan shall be
made first to the outstanding balance of the Swingline Loan, if any, and then to the
remaining amount of the Aggregate Revolving Loan.

6.3.2. Mandatory Prepayments When Over-Advances Exist. If at any time the Aggregate
Revolving Loan exceeds the Maximum Available Amount, whether as a result of optional
Revolving Loan Advances by Lenders as contemplated by Section 3.1.3 or otherwise,
Borrower shall on demand make a payment in the amount of the excess to
Administrative Agent for the account of Administrative Agent on the Swingline Loan
and Lenders on the Aggregate Revolving Loan. Each such prepayment will be applied by
Administrative Agent and Lenders first to reduce the Swingline Loan (and
consequently each Lender’s risk participation in such Swingline Loan) until it is
reduced to zero, then to reduce the Base Rate Loans that are included in the
Aggregate Revolving Loan (and consequently a ratable portion of each Lender’s
Revolving Loan) until they are reduced to zero and then to reduce the LIBOR Loans
that are included in the Aggregate Revolving Loan (and consequently a ratable
portion of each Lender’s Revolving Loan). In the case of such a prepayment, Borrower
will pay any accrued
interest on the amount prepaid at the time of such prepayment, and Borrower will pay
any amount that is due under Section 17.4 as a consequence of the prepayment.

6.4. Reimbursement Obligations of Borrower. Borrower hereby unconditionally agrees to
immediately pay to Letter of Credit Issuer on demand at the Letter of Credit Issuer’s
Applicable Lending Office all amounts required to pay all drafts drawn under Letters of
Credit issued for the account of such Borrower, all fees associated with the Letters of
Credit, and all reasonable expenses incurred by Letter of Credit Issuer in connection with
such Letters of Credit and in any event and without demand to remit to Letter of Credit
Issuer (which may be through obtaining Advances if permitted under Section 3.1.3) sufficient
funds to pay all debts and liabilities arising under any Letter of Credit issued for the
account of such Borrower.

6.5. Manner of Payments and Timing of Application of Payments.

6.5.1. Payment Requirement. Unless expressly provided to the contrary elsewhere
herein, Borrower shall make each payment on the Loan Obligations to Administrative
Agent for the account of Lenders as required under the Loan Documents at the
Applicable Lending Office of the Administrative Agent on the date when due, without
deduction, setoff or counterclaim. All such payments will be distributed by
Administrative Agent to Lenders as provided in Section 16.10 for application to the
Loan Obligations as provided herein.

10

 

6.5.2. Application of Payments and Proceeds. All payments received by
Administrative Agent in immediately available funds at or before 12:00 noon (Local
Time) on a Business Day will be distributed by Administrative Agent to Lenders as
provided in Section 16.10 on the same Business Day. Such payments received on a day
that is not a Business Day or after 12:00 noon (Local Time) on a Business Day will
be distributed by Administrative Agent to Lenders as provided in Section 16.10 on
the next Business Day. The amount so distributed to a Lender will be applied by such
Lender to the relevant Loan Obligation on the Business Day when received.

6.5.3. Interest Calculation. Section 6.5.2 notwithstanding, for purposes of
interest calculation only, (i) a payment in cash or by wire transfer or direct debit
to an account of Borrower received at or before 12:00 noon (Local Time) on a
Business Day shall be deemed to have been applied to the relevant Loan Obligation on
the Business Day when it is received, and (ii) a payment in cash or by wire transfer
or direct debit to an account of Borrower received on a day that is not a Business
Day or after 12:00 noon (Local Time) on a Business Day shall be deemed to have been
applied to the relevant Loan Obligation on the next Business Day. A payment made by
check, draft or other instrument will be applied for interest purposes in
Administrative Agent’s commercially reasonable discretion in a manner consistent
with its customary collection policies.

6.6. Returned Instruments. If a payment is made by check, draft or other instrument and the
check, draft or other instrument is returned unpaid, any application of the payment to the
Loan Obligations will be reversed and will be treated as never having been made.

6.7. Compelled Return of Payments or Proceeds.
If Administrative Agent or any Lender is for any reason compelled to surrender any payment
because such payment is for any reason invalidated, declared fraudulent, set aside, or
determined to be void or voidable as a preference, an impermissible setoff, or a diversion
of trust funds, then this Agreement and the Loan Obligations to which such payment or
proceeds was applied or intended to be applied shall be revived as if such application was
never made; and Borrower shall be liable to pay to Administrative Agent or such Lender, and
shall indemnify Administrative Agent or such Lender for and hold Administrative Agent or
such Lender harmless from any loss with respect to, the amount of such payment or proceeds
surrendered. This Section shall be effective notwithstanding any contrary action that
Administrative Agent or such Lender may take in reliance upon its receipt of any such
payment or proceeds. Any such contrary action so taken by Administrative Agent or such
Lender shall be without prejudice to Administrative Agent’s or such Lender’s rights under
this Agreement and shall be deemed to have been conditioned upon the application of such
payment or proceeds having become final and indefeasible. The provisions of this Section
shall survive termination of the Commitments, the expiration of the Letters of Credit and
the indefeasible full payment and satisfaction of all of the Loan Obligations.

6.8. Due Dates Not on Business Days. Subject to Section 4.7(ii), if any payment required
hereunder becomes due on a date that is not a Business Day, then such due date shall be
deemed automatically extended to the next Business Day (including any interest accruing
during any such extension period).

7. Procedure for Obtaining Advances and Letters of Credit.

7.1. Initial Advances. Provided that all conditions thereto hereunder are satisfied and
subject to the limitations contained herein, Lenders will fund and Administrative Agent will
make the initial Revolving Loan Advance on the Effective Date as directed by Borrower in a
written direction

11

 

delivered to Administrative Agent. The manner of disbursement shall be
subject to Administrative Agent’s approval.

7.2. Subsequent Revolving Loan Advances.

7.2.1. Borrower Requests. Borrower may request subsequent Revolving Loan Advances
at any time, but not more often than once each Business Day, by submitting a request
therefor to Administrative Agent as provided in Section 7.10. Administrative Agent
may treat every request for a Revolving Loan Advance that is a Base Rate Advance as
a request for a Swingline Advance to the extent the requested amount does not exceed
the Maximum Swingline Amount and as a request for a Revolving Loan Advance in the
amount of the excess. Administrative Agent may treat every request for an Advance as
a request for a Base Rate Advance if Borrower does not specify that such Advance is
to be a LIBOR Advance in Borrower’s request for an Advance. Every request for a
Revolving Loan Advance shall be irrevocable. A request for a Revolving Loan Advance
received by Administrative Agent on a day that is not a Business Day or that is
received by Administrative Agent after 12:00 noon (Local Time) (or 2:00 p.m. (Local
Time) in the case of a request for a Revolving Loan Advance which will, subject to
the terms of this Agreement, be treated by Administrative Agent as a request for a
Swingline Advance) on a Business Day shall be treated as having been received by
Administrative Agent prior to 12:00 noon (Local Time) (or 2:00 p.m. (Local Time) in
the case of a request for a Revolving Loan Advance which will, subject to the terms
of this Agreement, be treated by Administrative Agent as a request for a Swingline
Advance) on the next Business
Day; provided, however, a request for a LIBOR Advance must be given prior to 11:00
a.m., Local Time, at least three (3) Business Days prior to the Advance Date for
such LIBOR Advance.

7.2.2. Revolving Loan Advances to Repay the Swingline Loan.

7.2.2.1. Administrative Agent may in its sole and absolute discretion on any
Business Day give notice to Lenders of the amount of the Swingline Loan
after application of all payments to be applied thereto as provided
elsewhere herein. Such notice shall be given no later than 1:00 p.m. (Local
Time) and may include a demand that the Swingline Loan be fully paid. If
Administrative Agent demands that the Swingline Loan be fully paid, then
prior to 3:00 p.m. (Local Time) on such date, Lenders shall remit funds to
Administrative Agent sufficient to reduce the Swingline Loan to zero. The
aggregate of such remittances shall be treated as a Revolving Loan Advance
and the Aggregate Revolving Loan increased accordingly. Each such remittance
by a Lender shall be made in accordance with its pro-rata share of the
Aggregate Revolving Loan Commitment and shall be made notwithstanding that
(i) the amount of the aggregate of such remittances by Lenders may not be in
the minimum amount for Revolving Loan Advances otherwise required hereunder,
(ii) any conditions to Advances in Section 8 may not be then satisfied,
(iii) there is an Existing Default, (iv) the aggregate amount of such
remittances by Lenders would result in the Aggregate Revolving Loan
exceeding the Maximum Available Amount, or (v) such remittances by Lenders
may be made after the Revolving Loan Maturity Date; provided, however, that
in no event shall any Lender be required to make any such remittance that
would result in the sum of (a) the Revolving Loan of such Lender, plus (b)
such Lender’s pro-rata share of the Letter of Credit Exposure exceeding such
Lender’s Revolving Loan Commitment.

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7.2.2.2. If for any reason, including the commencement of a proceeding in
bankruptcy with respect to Borrower, remittances by Lenders as provided
above cannot be made on the date otherwise required above, then each Lender
shall be deemed automatically to have purchased from Administrative Agent as
of such date a pro-rata undivided interest and participation in the
Swingline Loan so as to cause such Lender to share in the Swingline Loan in
accordance with its pro-rata share of the Aggregate Revolving Loan
Commitment. Each Lender shall remit its pro-rata share of the Swingline Loan
to Administrative Agent promptly on demand. All interest payable with
respect to such Lender’s pro-rata share of the Swingline Loan shall be for
the account of Administrative Agent to the date such remittance is made, and
shall be for the account of and remitted by Administrative Agent to such
Lender as a participant from and after such date. Further, until such
remittance is made, such Lender shall pay to Administrative Agent, on
demand, interest on such Lender’s pro-rata share of the Swingline Loan at
the Federal Funds Rate.

7.2.3. Administrative Agent’s Right to Make Other Revolving Loan Advances.

7.2.3.1. Payment of Loan Obligations.
Administrative Agent shall have the right to make Revolving Loan Advances at
any time and from time to time to cause timely payment of any of the Loan
Obligations, and Administrative Agent shall have the right to make
withdrawals from or debits against any accounts of any Covered Person at
Administrative Agent at any time and from time to time to cause timely
payment of any of the Loan Obligations; provided, however, except during an
Existing Default, Administrative Agent shall use its reasonable efforts to
provide no less than one (1) Business Day prior notice of any such Advances,
withdrawals or debits. Administrative Agent may select the Advance Date for
any such Revolving Loan Advance, but such Advance Date may only be a
Business Day. Administrative Agent will give notice to Borrower after any
such Revolving Loan Advance is made. Any such Revolving Loan Advance will be
a Base Rate Advance.

7.3. Letters of Credit. Borrower may request the issuance of a Letter of Credit by
submitting an issuance request to Letter of Credit Issuer and executing the reimbursement
agreement required under Section 9.1 no less than five (5) Business Days prior to the
requested issue date for such Letter of Credit.

7.4. Fundings.

7.4.1. Revolving Advances. Not later than 1:00 p.m. (Local Time) on each Advance
Date for an Advance other than a Swingline Advance, Administrative Agent shall
promptly notify each Lender of the amount of the Advance to be made on that Advance
Date. Each Lender shall make immediately available to Administrative Agent by 3:00
p.m. (Local Time) on the Advance Date funds consisting solely of Dollars in the
amount of its pro-rata share of such Advance in accordance with such remittance
instructions as may be given by Administrative Agent to Lenders from time to time.

7.4.2. Draws on Letters of Credit. In the event that a draw is made on a Letter of
Credit and Borrower does not reimburse the amount of such draw in full to Letter of
Credit Issuer immediately on demand, Letter of Credit Issuer shall promptly notify

13

 

Administrative Agent of such failure. Upon Administrative Agent’s receipt of such
notice from Letter of Credit Issuer, Administrative Agent may notify each Lender
thereof and shall have the right to cause a Revolving Loan Advance to be made,
regardless whether such Revolving Loan Advance would result in the Aggregate
Revolving Loan exceeding the Maximum Available Amount, by notifying each Lender of
the draw, the amount of the Revolving Loan Advance required to fund reimbursement of
such draw, and the amount of such Lender’s ratable share of such Revolving Loan
Advance. The Advance Date and time for such Revolving Loan Advance shall not be
later than 3:00 p.m. (Local Time) on the first Business Day following Administrative
Agent’s delivery of such notice to Lenders. By no later than such Advance Date and
time, each Lender shall make immediately available to Administrative Agent funds
consisting solely of Dollars in the amount of its pro-rata share of such Revolving
Loan Advance in accordance with such remittance instructions as may be given by
Administrative Agent to each Lender from time to time. Each Revolving Loan Advance
made by Administrative Agent pursuant to this Section 7.4.2 shall be deemed to be a
Base Rate Advance.

7.4.3. All Fundings Ratable.
All fundings of Advances (other than Swingline Advances) shall be made by Lenders as
provided herein in accordance with their pro-rata shares of the respective Aggregate
Commitments, as applicable. Except as otherwise expressly provided herein, a Lender
shall not be obligated to fund Revolving Loan Advances that would result in the sum
of (a) such Lender’s Revolving Loan, plus (b) such Lender’s pro-rata share of the
Letter of Credit Exposure exceeding its Revolving Loan Commitment, or make available
any more than its pro-rata share of any Advance.

7.5. Administrative Agent’s Availability Assumption. 7.5.1. Unless Administrative Agent has
been given written notice by a Lender prior to an Advance Date that such Lender does not
intend to make immediately available to Administrative Agent such Lender’s pro-rata share of
the Advance which Administrative Agent will be obligated to make on the Advance Date,
Administrative Agent may assume that such Lender has made the required amount available to
Administrative Agent on the Advance Date and Administrative Agent may, in reliance upon such
assumption, make available to Borrower a corresponding amount. If such corresponding amount
is not in fact made immediately available to Administrative Agent by such Lender on the
Advance Date, Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender. If such Lender does not pay such corresponding amount (or an amount
demanded by Administrative Agent pursuant to Section 7.2.2.1) immediately upon
Administrative Agent’s demand therefor, then Administrative Agent shall promptly notify
Borrower and the other Lenders and Borrower shall immediately pay such corresponding amount
to Administrative Agent. Administrative Agent shall also be entitled to recover, either from
such defaulting Lender (a Defaulting Lender) or Borrower, interest on such corresponding
amount for each day from the date such corresponding amount was made available by
Administrative Agent to Borrower to the date such corresponding amount is recovered by
Administrative Agent, at a rate per annum equal to (i) if paid by such Lender, the cost to
Administrative Agent of funding such amount at the Federal Funds Rate, or (ii) if paid by
Borrower, the applicable rate for the Advance in question determined from the request
therefor. Each Lender shall be obligated only to fund its pro-rata share of an Advance
subject to the terms and conditions hereof, regardless of the failure of another Lender to
fund its pro-rata share thereof. In addition, the failure of any Lender to pay its pro-rata
share of any such Advance shall cause such Lender to be a Defaulting Lender and such
Defaulting Lender shall, until such amount is paid to Administrative Agent (with interest at
the Federal Funds Rate), (a) permit Administrative Agent the unconditional and irrevocable
right of setoff against any amounts (including, without limitation, payments of principal,
interest, and fees, as well as indemnity payments) received by Administrative Agent
hereunder for the benefit of any

14

 

such Defaulting Lender, and (b) if such failure to pay
shall continue for a period of two Business Days, result in any such Defaulting Lender
forfeiting any right to vote on any matter that the Required Lenders or all Lenders are
permitted to vote for hereunder (and the calculation of Required Lenders shall exclude such
Defaulting Lender’s interest in the Lenders’ Exposure); provided, however, once such a
failure is cured, then such Lender shall, subsequent thereto, have all rights hereunder;
provided, further, however, if any Lender shall fail to make such a payment within the two
Business Day period specified in clause (b) above (other than by reason of events beyond the
reasonable control of such Lender) two or more times during the term hereof, such Lender
shall permanently forfeit its right to vote hereunder (and the calculation of Required
Lenders shall exclude such Defaulting Lender’s interest in the Lenders’ Exposure).

7.5.2. Unless Administrative Agent has been given written notice by Borrower prior
to the date any payment to be made by it is due, that it does not intend to remit
such payment,
Administrative Agent may assume that the Borrower has timely remitted such payment
and Administrative Agent may, in reliance upon such assumption, make available a
corresponding amount or pro-rata portion thereof to the Persons entitled thereto.
If such payment was not in fact remitted to the Administrative Agent in immediately
available funds, then, each Lender shall immediately on demand repay to
Administrative Agent the corresponding amount or pro-rata portion thereof made
available to such Lender, together with interest thereon in respect of each day from
the date such amount was made available by Administrative Agent to such Lender to
the date such amount is repaid to Administrative Agent, at the Federal Funds Rate.

7.6. Disbursement. Provided that all conditions precedent herein to a requested Advance or,
if applicable, a Swingline Advance, have been satisfied, Administrative Agent will make the
amount of such requested Advance available to Borrower on the applicable Advance Date in
immediately available funds in Dollars at Administrative Agent’s Applicable Lending Office.

7.7. Restrictions on Advances. No Advance will be made unless it is a whole multiple of
$500,000 and not less than $1,000,000, in the case of a LIBOR Advance, or a whole multiple
of $10,000 and not less than $100,000, in the case of a Base Rate Advance. No more than one
Revolving Loan Advance and no more than one Swingline Advance will be made on any one day
pursuant to a request for a Revolving Loan Advance. Advances will only be made for the
purposes permitted in Section 12.1. No LIBOR Advance will be made so long as there is any
Existing Default.

7.8. Restriction on Number of LIBOR Loans. No more than six (6) LIBOR Loans with different
Interest Periods may be outstanding at any one time.

7.9. Each Advance Request and Letter of Credit Request a Certification. Each submittal of a
request for an Advance and each submittal of a request for the issuance of a Letter of
Credit by a Borrowing Officer shall constitute a certification by Borrower that (i) there is
no Existing Default, (ii) all conditions precedent hereunder to the making of the requested
Advance or issuance of the requested Letter of Credit have been satisfied, and (iii) the
Representations and Warranties are then true, with such exceptions as have been disclosed to
Lenders in writing by Borrower or a Guarantor from time to time and are satisfactory to the
Required Lenders, and will be true on the Advance Date or issuance date, as applicable, as
if then made with such exceptions.

7.10. Requirements for Every Advance Request. Only a request (which shall be in writing, or
oral and confirmed in writing within one Business Day, in the form attached hereto as
Exhibit 7.10 and mailed, personally delivered or telecopied as provided in Section 19.1)
from a

15

 

Borrowing Officer to Administrative Agent that specifies the amount of the Advance to
be made, the Advance Date for the requested Advance, the portion of the Advance which is
requested to be a LIBOR Advance and the portion of the Advance which is requested to be a
Base Rate Advance, and the Interest Period to be applicable to the LIBOR Loan that will
result from a requested LIBOR Advance, shall be treated as a request for an Advance. No
Advance Date for any requested Advance may be other than a Business Day. A request for a
LIBOR Advance must be given prior to 11:00 a.m., Local Time, at least three (3) Business
Days prior to the Advance Date for such LIBOR Advance. A request for a Base Rate Advance
must be given prior to 12:00 noon, Local Time, on the Advance Date for such Base Rate
Advance.

7.11. Conversion. Except while there is an Existing Default, each LIBOR Loan shall
automatically renew for the Interest Period specified in the initial notice received from
the Borrower by the Administrative Agent pursuant to this Agreement at the then current
LIBOR Rate unless the Borrower, pursuant to a subsequent notice received by the
Administrative Agent, shall elect a different Interest Period or the conversion of all or a
portion of such LIBOR Loan to a Base Rate Loan.

7.12. Requirements for Every Letter of Credit Request. Only a written request (which may be
mailed, personally delivered or telecopied as provided in Section 19.1) from a Borrowing
Officer to Administrative Agent or an electronic initiation over an online service provided
by Letter of Credit Issuer that specifies the amount, requested expiry date (which shall be
a Business Day and in no event later than twenty-five (25) days before the Revolving Loan
Maturity Date) and beneficiary of the requested Letter of Credit and other information
necessary for its issuance shall be treated as a request for issuance of a Letter of Credit.

7.13. Exoneration of Administrative Agent and Lenders. Neither Administrative Agent nor any
Lender shall incur any liability to Borrower for treating a request that meets the express
requirements of Section 7.10 or Section 7.12 as a request for an Advance or issuance of a
Letter of Credit, as applicable, if Administrative Agent believes in good faith that the
Person making the request is a Borrowing Officer or if, in the case of a request for a
Letter of Credit, it is electronically initiated. Neither Administrative Agent nor any
Lender shall incur any liability to Borrower for failing to treat any such request as a
request for an Advance or issuance of a Letter of Credit, as applicable, if Administrative
Agent believes in good faith that the Person making the request is not a Borrowing Officer.

8. Conditions of Lending.

8.1. Conditions to Initial Advance. Lenders will have no obligation to fund the initial
Revolving Loan Advance or any subsequent Revolving Loan Advance unless:

8.1.1. Listed Documents and Other Items. Administrative Agent shall have received
on or before the Effective Date all of the documents and other items listed or
described in Exhibit 8.1.1 hereto as being conditions to the initial Revolving Loan
Advances as being delivered or executed on or before the Execution Date, with each
being satisfactory to Lenders and (as applicable) duly executed and (also as
applicable), attested, acknowledged, certified, or authenticated.

8.1.2. Financial Condition. Lenders shall (A) have received (i) unqualified,
audited consolidated financial statements for the Borrower for the fiscal years
ending in 2003, 2004 and 2005 in a form acceptable to Administrative Agent, and (ii)
unaudited interim consolidated financial statements for the Borrower for each
monthly period ended after

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the latest fiscal year referred to in clause (i) above,
and such financial statements shall not, in the judgment of the Lenders, disclose
any material adverse change in the consolidated financial position of the Borrower
from what was reflected in the financial statements previously furnished to the
Lenders, and (B) have determined to their satisfaction that the proforma financial
statements for the remainder of fiscal year 2006 and all of fiscal years 2007, 2008,
2009, and 2010, as furnished to Administrative Agent and Lenders, and other
information furnished to Administrative Agent and Lenders by Borrower (i) for the
periods ended on
or before the Effective Date, fairly presents in all material respects the financial
condition of Borrower and the results of its operations for such periods, and (ii)
for the periods that will end after the Effective Date, fairly and accurately
forecast the business and financial condition of Borrower and the results of its
operations for such periods.

8.1.3. Current Acquisition. All documents to be executed and delivered in
connection with the Current Acquisition shall have been delivered to Lender in final
form and shall be satisfactory to Administrative Agent and the Lenders, and the
Current Acquisition shall have closed (subject only to the funding of the purchase
price), and the aggregate purchase price for the Current Acquisition shall not
exceed Sixty Million and 00/100 Dollars ($60,000,000.00) in cash (subject to
adjustment as provided in the Current Acquisition Documents) and 2,222,222 in newly
issued common stock of the Borrower (excluding from the foregoing, the Seller Earn
Out) and the aggregate fees and expenses with respect to the Current Acquisition
shall not exceed an additional Three Million and 00/100 Dollars ($3,000,000.00).

8.1.4. Capitalization. The capitalization of the Borrower after giving effect to
the Current Acquisition shall be reasonably satisfactory to the Administrative Agent
and the Lenders.

8.1.5. No Default. There shall be no Existing Default and no Default or Event of
Default will occur as a result of such Advance being requested or made or the
application of the proceeds thereof. No Default or Event of Default shall occur as
a result of the Current Acquisition.

8.1.6. Representations and Warranties. The Representations and Warranties shall be
true and correct.

8.1.7. No Material Adverse Change. Since the date of the Initial Financial
Statements delivered to Administrative Agent, there shall not have been any change
which has or is reasonably likely to have a Material Adverse Effect on any Covered
Person.

8.1.8. Pending Material Proceedings. There shall be no pending Material
Proceedings.

8.1.9. Payment of Fees and Expenses. Borrower shall have paid and reimbursed to
Lenders all fees, costs and expenses that are payable or reimbursable to Lenders
hereunder on or before the Effective Date.

8.1.10. Insurance. Borrower shall have the insurance required by Section 12.4.

17

 

8.1.11. Closing Certificate. A closing certificate (on the Effective Date and on
the date of the initial Revolving Advance) certifying as to the completion of the
conditions to closing, including without limitation, the matters in Sections 8.1.5
and 8.1.6.

8.1.12. Minimum EBITDA.
After giving effect to the closing of the Current Acquisition and the funding of all
Loans in connection therewith and the payment of all fees and expenses incurred in
connection herewith and the Current Acquisition as well as giving effect to all
Permitted Acquisitions that have closed prior to the Effective Date, Borrower shall
have had at least $50,000,000 in EBITDA for the twelve-month period ending July 31,
2005.

8.1.13. Leverage. After giving effect to the closing of the Current Acquisition and
the funding of all Loans in connection therewith and the payment of all fees and
expenses incurred in connection herewith and the Current Acquisition as well as
giving effect to all Permitted Acquisitions that have closed prior to the Effective
Date, the ratio of Total Funded Indebtedness to EBITDA shall be less than or equal
to 3.00 to 1.00 as of July 31, 2005.

8.1.14. Other Items. Administrative Agent shall have received such other consents,
approvals, opinions (but not with respect to any foreign Subsidiaries, if any,
executing a Guaranty), certificates, documents or information as it reasonably deems
necessary. The Lenders shall be satisfied with the capitalization and corporate
structure of Borrower and its Subsidiaries.

8.1.15. Fees and Expenses. Administrative Agent and the Lenders shall have received
all fees required to be paid, and all expenses for which invoices have been
presented, on or before the Effective Date.

8.2. Conditions to Subsequent Advances. Lenders will have no obligation to fund any Advance
after the initial Revolving Loan Advance unless:

8.2.1. General Conditions. All of the conditions to the initial Advances in Section
8.1 (except the condition in Section 8.1.2(B) with respect to proforma Financial
Statements delivered on or before the Effective Date, Section 8.1.6 and Section
8.1.10) shall have been and shall remain satisfied.

8.2.2. Representations and Warranties. The Representations and Warranties are then
true, with such exceptions as have been disclosed to Lenders in writing by Borrower
or any Guarantor from time to time and are satisfactory to the Required Lenders, and
will be true as of the time of such Advance, as if then made with such exceptions.

8.2.3. No Prohibitions. No order, judgment or decree of any Governmental Authority
shall exist which purports by its terms to enjoin or restrain Administrative Agent
or any Lender from making the requested Advance, and no Law or request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over Administrative Agent or any Lender shall exist which prohibits, or
requests that Administrative Agent or any Lender refrain from, the making of loans
generally or Administrative Agent or any Lender in particular, or imposes upon
Administrative Agent or any Lender with respect to such Advance any restriction or
reserve or capital requirement (for which Administrative Agent or any Lender is not
otherwise compensable by Borrower hereunder).

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8.2.4. No Default.
There shall be no Existing Default and no Default or Event of Default will occur as
a result of such Advance being requested or made or the application of the proceeds
thereof.

9. Conditions to Issuance of Letters of Credit. As conditions precedent to the issuance of any
Letter of Credit:

9.1. Letter of Credit Application/Reimbursement Agreement. Borrower shall have executed and
delivered to Letter of Credit Issuer one or more Master Letter of Credit Agreements, letter
of credit applications and reimbursement agreements each in form and substance satisfactory
to Letter of Credit Issuer under which Borrower further evidences its obligation to
reimburse to Letter of Credit Issuer on demand the amount of each draw on such Letter of
Credit as provided in Section 6.4, together with interest from the date of the draw at the
rate provided in Section 4.1 and (without duplication) all reasonable expenses incurred by
Letter of Credit Issuer in connection with such Letter of Credit.

9.2. No Prohibitions. No order, judgment or decree of any Governmental Authority shall
exist which purports by its terms to enjoin or restrain Letter of Credit Issuer or any other
Lender from issuing such Letter of Credit, and no Law or request or directive (whether or
not having the force of law) from any Governmental Authority with jurisdiction over Letter
of Credit Issuer or any other Lender shall exist which prohibits, or requests that Letter of
Credit Issuer or any other Lender refrain from, the issuance of letters of credit generally
or such Letter of Credit in particular, or imposes upon Letter of Credit Issuer or any other
Lender with respect to such Letter of Credit any restriction or reserve or capital
requirement (for which Letter of Credit Issuer or any other Lender is not otherwise
compensable by Borrower hereunder).

9.3. Representations and Warranties. The Representations and Warranties are then true, with
such exceptions as have been disclosed to Lenders in writing by Borrower or such Guarantor
from time to time and are satisfactory to the Required Lenders, and will be true as of the
time of the issuance of such Letter of Credit, as if then made with such exceptions.

9.4. No Default. There shall be no Existing Default and no Default or Event of Default is
reasonably likely to occur as a result of such Letter of Credit being issued or a draw
thereon being made or paid.

9.5. Other Conditions. All of the conditions to the initial Advances in Section 8.1 (except
the condition in Section 8.1.6 and 8.1.10) shall have been and shall remain satisfied.

10. Representations and Warranties. Except as otherwise described in the Disclosure Schedule
attached hereto as Exhibit 10, Borrower represents and warrants to Administrative Agent, Lenders,
and Letter of Credit Issuer, on its behalf and on behalf of each Covered Person, as follows:

10.1. Organization and Existence. Each Covered Person is duly organized and existing in
good standing under the Laws of the state of its organization, is duly qualified to do
business and is in good standing in every state where the nature or extent of its business
or properties require it to be qualified to do business, except where the failure to so
qualify could not reasonably be expected to have a Material Adverse
Effect on any Covered Person. Each Covered Person has the power and authority to own its
properties and carry on its business as now being conducted. With respect to each Covered
Person, the following information is fully, accurately and completely set forth on section
10.1 of the Disclosure Schedule: (i) the full and exact legal name of each

19

 

Covered Person,
(ii) state of organization/formation of such Covered Person, (iii) the tax identification
number (FEIN or social security number, as appropriate) of each Covered Person, and (iv) the
charter number (if available) of each Covered Person.

10.2. Authorization. Each Covered Person is duly authorized to execute and perform every
Loan Document and the Current Acquisition Documents to which such Covered Person is a party,
and Borrower is duly authorized to borrow hereunder, and this Agreement, the other Loan
Documents, and the Current Acquisition Documents have been duly authorized by all requisite
corporate or membership action (in the case of limited liability companies) of each Covered
Person. No consent, approval or authorization of, or declaration or filing with, any
Governmental Authority, and no consent of any other Person, is required in connection with
Borrower’s execution, delivery or performance of this Agreement and the other Loan
Documents, except for those already duly obtained. No consent, approval or authorization
of, or declaration or filing with, any Governmental Authority, and no consent of any other
Person, is required in connection with Borrower’s execution, delivery or performance of the
Current Acquisition Documents, except for (i) those already duly obtained, (ii) the filing
with the appropriate Governmental Authorities of the certificates of merger to effectuate
the Current Acquisition (which shall be filed on the Effective Date) and as more
specifically set forth in Section 12.22, and (iii) the recordation of any certificates of
merger with any local Governmental Authorities to evidence the proper chain of title.

10.3. Due Execution. Every Loan Document and Current Acquisition Documents to which a
Covered Person is a party has been executed on behalf of such Covered Person by a Person
duly authorized to do so.

10.4. Enforceability of Obligations. Each of the Loan Documents and Current Acquisition
Documents to which a Covered Person is a party constitutes the legal, valid and binding
obligation of such Covered Person, enforceable against such Covered Person in accordance
with its terms, except to the extent that the enforceability thereof against such Covered
Person may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws
affecting creditors’ rights generally or by equitable principles of general application.

10.5. Burdensome Obligations; Defaults. Except as set forth in this Agreement and the Term
Indebtedness Documents, no Covered Person is a party to or bound by any Contract, including,
without limitation, any Contract that would prohibit the granting of a Security Interest on
its assets or require that if a Security Interest is granted that it be pari passu with any
other Person’s Security Interest in such assets, or is subject to any provision in the
Charter Documents of such Covered Person which would, if performed by such Covered Person,
result in a Default or Event of Default either immediately or upon the elapsing of time.
There are no Defaults or Events of Default which have occurred and are continuing. There is
no breach or default with respect to any of the Term Indebtedness.

10.6. Legal Restraints. The execution and performance of any Loan Document by a Covered
Person will not violate or constitute a default under the Charter Documents of such Covered
Person, any Material Agreement of such Covered Person, or any Material Law, and will not,
except as expressly
contemplated or permitted in this Agreement, result in any Security Interest being imposed
on any of such Covered Person’s property.

10.7. Labor Contracts and Disputes. There is no pending or, to Borrower’s knowledge,
threatened, strike, work stoppage, unfair labor practice claim or other labor dispute
against or

20

 

affecting any Covered Person or its employees which has or is reasonably likely
to have a Material Adverse Effect on any Covered Person.

10.8. No Material Proceedings. There are no Material Proceedings pending or, to the best
knowledge of Borrower, threatened, against any Covered Person.

10.9. Material Licenses. All Material Licenses have been obtained or exist for each Covered
Person.

10.10. Compliance with Material Laws. The operations and employee compensation practices
of every Covered Person comply in all material respects with, and are not subject to any
judicial or administrative complaint, investigation, order or proceeding alleging the
violation of, any and all applicable Environmental Laws which are Material Laws and
Employment Laws which are Material Laws.

10.11. Prior Transactions. From and after the Effective Date, and except for Permitted
Acquisitions, no Covered Person has been a party to any merger or consolidation, or acquired
all or substantially all of the assets of any Person, or acquired any of its property
outside of the ordinary course of business.

10.12. Solvency.
Borrower is Solvent prior to and after giving effect to, the transactions contemplated by
the initial Revolving Loan Advance on the Effective Date and immediately prior to and after
giving effect to the Current Acquisition. Borrower is Solvent at the time of each request
for an Advance and immediately after the funding of each such Advance.

10.13. Projections; Pro Forma Balance Sheet. The projections of Borrower’s periodic
financial condition, and results of operations, for the period beginning January 31, 2006
and ending January 31, 2010, a copy of which have been delivered to Administrative Agent and
each Lender, represent, as of the Effective Date, Borrower’s good faith best estimate of
Borrower’s future financial performance for the periods set forth therein. Such projections
have been prepared consistent with GAAP on the basis of the assumptions set forth therein,
which Borrower believes, as of the Effective Date, are fair and reasonable in light of
current and reasonably foreseeable business conditions. The pro forma balance sheet of
Borrower as of the Effective Date, a copy of which has been provided by Borrower to
Administrative Agent and each Lender, has been prepared consistent with GAAP (except the non
year-end Financial Statements do not contain footnotes and remain subject to normal year-end
adjustments) and presents fairly and accurately Borrower’s financial condition as of the
Effective Date as if the transactions contemplated by the initial advance had occurred on
the Effective Date.

10.14. Financial Statements. The Financial Statements are complete and correct in all
material respects, have been prepared in accordance with GAAP (except the non year-end
Financial Statements do not contain footnotes and remain subject to normal year end
adjustments), and fairly reflect the financial condition,
results of operations and cash flows of the Persons covered thereby as of the dates and for
the periods stated therein, subject in the case of interim Financial Statements to normal
year-end adjustments made in accordance with GAAP.

10.15. No Change in Condition. Since the date of the Financial Statements delivered to
Administrative Agent and Lenders as required herein, there has been no change which has or
is reasonably likely to have a Material Adverse Effect on any Covered Person.

21

 

10.16. No Defaults. No Covered Person has breached or violated or has defaulted under any
Material Agreement, or has defaulted with respect to any Material Obligation of such Covered
Person. No Default has occurred which is continuing and no Event of Default has occurred.
No Default or Event of Default will occur as a result of the Current Acquisition.

10.17. Investments. No Covered Person has any Investments in other Persons except existing
Permitted Investments.

10.18. Indebtedness. No Covered Person has any Indebtedness except existing Permitted
Indebtedness.

10.19. Indirect Obligations. No Covered Person has any Indirect Obligations except existing
Permitted Indirect Obligations.

10.20. Security Interests. No Covered Person has granted or allowed to exist any Security
Interests on any of its assets except existing Permitted Security Interests.

10.21. Tax Liabilities; Governmental Charges. Each Covered Person has filed or caused to be
filed all tax reports and returns required to be filed by it with any Governmental
Authority, except where extensions have been properly obtained. Each Covered Person has paid
or made adequate provision for payment of all Taxes of such Covered Person, except Taxes
which are being diligently contested in good faith by appropriate proceedings and as to
which such Covered Person has established adequate reserves in conformity with GAAP. No
Security Interest for any such Taxes has been filed and no claims are being asserted with
respect to any such Taxes which, if adversely determined, has or is reasonably likely to
have a Material Adverse Effect on such Covered Person. There are no material unresolved
issues concerning any liability of a Covered Person for any Taxes which, if adversely
determined, will have or is reasonably likely to have a Material Adverse Effect on such
Covered Person.

10.22. Pension Benefit Plans. All Pension Benefit Plans maintained by each Covered Person
or an ERISA Affiliate of such Covered Person qualify under Section 401 of the Code and are
in compliance with the provisions of ERISA to the extent ERISA is applicable and all other
Material Laws. Except with respect to events or occurrences which do not have and are not
reasonably likely to have a Material Adverse Effect on any Covered Person, and to the extent
ERISA is applicable to any such Pension Benefit Plans:

10.22.1. Prohibited Transactions.
None of such Pension Benefit Plans has participated in, engaged in or been a party
to any non-exempt prohibited transaction as defined in ERISA or the Code,
and no officer, director or employee of such Covered Person or of an ERISA Affiliate
of such Covered Person has committed a breach of any of the responsibilities or
obligations imposed upon fiduciaries by Title I of ERISA.

10.22.2. Claims. There are no claims, pending or threatened, involving any such
Pension Benefit Plan by a current or former employee (or beneficiary thereof) of
such Covered Person or ERISA Affiliate of such Covered Person, nor is there any
reasonable basis to anticipate any claims involving any such Pension Benefit Plan
which would likely be successfully maintained against such Covered Person or such
ERISA Affiliate.

10.22.3. Reporting and Disclosure Requirements. There are no violations of any
reporting or disclosure requirements with respect to any such Pension Benefit Plan
and

22

 

none of such Pension Benefit Plans has violated any applicable Law, including
ERISA and the Code.

10.22.4. Accumulated Funding Deficiency. No such Pension Benefit Plan has (i)
incurred an accumulated funding deficiency (within the meaning of Section 412(a) of
the Code), whether or not waived; (ii) been a Pension Benefit Plan with respect to
which a Reportable Event (to the extent that the reporting of such events to the
PBGC within thirty days of the occurrence has not been waived) has occurred and is
continuing; or (iii) been a Pension Benefit Plan with respect to which there exist
conditions or events which have occurred that present a significant risk of
termination of such Pension Benefit Plan by the PBGC.

10.22.5. Multi-employer Plan. No Covered Person or ERISA Affiliate of such Covered
Person has received notice that any such Multi-employer Plan is in reorganization or
has been terminated within the meaning of Title IV of ERISA, and no such
Multi-employer Plan is reasonably expected to be in reorganization or to be
terminated within the meaning of Title IV of ERISA.

10.23. Welfare Benefit Plans. No Covered Person or ERISA Affiliate of any Covered Person
maintains a Welfare Benefit Plan that has a liability which, if enforced or collected, has
or is reasonably likely to have a Material Adverse Effect on any Covered Person. Each
Covered Person and each ERISA Affiliate of any Covered Person has complied in all material
respects with the applicable requirements of Section 4980B of the Code pertaining to
continuation coverage as mandated by COBRA.

10.24. Retiree Benefits. No Covered Person or ERISA Affiliate of such Covered Person has an
obligation to provide any Person with any medical, life insurance, or similar benefit
following such Person’s retirement or termination of employment (or to such Person’s
beneficiary subsequent to such Person’s death) which has or is reasonably likely to have a
Material Adverse Effect on any Covered Person.

10.25. State of Property. Each Covered Person has good and marketable or merchantable title
to all real and personal property (tangible and intangible) purported to be owned by it or
reflected in the Initial Financial Statements, except for personal property sold in the
ordinary course of business after the date of the Initial Financial Statements, and all such
real and personal property is in good working order
and condition, except for normal wear and tear. Borrower owns all intellectual property
(including, without limitation, patents, trademarks, and copyrights) reasonably necessary
for the operation of its business.

10.26. Negative Pledges. Except as set forth in this Agreement and as set forth in the Term
Indebtedness Documents, no Covered Person is a party to or bound by any Contract which
prohibits the creation or existence of any Security Interest upon or assignment or
conveyance of any of its assets.

10.27. Affiliates; Subsidiaries. Borrower has no Subsidiaries, except for those
Subsidiaries listed in section 10.27 of the Disclosure Schedule, which may be updated by
Borrower from time to time without the consent of Required Lenders so long as any such new
Subsidiaries executes a joinder agreement to the Guaranty if required by the Administrative
Agent in its reasonable discretion or as otherwise required by this Agreement. Section
10.27 of the Disclosure Schedule sets forth for each Subsidiary, its authorized capital
stock, membership interests or other equity

23

 

interests and its issued and outstanding capital
stock, membership interests or other equity interests; all issued and outstanding shares,
membership interests or other equity interests of such Subsidiaries are validly issued and
outstanding, fully paid and non-assessable, and are owned beneficially and of record by the
Persons listed.

10.28. Margin Stock. No Covered Person is engaged or will engage, principally or as one of
its important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U),
and no part of the proceeds of any Advance will be used to purchase or carry any such margin
stock or to extend credit to others for the purpose of purchasing or carrying any such
margin stock or for any purpose which violates, or which would be inconsistent with, the
provisions of Regulation U. None of the transactions contemplated by this Agreement, any of
the other Loan Documents, or any of the Acquisition Documents will violate Regulations T, U
or X of the FRB.

10.29. Tax Matters. Borrower does not intend to treat the Loans and/or Letters of Credit
and related transactions as being a “reportable transaction” (within the meaning of Treasury
Regulation Section 1.6011-4).

10.30. Securities Matters. No proceeds of any Advance will be used to acquire any security
in any transaction which is subject to Sections 13 and 14 of the Securities Exchange Act of
1934.

10.31. Investment Company Act, Etc. No Covered Person is an investment company
registered or required to be registered under the Investment Company Act of 1940, or a
company controlled (within the meaning of such Investment Company Act) by such an
investment company or an affiliated person of, or promoter or
principal underwriter for, an investment company, as such terms are
defined in the Investment Company Act of 1940. No Covered Person is subject to regulation
under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate
Commerce Act or any other Law limiting or regulating its ability to incur Indebtedness for
money borrowed.

10.32. No Improper Payment or Influence.
Neither Borrower nor any other Covered Person has directly or indirectly paid or delivered
any fee, commission or other money or property, or engaged in any lobbying, influencing or
other behavior, however characterized, to any agent, government official, regulatory body,
governmental agency or other Person, in the United States or any other country, related to
the business or operations of the Borrower or any other Covered Person, that the Borrower
and each other Covered Person knows or has reason to believe to have been illegal under any
federal, state, or local law of the United States or any other country having jurisdiction,
or to have been for the purpose of, and to have had the effect of, inducing or encouraging
the breach by the recipient thereof of any legal duties, whether as an employee or otherwise
to another Person.

10.33. Foreign Enemies and Regulations. The use of the proceeds of the Loans as
contemplated by this Agreement will not violate (A) any regulations promulgated or
administered by the Office of Foreign Assets Control, United States Department of the
Treasury, including without limitation, the Foreign Assets Control Regulations, the
Transaction Control Regulations, the Cuban Assets Control Regulations, the Foreign Funds
Control Regulations, the Iranian Assets Control Regulations, the Nicaraguan Trade Control
Regulations, the South African Transaction Regulations, the Iranian Transactions
Regulations, the Iraqi Sanctions Regulations, the Soviet Gold Coin Regulations, the
Panamanian Transaction Regulations or the Libyan Sanctions Regulations of the United States
Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, (B) the Trading with the
Enemy Act, as amended, (C) Executive Orders 8389, 9095, 9193, 12543 (Libya), 12544 (Libya),
12722 or 12724 (Iraq), 12775 or 12779 (Haiti), or 12959

24

 

(Iran), as amended, of the President
of the United States or (D) any rule, regulation or executive order issued or promulgated
pursuant to the laws or regulations described in the foregoing clauses (A) -(C).

10.34. No Material Misstatements or Omissions. Neither the Loan Documents, any of the
Financial Statements nor any statement, list, certificate or other information furnished or
to be furnished by Borrower or any other Covered Person to Administrative Agent or Lenders
in connection with the Loan Documents or any of the transactions contemplated thereby
contains any untrue statement of a material fact, or omits to state a material fact
necessary to make the statements therein not misleading. Borrower has disclosed to
Administrative Agent and Lenders everything regarding the business, operations, property,
financial condition, or business prospects or itself and every Covered Person that has or is
reasonably likely to have a Material Adverse Effect on any Covered Person.

10.35. Filings. All registration statements, reports, proxy statements and other documents,
if any, required to be filed by any Covered Person with the Securities and Exchange
Commission pursuant to the Securities Act of 1933, and the Securities Exchange Act of 1934,
have been filed, and such filings are complete and accurate in all material respects and
contain no untrue statements of material fact or omit to state any material facts required
to be stated therein or necessary in order to make the statements therein not misleading.

11. Modification and Survival of Representations. Except as specifically noted herein, Borrower
may at any time after the initial Advances are made propose to Lenders in writing to modify the
representations and warranties in Section 10, the representations and warranties in any other Loan
Document and any other representation or warranty made in any certificate, report, opinion or other
document delivered by Borrower pursuant to the Loan Documents. If the proposed modifications are
satisfactory to Required Lenders as evidenced by their written assent thereto, then such
representations and warranties shall be deemed and treated as so modified, but only as of the date
of Borrower’s written modification proposal. If such proposed
modifications are not satisfactory to Required Lenders, then such proposed modifications shall not
be deemed or treated as modifying such representations and warranties. All such representations and
warranties, as made or deemed made as of a particular time, shall survive execution of each of the
Loan Documents and the making of every Advance, and may be relied upon by Administrative Agent and
Lenders as being true and correct as of the date when made or deemed made until all of the Loan
Obligations are fully and indefeasibly paid, no Letters of Credit are outstanding and the Letter of
Credit Exposure is irreversibly zero.

12. Affirmative Covenants. Borrower covenants and agrees that, while any of the Commitments
remains in effect and until all of the Loan Obligations are fully and indefeasibly paid, no Letters
of Credit are outstanding and the Letter of Credit Exposure is irreversibly zero, Borrower shall
do, or cause to be done by each of the other Covered Persons, as applicable, the following:

12.1. Use of Proceeds. The proceeds of Revolving Loan Advances and Swingline Advances shall
be used solely to (i) provide for the working capital requirements and general corporate
purposes of the Borrower, and (ii) to finance Permitted Acquisitions, including the Current
Acquisition and related transaction expenses.

12.2. Corporate Existence. Each Covered Person shall maintain its existence in good
standing and shall maintain in good standing its right to transact business in those states
in which it is now or hereafter doing business, except where the failure to so qualify will
not have and will not be reasonably likely to have a Material Adverse Effect on any Covered
Person. Each Covered Person shall obtain and maintain all Material Licenses for such Covered
Person.

25

 

12.3. Maintenance of Property and Leases. Each Covered Person shall maintain in good
condition and working order, and repair and replace as required, all buildings, equipment,
machinery, fixtures and other real and personal property owned or leased by it whose useful
economic life has not elapsed and which is reasonably necessary for the ordinary conduct of
the business of such Covered Person. To the extent applicable, all of each Covered Person’s
operations are operated in accordance with the Federal Fair Labor Standards Act of 1938 and
all rules, regulations, and orders thereunder.

12.4. Insurance. Each Covered Person shall at all times keep insured or cause to be kept
insured, in insurance companies having a rating of at least “A-” by Best’s Rating Service,
all property owned by it of a character usually insured by others carrying on businesses
similar to that of such Covered Person in such manner and to such extent and covering such
risks as such properties are usually insured subject to deductibles and self-insured
retention levels consistent with past practices. Each Covered Person also shall carry
business interruption insurance in such amounts, in such manner and to such extent and
covering such risks as such businesses are usually insured subject to deductibles and
self-insured retention levels consistent with past practices. Each Covered Person shall at
all times carry insurance, in insurance companies having a rating of at least “A-” by Best’s
Rating Service, against liability on account of damage to persons or property (including
product liability insurance and insurance required under all Laws pertaining to workers’
compensation) and covering all other liabilities common to such Covered Person’s business,
in such manner and to such extent as such coverage is usually carried by others conducting
businesses similar to that of such Covered Person subject to deductibles and self-insured
retention levels consistent with past practices. All liability policies of liability
insurance maintained
hereunder shall name Administrative Agent as an additional insured for the benefit of
Lenders, and such policies of insurance maintained hereunder shall contain a clause
providing that such policies may not be canceled, without 30 days prior written notice to
Administrative Agent. Borrower shall upon request of Administrative Agent at any time
furnish to Administrative Agent updated evidence of insurance (in the form required as a
condition to Administrative Agent’s lending hereunder) for such insurance. Notwithstanding
the foregoing, if the Best’s Rating Service rating of any insurance carrier(s) of the
Borrower or any other Covered Person falls below “A-,” then such event shall not be an Event
of Default if, within 90 days of such downgrading, Borrower shall put in place insurance
meeting the requirements of this Section with replacement insurance carrier(s) with a Best’s
Rating Service rating of at least “A-.”

12.5. Payment of Taxes and Other Obligations. Each Covered Person shall promptly pay and
discharge or cause to be paid and discharged, as and when due, any and all income taxes,
federal or otherwise, lawfully assessed and imposed upon it, and any and all lawful taxes,
rates, levies, and assessments whatsoever upon its properties and every part thereof, or
upon the income or profits therefrom and all claims of materialmen, mechanics, carriers,
warehousemen, landlords and other like Persons for labor, materials, supplies, storage or
other items or services which if unpaid might be or become a Security Interest or charge
upon any of its property; provided, however, that a Covered Person may diligently contest in
good faith by appropriate proceedings the validity of any such taxes, rates, levies,
assessments or tax claims, provided such Covered Person has established adequate reserves
therefor in conformity with GAAP on the books of such Covered Person, and no Security
Interest, other than a Permitted Security Interest, results from such non-payment.

12.6. Compliance With Laws. Each Covered Person shall comply with all Material Laws.
Without limiting the foregoing, Borrower, each Guarantor and each other Covered Person shall
(i) ensure, and cause each other Covered Person to ensure, that no person who owns a
controlling

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interest in or otherwise controls Borrower or a Covered Person is or shall be
(A) listed on the Specially Designated Nationals and Blocked Person List maintained by the
Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other
similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or
regulation or (B) a person designated under Section 1(b), (c) or (d) of Executive Order No.
13224 (September 23, 2001), any related enabling legislation or any other similar Executive
Orders, and (ii) comply, and cause each other Covered Person to comply, with all applicable
Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations.

12.7. Termination of Pension Benefit Plan. No Covered Person or ERISA Affiliate of such
Covered Person shall terminate or amend any Pension Benefit Plan maintained by such Covered
Person or such ERISA Affiliate if such termination or amendment would result in any
liability to such Covered Person or such ERISA Affiliate under ERISA or any increase in
current liability for the plan year for which such Covered Person or such ERISA Affiliate is
required to provide security to such Pension Benefit Plan under the Code, which such
liability could reasonably be expected to have a Material Adverse Effect on such Covered
Person.

12.8. Notice to Administrative Agent of Material Events. Borrower shall, promptly upon any
Responsible Officer of Borrower obtaining knowledge or notice thereof, give notice to
Administrative Agent of (i) any breach of any of the covenants in Section 12, 13, or 14;
(ii) any Default or Event of Default; (iii) the commencement of any Material Proceeding; and
(iv) any loss of or damage to any assets of a Covered Person or the commencement of any
proceeding for the condemnation or other taking of any of the assets of a
Covered Person, if insurance and/or condemnation proceeds in excess of $500,000 are likely
to be payable as a consequence of such loss, damage or proceeding, or if such loss, damage
or proceeding has or is reasonably likely to have a Material Adverse Effect on such Covered
Person. In addition,

12.8.1. Borrower shall furnish to Administrative Agent from time to time all
information which Administrative Agent reasonably requests with respect to the
status of any Material Proceeding.

12.8.2. Borrower shall furnish to Administrative Agent from time to time all
information which Administrative Agent requests with respect to any Pension Benefit
Plan established by a Covered Person or an ERISA Affiliate of any Covered Person.

12.8.3. Borrower shall promptly deliver to Administrative Agent notice of any
default or event of default, or the occurrence of any event which would with the
passage of time, giving of notice or otherwise, constitute a default or event of
default with respect to any of the Permitted Indebtedness which is in an amount
which exceeds $1,000,000.

12.8.4. Borrower shall promptly deliver notice to Administrative Agent of the
assertion by the holder of any capital stock, membership interest, or any other
equity interest in a Covered Person or any Indebtedness of a Covered Person in the
outstanding principal amount in excess of $1,000,000 that a default exists with
respect thereto or that such Covered Person is not in compliance with the terms
thereof, or of the threat or commencement by such holder of any enforcement action
because of such asserted default or noncompliance (including, without limitation,
any shareholder suits, derivative actions, suits against the officers and/or
directors, or similar proceedings).

12.8.5. Borrower shall, promptly after becoming aware thereof, deliver notice to
Administrative Agent of any pending or threatened strike, work stoppage, unfair
labor

27

 

practice claim or other labor dispute affecting a Covered Person which has or
is reasonably likely to have a Material Adverse Effect on any Covered Person.

12.8.6. Borrower shall promptly deliver notice to Administrative Agent of any change
in the name, state of organization, or form of organization of any Covered Person.

12.8.7. Borrower shall, promptly after becoming aware thereof, deliver notice to
Administrative Agent of any event that has or is reasonably likely to have a
Material Adverse Effect on any Covered Person.

12.8.8.
Borrower shall, promptly after becoming aware thereof, deliver notice to
Administrative Agent of an actual or alleged violation of any Material Law
applicable to a Covered Person or the property of a Covered Person.

12.8.9. Borrower shall notify Administrative Agent promptly in writing of any fact
or condition of which Borrower is aware which materially and adversely affects the
value of its assets taken as a whole.

12.9. Borrowing Officer. Borrower shall keep on file with Administrative Agent at all times
an appropriate instrument naming each Borrowing Officer.

12.10. Accounting System; Tracing of Proceeds. Each Covered Person shall maintain a system
of accounting established and administered in accordance with GAAP. Each Covered Person
shall maintain detailed and accurate records of all transfers of any proceeds of the Loans
from Borrower to such Covered Person. Borrower shall maintain detailed and accurate records
of proceeds of the Loans and transfers of proceeds of the Loans (i) received by it from the
Lenders, (ii) transferred from it to any other Covered Person, and (iii) received by it from
another Covered Person. Borrower agrees that (a) the business operations of Borrower and
each Covered Person are interrelated and complement one another, and such entities have a
common business purpose and common management, and (b) the proceeds of Advances hereunder
will benefit Borrower and each Covered Person, severally and jointly, regardless of which
Borrower requests or receives part or all of any Advance.

12.11. Financial Statements. Borrower shall deliver to Administrative Agent for each Lender:

12.11.1. Annual Financial Statements. Within 90 days after the close of each fiscal
year of Borrower (or, if earlier, such date as the Borrower is required to file an
annual report on form 10-K with the SEC), year-end consolidated and, unless
otherwise noted, consolidating financial statements of Borrower and its
Subsidiaries, containing a balance sheet, income statement, statement of cash flows
(consolidated only) and an audit report without qualification by an independent
certified public accounting firm selected by Borrower and satisfactory to
Administrative Agent, and accompanied by (i) a Compliance Certificate of any of the
Chief Financial Officer, Vice President, Finance or Treasurer of Borrower, and (ii)
the management letter and report on internal controls delivered by such independent
certified public accounting firm in connection with their audit, if any.

12.11.2. Monthly Financial Statements; Quarterly Compliance Certificate. Within 30
days after the end of each fiscal month, unaudited consolidated financial statements
and, unless otherwise noted, consolidating summary financial statements of Borrower
for each of the fiscal months not covered by the latest year-end financial
statements, in each case

28

 

containing a balance sheet, income statement, and statement
of cash flows (only quarterly and only consolidated); and in connection with the
delivery of such Financial Statements at the end of each fiscal quarter, a
Compliance Certificate and a Backlog Report each certified as true and correct by of
the Chief Financial Officer, Vice President, Finance or Treasurer of Borrower.

Each Compliance Certificate shall be in the form of Exhibit 12.11, shall contain detailed
calculations of the financial measurements referred to in Section 14 for the relevant
periods, and shall contain statements by the signing officer to the effect that, except as
explained in reasonable detail in such Compliance Certificate, (i) the attached Financial
Statements are complete and correct in all material respects (subject, in the case of
Financial Statements other than annual, to normal year-end audit adjustments) and have been
prepared in accordance with GAAP applied consistently throughout the periods covered thereby
and with prior periods (except as disclosed therein) (ii) all of the Representations and
Warranties are true and correct as of the date such certification is given as if made on
such date, and (iii) there is no Existing Default. If any Compliance Certificate delivered
to Administrative Agent discloses that a representation or warranty is not true and correct,
or that there is an Existing Default that has not been waived in writing by Required
Lenders, such Compliance Certificate shall state what action Borrower has taken or proposes
to take with respect thereto.

12.12. Other Financial Information; Tax Information. Borrower shall also deliver the
following to Administrative Agent:

12.12.1. Stockholder Reports. Promptly upon being available, copies of any proxy
statements, financial statements and reports which Borrower makes available to its
stockholders, members or partners.

12.12.2. Pension Benefit Plan Reports. Promptly upon the reasonable request of
Administrative Agent at any time or from time to time, a copy of each annual report
or other filing or notice filed with respect to each Pension Benefit Plan of a
Covered Person or an ERISA Affiliate of a Covered Person.

12.12.3. Tax Returns. Promptly upon the reasonable request of Administrative Agent
at any time or from time to time, a copy of each federal, state, or local tax return
or report filed by Borrower.

12.12.4. Tax Matters. In the event Borrower determines to take any action
inconsistent with its intention set forth in Section 10.29, it will promptly notify
the Administrative Agent thereof. If Borrower so notifies the Administrative Agent,
Borrower acknowledges that one or more of the Administrative Agent and the Lenders
may treat its Loans and/or its interest in Swingline Loans and/or Letters of Credit
as part of a transaction that is subject to Treasury Regulation Section 301.6112-1,
and the Administrative Agent and such Lender or Lenders, as applicable, will
maintain the lists and other records required by such Treasury Regulation. Promptly
after Borrower has notified the Administrative Agent of any intention by Borrower to
treat Loans and/or Letters of Credit and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4), a duly
completed copy of IRS Form 8886 or any successor form.

12.13. Annual Projections. Within 60 days after the first day of each fiscal year of
Borrower, projected balance sheets, statements of income and expense, and statements of cash
flows for

29

 

Borrower and every other Covered Person as of the end of and for each fiscal month
of such fiscal year and on an annual basis for the next three succeeding fiscal years, in
such detail as Administrative Agent may reasonably require.

12.14. Other Information.
Promptly upon the reasonable request of Administrative Agent, Borrower shall promptly
deliver to Administrative Agent such other information about the business, operations,
revenues, financial condition, property, or business prospects of Borrower and every other
Covered Person as Administrative Agent may, from time to time, reasonably request.

12.15. Access to Officers and Auditors. Each Covered Person shall, within three Business
Days of a request from a Lender or Administrative Agent, permit any Lender and
Administrative Agent and each of their representatives and agents to discuss the business,
operations, revenues, financial condition, property, or business prospects of such Covered
Person with its officers, employees, accountants and independent auditors as often as
Administrative Agent may request in its reasonable discretion, and such Covered Person shall
direct such officers, employees, and accountants, and request its independent auditors, to
cooperate with Administrative Agent, Lenders, and their representatives and agents, and make
full disclosure to Administrative Agent, Lenders, and their representatives and agents, of
those matters that they may deem relevant to the continuing ability of Borrower timely to
pay and perform the Loan Obligations.

12.16. Acquisition Documents. Borrower shall fully perform all of its material obligations
under all Acquisition Documents, and shall enforce all of its rights and remedies thereunder
as it deems appropriate in its reasonable business judgment; provided, however, that
Borrower shall not take any action or fail to take any action which would result in a waiver
or other loss of any right or remedy of Borrower thereunder which could reasonably likely
have a Material Adverse Effect.

12.17. Further Assurances. Borrower shall execute and deliver, or cause to be executed and
delivered, to Administrative Agent such documents and agreements, and shall take or cause to
be taken such actions, as Administrative Agent may from time to time reasonably request to
carry out the terms and conditions of this Agreement and the other Loan Documents.

12.18. Covered Persons. Borrower shall cause each other Borrower and each Covered Person to
comply with each of the terms and provisions of this Agreement and the other Loan Documents,
and Borrower acknowledges and agrees that failure of Borrower or any Covered Persons to
comply with the terms of this Agreement and the other Loan Documents, shall be a Default
hereunder and thereunder.

12.19. Parity with other Indebtedness. Other than with respect to Priority Indebtedness if
and to the extent permitted under this Agreement, Borrower will, and will cause each other
Covered Person to, execute all such documents and take all such actions as the
Administrative Agent may reasonably request in order to assure that at all times (i) the
Loan Obligations shall rank in right of payment senior to or pari passu with all other
Indebtedness of the Borrower and each other Covered Person, and (ii) each Guarantor’s
obligations under its Guaranty shall rank in right of payment senior to or pari passu with
all other Indebtedness of such Guarantor.

12.20. Guarantees. Upon the request of the Administrative Agent, Borrower shall cause any
Subsidiaries of Borrower to execute a Guaranty of all of the Loan Obligations in form and
substance reasonably satisfactory to Administrative Agent and to provide such authorizing
resolutions, certificates of incumbency and other corporate documents as may be reasonably

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requested by Administrative
Agent in connection therewith; provided, however, if, at any time after the date of this
Agreement, any Subsidiary shall enter into a guaranty in respect of the Term Indebtedness
(or any refinancing thereof), or otherwise become directly or indirectly liable for, all or
any part of the Term Indebtedness (or any refinancing thereof), the Borrower shall promptly
notify Administrative Agent and Borrower shall promptly cause each such Subsidiary
contemporaneously with entering into any such guaranty or becoming directly or indirectly
liable in respect of such Term Indebtedness, to guaranty the Loan Obligations by executing a
Guaranty (such Guaranty to be in form and substance satisfactory to Administrative Agent).

12.21. UCC Filings. Borrower shall cause, within sixty (60) days following the Effective
Date, the UCC financing statements listed on Item Nos. 1a through and including 1f of
Section 10.20 of the Disclosure Schedule to be corrected to notice/lease filings in form and
substance satisfactory to Administrative Agent.

12.22. Merger. To consummate the Current Acquisition, Borrower shall, (i) prior to the
Effective Date, organize Layne Merger Sub 1, Inc., an Indiana corporation, as a wholly-owned
Subsidiary (“Sub 1”) and organize Layne Merger Sub 2, Inc., an Indiana corporation as a
wholly-owned Subsidiary (“Sub 2”), (ii) cause, on the Effective Date, the merger of Sub 1
with and into Reynolds, Inc., an Indiana corporation, with Reynolds, Inc., an Indiana
corporation being the surviving entity (the “First Merger”), and shall cause on such date
all necessary documentation to effectuate the First Merger to be filed with all appropriate
Governmental Authorities, (iii) cause, on the Effective Date, immediately following the
consummation of the First Merger and the filing with all applicable Governmental Authorities
all necessary documentation to effectuate the First Merger, the merger of Reynolds, Inc., an
Indiana corporation with and into Sub 2 with Sub 2 being the surviving entity (the “Second
Merger”), and shall cause on such date all necessary documentation to effectuate the Second
Merger to be filed with all appropriate Governmental Authorities, (iv) cause, on the
Effective Date, as a part of the Second Merger and the filing with all applicable
Governmental Authorities all necessary documentation to effectuate the Second Merger, the
name of Sub 2 to be changed to “Reynolds, Inc.”, and (v) cause, within thirty days
following the Effective Date, Sub 2 as “Reynolds, Inc., ” a Delaware corporation to be
qualified in the States of Alabama, Georgia, Kentucky, Indiana, Ohio and Texas. As soon as
reasonably practical after the filing of all such merger documents, the Borrower shall send
by facsimile to the Administrative Agent file-stamped copies of such merger documents.
Within seven Business Days following the Effective Date, the Borrower shall deliver to
Administrative Agent certified copies of all filed-stamped merger documentation described in
this Section and within thirty days following the Effective Date the Borrower shall deliver
to Administrative Agent the original good standing certificates described in this Section.

13. Negative Covenants. Borrower covenants and agrees that, while any of the Commitments remain in
effect and until all of the Loan Obligations are fully and indefeasibly paid, no Letters of Credit
are outstanding and the Letter of Credit Exposure is zero, Borrower shall not, directly or
indirectly, do any of the following, or permit any Covered Person to do any of the following:

13.1. Investments. Make any Investments in any other Person except the following:

13.1.1.
Investments in (i) interest-bearing United States government obligations; (ii)
certificates of deposit issued by any Lender; (iii) prime commercial paper rated A1
or better by Standard and Poor’s Corporation or Prime P1 or better by Moody’s
Investor Service, Inc.; (iv) agreements involving the sale to a Covered Person of
United States government securities and their guarantied repurchase the next
Business Day by a commercial bank chartered under the Laws of the United States or
any state thereof

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which has capital and surplus of not less than $250,000,000, or
(v) certificates of deposit issued by and time deposits which do not extend more
than 364 days or money market accounts, with any commercial bank chartered under the
Laws of the United States or any state thereof which has capital and surplus of not
less than $250,000,000.

13.1.2. Accounts arising in the ordinary course of business and payable in
accordance with Borrower’s or such other Covered Person’s customary trade terms.

13.1.3. Any Investments that are Permitted Acquisitions.

13.1.4. Investments existing on the Execution Date and disclosed in section 10.17 of
the Disclosure Schedule.

13.1.5. Notes received by a Covered Person in settlement of Indebtedness of other
Persons to such Covered Person that was incurred in the ordinary course of such
Covered Person’s business.

13.1.6. Investments by any Covered Person in any other Covered Person if such
Covered Person in which the Investment is made is also a Guarantor, provided,
however, Investments in Layne Energy must be by the Borrower and must be in the form
of Indebtedness.

13.1.7. Investments in the form of a loan to a Person to finance the purchase of
real property, personal property, services or equipment from the Borrower or any
Covered Person provided that (a) if such loan exceeds $200,000, the Borrower or such
Covered Person shall retain a Security Interest on any property or equipment sold to
the extent permitted under applicable law, (b) the aggregate principal amount of all
such loans to any Person or its Affiliates outstanding at any time shall not exceed
$2,500,000 in the aggregate at any time, and (c) the aggregate principal amount of
all such loans outstanding at any time shall not exceed $5,000,000 in the aggregate;

13.1.8. Investments in water related assets provided by the Borrower or any Covered
Person for customers in connection with which such customer has entered into a
contract with the Borrower or such Covered Person to purchase water from the
Borrower or such other Covered Person at a future date; provided the aggregate
amount invested by the Borrower and all other Covered Persons in all such
investments shall not exceed $20,000,000 in the aggregate outstanding at any time;

13.1.9. So long as no Default has occurred and is continuing or would be caused
thereby, making Investments (excluding interest on intercompany indebtedness and
royalties) in (i) Persons that are not Subsidiaries and (ii) Subsidiaries that are
not Guarantors; provided that the aggregate amount of all such Investments in
clauses (i) and (ii) made after the date of this Agreement shall not at any time
exceed 15% of Tangible Net Worth plus up to $5,000,000 in the aggregate outstanding
at any time with respect to Layne Water Development of Texas, LLC, in each case, as
calculated as of any date; and

13.1.10. Loans or advances to employees not in excess of $750,000 in the aggregate
outstanding at any time.

13.2. Indebtedness. Create, incur, assume, or allow to exist any Indebtedness of any kind
or description, except the following:

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13.2.1. Indebtedness to trade creditors incurred in the ordinary course of business,
to the extent that it is not overdue past the original due date by more than 90 days
(unless such Indebtedness is being contested in good faith by such Covered Person
and adequate reserves under GAAP have been made).

13.2.2. The Loan Obligations.

13.2.3. The Term Indebtedness up to $100,000,000 in principal outstanding in the
aggregate at any one time if the Intercreditor Agreement remains in effect and if at
the time of funding the Term Indebtedness there is no Existing Default and the
funding of any Term Indebtedness would not reasonably likely give rise to a Default
or Event of Default.

13.2.4. Excluding any Hedge Obligations, the Loan Obligations and the Term
Indebtedness, Priority Indebtedness up to 10% of Tangible Net Worth as calculated as
of any date.

13.2.5. Indebtedness to finance the premiums for Borrower’s insurance policies,
which Indebtedness shall not exceed $2,000,000.00 in the aggregate at any one time
outstanding for Borrower and all Covered Persons on a consolidated basis.

13.2.6. Indebtedness, including the Seller Earn Out and Hedge Obligations, disclosed
on section 10.18 of the Disclosure Schedule, provided, however, the Indebtedness
(other than Hedge Obligations (including new Hedge Obligations and increases thereof
subject to the next sentence) and Indebtedness (including new Indebtedness and
increases thereof) permitted by the terms of Section 13.1.6) disclosed thereon may
not be increased above the amounts existing on the Effective Date. Notwithstanding
the foregoing, the Borrower shall not, and shall not permit any Subsidiary to, enter
into or be bound by any Hedging Obligations with respect to commodities other than
Hedging Obligations by the Borrower or a Subsidiary Guarantor with respect to PDP
Reserves of the Borrower and its
Subsidiaries; provided that the notional volumes for all such Hedging Obligations
permitted by this sentence shall not at any time exceed 75% of the reasonably
anticipated projected production over the following 12-month period from PDP
Reserves of the Borrower and its Subsidiaries. For purposes of this paragraph, “PDP
Reserves” shall mean “proved developed producing reserves” as defined by the Board
of Directors of the Society for Petroleum Engineers (SPE) Inc.

13.3. Indirect Obligations. Create, incur, assume or allow to exist any Indirect
Obligations in an amount not to exceed $5,000,000 in the aggregate outstanding at any time,
except Indirect Obligations existing on the Execution Date and disclosed on section 10.19 of
the Disclosure Schedule and Indirect Obligations of a Covered Person with respect to the
Permitted Indebtedness of any other Covered Person.

13.4. Prepayment. Make any nonscheduled prepayment on any Indebtedness if there is an
Existing Default or a Default or Event of Default is reasonably likely to occur as a result
of any such payment.

13.5. Security Interests. Create, incur, assume or allow to exist any Security Interest
upon all or any part of its property, real or personal, now owned or hereafter acquired,
except the following:

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13.5.1. Security Interests for taxes, assessments or governmental charges not
delinquent or being diligently contested in good faith and by appropriate
proceedings and for which adequate book reserves in accordance with GAAP are
maintained.

13.5.2. Security Interests arising out of deposits in connection with workers’
compensation insurance, unemployment insurance, old age pensions, or other social
security or retirement benefits legislation.

13.5.3. Deposits or pledges to secure bids, tenders, contracts (other than contracts
for the payment of money), leases, statutory obligations, surety and appeal bonds,
and other obligations of like nature arising in the ordinary course of business.

13.5.4. Security Interests imposed by any Law, such as mechanics’, workmen’s,
materialmen’s, landlords’, carriers’, or other like Security Interests arising in
the ordinary course of business which secure payment of obligations which are not
past due or which are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP are maintained
on Borrower’s books.

13.5.5. Minor survey exceptions or minor encumbrances, easements or reservations, or
rights of others for rights-of-way, utilities and other similar purposes, or zoning
or other restrictions as to use of real property, that are necessary for the conduct
of the operations of the Borrower and each Covered Person that customarily exist on
properties of corporations engaged in similar businesses and are similarly situated
and that do not in
any event materially impair their value or their use in the operations of the
Borrower and each other Covered Person;

13.5.6.
Security Interests existing on the Effective Date and disclosed on section
10.20 to the Disclosure Schedule.

13.5.7.
Any attachment or judgment Lien if and only if (A) the judgment it secures shall,
within 30 days after the entry thereof, have been discharged or execution thereof
stayed pending appeal or (B) the Borrower or the such other Covered Person shall
fail to actively contest such attachment or judgment Lien within thirty (30) days
after the entry thereof and post within such time period a bond therefor in the full
amount of the judgment plus applicable statutory costs and attorneys’ fees or such
other amount as may be ordered by the applicable court; provided the aggregate
amount of such attachment or judgment Liens shall not secure obligations in excess
of $1,000,000 at any time;

13.5.8. Security Interests granted to joint venture partners (including other
Persons who Borrower or any other Covered Person is in a business relationship with
respect to coalbed methane gas projects) on equity interests owned by the Borrower
or any Covered Person in connection with the formation of a Person (other than an
individual) in which the ownership interests are held in part by the Borrower or a
Covered Person and a non-Affiliated Person; provided that such Security Interests is
limited solely to the equity in the joint venture with no recourse to the Borrower
or such Covered Person except to the extent disclosed on section 10.20(2) of the
Disclosure Schedule for such projects existing on the Effective Date.

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13.5.9. A Security Interest in favor of the holder of the Indebtedness permitted
under Section 13.2.5 on Borrower’s insurance policies and any unearned premiums
refundable with respect thereto, which Security Interests may only secure the
Indebtedness of Borrower incurred pursuant to Section 13.2.5 herein to finance the
annual premiums due with respect to such insurance policies.

13.5.10. To the extent constituting Permitted Indebtedness, Security Interests
securing Priority Indebtedness, provided, however, the Term Indebtedness may not be
secured by a Security Interest.

13.5.11. Security Interests and rights of setoff existing solely with respect to
cash and cash equivalents on deposit in one or more accounts maintained by the
Borrower or any other Covered Person, in each case granted or existing in the
ordinary course of business in favor of the bank or banks in which such accounts are
maintained securing amounts owing to such bank with respect to cash management and
operating account arrangements.

Notwithstanding anything contained herein to the contrary, except to the extent disclosed
on section 10.20(2) of the Disclosure Schedule for projects existing on the Effective Date,
in no
event shall the Borrower or any other Covered Person permit any Security Interest at any
time on any of their respective current assets, which include without limitation inventory,
accounts, notes receivable and similar items. At no time shall Borrower or any Covered
Person allow to exist on or against its assets any financing statements, mortgages or
similar documents, except as permitted by this Agreement.

13.6. Acquisitions. Acquire stock, membership interests, or any other equity interest in a
Person, or acquire all or substantially all of the assets of a Person (including without
limitation assets comprising all or substantially all of an unincorporated business unit or
division of any Person), except for Permitted Acquisitions. Permitted Acquisition means an
acquisition of the stock, membership interests, or any other equity interest in a Person, or
the acquisition of all or substantially all of the assets of a Person (including without
limitation assets comprising all or substantially all of an unincorporated business unit or
division of any Person), which satisfies each of the following conditions: (i) the Borrower
or the Guarantor is the Acquiring Company (and if the Covered Person making the acquisition
is not a party to the Guaranty, it will execute a joinder to the Guaranty or execute a new
Guaranty, in each case in form and substance reasonably acceptable to Administrative Agent),
(ii) the Borrower or a Guarantor is the Surviving Company, (iii) the Target Company is in a
substantially similar line of business as a Borrower except as otherwise permitted in
Section 13.13; (iv) for any acquisition with an aggregate purchase price greater than
$2,500,000 (including without limitation any deferred purchase price, seller notes, assumed
Indebtedness, or similar items), Target Company has an EBITDA (provided, however, that with
respect to the purchase of assets of less than an entire Target Company, EBITDA will be
calculated on a proforma basis prepared in good faith based on reasonable assumptions) in
excess of zero Dollars for the twelve month period ended on the last day of the calendar
month most recently ended prior to the date such acquisition is consummated, (v) there is no
Existing Default, no Default or Event of Default has occurred and is continuing, and no
Default or Event of Default will occur or is reasonably likely to occur as a result of or
due to such acquisition, (vi) the Maximum Available Amount exceeds the Aggregate Revolving
Loan by at least $10,000,000 after giving effect to such acquisition, (vii) excluding the
Current Acquisition and any acquisition that closed prior to the Effective Date that was a
Permitted Acquisition or was consented to by the Required Lenders prior to the Effective
Date, the purchase price (including without limitation any deferred purchase price, seller
notes, assumed Indebtedness, or similar items) together with all

35

 

expenses incurred in
connection with such acquisition does not exceed $15,000,000 for any single acquisition and
$20,000,000 in the aggregate for all acquisitions during any fiscal year, (viii)
simultaneously with the closing of such acquisition, the Target Company or the Surviving
Company, as the case may be, executes and delivers to Administrative Agent, if requested by
the Administrative Agent, a joinder agreement satisfactory to Administrative Agent in which
such Target Company or Surviving Company becomes a Guarantor under the Guaranty executed by
all other Subsidiaries; (ix) prior to the closing of such acquisition, a Responsible Officer
of Borrower delivers to Administrative Agent a certificate on behalf of Borrower certifying
that such acquisition is a Permitted Acquisition; (x) such acquisition is friendly, rather
than hostile, in nature; and (xi) for any acquisition with an aggregate purchase price
greater than $2,500,000 (including without limitation any deferred purchase price, seller
notes, assumed Indebtedness, or similar items), Borrower has, no less than 20 days prior to
making such acquisition, prepared and furnished to Administrative Agent the proforma
financial statements described below for the Target Company (if such acquisition is
structured as a purchase of equity) or the Surviving Company (if such acquisition is
structured as a purchase of assets or a merger), demonstrating to the satisfaction of
Administrative Agent that the Target Company, all Surviving Companies, and Borrower, as the
case may be, will be Solvent upon consummation of such acquisition and upon the passage of
time thereafter, and that none of the covenants in Section 14 will be violated as a
consequence of such acquisition or with the passage of time thereafter, and Borrower has
also provided to Administrative Agent, no less than 20 days prior to making such
acquisition, copies of the audited financial statements (if available, or unaudited
financial statements if no audited financial statements exist) for the Target Company for
the three fiscal years (if available) most recently ended and for each of the completed
fiscal quarters in the then current fiscal year. The proforma financial statements referred
to in clause (xi) shall contain consolidated and consolidating balance sheets, income
statements, statements of cash flows and such other reports and disclosures of Borrower as
well as the Target Company (if such Permitted Acquisition is structured as a purchase of
equity) or the Surviving Company (if such Permitted Acquisition is structured as a purchase
of assets or a merger) and shall cover such forecast periods, as Administrative Agent may in
its reasonable discretion require. For the avoidance of doubt, the Current Acquisition is a
Permitted Acquisition and the Current Acquisition does not count towards the baskets in
clause (vii) of this Section 13.6. In addition, any acquisition closed prior to the
Effective Date that was a Permitted Acquisition or was consented to by the Required Lenders
prior to the Effective Date does not count towards the baskets in clause (vii) of this
Section 13.6.

13.7. Disposal of Property. Transfer any of its assets except (i) sales of inventory in the
ordinary course of business; (ii) the sale of obsolete or unused assets that are obsolete or
are no longer necessary or productive in the ordinary course of the Borrower’s or such
Covered Person’s business; (iii) any Transfer of assets from a Covered Person to another
Covered Person who is also a Guarantor; and (iv) Transfer of assets not included in the
foregoing clauses (i), (ii) and (iii), not to exceed $5,000,000 in the aggregate during any
fiscal year and not to exceed $10,000,000 in the aggregate during the term of this
Agreement. At no time shall Borrower or any Covered Person sell any of its notes
receivables or accounts receivable.

13.8. Guaranties. Permit or allow any Covered Person to deliver a guaranty in respect of
the Term Indebtedness (or any refinancing thereof) or otherwise become directly or
indirectly liable for, all or any part of the Term Indebtedness (or any refinancing thereof)
unless the parties to the Term Indebtedness have signed an Intercreditor Agreement and such
Covered Person has provided a Guaranty.

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13.9. Distributions; Redemptions. Permit or allow, or permit or allow any Covered Person
to, (a) declare or pay any dividends on any of its capital stock (other than stock
dividends), (b) purchase or redeem any such stock or any warrants, options or other rights
in respect of such stock, (c) make any other distribution to shareholders (other than the
issuance of stock, or stock options in respect thereof, to directors, officers and employees
pursuant to written incentive compensation plans), (d) prepay, purchase or redeem any
subordinated Indebtedness or (e) set aside funds for any of the foregoing; provided,
however, that (i) any Subsidiary may declare and pay dividends to Borrower or to a
wholly-owned Subsidiary, and (ii) so long as there is no Existing Default and no Default or
Event of Default is reasonably likely to occur from such payment, Borrower may purchase
stock of the Borrower on the open market and re-issue such stock to officers and employees
of the Borrower in connection with written incentive compensation plans or other agreements
with officers, directors or employees of the Borrower approved by the Board of Directors of
the Borrower or any compensation committee thereof and the Borrower may pay dividends to its
shareholders and/or repurchase stock of the Borrower, provided that the aggregate amount of
all such dividends and repurchases described in this clause (ii) shall not exceed 50% of
Borrower’s annual consolidated Net Income in any fiscal year if declared and paid within
ninety days following such fiscal year end.

13.10. Change of Control. (A) With respect to (i) Borrower, merge or consolidate with or
into another Person, except in connection with a Permitted Acquisition, the Borrower may
merge with a Target Company so long as it is the Surviving Company and the core managers of
the Borrower prior to the merger or consolidation shall be the core managers of the
continuing or surviving entity, (ii) with respect to any other Covered Person (other than
Borrower, which is addressed in clause (i)), merge or consolidate with or into another
Person except another Covered Person and except in connection with a Permitted Acquisition,
a Covered Person (other than Borrower, which is addressed in clause (i)) may merge with a
Target Company so long as it is the Surviving Company and either is or becomes a Guarantor;
or (B) (i) with respect to Borrower, permit any Person or Group to become the record or
beneficial owner, directly or indirectly, on a fully diluted basis, of securities
representing 30% or more of the voting power of Borrower’s then outstanding securities
having the power to vote or 30% or more of Borrower’s then outstanding capital stock, or to
acquire the power to elect a majority of the Board of Directors of Borrower, or (ii) with
respect to any Covered Person other than Borrower, permit any Person or Group other than
Borrower or another Covered Person to own, directly or indirectly, any capital stock of such
Covered Person (except, with regards to Covered Persons incorporated or formed under the
laws of a jurisdiction outside the United States, director/officer qualifying shares owned
by such directors or officers).

13.11. Amendment to Charter Documents; Amendments to Term Indebtedness Documents; Current
Acquisition Documents. Change its state of incorporation or formation; otherwise amend,
modify, supplement, restate, replace, or change any of its Charter Documents, except to the
extent such change could not reasonably be expected to adversely effect Administrative Agent
or any Lender. Amend, modify, supplement, restate, replace, or change any of the Term
Indebtedness Documents, except to the extent such change could not reasonably be expected to
materially adversely effect Administrative Agent or any Lender. Neither Borrower nor any
other Covered Person shall agree to any amendment or modification of any of the Current
Acquisition Documents that (i) changes in any respect the Seller Earn Out including the
calculation thereof, or (ii) would make the Current Acquisition Documents more burdensome on
any Borrower or any other Covered Person.

13.12. Capital Structure; Equity Securities. Make any change in the capital structure of
any Covered Person which has or is reasonably likely to have a Material Adverse Effect on
any

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Covered Person; or issue or create any stock, membership interest, or other equity
interest (or class or series thereof, or non-equity interest that is convertible into stock,
membership interests or other equity interest (or class or series thereof), in any Covered
Person, except stock, membership interests, or other equity interests (or class or series
thereof) that are subordinated in right of payment to all the Loan Obligations in a manner
satisfactory to Administrative Agent.

13.13. Change of Business. Engage in any business other than substantially as conducted on
the Effective Date (after giving effect to the Current Acquisition); provided that the
Borrower or any Covered Person may engage in other businesses so long as the aggregate
amount invested (whether via acquisition of assets or stock, loans or advances, or
otherwise) by the Borrower and all other Covered Persons in all such businesses after the
Effective Date shall not exceed $3,000,000 in the aggregate.

13.14. Conflicting Agreements. Enter into any agreement, that would, if fully complied with
by it, result in a Default or Event of Default either immediately or upon the elapsing of
time.

13.15. Sale and Leaseback Transactions. Enter into any arrangement with any lender or
investor or to which such lender or investor is a party providing for the leasing by the
Borrower or any Subsidiary of real or personal property which has been or is to be
Transferred by the Borrower or any Subsidiary to such lender or investor or to any Person to
whom funds have been or are to be advanced by such lender or investor on the security of
such property or rental obligations of the Borrower or any Subsidiary unless (i) such
property is newly acquired or newly constructed property and the Borrower or a Subsidiary
shall enter into a lease, as lessee, within 90 days following the acquisition or
construction of such property, (ii) the aggregate value of property acquired and sold
pursuant to clause (i) hereof shall be less than $2,500,000 in the aggregate in any fiscal
year, and (iii) no Default or Event of Default has occurred and is continuing and no Default
or Event of Default is reasonably likely to occur as a result of such transaction.

13.16. Fiscal Year. Change its fiscal year from one ending on January 31.

13.17. Transactions Having a Material Adverse Effect on Covered Person. Enter into any
transaction which has or is reasonably likely to have a Material Adverse Effect on any
Covered Person; or enter into any transaction, or take or contemplate taking any other
action, or omit or contemplate omitting to take any action, which any Responsible Officer
knows, or reasonably should know is likely to cause a Default or Event of Default hereunder.

13.18. Transactions with Affiliates. Enter into or be a party to any transaction or
arrangement, including the purchase, sale or exchange of property of any kind or the
rendering of any service, with any Affiliate (other than a Covered Person), or make any
loans or advances to any Affiliate (other than to a Covered Person and otherwise permitted
hereunder), except that each Covered Person may engage in such transactions in the ordinary
course of business and pursuant to the reasonable requirements of its business and on fair
and reasonable terms substantially as favorable to it as those which it could obtain in a
comparable arm’s-length transaction with a non-Affiliate. No Covered Person may pay any
management or other similar fees to any Affiliate that is not a Covered Person.
Notwithstanding the foregoing, investments in Affiliates shall be permitted subject to the
limitations set forth in Section 13.1.9.

13.19. Subsidiaries.

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13.19.1. Sell or otherwise dispose of, or part with control of, any shares of stock
or Indebtedness of any Covered Person (other than Borrower), except, unless there is
an Existing Default or a Default or Event of Default is reasonably likely to occur
as a result of the subject transaction and subject to the other terms of this
Agreement including, without limitation, Section 13.7, (i) to the Borrower or
another Covered Person or (ii) that all shares of stock and Indebtedness of any
Subsidiary at the time owned by or owed to the Borrower and all other Covered
Persons may be sold as an entirety for a cash consideration which represents the
fair value (as determined in good faith by the Board of Directors of the Borrower)
at the time of sale of the shares of stock and Indebtedness so sold; provided that
(A) such sale or other disposition is treated as a Transfer of assets of such
Subsidiary and is otherwise permitted by this Agreement, and (B) at the time of such
sale, such Subsidiary shall not own, directly or indirectly, any shares of stock or
Indebtedness of any other Subsidiary (unless all of the shares of stock and
Indebtedness of such other
Subsidiary owned, directly or indirectly, by the Borrower and all other Covered
Persons are simultaneously being sold as permitted by this Section).

13.19.2. Subject to the other terms of this Agreement (although Section 13.7 shall
not be applicable to the transactions contemplated by this Section 13.19.2), sell up
to forty percent (40%) in the aggregate of the equity in Layne Energy in one or more
series of public offerings or private offerings if: (i) no Default or Event of
Default has occurred and is continuing at the time of such sale and no Default or
Event of Default occurs or is reasonably likely to occur from such sale, (ii) for
each of the two fiscal quarters prior to such sale, the ratio in Section 14.3 is
less than 2.25:1.00 with such calculation being made as if Layne Energy was not a
Subsidiary for such periods and therefore excluded from such calculation; (iii)
Layne Energy promptly following formation is a Guarantor and remains a Guarantor,
but, following any such initial public offering or private offering, only to the
extent of Layne Energy’s Indebtedness to all Covered Persons taken as a whole; and
(iv) if Borrower chooses to repay Indebtedness (such choice to be in Borrower’s
discretion) with the net proceeds of any such initial public offering or private
offering, then Borrower shall repay the Loan Obligations and the Term Indebtedness
on a pro rata basis (unless the holders of the Term Indebtedness decline such offer
as set forth in the Term Indebtedness Documents, in which case such proceeds shall
be used solely to repay the Loan Obligations), provided, however, the first
$15,000,000 of any such net proceeds of an initial public offering or private
offering may be used solely to repay the Loan Obligations.

13.20. Most Favored Lender. Enter into, assume or otherwise be bound or obligated under any
agreement creating or evidencing Indebtedness in excess of $500,000 containing one or more
Additional Covenants or Additional Defaults, without the prior written consent of the
Required Lenders; provided, however, in the event the Borrower or any other Covered Person
shall enter into, assume or otherwise become bound by or obligated under any such agreement
without the prior written consent of the Required Lenders, the terms of this Agreement
shall, without any further action on the part of the Borrower and each other Covered Person
or any Lender or the Administrative Agent, be deemed to be amended automatically to include
each Additional Covenant and each Additional Default contained in such agreement. Borrower
further covenants to promptly execute and deliver at its expense (including, without
limitation, the reasonable fees and expenses of counsel for the Administrative Agent) an
amendment to this Agreement in form and substance satisfactory to the Required Lenders
evidencing the amendment of this Agreement to include such Additional Covenants and
Additional Defaults, provided that the execution and delivery of such amendment shall not be
a precondition to the effectiveness of such amendment as provided for in this Section, but
shall merely be for the convenience of the parties hereto.

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Notwithstanding the foregoing,
the Term Indebtedness Documents as they exist on the Effective Date are not implicated by
this Section.

13.21. Seller Earn Out. Pay in cash, or allow any other Covered Person to pay in cash, any
amount on the Seller Earn Out prior to October 31, 2008 and thereafter only if there is no
Default or Event of Default then existing and no Default or Event of Default will occur or
is reasonably likely to occur from the making of any such payment.

14. Financial Covenants.

14.1. Special Definitions. As used in this Section 14 and elsewhere herein, the following
capitalized terms have the following meanings:

EBITDA shall mean, with respect to any Person for any fiscal period, without duplication, an
amount equal to (a) consolidated Net Income of such Person for such period determined in
accordance with GAAP, minus (b) the sum of (i) income tax benefits, (ii) interest income,
(iii) gain from extraordinary items for such period, (iv) any aggregate net gain (but not
any aggregate net loss) during such period arising from the sale, exchange or other
disposition of capital assets by such Person (including any fixed assets, whether tangible
or intangible, all inventory sold in conjunction with the disposition of fixed assets and
all securities), and (v) any other non-cash gains that have been added in determining
consolidated Net Income, in each case to the extent included in the calculation of
consolidated Net Income of such Person for such period in accordance with GAAP, but without
duplication, plus (c) the sum of (i) any provision for income taxes, (ii) Interest Expense,
(iii) loss from extraordinary items for such period, (iv) the amount of non-cash charges
(including depreciation and amortization but excluding insurance expense) for such period,
(v) amortized debt discount for such period, (vi) any aggregate net loss (but not any
aggregate net gains) during such period arising from the sale, exchange or other disposition
of capital assets by such Person, and (vii) the amount of any deduction to consolidated Net
Income as the result of any grant to any members of the management of such Person of any
stock, in each case to the extent included in the calculation of consolidated Net Income of
such Person for such period in accordance with GAAP, but without duplication. For purposes
of this definition, the following items shall be excluded in determining consolidated Net
Income of a Person: (1) the income (or deficit) of any other Person accrued prior to the
date it became a Covered Person of, or was merged or consolidated into, such Person or any
of such Person’s Covered Persons; (2) equity earnings of other Persons accounted for on an
equity basis, except to the extent received, on a consolidated basis, as cash dividends or
distributions; (3) equity losses of other Persons accounted for on an equity basis, except
to the extent such losses represent, on a consolidated basis, cash losses; (4) the
undistributed earnings of any Subsidiary of such Person to the extent that the declaration
or payment of dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any contractual obligation or requirement of law applicable to
such Subsidiary; (5) any restoration to income of any contingency reserve, except to the
extent that provision for such reserve was made out of income accrued during such period;
(6) any write-up of any asset; (7) any net gain from the collection of the proceeds of life
insurance policies; (8) any net gain arising from the acquisition of any securities, or the
extinguishment, under GAAP, of any Indebtedness, of such Person, (9) in the case of a
successor to such Person by consolidation or merger or as a transferee of its assets, any
earnings of such successor prior to such consolidation, merger or transfer of assets, (10)
any deferred credit representing the excess of equity in any Subsidiary of such Person at
the date of acquisition of such Subsidiary over the cost to such Person of the investment in
such Subsidiary, and (11) any income, gain or loss during such period from any discontinued
operations or the disposition thereof. In addition, for purposes of the calculations in
Sections 4.6, 5.1, 8.1.12, 8.1.13 and 14 and the definition of Applicable

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Margin, the
following amounts will be added to EBITDA: (i) for the Borrower’s fiscal quarter ending
October 31, 2005, $16,500,000, (ii) for the Borrower’s fiscal quarter ending January 31,
2006, $12,375,000, (iii) for the Borrower’s fiscal quarter ending April 30, 2006,
$8,250,000, and (iv) for the Borrower’s fiscal quarter ending July 31, 2006, $4,125,000.

EBITDAR shall mean, for any Person, for any period, EBITDA plus Rental Expense.

Fixed Charges means, for any period of calculation, the sum of (i) Rental Expense, (ii)
Interest Expense, (iii) all dividends, distributions and redemptions with respect to any
equity interests in Borrower made in such period, and (iv) any principal payments made on
the Term Indebtedness.

Intangibles means and includes, but is not limited to, at any date, general intangibles;
software developed in-house or purchased, licensed or leased; accounts receivable and
advances due from officers, directors, employees, stockholders, members, and owners;
licenses; good will; prepaid expenses; escrow deposits; covenants not to compete; the
excess of cost over book value of acquired assets; franchise fees; organizational costs;
finance reserves held for recourse obligations; capitalized research and development costs;
the capitalized cost of patents, trademarks, service marks and copyrights net of
amortization; and other intangible assets.

Interest Expense means for any period of calculation, the sum of any interest and prepayment
charges (except any prepayment fees and deferred charges associated with the Term
Indebtedness Documents,), if any, including without limitation, all net amounts payable (or
receivable) under Hedge Obligations and all imputed interest in respect of Capitalized Lease
Obligations paid or payable by the Borrower and all other Covered Persons, during such
period consolidated or combined in accordance with GAAP.

Net Income means, for any computation period, with respect to the Borrower and all other
Covered Persons on a consolidated basis (other than any Subsidiary which is restricted from
declaring or paying dividends or otherwise advancing funds to its parent whether by contract
or otherwise), cumulative net income earned during such period as determined in accordance
with GAAP.

Net Worth means, as at any time of determination thereof, an amount equal to consolidated
stockholders’ equity of the Borrower and its Subsidiaries determined in accordance with GAAP
(less amounts attributable to redeemable preferred stock and common stock).

Rental Expense means with reference to any period, the aggregate amount of all payments for
rent or additional rent (including all payments for taxes and insurance made directly to the
lessor, but excluding payments for maintenance, repairs, alterations, construction,
demolition and the like) for which the Borrower and all other Covered Persons are directly
or indirectly liable (as lessee or as guarantor or other surety) under all Operating Leases
(as defined under GAAP) in effect at any time during such period.

Senior Indebtedness means Total Funded Indebtedness plus the Letter of Credit Exposure.

Tangible Net Worth means Net Worth less Intangibles.

Total Funded Indebtedness means the outstanding principal balance of the Loan Obligations
(excluding the Letter of Credit Exposure), other Indebtedness for borrowed money including
without limitation the Term Indebtedness, and the initial capitalized cost of assets
subject to Capital Leases at the time of calculation; provided, however for clarification
the foregoing, for

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purposes of this definition only does include: (i) Indebtedness secured
by any Security Interest (other than Security Interests permitted by Section 13.5.8)
existing on property owned subject to such Security Interest, whether or not the
Indebtedness secured thereby shall have been assumed; (ii) Indirect Obligations (other than
endorsement of negotiable instruments for collection in the ordinary course of business)
and other contractual commitments (whether direct or indirect in connection with
obligations, stock or dividends of any person) including, without limitation, liabilities
in respect of letters of credit or instruments serving a similar function issued or
accepted for such Person’s account by banks or other financial institutions, but only in
respect of and to the extent of payments made under such letters of credit or instruments
by the issuers thereof; (iii) mandatory redeemable preferred stock; (iv) Hedge Obligations,
(v) unfunded pension liabilities; (vi) preferred stock of Subsidiaries held by third
parties; and (vii) the outstanding balance of the purchase price of uncollected Accounts
subject at such time to a sale of receivables or other similar transaction, regardless of
whether such transaction is effected without recourse or in a manner which would not be
reflected on the balance sheet in accordance with GAAP; and provided further, however for
clarification, the foregoing, for purposes of this definition only, does not include: items
of contingency reserves, accrued insurance expense, minority interest, pension liabilities
(other than unfunded pension liabilities), reserves for deferred income taxes, ordinary
course trade accounts payable and accrued expenses shown as current liabilities on the
Financial Statements; and.

Upon completion of a Permitted Acquisition, the Target shall be included in each of these
covenants contained in this Sections 4.6, 5.1, 8.1.12, 8.1.13 and 14 only for periods after
the completion of any such Permitted Acquisition and for periods prior to the completion of
any Permitted Acquisition on a pro-forma basis in such amounts as may be agreed to by the
Borrower and the Administrative Agent.

All other capitalized terms used in this Section 14 shall have their meanings and shall be
determined under GAAP.

Whether or not expressly stated, all of the financial covenants contained in this Section 14
shall be calculated on a consolidated basis for the Borrower and all of its Subsidiaries.

14.2. Minimum Fixed Charge Coverage. Borrower shall cause the ratio of EBITDAR, for the
most recently ended four fiscal quarters to Fixed Charges for the most recent ended four
fiscal quarters, for the fiscal quarters ended on the dates specified below, calculated as
of the last day of each such fiscal quarter, to not be less than the ratio specified for
such period:

	 	 	 
	Four fiscal quarter period ended on or	 	 
	most recently before the following dates:	 	Minimum Fixed Charge Coverage Ratio
	the last day of each fiscal quarter
(each January 31, April 30, July 31
and October 31) beginning with October
31, 2005

	 	1.50:1.00

14.3. Maximum Ratio of Total Funded Indebtedness to EBITDA. Borrower shall cause the ratio
of Total Funded Indebtedness to EBITDA for the most recently ended four fiscal quarters, for
the fiscal quarters ended on the dates specified below, calculated as of the last day of
each such fiscal quarter, to not be greater than the ratio specified for such period:

	 	 	 
	Four fiscal quarter period ended on or	 	Maximum Ratio of Total Funded
	most recently before the following dates:	 	Indebtedness to EBITDA
	the last day of each fiscal quarter
(each January 31, April 30, July 31
and October 31) beginning with
October 31, 2005

	 	3.00:1.00

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14.4. Minimum Tangible Net Worth. Borrower will not permit Tangible Net Worth at any time
to be less than Seventy One Million Six Hundred Thousand and 00/100 ($71,600,000.00)
plus the sum of (i) 50% of positive Net Income (without reduction for losses in any
period) for the period from August 1, 2005 through January 31, 2006 and thereafter
semi-annually (on a fiscal year basis) on each July 31 and January 31 thereafter, and (ii)
100% of the net proceeds (meaning the net cash proceeds from the sale or issuance of any
equity securities, net of all underwriters’ discounts and commissions, other marketing and
selling expenses) from the issuance and sale of equity securities after the date hereof.

15. Default.

15.1. Events of Default. Any one or more of the following shall constitute an event of
default (an Event of Default) under this Agreement:

15.1.1. Failure to Pay Principal or Interest. Failure of Borrower to pay any
principal of the Loans or interest accrued thereon when due, or failure of Borrower
to pay any of the other Loan Obligations on or within three (3) days of becoming
due.

15.1.2. Failure to Pay Amounts Owed to Other Persons. Failure of any Covered Person
(i) to make any payment due on Indebtedness for borrowed money of such Covered
Person over $1,000,000 to Persons (other than Lenders under the Loan Documents),
which in either case continues unwaived beyond any applicable grace period specified
in the documents evidencing such Indebtedness, or (ii) to pay any other Indebtedness
(other than Indebtedness described in clause (i)) over $1,000,000 in the aggregate
if the holder of such Indebtedness commences any legal action against such Covered
Person; provided, however, that the foregoing Events of Default alone described in
clauses (i) and (ii) shall not constitute an Event of Default to the extent such
Indebtedness is being contested in good faith by such Covered Person and such
Covered Person makes adequate reserves therefor under GAAP.

15.1.3. Representations or Warranties. Any of the Representations and Warranties is
discovered to have been false in any material respect when made.

15.1.4. Certain Covenants. Failure of any Covered Person to comply with the
covenants in Sections 12.1, 12.11, 12.15, 12.22, 13, or 14.

15.1.5. Other Covenants. Failure of any Covered Person to comply with of any of the
terms or provisions of the Agreement or any of the other Loan Documents applicable
to it (other than a failure which constitutes an immediate Event of Default
hereunder, or for which some other grace period is specified in any other Section of
this 15.1) which is not remedied or waived in writing by Administrative Agent within
30 days after the initial occurrence of such failure.

15.1.6. Acceleration and Default of Other Indebtedness. Any Obligation (other than a Loan Obligation) of a Covered Person for the repayment
of $1,000,000 or more of borrowed money becomes or is declared to be due and payable
or required to be prepaid (other than by an originally scheduled prepayment) prior
to the original maturity thereof

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or is in default after the expiration of any cure
periods. Any “Default” or “Event of Default” (as such terms are defined in the Term
Indebtedness Documents) has occurred and is continuing. Any breach or default by
the holder of the Term Indebtedness of the Intercreditor Agreement.

15.1.7. Default Under Other Agreements. The occurrence of any default or event of
default under any agreement to which a Covered Person is a party (other than the
Loan Documents), which default or event of default continues unwaived beyond any
applicable grace period provided therein and has or is reasonably likely to have a
Material Adverse Effect.

15.1.8. Bankruptcy; Insolvency; Etc. A Covered Person (i) fails to pay, or admits
in writing its inability to pay, its debts generally as they become due, or
otherwise becomes insolvent (however evidenced); (ii) makes an assignment for the
benefit of creditors; (iii) files a petition in bankruptcy, is adjudicated insolvent
or bankrupt, petitions or applies to any tribunal for any receiver or any trustee of
such Covered Person or any substantial part of its property; (iv) commences any
proceeding relating to such Covered Person under any reorganization, arrangement,
readjustment of debt, dissolution or liquidation Law of any jurisdiction, whether
now or hereafter in effect; (v) has commenced against it any such proceeding which
remains undismissed for a period of 60 days, or by any act indicates its consent to,
approval of, or acquiescence in any such proceeding or the appointment of any
receiver of or any trustee for it or of any substantial part of its property, or
allows any such receivership or trusteeship to continue undischarged for a period of
60 days; or (vi) takes any action to authorize any of the foregoing.

15.1.9. Judgments; Attachment; Settlement; Etc. A final judgment or judgments for
the payment of money in excess of $1,000,000 in the aggregate at any time are
outstanding against one or more of the Covered Persons and the same are not , within
30 days after the entry thereof, discharged or execution thereof stayed or bonded
pending appeal, or such judgments are not discharged prior to the expiration of any
such stay.

15.1.10. Pension Benefit Plan Termination, Etc. Any Pension Benefit Plan
termination by the PBGC or the appointment by the appropriate United States District
Court of a trustee to administer any Pension Benefit Plan or to liquidate any
Pension Benefit Plan; or any event which constitutes grounds either for the
termination of any Pension Benefit Plan by PBGC or for the appointment by the
appropriate United States District Court of a trustee to administer or liquidate any
Pension Benefit Plan shall have occurred and be continuing for thirty (30) days
after Borrower has notice of any such event; or any voluntary termination of any
Pension Benefit Plan which is a defined benefit pension plan as defined in
Section 3(35) of ERISA while such defined benefit pension plan has an
accumulated funding deficiency, unless Administrative Agent has been
notified of such intent to voluntarily terminate such plan and Required Lenders have
given their consent and agreed that such event shall not constitute a Default; or
the plan administrator of any Pension Benefit Plan applies under Section 412(d) of
the Code for a waiver of the minimum funding standards of Section 412(1) of the Code
and Required Lenders determine that the substantial
business hardship upon which the application for such waiver is based could subject
any Covered Person or ERISA Affiliate of any Covered Person to a liability in excess
of $500,000 which is not reserved for in accordance with GAAP.

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15.1.11. Liquidation or Dissolution. A Covered Person files a certificate of
dissolution under applicable state Law or is liquidated or dissolved or suspends or
terminates the operation of its business, or has commenced against it any action or
proceeding for its liquidation or dissolution or the winding up of its business, or
takes any corporate action in furtherance thereof, except in connection with the
consolidation of such a Covered Person and its assets with another Covered Person
and its assets.

15.1.12. Seizure of Assets. The property of any Covered Person is nationalized,
expropriated, seized or otherwise appropriated, or custody or control of such
property or of any Covered Person shall be assumed by any Governmental Authority or
any court of competent jurisdiction at the instance of any Governmental Authority,
unless the same is being contested in good faith by proper proceedings diligently
pursued and a stay of enforcement is in effect, and is reasonably likely to have a
Material Adverse Effect.

15.1.13. Racketeering Proceeding. There is filed against any Covered Person any
civil or criminal action, suit or proceeding under any federal or state racketeering
statute (including, without limitation, the Racketeer Influenced and Corrupt
Organization Act of 1970), which action, suit or proceeding is not dismissed within
60 days and could result in the confiscation or forfeiture of any material portion
of its assets.

15.1.14. Loss to Assets. Any loss, theft, damage or destruction of any item or
items of a Covered Person’s assets occurs which is reasonably likely to have a
Material Adverse Effect.

15.1.15. Guaranty; Guarantor. Any Guaranty ceases to be in full force and effect or
any action is taken to discontinue or assert the invalidity or unenforceability of
any Guaranty or any Guarantor fails to comply with any of the terms or provisions of
any Guaranty, or any representation or warranty of any Guarantor therein is
discovered to have been false in any material respect when made, or any Guarantor
denies that it has any further liability under any Guaranty or gives notice to
Lender to such effect.

15.1.16. Material Adverse Change. There occurs any action or event or there is a
nonoccurrence of any action or event, which has or is reasonably likely to have a
Material Adverse Effect.

15.2. Cross Default. An Event of Default under this Agreement will automatically and
immediately constitute a default under all other Loan Documents without regard to any
requirement therein for the giving of notice or the passing of time.

15.3. Rights and Remedies.

15.3.1. Termination of Commitments. Upon an Event of Default described in Section 15.1.8, the Commitments shall be
deemed canceled. Upon any other Event of Default, and at any time thereafter,
Required Lenders may cancel the Commitments. Such cancellation may be, in either
case, without presentment, demand or notice of any kind, which Borrower expressly
waives.

15.3.2. Acceleration. Upon an Event of Default described in Section 15.1.8, all of
the outstanding Loan Obligations shall automatically become immediately due and
payable. Upon any other Event of Default, and at any time thereafter, Required
Lenders may declare all of the outstanding Loan Obligations immediately due and
payable. Such

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acceleration may be, in either case, without presentment, demand or
notice of any kind, which Borrower expressly waives.

15.3.3. Right of Setoff. Upon the occurrence and during the continuation of an
Event of Default, each Lender is hereby authorized, without notice to Borrower (any
such notice being expressly waived by Borrower), to the fullest extent permitted by
law, to set off and apply against the Loan Obligations any and all deposits (general
or special, time or demand, provisional or final) at any time held, or any other
Indebtedness at any time owing by such Lender (or its Affiliate) to or for the
credit or the account of Borrower, irrespective of whether or not such Lender shall
have made any demand under this Agreement or the Notes or any Guaranty and although
such Loan Obligations may be unmatured. The rights of each Lender under this Section
are in addition to other rights and remedies (including, without limitation, other
rights of setoff) which such Lender may otherwise have. All amounts received by
each Lender on account of the Loan Obligations pursuant to this Section shall be
paid over promptly to Administrative Agent for distribution to Lenders as provided
in this Agreement and shall be applied as provided in this Agreement.

15.3.4. Rights Generally. Upon the occurrence and during the continuation of an
Event of Default and acceleration of the Loan Obligations as provided herein, and at
any time and from time to time thereafter, Administrative Agent and Lenders may
exercise any or all of its rights they may have under the Loan Documents or
otherwise available in equity or under any other applicable Law.

15.3.5. Joint and Several. Each Obligation and liability to the Letter of Credit
Issuer, Administrative Agent and each Lender of Borrower and Guarantors, including,
without limitation, the Loan Obligations, are the joint and several obligations of
Borrower and Guarantors, and Administrative Agent may proceed directly against
Borrower, any Guarantor, all of the foregoing, or any one of the foregoing or any
combination of the foregoing, without first proceeding against Borrower, or without
joining all Persons liable or potentially liable for any portion of the Loan
Obligations in one action.

15.4. Application of Funds. Any funds received by Lenders or Administrative Agent for the
benefit of Lenders with respect to any Loan Obligation after its Maturity, shall be applied
as follows: (i) first, to reimburse Lenders pro-rata for any amounts due to Lenders under
Section 18.8; (ii) second, to reimburse to Administrative Agent all unreimbursed costs and
expenses paid or incurred by Administrative Agent that are payable or reimbursable by
Borrower hereunder; (iii) third, to reimburse to Lenders pro-rata all unreimbursed costs and
expenses paid or incurred by Lenders (including
costs and expenses incurred by Administrative Agent as a Lender that are not reimbursable as
provided in the preceding clause) that are payable or reimbursable by Borrower hereunder;
(iv) fourth, to the payment of accrued and unpaid fees due hereunder and all other amounts
due hereunder (other than the Loans and interest accrued thereon); (v) fifth, to the payment
of the Loans of each of the Lenders and interest accrued thereon (which payments shall be
pro rata to each of the Lenders in accordance with the amount of the Loans outstanding) and
to the payment (pari passu with the foregoing) of any Hedge Obligations and cash collateral
to the Letter of Credit Issuer as collateral for the Letter of Credit Exposure; and (vi)
sixth, to the payment of the other Loan Obligations. Any remaining amounts shall be applied
to payment of all the Obligations to Administrative Agent. Any further remaining amounts
shall be paid to Borrower or such other Persons as shall be legally entitled thereto. Except
as expressly provided otherwise herein, Lenders may apply and reverse and reapply, payments
to the Loan Obligations in such order and manner as Lenders determine in their absolute
discretion.

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16. Administrative Agent and Lenders.

16.1. Appointment, Powers, and Immunities. LaSalle is hereby appointed Administrative Agent
hereunder and under each of the other Loan Documents. Each Lender hereby irrevocably
appoints and authorizes Administrative Agent to act as its agent under this Agreement and
the other Loan Documents with such powers and discretion as are specifically delegated to
Administrative Agent by the terms of this Agreement and the other Loan Documents, together
with such other powers as are reasonably incidental thereto. Administrative Agent (which
term as used in this sentence and in Section 16.5 and the first sentence of Section 16.6
hereof shall include its Affiliates and its own and its Affiliates’ officers, directors,
employees, and agents): (a) shall not have any duties or responsibilities except those
expressly set forth in this Agreement and shall not be a trustee or fiduciary for any
Lender; (b) shall not be responsible to the Lenders for any recital, statement,
representation, or warranty (whether written or oral) made in or in connection with any Loan
Document or any certificate or other document referred to or provided for in, or received by
any of them under, any Loan Document, or for the value, validity, effectiveness,
genuineness, enforceability, or sufficiency of any Loan Document, or any other document
referred to or provided for therein or for any failure by any Covered Person or any other
Person to perform any of its obligations thereunder or the validity; (c) shall not be
responsible for or have any duty to ascertain, inquire into, or verify the performance or
observance of any covenants or agreements by any Covered Person or the satisfaction of any
condition or to inspect the property (including the books and records) of any Covered Person
or any of its Subsidiaries or affiliates; (d) shall not be required to initiate or conduct
any litigation or collection proceedings under any Loan Document; and (e) shall not be
responsible for any action taken or omitted to be taken by it under or in connection with
any Loan Document, except for its own gross negligence or willful misconduct. Administrative
Agent may employ agents and attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care.

16.2. Reliance by Administrative Agent. Administrative Agent shall be entitled to rely upon
any certification, notice, instrument, writing, or other communication (including, without
limitation, any thereof by telephone or telecopy) believed by it to be genuine and correct
and to have been signed, sent or made by or on behalf of the proper Person or Persons, and
upon advice and statements of legal counsel (including counsel for any Covered Person),
independent accountants, and other experts selected by Administrative Agent. Administrative
Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof
unless and until Administrative Agent receives and accepts an Assignment and Acceptance
executed in accordance with Section 18.4 hereof. As to any matters not expressly
provided for by this Agreement, Administrative Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding on all of the Lenders;
provided, however, that Administrative Agent shall not be required to take any action that
exposes Administrative Agent to personal liability or that is contrary to any Loan Document
or applicable law or unless it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason of taking
any such action.

16.3. Employment of Agents and Counsel. Administrative Agent may execute any of its duties
hereunder by or through employees, agents, and attorneys-in-fact and shall not be liable to
any Lender, except with respect to money or securities received by it or such agents or
attorneys-in-fact, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with

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reasonable care. Administrative Agent shall be entitled to advice of
counsel concerning all matters pertaining to the agency hereby created and its duties
hereunder and shall not be liable to any Lender for acting or failing to act based as
advised by such counsel, except where doing so violates an express obligation of
Administrative Agent under the Loan Documents.

16.4. Defaults. Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of a Default or Event of Default unless Administrative Agent has received written
notice from a Lender or the Borrower specifying such Default or Event of Default and stating
that such notice is a Notice of Default. In the event that Administrative Agent receives
such a notice of the occurrence of a Default or Event of Default, Administrative Agent shall
give notice thereof to the Lenders. Administrative Agent shall (subject to Section 16.2
hereof) take such action with respect to such Default or Event of Default as shall
reasonably be directed by the Required Lenders, provided that, unless and until
Administrative Agent shall have received such directions, Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best interest
of the Lenders.

16.5. Rights as Lender. With respect to its Commitment and the Loans made by it, LaSalle
(and any successor acting as Administrative Agent) in its capacity as a Lender hereunder
shall have the same rights and powers hereunder as any other Lender and may exercise the
same as though it were not acting as Administrative Agent, and the term Lender or Lenders
shall, unless the context otherwise indicates, include Administrative Agent in its
individual capacity. LaSalle (and any successor acting as Administrative Agent) and its
Affiliates may (without having to account therefor to any Lender) accept deposits from, lend
money to, make investments in, provide services to, and generally engage in any kind of
lending, trust, or other business with any Covered Person or any of its Subsidiaries or
Affiliates as if it were not acting as Administrative Agent, and LaSalle (and any successor
acting as Administrative Agent) and its Affiliates may accept fees and other consideration
from any Covered Person or any of its Subsidiaries or Affiliates for services in connection
with this Agreement or otherwise without having to account for the same to Lenders. The
Lenders acknowledge that, pursuant to such activities, Administrative Agent or its
Affiliates may receive information regarding Borrower or its Affiliates (including
information that may be subject to confidentiality obligations in favor of Borrower or such
Affiliates) and acknowledge that Administrative Agent shall be under no obligation to
provide such information to the Lenders.

16.6. Indemnification. Whether or not the transactions contemplated hereby are consummated,
Lenders agree to reimburse and indemnify Administrative Agent upon demand (to the extent not
reimbursed under Section 18.8, but without limiting the obligations of Borrower under
Section 18.8) ratably in accordance with their respective Commitments, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including reasonable attorneys’ fees), or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against Administrative Agent
(including by any Lender) in any way relating to or arising out of any Loan Document, the
Current Acquisition Documents, or any of the transactions contemplated by any of the
foregoing or any action taken or omitted by Administrative Agent under any Loan Document or
any Current Acquisition Document; provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful misconduct of the
Person to be indemnified, as determined by a final, nonappealable judgment by a court of
competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse
Administrative Agent promptly upon demand for its ratable share of any costs or expenses
payable by Borrower under Section 18.7, to the extent that Administrative Agent is not
promptly reimbursed for such costs and expenses by Borrower. The

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agreements contained in
this Section shall survive payment in full of the Loans and all other amounts payable under
this Agreement.

16.7. Notification of Lenders. Each Lender agrees to use its good faith efforts, upon
becoming aware of anything which has or is reasonably likely to have a Material Adverse
Effect on any Covered Person, to promptly notify Administrative Agent thereof.
Administrative Agent shall promptly deliver to each Lender copies of every written notice,
demand, report (including any financial report), or other writing which Administrative Agent
gives to or receives from Borrower and which itself (a) constitutes, or which contains
information about, something that has or is reasonably likely to have a Material Adverse
Effect on any Covered Person, or (b) is otherwise delivered to Administrative Agent by
Borrower pursuant to the Loan Documents and is deemed material information by Administrative
Agent in its sole discretion. Administrative Agent and its directors, officers, agents, and
employees shall have no liability to any Lender for failure to deliver any such item to such
Lender unless the failure constitutes gross negligence or willful misconduct.

16.8. Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that Administrative
Agent has not made any representation or warranty to it, and that no act by the
Administrative Agent hereafter taken, including any review of the affairs of Borrower and
its Affiliates, shall be deemed to constitute any representation or warranty by
Administrative Agent to any Lender. Each Lender agrees that it has, independently and
without reliance on Administrative Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own credit analysis of the Covered
Persons and their Subsidiaries and decision to enter into this Agreement and that it will,
independently and without reliance upon Administrative Agent or any other Lender, and based
on such documents and information as it shall deem appropriate at the time, continue to make
its own analysis and decisions in taking or not taking action under the Loan Documents.
Except for notices, reports, and other documents and information expressly required to be
furnished to Lenders by Administrative Agent hereunder, Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition, or business of any Covered Person or any of its
Subsidiaries or Affiliates that may come into the possession of Administrative Agent or any
of its Affiliates.

16.9. Resignation.
Administrative Agent may resign at any time by giving notice thereof to the Lenders and
Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a
successor Administrative Agent which appointment shall be subject to the consent (which
consent will not be unreasonably withheld or delayed) of Borrower so long as there is no
Existing Default. If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30) days after the
retiring Administrative Agent’s giving of notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent
which shall be a commercial bank organized under the laws of the United States of America
having combined capital and surplus of at least $100,000,000. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor, such successor shall thereupon
succeed to and become vested with all the rights, powers, discretion, privileges, and duties
of the retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. If no successor has accepted
appointment as Administrative Agent within thirty (30) days after the date on which
Administrative Agent first attempts to appoint a successor Administrative Agent, the
resigning Administrative Agent’s resignation shall nevertheless thereupon become effective
and the Lenders shall perform all of the duties of the Administrative Agent hereunder until
such time, if any, as the Required Lenders appoint a

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successor which accepts such
appointment. After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Section 16.9 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

16.10. Collections and Distributions to Lenders by Administrative Agent. Except as
otherwise provided in this Agreement, including, without limitation, with respect to the
Swingline Loan, all payments of interest, fees, principal and other amounts received by
Administrative Agent for the account of Lenders shall be distributed by Administrative Agent
to Lenders in accordance with their pro-rata shares of the outstanding Loan Obligations at
the time of such distribution (or entirely to Administrative Agent in the case of payments
of interest, fees or principal with respect to the Swingline Loan) on the same Business Day
when received, unless received after 12:00 noon (Local Time) in which case they shall be so
distributed by 12:00 noon (Local Time) on the next Business Day. All amounts received by
any Lender on account of the Loan Obligations, including amounts received by way of setoff,
shall be paid over promptly to Administrative Agent for distribution to Lenders as provided
above in this Section. Such distributions shall be made according to instructions that each
Lender may give to Administrative Agent from time to time. Unless there is an Existing
Default (in which case the Lenders may apply payments as they determine in their
discretion), payments received shall be applied (after application to the Swingline Loan to
reduce it to zero), first to reduce any Base Rate Loans included in the Aggregate Revolving
Loan owing to each Lender, and then to any LIBOR Loans included in the Aggregate Revolving
Loan owing to each Lender.

17. Change in Circumstances.

17.1. Compensation for Increased Costs and Reduced Returns.

17.1.1. Law Changes or Tax Impositions. If, after the Effective Date, the adoption
of any applicable Law or any change in any applicable Law or any change in the
interpretation or administration thereof by any Governmental Authority charged with
the interpretation or administration thereof, or compliance by any Lender (or its
Applicable Lending Office) with any request or
directive (whether or not having the force of law) of any such Governmental
Authority, central bank, or comparable agency:

(i) subjects such Lender (or its Applicable Lending Office) to any Tax with
respect to any LIBOR Loans or its obligation to make LIBOR Loans, or change
the basis of taxation of any amounts payable to such Lender (or its
Applicable Lending Office) under this Agreement in respect of any LIBOR
Loans (other than Taxes imposed on the overall net income of such Lender by
the jurisdiction in which such Lender has its principal office or such
Applicable Lending Office);

(ii) imposes, modifies, or deems applicable any reserve, special deposit,
assessment or similar requirement (other than the reserve requirement
utilized in the determination of the LIBOR Rate) relating to any extensions
of credit or other assets of, or any deposits with or other liabilities or
commitments of, such Lender (or its Applicable Lending Office), including
the Commitment of such Lender hereunder; or

(iii) imposes on such Lender (or its Applicable Lending Office) or on the
United States market for certificates of deposit or the London Interbank
market

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any other condition affecting this Agreement, its Commitments or its
Note or any of such extensions of credit or liabilities or commitments;

and the result of any of the foregoing is to increase the cost to such Lender (or
its Applicable Lending Office) of making, converting into, continuing, or
maintaining any Loans or to reduce any sum received or receivable by such Lender (or
its Applicable Lending Office) under this Agreement or any of its Notes with respect
to any Loans, then Borrower shall pay to such Lender on demand such amount or
amounts as will compensate such Lender for such increased cost or reduction. If any
Lender requests compensation by Borrower under this Section 17.1.1, Borrower may, by
notice to such Lender (with a copy to Administrative Agent), suspend the obligation
of such Lender to make or continue Loans of the type with respect to which such
compensation is requested, or to convert Loans of any other type into Loans of such
type, until the event or condition giving rise to such request ceases to be in
effect (in which case the provisions of Section 17.5 shall be applicable); provided,
however, that such suspension shall not affect the right of such Lender to receive
the compensation so requested.

17.1.2. Capital Adequacy. If, after the Effective Date, any Lender shall have
determined that the adoption of any applicable Law regarding capital adequacy or any
change therein or in the interpretation or administration thereof by any
governmental authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or any request or directive regarding
capital adequacy (whether or not having the force of law) of any such governmental
authority, central bank, or comparable agency, has or would have the effect of
reducing the rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of such Lender’s obligations hereunder to a
level below that which such Lender or such corporation could have achieved but for
such adoption, change, request, or directive (taking into consideration its policies
with respect to capital adequacy), then from time to time upon demand Borrower shall
pay to such Lender such additional amount or amounts as will compensate such Lender
for such reduction.

17.1.3. Notice to Borrower.
Each Lender shall promptly notify Borrower and Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle such
Lender to compensation pursuant to this Section 17.1 and will designate a different
Applicable Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not, in the judgment of such Lender, be
otherwise disadvantageous to it. Any Lender claiming compensation under this Section
17.1 shall furnish to Borrower and Administrative Agent a statement setting forth
the additional amount or amounts to be paid to it hereunder which shall be
conclusive in the absence of manifest error. In determining such amount, such Lender
may use any reasonable averaging and attribution methods.

17.2. Market Failure. If on or prior to the first day of any Interest Period for any LIBOR
Loan:

(i) Administrative Agent determines (which determination shall be conclusive) that
by reason of circumstances affecting the relevant market, adequate and reasonable
means do not exist for ascertaining the LIBOR Rate for such Interest Period; or

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(ii) the Required Lenders determine (which determination shall be conclusive) and
notify Administrative Agent that the LIBOR Rate will not adequately and fairly
reflect the cost to the Lenders of funding LIBOR Loans for such Interest Period;

then Administrative Agent shall give Borrower prompt notice thereof, and so long as such
condition remains in effect, the Lenders shall be under no obligation to make additional
LIBOR Loans, continue LIBOR Loans, or to convert LIBOR Loans and Borrower shall, on the last
day(s) of the then current Interest Period(s) for the outstanding LIBOR Loans either prepay
such Loans or convert such Loans into Base Rate Loans in accordance with the terms of this
Agreement.

17.3. Illegality. Notwithstanding any other provision of this Agreement, in the event that
it becomes unlawful for any Lender or its Applicable Lending Office to make, maintain, or
fund LIBOR Loans hereunder, then such Lender shall promptly notify Borrower thereof and such
Lender’s obligation to make, continue LIBOR Loans or convert Base Rate Loans into LIBOR
Loans shall be suspended until such time as such Lender may again make, maintain, and fund
LIBOR Loans (in which case the provisions of Section 17.5 shall be applicable).

17.4. Compensation. Upon the request of any Lender, Borrower shall pay to such Lender such
amount or amounts as shall be sufficient (in the reasonable opinion of such Lender) to
compensate it for any loss, cost, or expense (including loss of anticipated profits)
incurred by it as a result of:

(i) any payment, prepayment, or conversion of a LIBOR Loan for any reason
(including, without limitation, the acceleration of the Loans pursuant to the terms
hereof) on a date other than the last day of the Interest Period for such LIBOR
Loan; or

(ii) any failure by Borrower for any reason to borrow, convert, continue, or prepay
a LIBOR Loan on the date for such borrowing, conversion, continuation, or prepayment
specified in the relevant notice of borrowing, prepayment, continuation, or
conversion under this Agreement.

If a Lender claims compensation under this Section 17.4, such Lender shall furnish a
certificate to Borrower that states the amount to be paid to it hereunder and includes a
description of the method used by such Lender in calculating such amount. Borrower shall
have the burden of proving that the amount of any such compensation calculated by a Lender
is not correct. Any compensation payable by Borrower to a Lender under this Section 17.4
shall be payable without regard to whether such Lender has funded its pro-rata share of any
LIBOR Advance or LIBOR
Loan through the purchase of deposits in an amount or of a maturity corresponding to the
deposits used as a reference in determining the LIBOR Rate.

17.5. Treatment of Affected Loans. If the obligation of any Lender to make a LIBOR Loans or
to continue any LIBOR Loans, or to convert any Base Rate Loan into a LIBOR Loan shall be
suspended pursuant to Section 17.1, 17.2, or 17.3 (such Loans being herein called Affected
Loans), such Lender’s Affected Loans shall be automatically and immediately converted into
Base Rate Loans on the last day(s) of the then current Interest Period(s) for Affected Loans
(or, in the case of a conversion required by Section 17.3, on such earlier date as such
Lender may specify to Borrower with a copy to Administrative Agent) and, unless and until
such Lender gives notice as provided below that the circumstances specified in Section 17.1,
17.2, or 17.3 that gave rise to such conversion no longer exist:

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(i) to the extent that such Lender’s Affected Loans have been so converted, all
payments and prepayments of principal that would otherwise be applied to such
Lender’s Affected Loans shall continue to be made and applied as provided for
herein; and

(ii) all Loans that would otherwise be made or continued by such Lender as LIBOR
Loans shall be made or continued instead as Base Rate Loans, and all Loans of such
Lender that would otherwise be converted into LIBOR Loans shall be converted instead
into (or shall remain as) Base Rate Loans.

If such Lender gives notice to Borrower (with a copy to Administrative Agent) that the
circumstances specified in Section 17.1, 17.2, or 17.3 hereof that gave rise to the
conversion of such Lender’s Affected Loans pursuant to this Section 17.5 no longer exist
(which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time
when Loans of the type of the Affected Loans made by other Lenders are outstanding, such
Lender’s Base Rate Loans shall be automatically converted, on the first day(s) of the next
succeeding Interest Period(s) for such outstanding Loans of the type of the Affected Loans,
to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders
holding Loans of the type of the Affected Loans and by such Lender are held pro rata (as to
principal amounts, type of interest, and Interest Periods) in accordance with their
respective Commitments.

17.6. Taxes.

17.6.1. Gross-Up. Any and all payments by Borrower to or for the account of any
Lender or the Administrative Agent hereunder or under any other Loan Document shall
be made free and clear of and without deduction for any and all Taxes, whether
imposed now or in the future, excluding, in the case of each Lender and the
Administrative Agent, Taxes imposed on its income, and franchise Taxes imposed on
it, by the jurisdiction under the Laws of which such Lender (or its Applicable
Lending Office) or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof. If Borrower is required by Law to deduct any Taxes
from or in respect of any sum payable under this
Agreement or any other Loan Document to any Lender or the Administrative Agent, (i)
the sum payable will be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this
Section 17.6) such Lender or the Administrative Agent receives an amount equal to
the sum it would have received had no such deductions been made, (ii) Borrower shall
make such deductions, (iii) Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable Law,
and (iv) Borrower shall furnish to Administrative Agent, at its address referred to
herein, the original or a certified copy of a receipt evidencing payment thereof. In
addition, Borrower agrees to pay any and all present or future stamp or documentary
taxes and any other excise or property taxes or charges or similar levies which
arise from any payment made under this Agreement or any other Loan Document or from
the execution or delivery of, or otherwise with respect to, this Agreement or any
other Loan Document (hereinafter referred to as Impositions). Borrower agrees to
indemnify each Lender and the Administrative Agent for the full amount of Taxes and
Impositions (including, without limitation, any Taxes or Impositions imposed or
asserted by any jurisdiction on amounts payable under this Section 17.6) paid by
such Lender or the Administrative Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. Within 30 days after the date of any payment of Taxes, Borrower shall
furnish to Administrative Agent the original or a certified copy of the receipt
evidencing such payment.

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17.6.2. Lenders’ Undertakings.

(i) Each Lender organized under the Laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Lender listed on the signature pages hereof
and on or prior to the date on which it becomes a Lender in the case of each
other Lender, and from time to time thereafter if requested in writing by
Borrower or Administrative Agent (but only so long as such Lender remains
lawfully able to do so), shall provide Borrower and Administrative Agent
with (i) Internal Revenue Service Form 1001 or 4224, as appropriate, or any
successor form prescribed by the Internal Revenue Service, certifying that
such Lender is entitled to benefits under an income tax treaty to which the
United States is a party which reduces the rate of withholding Tax on
payments of interest or certifying that the income receivable pursuant to
this Agreement is effectively connected with the conduct of a trade or
business in the United States, (ii) Internal Revenue Service Form W-8 or
W-9, as appropriate, or any successor form prescribed by the Internal
Revenue Service, and (iii) any other form or certificate required by any
Governmental Authority (including any certificate required by Sections
871(h) and 881(c) of the Internal Revenue Code), certifying that such Lender
is entitled to an exemption from or a reduced rate of Tax on payments
pursuant to this Agreement or any of the other Loan Documents. For any
period with respect to which a Lender has failed to provide Borrower and
Administrative Agent with the appropriate form pursuant to this Section
17.6.2 (unless such failure is due to a change in treaty or Law occurring
subsequent to the date on which a form originally was required to be
provided), such Lender shall not be entitled to indemnification under
Section 17.6.1 with respect to Taxes imposed by the United States; provided,
however, that should a 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, Borrower shall
take such steps as such Lender shall reasonably request to assist such
Lender to recover such Taxes.

(ii) If Borrower is required to pay additional amounts to or for the account
of any Lender or Administrative Agent pursuant to this Section, then such
Lender or the Administrative Agent will agree to use reasonable efforts to
change the jurisdiction of its Applicable Lending Office so as to eliminate
or reduce any such additional payment which may thereafter accrue if such
change, in the judgment of such Lender or the Administrative Agent, as the
case may be, is not otherwise disadvantageous to such Lender or the
Administrative Agent, as the case may be.

17.6.3. Survival of Borrower’s Obligations. Without prejudice to the survival of
any other agreement of Borrower hereunder, the agreements and obligations of
Borrower contained in this Section 17.6 shall survive the termination of the
Commitments, the expiration of the Letters of Credit, the indefeasible full payment
and satisfaction of all of the Loan Obligations.

17.7. Usury. Notwithstanding any provisions to the contrary in Section 4 or elsewhere in
any of the Loan Documents, Borrower shall not be obligated to pay interest at a rate which
exceeds the maximum rate permitted by Law. If, but for this Section 17.7, Borrower would be
deemed

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obligated to pay interest at a rate which exceeds the maximum rate permitted by Law,
or if any of the Loan Obligations is paid or becomes payable before its originally scheduled
Maturity and as a result Borrower has paid or would be obligated to pay interest at such an
excessive rate, then (i) Borrower shall not be obligated to pay interest to the extent it
exceeds the interest that would be payable at the maximum rate permitted by Law; (ii) if the
outstanding Loan Obligations have not been accelerated as provided in Section 15.3.2, any
such excess interest that has been paid by Borrower shall be refunded; (iii) if the
outstanding Loan Obligations have been accelerated as provided in Section 15.3.2, any such
excess that has been paid by Borrower shall be applied to the Loan Obligations as provided
in Section 15.4; and (iv) the effective rate of interest shall be deemed automatically
reduced to the maximum rate permitted by Law.

18. General.

18.1. Lenders’ Right to Cure. Administrative Agent may or Required Lenders may (or may
direct the Administrative Agent) from time to time, in their absolute discretion, for
Borrower’s account and at Borrower’s expense, pay (or, with the consent of Required Lenders,
make a Revolving Loan Advance to pay) any amount or do any act required of Borrower
hereunder or requested by Administrative Agent or Required Lenders to preserve, protect,
maintain or enforce the Loan Obligations, which Borrower is required to pay or do, but fails
to pay or do, including payment of any judgment against Borrower, insurance premium, taxes
or assessments, warehouse charge, finishing or processing charge, landlord’s claim, and any
other Security Interest upon or with respect to its assets. All payments that Lenders make
pursuant to this Section and all out-of-pocket costs and expenses that Lenders pay or incur
in connection with any action taken by them hereunder shall be a part of the Loan
Obligations. Any payment made or other action taken by Lenders pursuant to this Section
shall be without prejudice to any right to assert an Event of Default hereunder and to
pursue Lender’s other rights and remedies with respect thereto. Administrative Agent agrees
that so long as there is no Existing Default, Administrative Agent will use its reasonable
efforts to give notice to Borrower prior to taking any of the actions described in this
Section 18.1; provided,
however, that Administrative Agent shall have no liability for failure to give any such
notice, unless such failure is intentional.

18.2. Rights Not Exclusive. Every right granted to Administrative Agent and Lenders
hereunder or under any other Loan Document or allowed to it at law or in equity shall be
deemed cumulative and may be exercised from time to time.

18.3. Survival of Agreements. All covenants and agreements made herein and in the other
Loan Documents shall survive the execution and delivery of this Agreement, the Notes and
other Loan Documents and the making of every Advance. All agreements, obligations and
liabilities of Borrower under this Agreement concerning the payment of money to
Administrative Agent and Lenders, including Borrower’s obligations under Sections 18.7 and
18.8, but excluding the obligation to repay the Loans and interest accrued thereon, shall
survive the repayment in full of the Loans and interest accrued thereon, whether or not
indefeasible, the return of the Notes to Borrower, the termination of the Commitments and
the expiration of all Letters of Credit.

18.4. Assignments.

18.4.1. Permitted Assignments. At any time after the Execution Date, any Lender may
assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of the Notes payable to
it, its Commitments and its Loans), provided that the terms of assignment satisfy
the following requirements:

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18.4.1.1. Administrative Agent shall have accepted the assignment, which
acceptance shall not be unreasonably withheld.

18.4.1.2. Each such assignment shall be of a constant, and not a varying,
percentage of all of the assigning Lender’s rights and obligations under
this Agreement.

18.4.1.3. For each assignment involving the issuance and transfer of Notes,
the assigning Lender shall execute an Assignment and Acceptance in the form
attached hereto as Exhibit 18.4.1 together with any Note subject to such
assignment and a processing fee of $3,500 payable by assigning Lender.

18.4.1.4. The minimum Commitment which shall be assigned (which shall
include the applicable portion of the assigning Lender’s Revolving Loan
Commitment, and Letter of Credit Commitment (and in the case of
Administrative Agent, the Swingline Commitment)) is $5,000,000 or such
lesser amount which constitutes such Lender’s entire Commitment; provided,
however, that no such minimum shall apply between a Lender and its
Affiliates, or between one Lender and another Lender or an assignment of all
of a Lender’s rights and obligations under this Agreement.

18.4.1.5. The assignee shall have an office located in the United States and is
otherwise an Eligible Assignee.

18.4.1.6. If there is no Existing Default as of the date of such assignment,
Borrower shall have consented to the assignment, which consent shall not be
unreasonably withheld or delayed.

18.4.2. Consequences and Effect of Assignments. From and after the effective date
specified in any Assignment and Acceptance, the assignee shall be deemed and treated
as a party to this Agreement and, to the extent that rights and obligations
hereunder and under the Notes held by the assignor have been assigned or negotiated
to the assignee pursuant to such Assignment and Acceptance, to have the rights and
obligations of a Lender hereunder as fully as if such assignee had been named as a
Lender in this Agreement and of a holder of such Notes, and the assignor shall, to
the extent that rights and obligations hereunder or under such Notes have been
assigned or negotiated by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its future obligations under this Agreement. If the
assignee is not incorporated under the laws of the United States of America or a
state thereof, it shall deliver to Borrower and Administrative Agent certification
as to the exemption from deduction or withholding of Taxes in accordance with
Section 17.6.

18.4.3. Agreements Upon Assignment. By executing and delivering an Assignment and
Acceptance, the assignor thereunder and the assignee confirm to and agree with each
other and the other parties hereto substantially as follows: (i) the assignment made
under such Assignment and Acceptance is made under such Assignment and Acceptance
without recourse; (ii) such assignor makes no representation or warranty and assumes
no responsibility with respect to the financial condition of any Covered Person or
the performance or observance by any Covered Person of any of its Loan Obligations;
(iii) such assignee confirms that it has received a copy of this Agreement, together
with

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copies of the Financial Statements and such other Loan Documents and other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon Administrative Agent, such
assignor, or any other Lender, and based on such documents and information as it
deems appropriate at the time, continue to make its own credit decisions in taking
or not taking action under this Agreement; (v) such assignee appoints and authorizes
Administrative Agent to take such action as agent on its behalf and to exercise such
powers under this Agreement and the other Loan Documents as are delegated to Agent
by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto; and (vi) such assignee agrees that it will perform in accordance
with their terms all of the obligations which by the terms of this Agreement are
required to be performed by it as a Lender and a holder of a Note.

18.4.4. Register. Administrative Agent shall maintain at its address referred to
herein a copy of each Assignment and Acceptance delivered to and accepted by it and
a register for the recordation of the names and addresses of the Lenders and the
Commitment of and principal amount of Loans owing to, each Lender from time to time
(the Register). The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and Borrower, Administrative Agent and Lenders may
treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by Borrower or any Lender
at any reasonable time and from time to time upon reasonable prior notice. Upon its
receipt of an Assignment and Acceptance executed by the parties thereto, together
with any Note subject to such assignment and payment of the processing fee,
Administrative Agent shall, if such Assignment and Acceptance has been completed and
is in substantially the form of Exhibit 18.4.1 hereto, (i) accept such Assignment
and Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the parties thereto.

18.4.5. Notice to Borrower of Assignment. Upon its receipt of an Assignment and
Acceptance executed by an assigning Lender, if Administrative Agent accepts the
assignment contemplated thereby and Borrower has consented thereto if and only if
required by Section 18.4.1.6, Administrative Agent shall give prompt notice thereof
to Borrower. Borrower shall execute and deliver replacement Notes to the assignor
and assignee as requested by Administrative Agent and necessary to give effect to
the assignment. If Borrower fails or refuses to execute and deliver such
replacement Notes, Administrative Agent may, as agent and attorney-in-fact for
Borrower, execute and deliver such replacement Notes on behalf of Borrower. Borrower
hereby appoints Administrative Agent as its agent and attorney-in-fact for such
purpose and acknowledges that such power is coupled with an interest and therefore
irrevocable. Administrative Agent shall not have any liability to Borrower or anyone
else, including any Lender, as a consequence of exercising such power in any
instance.

18.4.6. Assignment to Federal Reserve Bank. Notwithstanding any other provision set
forth in this Agreement, without consent of Borrower or Administrative Agent, any
Lender may at any time assign and pledge all or any portion of its Loans and its
Note to any Federal Reserve Bank as collateral security pursuant to Regulation A and
any Operating Circular issued by such Federal Reserve Bank. No such assignment shall
release the assigning Lender from its obligations hereunder.

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18.5. Sale of Participations. Each Lender may sell participations to one or more Persons
(other than Borrower or an Affiliate of Borrower) in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and its
Loans); provided, however, 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, (iii) the participant shall be entitled to
the benefit of the yield protection provisions contained in Section 17 and the right of
setoff contained in Section 15.3.3, (iv) the amount of the participation shall be in a
minimum amount of $5,000,000 or such lesser amount which constitutes such Lender’s entire
Commitment, provided, however, that no such minimum amount shall apply to participations
between any of Lenders or between any Lender and any of its Affiliates; and (v) Borrower,
the other Lenders and Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this Agreement,
and such Lender shall retain the sole right to enforce the obligations of Borrower relating
to its Loans, its Notes and its funding of Advances and to approve any amendment,
modification, or waiver of any provision of this Agreement, provided, however, that the
approval of a participant of a Lender may be required only for amendments, modifications, or
waivers that (a) forgive the amount of principal of the Loans, (b) reduce the LIBOR Margin
or the Base Rate Margin or reduce the Revolving Loan Unused Fee, or (c) extend the Revolving
Loan Maturity Date. The Lender selling a participation
shall, within two (2) Business Days of its effectiveness, provide written notice of such
event to the Administrative Agent. Notwithstanding the foregoing provisions of this
Section, the sale of any such participations which require Borrower to file a registration
statement with the SEC or under the securities Laws of any state shall not be permitted.

18.6. Information; Confidentiality. Administrative Agent and each Lender agrees that it
will not disclose to third Persons any information that it obtains about Borrower or its
operations or finances that are designated by Borrower in writing as confidential or that
Borrower has advised Administrative Agent and Lenders in writing constitutes non-public
information. Administrative Agent and Lenders may, however, disclose such information to
each other, to assignees and participants (including prospective assignees and participants)
and to all of their respective officers, attorneys, auditors, accountants, bank examiners,
agents and representatives who have a need to know such information in connection with the
administration, interpretation or enforcement of the Loan Documents or the lending and
collection activity contemplated therein or to the extent required by Law or a Governmental
Authority. Administrative Agent and Lenders shall advise such Persons that such information
is to be treated as confidential. Administrative Agent and any Lender may also disclose such
information in any documents that it files in any legal proceeding to pursue, enforce or
preserve its rights under the Loan Documents to the extent that its counsel advises in
writing that such disclosure is reasonably necessary. Administrative Agent’s and Lenders’
non-disclosure obligation shall not apply to any information that (i) is disclosed to
Administrative Agent or any Lender by a third Person not affiliated with or employed by
Borrower who does not have a commensurate duty of non-disclosure, or (ii) becomes publicly
known other than as a result of disclosure by Administrative Agent or a Lender.

Borrower agrees and shall cause each other Covered Person to agree that neither it nor its
Affiliates will in the future issue any press releases or other public disclosure using the
name of LaSalle Bank National Association or its Affiliates or referring to this Agreement,
the other Loan Documents without at least 2 Business Days’ prior notice to Administrative
Agent and without the prior written consent of LaSalle Bank National Association unless (and
only to the extent that) Borrower or such other Covered Person or

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Affiliate is required to
do so under law (including, without limitation, all rules and regulations promulgated by the
Securities and Exchange Commission) and then, in any event, Borrower or such other Covered
Person or Affiliate will consult with Administrative Agent before issuing such press release
or other public disclosure. Borrower consents, and shall cause each other Covered Person to
consent, to the publication by Administrative Agent or any Lender of a tombstone or similar
advertising material relating to the financing transactions contemplated by this Agreement.
Administrative Agent and each Lender reserves the right to provide to industry trade
organizations information necessary and customary for inclusion in league table
measurements.

Notwithstanding anything herein to the contrary, “information” shall not include, and the
Administrative Agent and each Lender may disclose to any and all Persons, without limitation
of any kind, any information with respect to the “tax treatment” and “tax structure” (in
each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions
contemplated hereby and all materials of any kind (including opinions or other tax analyses)
that are provided to the Administrative Agent or such Lender relating to such tax treatment
and tax structure; provided that with respect to any document or similar item that in either
case contains information concerning the tax treatment or tax structure of the transaction
as well as other information, this sentence shall only apply to such portions of the
document or similar item that relate to the tax treatment or tax structure of the Loans,
Letters of Credit and transactions contemplated hereby.

18.7. Payment of Expenses. Borrower agrees to pay or reimburse to Administrative Agent all
of Administrative Agent’s reasonable out-of-pocket costs incurred in connection with
Administrative Agent’s due diligence review before execution of the Loan Documents; the
negotiation and preparation of proposals, a commitment letter and the Loan Documents; the
syndication of the Loans; the administration of this Agreement, the Loan Documents and the
Loans; the interpretation of any of the Loan Documents; any amendment of or supplementation
to any of the Loan Documents; and any waiver, consent, enforcement, or forbearance with
respect to any Default or Event of Default. Borrower agrees to pay or reimburse to
Administrative Agent and each Lender all of Administrative Agent’s and such Lender’s
out-of-pocket costs incurred in connection with the enforcement of such Lender’s rights and
remedies under the Loan Documents after the occurrence and during the continuation of an
Event of Default. Administrative Agent’s out-of-pocket costs may include but are not
limited to the following, to the extent they are actually paid or incurred by Administrative
Agent: title insurance fees and premiums; the cost of searches for Security Interests
existing against Covered Persons; recording and filing fees; appraisal fees; environmental
consultant fees; litigation costs; and all attorneys’ and paralegals’ expenses and
reasonable fees. Each Lender’s out-of-pocket costs may include but are not limited to the
following, to the extent they are actually paid or incurred by a Lender: litigation costs
and all attorneys’ and paralegals’ expenses and reasonable fees. Attorneys’ and paralegals’
expenses may include but are not limited to filing charges; telephone, data transmission,
facsimile and other communication costs; courier and other delivery charges; and
photocopying charges. Litigation costs may include but are not limited to filing fees,
deposition costs, expert witness fees, expenses of service of process, and other such costs
paid or incurred in any administrative, arbitration, or court proceedings involving a Lender
and any Covered Person, including proceedings under the Federal Bankruptcy Code. All costs
which Borrower is obligated to pay or reimburse Administrative Agent or the Lenders are Loan
Obligations payable to Administrative Agent or Lender, as applicable, and are payable on
demand by Administrative Agent or such Lender.

18.8. General Indemnity.

18.8.1. Borrower agrees to indemnify and hold harmless Administrative Agent, the
Letter of Credit Issuer, LaSalle and each Lender and each of their Affiliates and
their

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respective officers, directors, employees, agents, and advisors (each, an
Indemnified Party) from and against any and all claims, damages, losses,
liabilities, costs, and expenses (including, without limitation, reasonable
attorneys’ fees) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or by reason of
(including, without limitation, in connection with any investigation, litigation, or
proceeding or preparation of defense in connection therewith) the Loan Documents,
the Acquisition Documents, any of the transactions contemplated herein or therein or
the actual or proposed use of the proceeds of the Loans, or the manufacture,
storage, transportation, release or disposal of any Hazardous Material on, from,
over or affecting any of its assets or any of the assets, properties, or operations
of any Covered Person or any predecessor in interest, directly or indirectly, except
to the extent such claim, damage, loss, liability, cost, or expense is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party’s gross negligence or willful misconduct. In the case of
an investigation, litigation or other proceeding to which the indemnity in this
Section 18.8 applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by Borrower, its directors,
shareholders or creditors or an Indemnified Party or any other
Person or any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. Borrower agrees not to assert any
claim against Administrative Agent, any Lender, any of their Affiliates, or any of
their respective directors, officers, employees, attorneys, agents, and advisers, on
any theory of liability, for special, indirect, consequential, or punitive damages
arising out of or otherwise relating to the Loan Documents, the Acquisition
Documents, any of the transactions contemplated herein or therein or the actual or
proposed use of the proceeds of the Loans. Borrower shall pay, indemnify and hold
harmless the Indemnified Parties for, from and against, and shall promptly reimburse
the Indemnified Parties for, any and all claims, damages, liabilities, losses, costs
and expenses (including reasonable attorneys’ fees and expenses and amounts paid in
settlement) incurred, paid or sustained by the Indemnified Parties, arising out of
or relating to the Acquisition Documents.

18.8.2. The obligations of Borrower under this Section 18.8 shall survive the
termination of the Commitments, the expiration of the Letters of Credit, and the
indefeasible full payment and satisfaction of all of the Loan Obligations.

18.8.3. To the extent that any of the indemnities required from Borrower under this
Section are unenforceable because they violate any Law or public policy, Borrower
shall pay the maximum amount which it is permitted to pay under applicable Law.

18.9. Letters of Credit. Borrower assumes all risks of the acts or omissions of any
beneficiary of any of the Letters of Credit. Neither Administrative Agent nor any of its
directors, officers, employees, agents, or representatives shall be liable or responsible
for: (a) the use which may be made of any of the Letters of Credit or for any acts or
omissions of beneficiary in connection therewith; (b) the validity, sufficiency or
genuineness of documents, or of any endorsement(s) thereon, even if such documents should in
fact prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c)
payment by Administrative Agent against presentation of documents which, on their face,
appear to comply with the terms of any Letter of Credit, even though such documents may fail
to bear any reference or adequate reference to any such Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter of Credit in
connection with which Administrative Agent would, pursuant to the Uniform Customs and
Practices for Documentary Credits (1993 Revision), International Chamber

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of Commerce Publication No. 500 (as amended from time to time), be absolved from liability. In
furtherance and not in limitation of the foregoing, Letter of Credit Issuer may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.

18.10. Changes in Accounting Principles. If any Covered Person, at the end of its fiscal
year and with the concurrence of its independent certified public accountants, changes the
method of valuing the inventory of such Covered Person, or if any other changes in
accounting principles from those used in the preparation of any of the Financial Statements
are required by or result from the promulgation of principles, rules, regulations,
guidelines, pronouncements or opinions by the Financial Accounting Standards Board or the
American Institute of Certified Public Accountants (or successors thereto or bodies with
similar functions), and any of such changes result in a change in the method of calculation
of, or affect the results of such calculation of, any of the financial covenants, standards
or terms found herein, then the parties hereto agree to enter into and diligently pursue
negotiations in order
to amend such financial covenants, standards or terms so as to equitably reflect such
changes, with the desired result that the criteria for evaluating the financial condition
and results of operations of such Covered Person shall be the same after such changes as if
such changes had not been made; provided, however, that until such changes are made, all
financial covenants herein and all the provisions hereof which contemplate financial
calculation hereunder shall remain in full force and effect.

18.11. Loan Records. The date and amount of all Advances to Borrower and payments of
amounts due from Borrower under the Loan Documents will be recorded in the records that
Administrative Agent normally maintains for such types of transactions. The failure to
record, or any error in recording, any of the foregoing shall not, however, affect the
obligation of Borrower to repay the Loans and other amounts payable under the Loan
Documents. Borrower shall have the burden of proving that such records are not correct.
Borrower agrees that Administrative Agent’s and any Lender’s books and records showing the
Loan Obligations and the transactions pursuant to this Agreement shall be admissible in any
action or proceeding arising therefrom, and shall constitute prima facie proof thereof,
irrespective of whether any Loan Obligation is also evidenced by a promissory note or other
instrument. Administrative Agent will provide to Borrower a monthly statement of Advances,
payments, and other transactions pursuant to this Agreement. Such statement shall be deemed
correct, accurate and binding on Borrower and an account stated (except for reversals and
reapplications of payments as provided in Section 6.7 and corrections of errors discovered
by Administrative Agent or a Lender), unless Borrower notifies Administrative Agent in
writing to the contrary within 45 days after such statement is rendered. In the event a
timely written notice of objections is given by Borrower, only the items to which exception
is expressly made will be considered to be disputed by Borrower.

18.12. Other Security and Guaranties. Administrative Agent or any Lender may, in each case,
for the benefit of all other Lenders, without notice or demand and without affecting
Borrower’s obligations hereunder, from time to time: (a) take from any Person and hold
collateral for the payment of all or any part of the Loan Obligations and exchange, enforce
and release such collateral or any part thereof; and (b) accept and hold any endorsement or
guaranty of payment of all or any part of the Loan Obligations and release or substitute any
such endorser or guarantor, or any Person who has given any Security Interest in any other
collateral as security for the payment of all or any part of the Loan Obligations, or any
other Person in any way obligated to pay all or any part of the Loan Obligations.

18.13. Loan Obligations Payable in Dollars. All Loan Obligations that are payable in
Dollars under the terms of the Loan Documents shall be payable only in Dollars. If, however,
to obtain a

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judgment in any court it is necessary to convert a Loan Obligation payable in
Dollars into another currency, the rate of exchange used shall be that at which
Administrative Agent, using its customary procedures, could purchase Dollars with such other
currency in New York, New York on the Business Day immediately preceding the day on which
such judgment is rendered. If any sum in another currency is paid to a Lender or received by
a Lender and applied to a Loan Obligation payable in Dollars, such Loan Obligation shall be
deemed paid and discharged only to the extent of the amount of Dollars that Administrative
Agent, using its customary procedures, is able to purchase in New York, New York with such
sum on the Business Day immediately following receipt thereof. Borrower agrees to indemnify
each Lender against any loss in Dollars that it may incur on such Loan Obligation as a
result of such payment or receipt and application to such Loan Obligation.

19. Miscellaneous.

19.1. Notices. All notices, consents, requests and demands to or upon the respective
parties hereto shall be in writing, and shall be deemed to have been given or made when
delivered in person to those Persons listed on the signature pages hereof or when deposited
in the United States mail, postage prepaid, or the overnight courier services, when
delivered to the overnight courier service, or in the case of telecopy notice, when sent,
verification received, in each case addressed as set forth on the signature pages hereof, or
such other address as either party may designate by notice to the other in accordance with
the terms of this Section. No notice given to or demand made on Borrower by Administrative
Agent or any Lender in any instance shall entitle Borrower to notice or demand in any other
instance.

19.2. Amendments and Modifications; Waivers and Consents.

19.2.1. Unless otherwise provided herein, no amendment to or modification of any
provision of this Agreement, or of any of the other Loan Documents shall be
effective unless it is in writing and signed by authorized officers of
Administrative Agent, Borrower and Required Lenders. Unless otherwise provided
herein, no waiver of, or consent to any departure by Borrower from, the requirements
of any provision of this Agreement or any of the other Loan Documents shall be
effective unless it is in writing and signed by authorized officers of Required
Lenders. Any such amendment, modification, waiver or consent shall be effective only
in the specific instance and for the purpose for which given.

19.2.2. The foregoing provisions of Section 19.2.1, notwithstanding, no such
amendment, modification or consent or waiver shall, unless signed by authorized
officers of Administrative Agent, Borrower and as specified in this Section 19.2.2,
one, some or all Lenders, (a) extend or increase the Commitment of any Lender
without the written consent of such Lender, (b) extend the date scheduled for
payment of any principal (excluding mandatory prepayments) of or interest on the
Loans or any fees payable hereunder without the written consent of each Lender
directly affected thereby, (c) reduce or forgive the principal amount of any Loan,
the rate of interest thereon or any fees payable hereunder or the reimbursement of
any draw on a Letter of Credit, without the consent of each Lender directly affected
thereby, (d) reduce the LIBOR Margin or the Base Rate Margin or reduce the Revolving
Loan Unused Fee, except for periodic readjustments in accordance with this
Agreement, without the written consent of each Lender directly affected thereby, (e)
change the provisions of this Section 19.2 without the written consent of each
Lender, (f) change the definition of Required Lenders without the written consent of
each Lender, (g) reduce the aggregate Pro Rata Share required to effect an
amendment, modification, waiver or consent, without the written consent of all

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Lenders, (h) change any provisions of this Agreement requiring ratable distributions
to Lenders without the written consent of each Lender, or (i) release any party from
its obligations under a Guaranty.

19.2.3. No provision of this Agreement affecting the Administrative Agent in its
capacity as such shall be amended, modified or waived without the consent of the
Administrative Agent. No provision of this Agreement relating to the rights or
duties of the Issuing Lender in its
capacity as such shall be amended, modified or waived without the consent of the
Issuing Lender. No provision of this Agreement relating to the rights or duties of
the Swingline Lender in its capacity as such shall be amended, modified or waived
without the consent of the Swingline Lender.

19.2.4. In addition, the foregoing provisions of Sections 19.2.1 and 19.2.2
notwithstanding, the Dollar amount of the Letter of Credit Commitment or the
Aggregate Revolving Loan Commitment (including, without limitation, any increase
effected pursuant to Section 3.1.2) may not be increased without the consent of any
Lender participating in such increase, Administrative Agent and, if required by
Section 18.4.1.6, the Borrower.

19.2.5. No failure by Administrative Agent or any Lender to exercise, and no delay
by Administrative Agent or any Lender in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise by Administrative Agent or any Lender of any right, remedy, power
or privilege hereunder preclude any other exercise thereof, or the exercise of any
other right, remedy, power or privilege existing under any Law or otherwise.

19.3. Rights Cumulative. Each of the rights and remedies of Administrative Agent and
Lenders under this Agreement shall be in addition to all of its other rights and remedies
under applicable Law, and nothing in this Agreement shall be construed as limiting any such
rights or remedies.

19.4. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and all future holders of the Notes and their respective successors
and assigns, except that Borrower may not assign, delegate or transfer any of its rights or
obligations under this Agreement without the prior written consent of Administrative Agent
and all Lenders. With respect to Borrower’s successors and assigns, such successors and
assigns shall include any receiver, trustee or debtor-in-possession of or for Borrower.

19.5. Severability. Any provision of this Agreement which is prohibited, unenforceable or
not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition, unenforceability or lack of authorization without invalidating
the remaining provisions hereof or affecting the validity, enforceability or legality of
such provision in any other jurisdiction unless the ineffectiveness of such provision would
result in such a material change as to cause completion of the transactions contemplated
hereby to be unreasonable.

19.6. Counterparts. This Agreement may be executed by the parties hereto on any number of
separate counterparts, and all such counterparts taken together shall constitute one and the
same instrument. It shall not be necessary in making proof of this Agreement to produce or
account for more than one counterpart signed by the party to be charged.

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19.7. Governing Law; No Third Party Rights. This Agreement, the Notes and the other Loan
Documents and the rights and obligations of the parties hereunder and thereunder shall be
governed by and construed and interpreted in accordance with the internal Laws of the State
of Illinois applicable to contracts made and to be
performed wholly within such state, without regard to choice or conflicts of law principles.
This Agreement is solely for the benefit of the parties hereto and their respective
successors and assigns, and no other Person shall have any right, benefit, priority or
interest under, or because of the existence of, this Agreement.

19.8. Counterpart Facsimile Execution. For purposes of this Agreement, a document (or
signature page thereto) signed and transmitted by facsimile machine or telecopier is to be
treated as an original document. The signature of any Person thereon, for purposes hereof,
is to be considered as an original signature, and the document transmitted is to be
considered to have the same binding effect as an original signature on an original document.
At the request of any party hereto, any facsimile or telecopy document is to be re-executed
in original form by the Persons who executed the facsimile or telecopy document. No party
hereto may raise the use of a facsimile machine or telecopier or the fact that any signature
was transmitted through the use of a facsimile or telecopier machine as a defense to the
enforcement of this Agreement or any amendment or other document executed in compliance with
this Section.

19.9. Effect of Merger of Bank. Effective immediately upon the merger of Administrative
Agent or a Lender with or into another financial institution, all references to
Administrative Agent or such Lender under every Loan Document shall be deemed to be
references to the surviving institution. If the surviving institution does not have a
“Prime Rate,” references in the Loan Documents to Prime Rate shall be deemed to be
references to the reference rate (however it is designated) established from time to time by
the surviving institution that is most similar to the Prime Rate.

19.10. Negotiated Transaction. Borrower, Administrative Agent and each Lender represent
each to the others that in the negotiation and drafting of this Agreement and the other Loan
Documents they have been represented by and have relied upon the advice of counsel of their
choice. Borrower and Administrative Agent affirm that their counsel have both had
substantial roles in the drafting and negotiation of this Agreement and each Lender affirms
that its counsel has participated in the drafting and negotiation of this Agreement;
therefore, this Agreement will be deemed drafted by all of Borrower, Administrative Agent
and Lenders, and the rule of construction to the effect that any ambiguities are to be
resolved against the drafter will not be employed in the interpretation of this Agreement.

19.11. CHOICE OF FORUM. SUBJECT ONLY TO THE EXCEPTION IN THE NEXT SENTENCE, BORROWER,
ADMINISTRATIVE AGENT, AND EACH LENDER HEREBY AGREES TO THE EXCLUSIVE JURISDICTION OF THE
FEDERAL COURT OF THE NORTHERN DISTRICT OF ILLINOIS AND THE STATE COURTS OF ILLINOIS LOCATED
IN COOK COUNTY AND WAIVES ANY OBJECTION BASED ON VENUE OR FORUM NON
CONVENIENS WITH RESPECT TO ANY ACTION INSTITUTED THEREIN, AND AGREES THAT ANY
DISPUTE CONCERNING THE RELATIONSHIP BETWEEN ADMINISTRATIVE AGENT, LENDERS, AND BORROWER OR
THE CONDUCT OF ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR OTHERWISE SHALL BE HEARD
ONLY IN THE COURTS DESCRIBED ABOVE. NOTWITHSTANDING THE FOREGOING: EACH OF THE PARTIES
HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING
SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS.

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19.12. SERVICE OF PROCESS. BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS
UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (RETURN
RECEIPT REQUESTED) DIRECTED TO BORROWER AT ITS ADDRESS SET FORTH ON THE SIGNATURE PAGES
HEREOF, AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME
SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS; OR AT ADMINISTRATIVE AGENT’S OR ANY LENDER’S
OPTION, BY SERVICE UPON CT CORPORATION, WHICH BORROWER IRREVOCABLY APPOINTS AS BORROWER’S
AGENT FOR THE PURPOSE OF ACCEPTING SERVICE OF PROCESS WITHIN THE STATE OF ILLINOIS.
ADMINISTRATIVE AGENT OR SUCH LENDER SHALL PROMPTLY FORWARD BY REGISTERED MAIL ANY PROCESS SO
SERVED UPON SAID AGENT TO BORROWER AT ITS ADDRESS ON THE SIGNATURE PAGES HEREOF. NOTHING IN
THIS SECTION SHALL AFFECT THE RIGHT OF ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

19.13. WAIVER OF JURY TRIAL. BORROWER, ADMINISTRATIVE AGENT, AND EACH LENDER HEREBY WAIVES
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR EITHER OF THEM IN RESPECT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE. BORROWER, ADMINISTRATIVE AGENT, AND EACH LENDER AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND
THAT EITHER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL
BY JURY.

19.14. Incorporation By Reference. All of the terms of the other Loan Documents are
incorporated in and made a part of this Agreement by this reference.

19.15. Statutory Notice — Insurance. The following notice is given pursuant to Section 10
of the Collateral Protection Act set forth in Chapter 815 Section 180/1 of the Illinois
Compiled Statutes (1996); nothing contained in such notice shall be deemed to limit or
modify the terms of the Loan Documents:

UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE
MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS
INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT
PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION WITH THE
COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US,
BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR
AGREEMENT. IF WE PURCHASE

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INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE
COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE
MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF
THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO
YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN
THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN.

19.16. Statutory Notice — Oral Commitments. Nothing contained in the following notice shall
be deemed to limit or modify the terms of the Loan Documents:

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE,
REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE
CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING,
WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY
LATER AGREE IN WRITING TO MODIFY IT.

Borrower acknowledges that there are no other agreements between Administrative Agent,
Lenders, and Borrower, oral or written, concerning the subject matter of the Loan Documents,
and that all prior agreements concerning the same subject matter, including any proposal or
commitment letter, are merged into the Loan Documents and thereby extinguished.

[SIGNATURE PAGES FOLLOW]

66

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by appropriate duly
authorized officers as of the Execution Date.

LAYNE CHRISTENSEN COMPANY, a Delaware corporation, as Borrower

	 	 	 	 
	By:  

	/s/ Jerry W. Fanska
	 

	 
	Name:
Jerry W. Fanska

	Title:
Vice President — Finance

Notice Address :

Layne Christensen Company

1900 Shawnee Mission Parkway

Mission Woods, KS 66205

Attention: Vice President, Finance

Phone: 913-677-6858

Fax: 913-362-8823

With a copy to:

Layne Christensen Company

1900 Shawnee Mission Parkway

Mission Woods, KS 66205

Attention: Vice President and General Counsel

Phone: 913-677-6864

Fax: 913-362-8823

[Signature Page to Amended and Restated Loan Agreement]

i

 

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent and a Lender

	 	 	 	 
	By:  

	/s/ James C. Binz	 
	 

	 	 
	Name:
James C. Binz

	Title:
Senior Vice President

Notice Address :

LaSalle Bank National Association

One North Brentwood Blvd., Suite 950

Clayton, MO 63105

Attention: James C. Binz, Senior Vice President

Phone: 314-613-1917

Fax: 314-621-1612

With a copy to:

Steven C. Drapekin, Esq.

Lewis, Rice & Fingersh, L.C.

500 N. Broadway, Suite 2000

St. Louis, MO 63102

Phone: 314-444-7600

Fax: 314-612-7692

Applicable Lending Office :

LaSalle Bank National Association

135 South LaSalle St.

Chicago, Illinois 60603

Attention: James C. Binz, Senior Vice President

Phone: 314-613-1917

Fax: 314-621-1612

[Signature Page to Amended and Restated Loan Agreement]

ii

 

NATIONAL CITY BANK OF INDIANA

as Lender

	 	 	 	 
	By:
	 	/s/ Brandon C. Siegel 
	 

	 	 
	Name:
	 	Brandon C. Siegel 
	Title:
	 	Vice President	 

Notice Address:

National City Bank of Indiana

One National City Center, Suite 200E

Indianapolis, IN 46255

Attention: Brandon Siegel

Phone: 317-267-3638

Fax: 317-267-7441

Applicable Lending Office :

National City Bank of Indiana

One National City Center, Suite 200E

Indianapolis, IN 46255

Attention: Brandon Siegel

Phone: 317-267-3638

Fax: 317-267-7441

[Signature Page to Amended and Restated Loan Agreement]

iii

 

HARRIS N.A.

as Lender

	 	 	 	 
	By:
	 	/s/ Joann L. Holman 
	 

	 	 
	Name:
	 	Joann L. Holman 
	Title:
	 	Director

Notice Address:

Harris N.A.

11 West Monroe Street

Chicago, IL 60603

Attention: John Armstrong

Phone: 312-461-2962

Fax: 312-293-5068

Applicable Lending Office :

Harris N.A.

11 West Monroe Street

Chicago, IL 60603

Attention: John Armstrong

Phone: 312-461-2962

Fax: 312-293-5068

[Signature Page to Amended and Restated Loan Agreement]

iv

 

ALLIED IRISH BANKS, P.L.C.

as a Lender

	 	 	 	 	 	 	 
	By:
	 	/s/ Gregory J. Wiske 	 	 	/s/ Anthony O’Reilly
	 

	 	 	 	 	 
	Name:
	 	Gregory J. Wiske 	 	 	Anthony O’Reilly
	Title:
	 	Vice President 	 	 	Senior Vice President 

Notice Address:

Allied Irish Banks, p.l.c.

405 Park Avenue, 4th Floor

New York, NY 10022

Attention: Greg Wiske

Phone: 212-515-6791

Fax: -212-339-8325

Applicable Lending Office :

Allied Irish Bank — Corporate Operations

2nd Floor, Iona House, Shelboume Road

Ballsbridge, Dublin 4, Ireland

Attention: Patricia Doran

Phone: +353 1 641 6632 609

Fax: +353 1 641 6668

[Signature Page to Amended and Restated Loan Agreement]

v

 

FIRST BANK

as a Lender

	 	 	 	 
	By:
	 	/s/ Traci L. Dodson 
	 

	 	 
	Name:
	 	 Traci L. Dodson 
	Title:
	 	Vice President	 

Notice Address:

First Bank

135 North Meramec

Clayton, MO 63105

Attention: Traci Dodson

Phone: 314-854-5428

Fax: 314-854-5454

Applicable Lending Office :

First Bank

135 North Meramec

Clayton, MO 63105

Attention: Lesley Lutker

Phone: 314-854-5408

Fax: 314-854-5454

[Signature Page to Amended and Restated Loan Agreement]

vi

 

UNCONDITIONAL REAFFIRMATION OF GUARANTY

     Each of the undersigned has reviewed the Amended and Restated Loan Agreement, dated as of the
date of hereof (as defined herein), by and among Layne Christensen Company, a Delaware corporation
(Borrower) and LaSalle Bank National Association (LaSalle), as Administrative Agent, and LaSalle
and the other lenders, as Lenders (the “Amended and Restated Loan Agreement”), and all other
documents and financial statements the undersigned deems necessary relating to the Borrower and the
Guarantied Obligations. Capitalized terms used herein, but not defined herein, unless otherwise
noted, shall have the meanings set forth in the Amended and Restated Loan Agreement or if not
defined therein, as defined in that certain guaranty to which the undersigned and the
Administrative Agent are a party to, which is either that certain Unlimited Guaranty dated and
effective July 31, 2003 or that certain Unlimited Guaranty dated and effective January 27, 2004
(collectively, the “Guaranties” and individually, a “Guaranty”).

     This Unconditional Reaffirmation of Guaranty is attached to the Amended and Restated Loan
Agreement.

     Each of the undersigned acknowledges and consents to all changes set forth in the Amended and
Restated Loan Agreement, including, without limitation, the increase in the Aggregate Revolving
Loan Commitment from $40,000,000 to $130,000,000, and unconditionally agrees that all such changes
are in the best interests of the Borrower and each of the undersigned.

     In consideration of financial accommodations granted and which may hereafter be granted to
Borrower by Administrative Agent and the Lenders, in consideration of Administrative Agent’s and
the Lender’s reliance on the Guaranties and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, each of the undersigned irrevocably and
unconditionally reaffirms pursuant to the terms of the Guaranty to which it is a party its
continuing guarantee of the payment and performance of all Guarantied Obligations, including,
without limitation, all the Loan Obligations, and the undersigned further agrees that the validity
and enforceability of the Guaranty to which it is a party is not and shall not be affected in any
way or manner by the Amended and Restated Loan Agreement.

Dated: September 28, 2005

	 	 	 	 	 
	 	BOYLES BROS. DRILLING COMPANY,

a Utah corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CHRISTENSEN BOYLES CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	INTERNATIONAL DIRECTIONAL SERVICES, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE TEXAS, INCORPORATED,

a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	MID-CONTINENT DRILLING COMPANY,

a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SHAWNEE OIL & GAS, L.L.C.,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	STAMM-SCHEELE INCORPORATED,

a Louisiana corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

2

 

	 	 	 	 	 
	 	TOLEDO OIL & GAS SERVICES, INC.,

a Louisiana corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	VIBRATION TECHNOLOGY, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE DRILLING PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	LAYNE CHRISTENSEN AUSTRALIA PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	STANLEY MINING SERVICES PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

3

 

	 	 	 	 	 
	 	SMS HOLDINGS PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN HOLDINGS PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN DRILLING SERVICES PTY LTD,

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN DRILLING SERVICES (NO. 2) PTY LTD, an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY, INC., a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY CHERRYVALE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

4

 

	 	 	 	 	 
	 	LAYNE ENERGY CHERRYVALE PIPELINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY DAWSON, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY DAWSON PIPELINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY ILLINOIS, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY ILLINOIS PIPELINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY MARKETING, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

5

 

	 	 	 	 	 
	 	LAYNE ENERGY OPERATING, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY OSAGE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY PIPELINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY PRODUCTION, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY RESOURCES, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY SYCAMORE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

6

 

	 	 	 	 	 
	 	LAYNE ENERGY SYCAMORE PIPELINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE WATER DEVELOPMENT AND

STORAGE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CHERRYVALE PIPELINE, LLC,

a Kansas limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	Name:  	Jerry W. Fanska 	 
	 	Title:  	Vice President 	 
	 

7

 

EXHIBIT 2.1

GLOSSARY

Acquiring Company — the Person obligated to pay or provide the consideration payable in
connection with a Permitted Acquisition upon the consummation thereof.

Acquisition Documents — in the case of any Permitted Acquisition, the documents to which
Borrower or any other Covered Person is a party and under which such Permitted Acquisition is
contemplated, and all of the foregoing at any time after a Permitted Acquisition has occurred.

Additional Covenant — shall mean any affirmative or negative covenant or similar
restriction applicable to the Borrower or any other Covered Person (regardless of whether such
provision is labeled or otherwise characterized as a covenant) the subject matter of which either
(i) is similar to that of the covenants in Sections 12, 13, and 14 of this Agreement, or related
definitions of this Agreement, but contains one or more percentages, amounts or formulas that is
more restrictive than those set forth in this Agreement or more beneficial to the holder or holders
of the Indebtedness created or evidenced by the document in which such covenant or similar
restriction is contained (and such covenant or similar restriction shall be deemed an Additional
Covenant only to the extent that it is more restrictive or more beneficial) or (ii) is different
from the subject matter of the covenants in Sections 12, 13, and 14 of this Agreement, or related
definitions of this Agreement.

Additional Default — shall mean any provision contained in any document or
instrument creating or evidencing Indebtedness of the Borrower or any other Covered Person that
permits the holder or holders of such Indebtedness to accelerate (with the passage of time or
giving of notice or both) the maturity thereof or otherwise requires the Borrower or any other
Covered Person to purchase such Indebtedness prior to the stated maturity thereof and which either
(i) is similar to the Defaults and Events of Default contained in Section 15 of this Agreement, or
related definitions of this Agreement, but contains one or more percentages, amounts or formulas
that is more restrictive or has a shorter grace period than those set forth herein or is more
beneficial to the holders of such other Indebtedness (and such provision shall be deemed an
Additional Default only to the extent that it is more restrictive, has a shorter grace period or is
more beneficial) or (ii) is different from the subject matter of the Defaults and Events of Default
contained in Section 15 of this Agreement, or related definitions of this Agreement.

Adjusted Base Rate — is defined in Section 4.4.

Adjusted LIBOR Rate — is defined in Section 4.5.

Administrative Agent — LaSalle in its capacity as Administrative Agent under this
Agreement, and its successors and assigns in such capacity.

Advance — a Revolving Loan Advance or a Swingline Advance.

advance Date — the date on which an Advance is requested by Borrower to be made, or is
otherwise contemplated or intended to be made, as provided herein.

affiliate — with respect to any Person, (a) any other Person who is a partner, director,
officer, stockholder (with respect to Borrower, only 5% or greater stockholders), member, partner
or other equity holder of such Person; and (b) any other Person which, directly or indirectly,
through one or more intermediaries, is in control of, is controlled by or is under common control
with such Person, and any

 

 

partner, director, officer or stockholder, member, partner or other equity holder of such other
Person described. For purposes of this Agreement, control of a Person by another Person shall be
deemed to exist if such other Person has the power, directly or indirectly, either to (i) vote
twenty percent (20%) or more of the securities, membership interests or other equity interest
having the power to vote in an election of directors or managers of such Person, or (ii) direct the
management of such Person, whether by contract or otherwise and whether alone or in combination
with others.

Aggregate Commitment — the Aggregate Revolving Loan Commitment.

aggregate Loan — the Aggregate Revolving Loan.

Aggregate Revolving Loan — the from time to time outstanding principal balance of all
Revolving Loan Advances.

Aggregate Revolving Loan Commitment — the aggregate commitments of Lenders as stated in
Section 3.1.1 to fund Revolving Loan Advances, as it may be changed as provided herein.

Applicable Lending Office — means, for Administrative Agent and each Lender and for each
Loan, the Applicable Lending Office of Administrative Agent or such Lender (or of an Affiliate of
such Lender) designated for such Loan on the signature pages hereof or such other office of such
Lender (or an Affiliate of Administrative Agent or such Lender) as Administrative Agent or such
Lender may from time to time specify to Administrative Agent (in the case of another Lender) and
Borrower by written notice in accordance with the terms hereof as the office by which its Loans are
to be made and maintained.

Backlog Report — means, with respect to Reynolds, Inc., an Indiana corporation, Inliner
Technologies, LLC, an Indiana limited liability company, Liner Products, LLC, an Indiana limited
liability company, Reynolds Inliner, LLC, an Indiana limited liability company, and Reynolds
Transport Co., an Indiana corporation, a backlog report in a form satisfactory to the
Administrative Agent for the preceding fiscal quarter, as of such fiscal quarter end, containing,
among other items as may be requested by Administrative Agent, by contract, the estimated amount of
such contract, the estimated cost of such contract, the estimated profit of such contract, the
billing to date of such contract, the cost to date of such contract, the total revenue earned to
date of such contract, the percentage complete of such contract, the over/under billing of such
contract, the estimated future revenue of such contract, the estimated future cost of such contract
and the estimated future profit for such contract

Base Rate — for any day, the rate per annum equal to the higher of (a) the Federal Funds
Rate (as such rate may fluctuate from time to time as provided for herein) for such day plus .50%
and (b) the Prime Rate (as such rate may fluctuate from time to time as provided for herein) for
such day. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Rate
shall be effective on the effective date of such change in the Prime Rate or Federal Funds Rate.
The interest rate so designated from time to time as the Base Rate by Administrative Agent is a
reference rate and does not necessarily represent the lowest or best rate charged to any customer
of Administrative Agent or any other Lender.

Base Rate Advance — an Advance that will become a Base Rate Loan.

Base Rate Margin — is specified in Section 4.6.

Base Rate Loan — any portion of a Loan on which interest accrues at the Base Rate.

Borrower — as defined in the introductory paragraph to this Agreement.

 ii 

 

 

Borrowing Officer — each officer of Borrower who is authorized to submit a request for an
Advance or the issuance of a Letter of Credit on behalf of Borrower.

Business Day— a day other than a Saturday, Sunday or other day on which commercial banks
are authorized or required to close under the Laws of either the United States or the State of
Illinois, and when used in connection with LIBOR Loans, also a day other than any day on which
dealings in U.S. Dollar deposits are not carried on in the London interbank market.

Capital Lease — any lease that has been or should be capitalized under GAAP.

Charter Documents — the articles or certificate of incorporation and bylaws of a
corporation; the certificate of limited partnership and partnership agreement of a limited
partnership; the partnership agreement of a general partnership; the articles of organization and
operating agreement of a limited liability company; or the indenture of a trust.

COBRA — the Consolidated Omnibus Budget Reconciliation Act.

CODE — the Internal Revenue Code of 1986 and all regulations thereunder of the IRS.

Commitment — either the Revolving Loan Commitment of a Lender, the Swingline Commitment
of Administrative Agent, or the Letter of Credit Commitment of Letter of Credit Issuer.

Commonly Controlled Entity — a Person which is under common control with another Person
within the meaning of Section 414(b) or (c) of the Code.

Contract — any contract, note, bond, indenture, deed, mortgage, deed of trust, security
agreement, pledge, hypothecation agreement, assignment, or other agreement or undertaking, or any
security.

Covered Person — defined in Section 2.3.

Current Acquisition — means the transactions contemplated under the Current
Acquisition Documents.

Current Acquisition Documents — means that certain Agreement and Plan of Merger,
dated as of August 30, 2005, by and among the Borrower, Layne Merger Sub 1, Inc., an Indiana
corporation and a wholly-owned subsidiary of Borrower, Reynolds, Inc., an Indiana corporation, and
the stockholders of Reynolds listed on the signature pages thereto, together with all documents,
agreements, and certificates executed or delivered in connection therewith from time to time.

Default — any of the events listed in Section 15.1 of this Agreement, without giving
effect to any requirement for the giving of notice, for the lapse of time, or both, or for the
happening of any other condition, event or act.

Default Rate — the rate of interest payable on each Loan after its Maturity and in
certain other circumstances as provided in Section 4.10.

Disclosure Schedule — the disclosure schedule of Borrower attached hereto as Exhibit 10.

Distribution— is defined in Section 13.9.

Dollars and the sign $ — lawful money of the United States.

 iii 

 

 

Defaulting Lender —  is defined in Section 7.5.1.

EBITDA — is defined in Section 14.1.

EBITDAR — is defined in Section 14.1.

Effective Date — the date when this Agreement is effective as provided in Section 1.

Eligible Assignee — means (i) a Lender; (ii) an Affiliate of a Lender; and (iii) any
other Person approved by Administrative Agent; provided, however, that neither Borrower, any
Covered Person, any Guarantor nor an Affiliate of Borrower or Guarantor shall qualify as an
Eligible Assignee.

Employment Law — ERISA, the Occupational Safety and Health Act, the Fair Labor Standards
Act, or any other Law pertaining to the terms or conditions of labor or safety in the workplace or
discrimination or sexual harassment in the workplace.

Environmental Law — the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Clean Water Act, the Clean Air Act, or
any other federal, state, or local Law (excluding foreign and international law) pertaining to
environmental quality, environmental conditions, occupational conditions (including OSHA) or
remediation of Hazardous Material.

EPA — the United States Environmental Protection Agency.

ERISA — the Employee Retirement Income Security Act of 1974.

ERISA Affiliate — as to any Person, any trade or business (irrespective of whether
incorporated) which is a member of a group of which such Person is a member and thereafter treated
as a single employer under 414(b), (c), (m) or (o) of the Code or applicable Treasury Regulations.

Event of Default — any of the events listed in Section 15.1 of this Agreement as to which
any requirement for the giving of notice, for the lapse of time, or both, or for the happening of
any further condition, event or act has been satisfied.

Execution Date — the date when this Agreement has been executed.

Existing Default — a Default which has occurred and is continuing, or an Event of Default
which has occurred, and which is continuing and has not been waived in writing by the Required
Lenders, or all of the Lenders if required by Section 19.2.

Federal Funds Rate — for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate charged to Administrative Agent
(in its individual capacity) on such day on such transactions as determined by Administrative
Agent.

 iv 

 

 

Financial Statements — the most recent of the Initial Financial Statements and the
financial statements of Borrower required to be furnished to Administrative Agent under Section
12.11 of this Agreement.

Fixed Charges — is defined in Section 14.1.

FRB — the Board of Governors of the Federal Reserve System and any successor thereto or
to the functions thereof.

Fronting Fee — the fee payable to Letter of Credit Issuer as required in Section 5.3.

Funded Indebtedness — is defined in Section 14.1.

GAAP — those generally accepted accounting principles set forth in Statements of the
Financial Accounting Standards Board and in Opinions of the Accounting Principles Board of the
American Institute of Certified Public Accountants or which have other substantial authoritative
support in the United States and are applicable in the circumstances, as applied on a consistent
basis.

Governmental Authority — the federal government of the United States; the government of
any foreign country that is recognized by the United States or is a member of the United Nations;
any state of the United States; any local Government or municipality within the territory or under
the jurisdiction of any of the foregoing; any department, agency, division, or instrumentality of
any of the foregoing; and any court, arbitrator, or board of arbitrators whose orders or judgments
are enforceable by or within the territory of any of the foregoing.

Group — as used in Regulation 13-D issued by the Securities and Exchange Commission.

Guarantor — each of the Persons required under this Agreement to execute and deliver to
Administrative Agent for the benefit of Lenders a guaranty of part or all of the Loan Obligations
from time to time.

Guaranty — each guaranty of part (if acceptable to Administrative Agent) or all of the
Loan Obligations executed and delivered to Administrative Agent for the benefit of Lenders by any
Guarantor.

Hazardous Material — any hazardous, radioactive, toxic, solid or special waste, material,
substance or constituent thereof, or any other such substance (as defined under any applicable Law
or regulation), including any asbestos or asbestos containing material. Hazardous Material
does not include materials or products containing hazardous constituents which are not considered
to be waste under the applicable Environmental Law or which are considered to be waste but are
transported, handled or disposed of in accordance with the applicable Environmental Law, or
asbestos or asbestos containing material which is not friable.

Hedge Obligation — any obligations of Borrower or any Guarantor to Administrative Agent
or any Affiliate of Administrative Agent or any other Person under an agreement or agreements
between Borrower and Administrative Agent or any Affiliate of Administrative Agent or such other
Person under which the exposure of Borrower or any Guarantor to fluctuations in interest rates or
foreign exchange or energy costs or raw material costs or similar items are effectively limited,
whether in the form of one or more rate cap, interest rate cap, collar, or corridor agreements,
interest rate swaps, swaps, or the like, or options therefor.

      v 

 

 

Indebtedness — as to any Person at any particular date, any contractual obligation
enforceable against such Person (i) to repay borrowed money; (ii) to pay the deferred purchase
price of property or services; (iii) to make payments or reimbursements with respect to bank
acceptances or to a factor; (iv) to make payments or reimbursements with respect to letters of
credit whether or not there have been drawings thereunder; (v) with respect to which there is any
Security Interest in any property of such Person; (vi) to make any payment or contribution to a
Multi-Employer Plan; (vii) that is evidenced by a note, bond, debenture or similar instrument;
(viii) under any conditional sale agreement or title retention agreement; (ix) to pay interest or
fees with respect to any of the foregoing, or (x) Hedge Obligations. Indebtedness also
includes any other Obligation that either (i) is non-contingent and liquidated in amount or (ii)
should under GAAP be included in liabilities and not just as a footnote on a balance sheet.

Indirect Obligation — as to any Person, (a) any guaranty by such Person of any Obligation
of another Person; (b) any Security Interest in any property of such Person that secures any
Obligation of another Person; (c) any enforceable contractual requirement that such Person (i)
purchase an Obligation of another Person or any property that is security for such Obligation, (ii)
advance or contribute funds to another Person for the payment of an Obligation of such other Person
or to maintain the working capital, net worth or solvency of such other Person as required in any
documents evidencing an Obligation of such other Person, (iii) purchase property, securities or
services from another Person for the purpose of assuring the beneficiary of any Obligation of such
other Person that such other Person has the ability to timely pay or discharge such Obligation,
(iv) grant a Security Interest in any property of such Person to secure any Obligation of another
Person, (v) otherwise assure or hold harmless the beneficiary of any Obligation of another Person
against loss in respect thereof; (d) any Obligation arising from the endorsement by such Person of
an instrument; (e) any Obligation of such Person as a surety; and (f) any other contractual
requirement enforceable against such Person that has the same substantive effect as any of the
foregoing. The term Indirect Obligation does not, however, include the endorsement by a
Person of instruments for deposit or collection in the ordinary course of business or the liability
of a general partner of a partnership for Obligations of such partnership. The amount of any
Indirect Obligation of a Person shall be deemed to be the stated or determinable amount of the
Obligation in respect of which such Indirect Obligation is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof as determined by such Person in
good faith.

Initial Financial Statements — the financial statements (not including the proforma
financial statements) of Borrower referred to in Section 8.1.2.

Intangibles — is defined in Section 14.1.

Intercreditor Agreement — means that certain Amended and Restated Sharing Agreement dated
as of the Effective Date, by and between the holder of the Term Indebtedness and the Administrative
Agent, as acknowledged by the Borrower and each Covered Person, as amended or modified from time to
time.

Interest Expense — is defined in Section 14.1.

Interest Period — the period during which a particular Adjusted LIBOR Rate applies to a
LIBOR Loan, as selected by Borrower as provided in Section 4.7.

Investment — (a) a loan or advance of money or property to a Person, (b) stock,
membership interest, or other equity interest in a Person, (c) a debt instrument issued by a
Person, whether or not convertible to stock, membership interest, or other equity interest in such
Person, or (d) any other interest in or rights with respect to a Person which include, in whole or
in part, a right to share, with or without conditions or restrictions, some or all of the revenues
or net income of such Person.

 vi 

 

 

IRS — the Internal Revenue Service.

LaSalle — LaSalle Bank National Association, and its successors and assigns.

Law — any statute, rule, regulation, order, judgment, award or decree of any Governmental
Authority.

Layne Energy — means a wholly-owned subsidiary of Borrower to be formed solely
for the purpose of holding or operating certain of Borrower’s oil and gas business operations.

Lender — any one of the lenders listed on Exhibit 3 to this Agreement, including
Administrative Agent in its capacity as a lender, or any Person who takes an assignment from any of
such lenders of all or a portion of its rights and obligations as a lender under this Agreement
pursuant to Section 18.4.1 and an Assignment and Acceptance as provided therein.

Lenders’ Exposure — the sum of the Aggregate Revolving Loan Commitment, the Swingline
Loan, and the Letter of Credit Exposure.

Letter of Credit — any standby or commercial (documentary) letter of credit issued by
Letter of Credit Issuer pursuant to the Letter of Credit Commitment.

Letter of Credit Commitment — the commitment of the Letter of Credit Issuer to issue
Letters of Credit as provided in Section 3.3.

Letter of Credit Exposure — the undrawn amount of all outstanding letters of credit
issued under the Letter of Credit Commitment plus all amounts drawn on such letters of credit and
not yet reimbursed by Borrower.

Letter of Credit Fee — the fee payable to Administrative Agent and Lenders as required in
Section 5.2.

Letter of Credit Issuer — LaSalle, or any other Lender succeeding to LaSalle’s commitment
to issue Letters of Credit pursuant to Section 3.3.

LIBOR Advance — an Advance that will become a LIBOR Loan.

LIBOR Margin— is defined in Section 4.5

LIBOR Loan — any portion of an Aggregate Loan on which interest accrues at the Adjusted
LIBOR Rate.

LIBOR Rate — means a rate of interest for the applicable Interest Period equal to (a) the
per annum rate of interest at which United States dollar deposits in an amount comparable to the
amount of the relevant LIBOR Loan and for a period equal to the relevant Interest Period are
offered in the London Interbank LIBOR market at 11:00 A.M. (London time) two (2) Business Days
prior to the commencement of such Interest Period (or three (3) Business Days prior to the
commencement of such Interest Period if banks in London, England were not open and dealing in
offshore United States dollars on such second preceding Business Day), as displayed in the
Bloomberg Financial Markets system (or other authoritative source selected by the Administrative
Agent in its sole discretion) or, if the Bloomberg Financial Markets system or another
authoritative source is not available, as the LIBOR Rate is otherwise determined by the
Administrative Agent in its sole and absolute discretion, divided by (b) a number determined by
subtracting from 1.00 the then stated maximum reserve percentage for determining reserves to be
maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities as

 vii 

 

 

defined in Regulation D (or any successor category of liabilities under Regulation D), such rate to
remain fixed for such Interest Period. The Administrative Agent’s determination of the LIBOR Rate
shall be conclusive, absent manifest error.

Loan — a Revolving Loan or a Swingline Loan.

Loan Agreement — this Agreement.

Loan Documents — this Agreement, each Master Letter of Credit Agreement, the Notes, the
Guaranties, any reimbursement agreement between Borrower and the Letter of Credit Issuer and all
other agreements, certificates, documents, instruments and other writings executed from time to
time in connection herewith or related hereto.

Loan Obligations — all of Borrower’s Indebtedness owing to Letter of Credit Issuer,
Administrative Agent or Lenders under the Loan Documents, whether as principal, interest, fees or
otherwise, all reimbursement obligations of Borrower to Letter of Credit Issuer or Lenders with
respect to the Letter of Credit Exposure, all Obligations to Administrative Agent, and all other
obligations and liabilities of Borrower to Administrative Agent or Lenders under the Loan Documents
and all Hedge Obligations of Borrower to Administrative Agent or any Affiliate of Administrative
Agent and all Hedge Obligations of Borrower to any Lender or any Affiliate of any Lender (in each
case including all extensions, renewals, modifications, rearrangements, restructures, replacements
and refinancings of the foregoing, whether or not the same involve modifications to interest rates
or other payment terms), whether now existing or hereafter created, absolute or contingent, direct
or indirect, joint or several, secured or unsecured, due or not due, contractual or tortious,
liquidated or unliquidated, arising by operation of law or otherwise, including but not limited to
the obligation of Borrower to repay future advances by Administrative Agent or Lenders hereunder,
whether or not made pursuant to commitment and whether or not presently contemplated by Borrower,
Administrative Agent or Lenders in the Loan Documents.

Local Time — the local time in the city in which Administrative Agent’s address is
located, as set forth on the signature page hereto (as changed from time to time in accordance with
the terms hereof).

Margin — Base Rate Margin or LIBOR Margin.

Master Letter of Credit Agreement —means, at any time, with respect to the issuance of
Letters of Credit, a master letter of credit agreement or reimbursement agreement in the form, if
any, being used by the Letter of Credit Issuer at such time.

Material Adverse Effect — as to Borrower or any Covered Person and with respect to any
event or occurrence of whatever nature (including any adverse determination in any litigation,
arbitration, investigation or proceeding), material adverse effect on (i) the business, operations,
revenues, financial condition, property, or business prospects of the Covered Persons taken as a
whole, (ii) the value of the Covered Persons’ assets taken as a whole, (iii) the validity or
enforceability of the Loan Documents, (iv) the ability of any Covered Person to timely pay or
perform such Covered Person’s Obligations generally as they become due, (v) in the case of Borrower
specifically, the ability of Borrower to pay or perform any of Borrower’s Obligations to Lender, or
(vi) in the case of a Guarantor specifically, the ability of such Guarantor to pay or perform any
of its Obligations under the terms of its Guaranty.

Material Agreement — as to any Person, any Contract to which such Person is a party or by
which such Person is bound which, if violated or breached, has or is reasonably likely to have a
Material Adverse Effect on such Person, any Covered Person or any Guarantor, including without
limitation all Acquisition Documents.

 viii 

 

 

Material Law — any separately enforceable provision of a Law whose violation by a Person
has or is reasonably likely to have a Material Adverse Effect on such Person or any Covered Person
or any Guarantor.

Material License — (i) as to any Covered Person, any license, permit or consent from a
Governmental Authority or other Person and any registration and filing with a Governmental
Authority or other Person which if not obtained, held or made by such Covered Person has or is
reasonably likely to have a Material Adverse Effect on such Covered Person or any other Covered
Person or any Guarantor, and (ii) as to any Person who is a party to this Agreement or any of the
other Loan Documents, any license, permit or consent from a Governmental Authority or other Person
and any registration or filing with a Governmental Authority or other Person that is necessary for
the execution or performance by such party, or the validity or enforceability against such party,
of this Agreement or such other Loan Document.

Material Obligation — as to any Person, an Obligation of such Person which if not fully
and timely paid or performed has or is reasonably likely to have a Material Adverse Effect on such
Person or any Covered Person or any Guarantor.

Material Proceeding — any litigation, investigation or other proceeding by or before any
Governmental Authority (i) which involves any of the Loan Documents or any of the transactions
contemplated thereby, or involves a Covered Person or a Guarantor as a party or any property of
Covered Person or a Guarantor, and has or is reasonably likely to have a Material Adverse Effect on
a Covered Person or a Guarantor, (ii) in which there has been issued an injunction, writ, temporary
restraining order or any other order of any nature which purports to restrain or enjoin the making
of any Advance, the consummation of any other transaction contemplated by the Loan Documents, or
the enforceability of any provision of any of the Loan Documents, (iii) which involves the actual
or alleged breach or violation by a Covered Person of, or default by a Covered Person under, any
Material Agreement, or (iv) which involves the actual or alleged violation by a Covered Person or
any Guarantor of any Material Law.

Maturity — as to any Indebtedness, the time when it becomes payable in full, whether at a
regularly scheduled time, because of acceleration or otherwise.

Maximum Available Amount — the maximum Dollar amount available for Revolving Loan
Advances on any date as limited in Section 3.1.3, as it may be changed as provided herein.

Maximum Swingline Amount — is defined in Section 3.2.2.

Multi-Employer Plan — a Pension Benefit Plan which is a multi-employer plan as defined in
Section 4001(a)(3) of ERISA.

Net Income — is defined in Section 14.1.

Net Worth — is defined in Section 14.1.

Note — any Revolving Note or the Swingline Note.

Obligation — as to any Person, any Indebtedness of such Person, any guaranty by such
Person of any Indebtedness of another Person, and any contractual requirement enforceable against
such Person that does not constitute Indebtedness of such Person or a guaranty by such Person but
which would involve the expenditure of money by such Person if complied with or enforced.

ix

 

Obligations to Administrative Agent — exclusive of all the Loan Obligations, all of
Borrower’s Indebtedness owing to Administrative Agent (whether as principal, interest, fees or
otherwise), all obligations of Borrower under agreements between Borrower and Administrative Agent
under which the exposure of Borrower to fluctuations in interest rates is effectively limited,
whether in the form of interest rate cap, collar or corridor agreements, interest rate swaps, or
the like, or options therefor, all Indirect Obligations of Borrower owing to Administrative Agent,
all reimbursement obligations of Borrower to Administrative Agent with respect to letters of
credit, and all other obligations and liabilities of Borrower to Administrative Agent including all
extensions, renewals, modifications, rearrangements, restructures, replacements and refinancings of
the foregoing, whether or not the same involve modifications to interest rates or other payment
terms), whether now existing or hereafter created, absolute or contingent, direct or indirect,
joint or several, secured or unsecured, due or not due, contractual or tortious, liquidated or
unliquidated, arising by operation of law or otherwise, or acquired by Administrative Agent
outright, conditionally or as collateral security from another, including the obligation of
Borrower to repay future advances by Administrative Agent, whether or not made pursuant to
commitment and whether or not presently contemplated by Borrower and Administrative Agent.

PBGC — the Pension Benefit Guaranty Corporation.

Pension Benefit Plan — any pension benefit plan as defined in Section 3(2) of ERISA which
is covered by Title I of ERISA with respect to which a Covered Person or a Commonly Controlled
Entity of such Covered Person is an employer as defined in Section 3(5) of ERISA.

Permitted Acquisitions — any acquisition by Borrower or a Covered Person of stock,
membership interests, or other equity interests of another Person or the assets of another Person
permitted under Section 13.6.

Permitted Indebtedness — Indebtedness that Borrower is permitted under Section 13.2 to
incur, assume, or allow to exist.

Permitted Indirect Obligations — Indirect Obligations that Borrower is permitted under
Section 13.3 to create, incur, assume, or allow to exist.

Permitted Investments — Investments that Borrower is permitted under Section 13.1 to make
in other Persons.

Permitted Security Interests — Security Interests that Borrower is permitted under
Section 13.5 to create, incur, assume, or allow to exist.

Person — any individual, partnership, corporation, trust, unincorporated association,
joint venture, limited liability company, Governmental Authority, or other organization in any form
that has the legal capacity to sue or be sued. If the context so implies or requires, the term
Person includes Borrower.

Prime Rate — on any day, the rate of interest per annum then most recently established by
Administrative Agent as its Prime Rate. Such rate is a general reference rate of interest, may not
be related to any other rate, and may not be the lowest or best rate actually charged by
Administrative Agent to any customer or a favored rate and may not correspond with future increases
or decreases in interest rates charged by other lenders or market interest rates in general.

Priority Indebtedness — shall mean, at any time, the sum (without duplication) of (i) all
Indebtedness of Borrower or any other Covered Person secured by a Security Interest (except
Security Interests permitted by Section 13.5.8), plus (ii) all Indebtedness (excluding
trade payables) or preferred stock of

 x 

 

 

Subsidiaries owed to (or, in the case of preferred stock, owned by) any Person other than the
Borrower or a Guarantor, provided, that Priority Indebtedness shall not include Indebtedness
represented by the Guaranties or guaranties of the Term Indebtedness (if a similar guaranty is
provided to Administrative Agent), plus (iii) all preferred stock of Borrower or other
capital stock of Borrower with any redemption rights.

Proforma Financial Statements — the proforma financial statements referred to in Section
8.1.2.

Regulation D, Regulation T, Regulation U and Regulation X — respectively,
Regulation D issued by the FRB, Regulation T issued by the FRB, Regulation U issued by the FRB and
Regulation X issued by the FRB.

Rental Expense — is defined in Section 14.1.

Reportable Event — a reportable event as defined in Title IV of ERISA or the regulations
thereunder.

Representations and Warranties — The representations and warranties made by any Covered
Person with respect to itself and any other Covered Persons in Section 10, and the representations
and warranties made in any other Loan Document or certificate, report, opinion or other document
delivered by Borrower, any Guarantor, or any other Covered Person pursuant to the Loan Documents,
as such representations and warranties are modified from time to time as provided in Section 11.

Required Lenders — defined in Section 2.4.

Responsible Officer — as to any Person that is not an individual, partnership, limited
liability company or trust, the Chairman of the Board of Directors, the President, the chief
executive officer, the chief operating officer, the chief financial officer, Vice President
Finance, the Treasurer, any Assistant to the Treasurer, or any Vice President in charge of a
principal business unit; as to any partnership, any individual who is a general partner thereof or
any individual who has general management or administrative authority over all or any principal
unit of the partnership’s business; as to any limited liability company, any managing member, or
manager, any individual who has general management or administrative authority over all or any
principal unit of the limited liability company’s business; and as to any trust, any individual who
is a trustee.

Revolving Loan — any Lender’s pro-rata share of the Aggregate Revolving Loan.

Revolving Loan Advance — an Advance by Administrative Agent that is to be funded by
Lenders under the Aggregate Revolving Loan Commitment.

Revolving Loan Commitment — the commitment of each Lender as stated in Section 3.1.1. to
fund Revolving Loan Advances.

Revolving Loan Maturity Date — the date when Borrower must repay the amount of Aggregate
Revolving Loan then outstanding as provided in Section 6.1.2.

Revolving Loan Unused Fee — the fee described in Section 5.1.

Revolving Note — any note delivered to a Lender as required by Section 3.1.4 to evidence
Borrower’s obligation to repay such Lender’s Revolving Loan.

 xi 

 

 

Security Interest — as to any item of tangible or intangible property, any interest
therein or right with respect thereto that secures an Obligation or Indirect Obligation, whether
such interest or right is created under a Contract, or by operation of law or statute (such as but
not limited to a statutory lien for work or materials), or as a result of a judgment, or which
arises under any form of preferential or title retention agreement or arrangement (including a
conditional sale agreement or a lease) that has substantially the same economic effect as any of
the foregoing; provided however, that the term “Security Interest” is not intended to include a
notice filing by a lessor regarding ownership of property subject to a true operating lease so long
as such notice filing or any related agreement does not contain a grant of a lien or security
interest and does not cover property or assets not subject to such true operating lease.

Seller — any Person who is a party to any Permitted Acquisition other than Borrower or a
Covered Person.

Seller Earn Out — means the amount, if any, to be paid to the Seller on
the Current Acquisition based on the economic performance of the Target subject to the Current
Acquisition from the Closing Date through the third anniversary thereof, as set forth in the
Current Acquisition Documents (as such documents exist on the date hereof).

Senior Indebtedness — is defined in Section 14.1.

Solvent — as to any Person, such Person not being “insolvent” within the meaning of
Section 101(32) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act (the
“UFTA”) or Section 3 of the Illinois Uniform Fraudulent Transfer Act set forth in Section 160/3 of
the Illinois Compiled Statutes (1996) (the “Illinois UFTA”), (ii) such Person not having
unreasonably small capital, within the meaning of Section 548 of the Bankruptcy Code, Section 4 of
the UFTA, or Section 5 of the Illinois UFTA, and (iii) such Person not being unable to pay such
Person’s debts as they become due within the meaning of Section 548 of the Bankruptcy Code, Section
4 of the UFTA, or Section 5 of the Illinois UFTA.

Stock Dividend:— is defined in Section 13.9.

Subsidiary — as to any Person, another Person with respect to which more than 50% of the
outstanding shares of stock or other equity interests of each class having ordinary voting power
(other than stock having such power only by reason of the happening of a contingency) is at the
time owned by such Person or by one or more Subsidiaries of such Person.

Surviving Company — as applicable, either (i) the Person that will own the assets to be
acquired from a Target Company in a Permitted Acquisition upon the consummation thereof, or (ii)
the survivor of the merger of an Acquiring Company with the Target Company in a Permitted
Acquisition upon the consummation thereof.

Swingline Advance — an advance by Administrative Agent to Borrower under the Swingline
Commitment.

Swingline Commitment — the commitment of Administrative Agent as stated in Section 3.2.1
to make Swingline Advances.

Swingline Loan — the from time to time outstanding principal balance of all Swingline
Advances.

Tangible Net Worth — is defined in Section 14.1.

 xii 

 

 

Target Company — the Person whose assets or stock, membership interests, or other equity
interests will be acquired in a Permitted Acquisition upon the consummation thereof, or if
applicable, with which an Acquiring Company will merge in a Permitted Acquisition upon the
consummation thereof.

Tax — as to any Person, any tax, duty, impost, deduction, charges, withholdings,
assessment, fee, or other charge levied by a Governmental Authority (and all liabilities associated
therewith) on the income or property of such Person, including any interest or penalties thereon,
and which is payable by such Person.

Term Indebtedness — means that certain Indebtedness owing by the Borrower under
the Term Indebtedness Documents.

Term Indebtedness Documents — means that certain Master Shelf Agreement
dated as of the July 31, 2003, pursuant to which Borrower is indebted to Prudential Investment
Management, Inc., The Prudential Insurance Company of America, and any other Person who may become
a “Noteholder” thereunder from time to time, as amended from time to time, and each other document
or agreement executed or delivered in connection therewith from time to time, as amended from time
to time.

This Agreement — this document (including every document that is stated herein to be an
appendix, exhibit or schedule hereto, whether or not physically attached to this document).

Total funded Indebtedness — is defined in Section 14.1.

Transfer  — shall mean, with respect to any item, the sale, exchange, conveyance,
lease, transfer or other disposition of such item.

UCC — the Uniform Commercial Code as in effect from time to time in the State of
Illinois or such other similar statute as in effect from time to time in Illinois or any other
appropriate jurisdiction.

United States — when used in a geographical sense, all the states of the United States of
America and the District of Columbia; and when used in a legal jurisdictional sense, the government
of the country that is the United States of America.

Wage and Hour Laws — the Davis-Bacon Act, the Service Contract Act, the Contract Work
Hours & Safety Standards Act and any other federal Law governing wage compensation or hours of
work.

Welfare Benefit Plan — any plan described by Section 3(1) of ERISA.

 xiiiExhibit 4.2

 

Exhibit 4.2

Cover Page   

[Execution Copy]

 

LAYNE CHRISTENSEN COMPANY

$100,000,000

SENIOR NOTES

MASTER SHELF AGREEMENT

Dated as of July 31, 2003

(As amended by Letter Amendment No. 1 to Master Shelf Agreement dated as of May 15, 2004 and
Letter Amendment No. 2 to Master Shelf Agreement dated as of September 28, 2005)

 

 

 

Exhibit 4.2

EXECUTION VERSION

LETTER AMENDMENT NO. 2

TO

MASTER SHELF AGREEMENT

September 28, 2005

Prudential Investment Management, Inc.

The Prudential Insurance Company of America

Pruco Life Insurance Company

Security Life of Denver Insurance Company

American Skandia Life Assurance Corporation

Prudential Retirement Insurance and Annuity Company

Time Insurance Company (f/k/a Fortis Insurance Company)

American Memorial Life Insurance Company

Physicians Mutual Insurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4200E

Dallas, Texas 75201

Ladies and Gentlemen:

     We refer to the Master Shelf Agreement dated as of July 31, 2003 and amended by Letter
Amendment No. 1 to Master Shelf Agreement dated May 15, 2004 (as amended, the “Agreement”) among
Layne Christensen Company (the “Company”), Prudential Investment Management, Inc., The Prudential
Insurance Company of America, Pruco Life Insurance Company, Security Life of Denver Insurance
Company, American Skandia Life Assurance Corporation, Prudential Retirement Insurance and Annuity
Company, Time Insurance Company (f/k/a Fortis Insurance Company), American Memorial Life Insurance
Company and Physicians Mutual Insurance Company pursuant to which the Company has issued and the
Purchasers have purchased (i) Series A Notes of the Company in the aggregate principal amount of
$40,000,000 and (ii) Series B Notes of the Company in the aggregate principal amount of
$20,000,000. The Facility provided for in the Agreement expires on the date hereof and there is no
Available Facility Amount remaining under the Agreement. Unless otherwise defined herein, the
terms defined in the Agreement shall be used herein as therein defined.

     The Company desires to (i) increase the amount of the Notes available to be issued under the
Agreement to an aggregate principal amount of $100,000,000 (creating an Available Facility Amount
of $40,000,000 as of the date hereof) and (ii) reinstate and extend the Issuance Period under the
Agreement to September 15, 2007.

     It is hereby agreed by you and us as follows:

 

 

     (a) Paragraph 1. AUTHORIZATION OF ISSUE OF NOTES. Paragraph 1 of the Agreement is amended in
full to read as follows:

     “1. AUTHORIZATION OF ISSUE OF NOTES. The Company will authorize the issue of its
senior promissory notes (the ‘Notes‘) in the aggregate principal amount of $100,000,000, to
be dated the date of issue thereof; to mature, in the case of each Note so issued, no more
than eight years after the date of original issuance thereof; to have an average life, in
the case of each Note so issued, of no more than six years after the date of original
issuance thereof; to bear interest on the unpaid balance thereof from the date thereof at
the rate per annum, and to have such other particular terms, as shall be set forth, in the
case of each Note so issued, in the Confirmation of Acceptance with respect to such Note
delivered pursuant to paragraph 2F; and to be substantially in the form of Exhibit
A-1 attached hereto. The term ‘Notes’ as used herein shall include each Note delivered
pursuant to any provision of this Agreement and each Note delivered in substitution or
exchange for any such Note pursuant to any such provision. Notes which have (i) the same
final maturity, (ii) the same principal prepayment dates, (iii) the same principal
prepayment amounts (as a percentage of the original principal amount of each Note), (iv)
the same interest rate, (v) the same interest payment periods, and (vi) the same original
date of issuance are herein called a ‘Series’ of Notes. Capitalized terms used herein have
the meanings specified in paragraph 10.”

     (b) Paragraph 2B. Issuance Period. Paragraph 2B of the Agreement is amended in full to read
as follows:

     “2B. Issuance Period. Notes may be issued and sold pursuant to this Agreement until
the earlier of (i) September 15, 2007 and (ii) the thirtieth day after Prudential shall
have given to the Company, or the Company shall have given to Prudential, written notice
stating that it elects to terminate the issuance and sale of Notes pursuant to this
Agreement (or if such thirtieth day is not a Business Day, the Business Day next preceding
such thirtieth day). The period during which Notes may be issued and sold pursuant to this
Agreement is herein called the ‘Issuance Period‘.”

     (c) Paragraph 2I(1). Structuring Fee/Closing Legal Fee. Paragraph 2I(1) of the Agreement is
amended in full to read as follows:

     “2I(1). Structuring Fee/Closing Legal Fee. At the time of the execution and delivery
of Letter Amendment No. 2 to Master Shelf Agreement by the Company, Prudential and the
Purchasers, the Company will pay to Prudential in immediately available funds a fee (herein
called the ‘Structuring Fee‘) in the amount of $25,000.”

-2-

 

     (d) Paragraph 3A. Certain Documents. Paragraph 3A of the Agreement is amended as follows:

     (I) by adding the following immediately prior to the period at the end of clause
(viii) thereof:

“(provided, that for any Closing Day occurring after the Series A Closing, such
Subsidiary Guarantor may certify that there has been no change to any applicable
authorization or approval since the date on which it was most recently delivered to
such Purchaser under this clause (viii) as an alternative to the further delivery
thereof)”;

     (II) by adding the following immediately prior to the period at the end of clause (ix)
thereof:

“(provided, that for any Closing Day occurring after the Series A Closing, the
Secretary or an Assistant Secretary and one other officer of such Subsidiary
Guarantor may certify that there has been no change to the officers of such
Subsidiary Guarantor authorized to sign the Subsidiary Guaranty Agreement and other
documents to be delivered therewith since the date on which a certificate setting
forth the names and true signatures of such officers, as described above, was most
recently delivered to such Purchaser under this clause (ix) as an alternative to
the further delivery thereof)”; and

     (III) by adding the following immediately prior to the period at the end of clause (x)
thereof:

“(provided, that for any Closing Day occurring after the Series A Closing, such
Subsidiary Guarantor may certify that there has been no change to any applicable
constitutive document since the date on which it was most recently delivered to
such Purchaser under this clause (x) as an alternative to the further delivery
thereof)”.

     (e) Paragraph 6. NEGATIVE COVENANTS. Paragraph 6 of the Agreement is amended by:

     (I) in Paragraph 6A(1), replacing “2.00 to 1.00” with “1.50 to 1.00”;

     (II) in Paragraph 6A(2), deleting “for any date through January 31, 2005, and 2.75 to
1.00 on any date thereafter”;

     (III) in Paragraph 6A(3), replacing “$64,158,000” with “$71,600,000” and “fiscal year
ended January 31, 2004” with “period from August 1, 2005 through January 31, 2006”;

-3-

 

     (IV) in Paragraph 6A, adding the following new paragraph at the end thereof (following
paragraph 6A(4) and immediately prior to paragraph 6B):

     “Upon completion of an Acquisition, the Target shall be included in
calculations with respect to the covenants contained in the foregoing paragraphs
6A(1) — 6A(4) for periods prior to the completion of such Acquisition on a
pro-forma basis in such amounts as may be agreed to by the Company and Prudential.
For purposes of this paragraph, ‘Acquisition’ shall mean any acquisition by the
Company or any of its Subsidiaries of stock, membership interests, or other equity
interests of any other Person or the assets of another Person, and ‘Target’ shall
mean the Person whose assets or stock, membership interests, or other equity
interests are acquired in an Acquisition.”

     (V) in Paragraph 6B(1), (A) deleting “and” at the end of clause (viii) thereof, (B)
replacing “(viii)” with “(x)” in existing clause (ix) thereof, (C) renumbering such
existing clause (ix) as clause (xi), and (D) adding the following new clauses (ix) and (x)
thereto:

     “(ix) bankers’ Liens, rights of setoff and other similar Liens existing solely
with respect to cash and cash equivalents on deposit in one or more accounts
maintained by the Company or any Subsidiary with banks that are parties to the
Sharing Agreement, in each case granted in the ordinary course of business in favor
of the bank or banks with which such accounts are maintained, securing amounts
owing to such bank with respect to cash management and operating account
arrangements;

     (x) Liens securing Hedging Obligations; provided that the Company is
in compliance with paragraph 6A(4); and”;

     (VI) in clause (iv) of Paragraph 6B(4), replacing “(c) the Tangible Net Worth” therein
with “(c) except with respect to the Reynolds Acquisition, the Tangible Net Worth”;

     (VII) in Paragraph 6B(5), (A) deleting “and” at the end of clause (iii) thereof, (B)
renumbering existing clause (iv) thereof as clause (vi), and (C) adding the following new
clauses (iv) and (v) thereto:

     “(iv) the Company may Transfer assets to any Subsidiary Guarantor;

     (v) if an Investment permitted pursuant to Paragraph 6B(2) is deemed to
constitute a Transfer of assets by the Company or a Subsidiary, the Company or such
Subsidiary may make such Transfer; and”;

-4-

 

     (VIII) in Paragraph 6B(8), replacing the proviso at the end thereof with the
following:

     “provided that the foregoing shall not apply to: (i) any transaction
between the Company and any Wholly Owned Subsidiary or between Wholly Owned
Subsidiaries, (ii) Investments in Related Parties permitted under clauses (viii)
and (x) of Paragraph 6B(2), (iii) reasonable and customary director, officer and
employee compensation (including bonuses) and other benefits (including retirement,
health, stock option and other benefit plans) and indemnification arrangements and
(iv) sales to, or purchases from, any such Related Party of shares of common stock
for cash consideration equal to the fair market value thereof (except pursuant to
employee stock option, stock appreciation and similar stock-based incentive plans
applicable to employees of the Company that have been approved by a majority of the
Company’s outside directors)”;

     (IX) in paragraph 6E, replacing the first occurrence of “on the date hereof” with
“immediately after giving effect to the Reynolds Acquisition” and replacing “as presently
carried on” with “as carried on immediately after giving effect to the Reynolds
Acquisition”;

     (X) in paragraph 6F, replacing “on the date hereof” with “on the Amendment No. 2
Effective Date” in the last sentence thereof;

     (XI) in paragraph 6H, adding the following immediately before the period at the end
thereof:

     “ provided that this Paragraph 6H shall not apply to the Amendment
and Restatement of the Bank Agreement, in the form provided to the Purchasers, on
the Amendment No. 2 Effective Date (“the Amended and Restated Bank Agreement”),
but, for avoidance of doubt, shall apply to amendments, modifications, supplements,
restatements, replacements or changes to the Amended and Restated Bank Agreement”;
and

     (XII) adding at the end thereof new paragraphs 6J and 6K to read as follows:

     “6J. Terrorism Sanctions Regulations. The Company will not and will not permit any
Subsidiary to (i) become a Person described or designated in the Specially Designated
Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1
of the Anti-Terrorism Order or (ii) engage in any dealings or transactions with any such
Person.

     6K. Commodity Hedging Obligations. The Company shall not, and shall not permit any
Subsidiary to, enter into or be bound by any Hedging

-5-

 

Obligations with respect to commodities other than Hedging Obligations by the Company
or a Subsidiary Guarantor with respect to PDP Reserves of the Company and its Subsidiaries;
provided that the notional volumes for all such Hedging Obligations permitted
pursuant to this paragraph 6K shall not at any time exceed 75% of the reasonably
anticipated projected production over the following 12-month period from PDP Reserves of
the Company and its Subsidiaries. For purposes of this paragraph, “PDP Reserves” shall
mean “proved developed producing reserves” as defined by the Board of Directors of the
Society for Petroleum Engineers (SPE) Inc.”.

     (f) Paragraph 8. REPRESENTATIONS, COVENANTS AND WARRANTIES. Paragraph 8T of the Agreement is
amended in full to read as follows:

     “8T. Foreign Assets Control Regulations, Etc. (i) Neither the sale of the Notes by
the Company hereunder nor its use of the proceeds thereof will violate the Trading with the
Enemy Act, as amended, or any of the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto.

     (ii) Neither the Company nor any Subsidiary (a) is a Person described or designated in
the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (b) engages in any dealings or
transactions with any such Person. The Company and its Subsidiaries are in compliance, in
all material respects, with the USA Patriot Act.

     (iii) No part of the proceeds from the sale of the Notes hereunder will be used,
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, assuming in all cases that such Act applies to the Company.”

     (g) Paragraph 10B. Other Terms. Paragraph 10B of the Agreement is amended to:

     (I) add the following definitions of “Amendment No. 2 Effective Date”, “Anti-Terrorism
Order”, “Reynolds Acquisition” and “USA Patriot Act” in alphabetical order:

     “‘Amendment No. 2 Effective Date’ shall mean September 28, 2005.

-6-

 

     ‘Anti-Terrorism Order’ shall mean Executive Order No. 13224 of September 24,
2001, Blocking Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as
amended.

     ‘Hedging Obligations’ shall mean, with respect to any Person, any obligations
of such Person to any other Person (for purposes of this definition, the
“applicable counterparty”) under an agreement or agreements between such Person and
such applicable counterparty under which the exposure of such Person to
fluctuations in interest rates or foreign exchange or energy costs or raw material
costs or similar items are effectively limited, whether in the form of one or more
rate cap, interest rate cap, collar, or corridor agreements, interest rate swaps,
swaps, or the like, or options therefor.

     ‘Reynolds Acquisition’ shall mean the transactions contemplated under that
certain Agreement and Plan of Merger, dated as of August 30, 2005, by and among the
Company, Layne Merger Sub 1, Inc., an Indiana corporation and a wholly-owned
subsidiary of the Company, Reynolds, Inc., an Indiana corporation, and the
stockholders of Reynolds listed on the signature pages thereto, together with all
documents, agreements, and certificates executed or delivered in connection
therewith from time to time.

     ‘USA Patriot Act’ shall mean United States Public Law 107-56, Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT Act) Act of 2001, as amended from time to time, and
the rules and regulations promulgated thereunder from time to time in effect.”;

     (II) amend the following definition of “Default Rate” in full to read as follows:

     “‘Default Rate’ shall mean, for any Note at any time upon the occurrence of an Event
of Default and until such Event of Default has been cured or waived in writing, a rate of
interest per annum from time to time equal to the lesser of (i) the maximum rate permitted
by applicable law and (ii) the greater of (a) 2% over the coupon rate for such Note in
effect immediately prior to such Event of Default and (b) 2.0% over the rate of interest
publicly announced by JPMorgan Chase Bank, National Association from time to time in New
York City as its Prime Rate.”;

-7-

 

     (III) amend the definition of “EBITDA” by adding, at the end thereof, the following:

     “In addition, for purposes of the calculations with respect to the EBITDA of the
Company under this Agreement, the following amounts will be added to EBITDA: (i) for the
Company’s fiscal quarter ending October 31, 2005, $16,500,000, (ii) for the Company’s
fiscal quarter ending January 31, 2006, $12,375,000, (iii) for the Company’s fiscal quarter
ending April 30, 2006, $8,250,000, and (iv) for the Company’s fiscal quarter ending July
31, 2006, $4,125,000”;

     (IV) amend the definition of “Fixed Charges” in full to read as follows:

     “‘Fixed Charges’ shall mean, for any period, for the Company and its Subsidiaries on a
consolidated basis, the sum of (i) Rental Expense, (ii) Interest Expense, (iii) all
dividends, distributions and redemptions with respect to any equity interests in the
Company made in such period and (iv) any principal payments made on the Notes in such
period”; and

     (V) amend the definition of “Priority Debt” in full to read in full as follows:

     “‘Priority Debt’ shall mean, at any time, the sum (without duplication) of (i)
Indebtedness of the Company secured by Liens (except Liens permitted by paragraph
6B(1)(viii); plus (ii) all Indebtedness of Subsidiaries (excluding trade payables)
or preferred stock of Subsidiaries owed to (or, in the case of preferred stock, owned by)
any Person (other than Indebtedness secured by Liens permitted by paragraph 6B(1)(viii))
other than the Company or a Subsidiary Guarantor; provided that Priority Debt shall
not include (a) Indebtedness represented by the Subsidiary Guarantees or guarantees of, or
other direct or indirect obligations or liabilities of Subsidiaries under, or in respect
of, the Bank Agreement provided that the parties to the Bank Agreement are subject
to the Sharing Agreement or (b) unsecured Hedging Obligations of Subsidiaries; plus
(iii) all preferred stock of the Company or other capital stock of the Company with any
redemption rights.”.

     (h) Cover Page. The Cover Page attached to the Agreement is replaced in its entirety by the
Cover Page attached to this Letter Amendment No. 2 to Master Shelf Agreement (this “Letter
Amendment”).

     (i) Form of Note. The Form of Note (Exhibit A-1) attached to the Agreement is replaced in its
entirety by the Form of Note attached to this Letter Amendment.

     (j) Form of Request for Purchase. The Form of Request for Purchase (Exhibit B) attached to
the Agreement is replaced in its entirety by the Form of Request for Purchase attached to this
Letter Amendment.

-8-

 

     (k) Form of Confirmation of Acceptance. The Form of Confirmation of Acceptance (Exhibit C)
attached to the Agreement is replaced in its entirety by the Form of Confirmation of Acceptance
attached to this Letter Amendment.

     (l) Form of Written Funding Instructions. The Form of Written Funding Instructions (Exhibit
E) attached to the Agreement is replaced in its entirety by the Form of Written Funding
Instructions attached to this Letter Amendment.

     The effectiveness of this Letter Amendment is contingent on the Company providing Prudential
and the Purchasers:

	 	(i)	 	duly executed counterparts of this Letter Amendment;
	 
	 	(ii)	 	satisfactory written evidence of the consent to the execution and delivery of
this Letter Amendment of the Subsidiary Guarantors;
	 
	 	(iii)	 	satisfactory written evidence of the consent to the execution and delivery
of this Letter Amendment and the issuance of Notes under the Agreement of the
Company’s senior lenders under the Bank Agreement;
	 
	 	(iv)	 	paying, as instructed by Prudential, in immediately available funds a
structuring fee in the amount of $25,000;
	 
	 	(v)	 	a resolution of its Board of Directors approving this Letter Amendment;
	 
	 	(vi)	 	executed originals of the Amended and Restated Sharing Agreement; and
	 
	 	(vii)	 	all documents evidencing other necessary corporate action and governmental
approvals, if any, with respect to the amendments to the Agreement herein contained.

     On and after the effective date of this Letter Amendment, each reference in the Agreement to
“this Agreement”, “hereunder”, “hereof”, or words of like import referring to the Agreement, and
each reference in the Notes to “the Agreement”, “thereunder”, “thereof”, or words of like import
referring to the Agreement, shall mean the Agreement as amended by this Letter Amendment. The
Agreement, as amended by this Letter Amendment, is and shall continue to be in full force and
effect and is hereby in all respects ratified and confirmed. The execution, delivery and
effectiveness of this Letter Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy under the Agreement nor constitute a waiver of any provision
of the Agreement.

     This Letter Amendment may be executed in any number of counterparts and by any combination of
the parties hereto in separate counterparts, each of which counterparts shall be an original and
all of which taken together shall constitute one and the same letter amendment.

-9-

 

     If you agree to the terms and provisions hereof, please evidence your agreement by executing
and returning at least a counterpart of this Letter Amendment to Layne Christensen Company, 1900
Shawnee Mission Parkway, Mission Woods, Kansas 66205, Attention: Vice President — Finance and
Treasurer. This Letter Amendment shall become effective as of the date first above written when
and if counterparts of this Letter Amendment shall have been executed by us and you and the consent
attached hereto shall have been executed by each of the Subsidiary Guarantors.

-10-

 

	 	 	 	 	 
	 	Very truly yours,

LAYNE CHRISTENSEN COMPANY

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Vice President 	 
	 

Agreed as of the date first above written:

	 	 	 	 	 
	PRUDENTIAL INVESTMENT MANAGEMENT, INC.

 	 	 
	By:  	/s/ Brian Lemons
 	 	 
	 	Vice President 	 	 

	 	 	 	 	 
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

 	 	 
	By:  	/s/ Brian Lemons
 	 	 
	 	Vice President 	 	 

PRUCO LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:  	/s/ Brian Lemons
 	 	 
	 	Vice President 	 	 

SECURITY LIFE OF DENVER INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)

	 	 	 	 	 
	 	 	 
	 	By:  	                      /s/ Brian Lemons
 	 
	 	 	Vice President 	 
	 	 	 	 
	 

-11-

 

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION

	 	 	 
	By:

	 	Prudential Investment Management, Inc.,
	 

	 	as investment manager

	 	 	 	 	 
	 	 	 
	 	By:  	                         /s/ Brian Lemons
 	 
	 	 	Vice President 	 
	 	 	 	 
	 

PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

	 	 	 
	By:

	 	Prudential Investment Management, Inc.,
	 

	 	as investment manager

	 	 	 	 	 
	 	 	 
	 	By:  	                         /s/ Brian Lemons
 	 
	 	 	Vice President 	 
	 	 	 	 
	 

TIME INSURANCE COMPANY

(F/K/A FORTIS INSURANCE COMPANY)

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	 

	 	By: Prudential Private Placement Investors, Inc.
	 

	 	       (as its General Partner)

	 	 	 	 	 
	 	 	 
	 	By:  	                      /s/ Brian Lemons
 	 
	 	 	Vice President 	 
	 	 	 	 
	 

AMERICAN MEMORIAL LIFE INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)

	 	 	 	 	 
	 	 	 
	 	By:  	                      /s/ Brian Lemons
 	 
	 	 	Vice President 	 
	 	 	 	 
	 

-12-

 

PHYSICIANS MUTUAL INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)

	 	 	 	 
	 	 
	By:  	                  /s/ Brian Lemons
 	 
	 	Vice President 	 

-13-

 

CONSENT

          The undersigned, as Guarantors under the Subsidiary Guaranty Agreement dated as of July 31,
2003 (the “Guaranty”) in favor of the holders from time to time of the Notes issued pursuant to the
Agreement referred to in the foregoing Letter Amendment, hereby consent to said Letter Amendment
(including, specifically the $40 million increase in the Available Facility Amount) and hereby
confirm and agree that the Guaranty is, and shall continue to be, in full force and effect and is
hereby confirmed and ratified in all respects except that, upon the effectiveness of, and on and
after the date of, said Letter Amendment, all references in the Guaranty to the Agreement,
“thereunder”, “thereof”, or words of like import referring to the Agreement shall mean the
Agreement as amended by said Letter Amendment.

	 	 	 	 	 
	 	BOYLES BROS. DRILLING COMPANY, a Utah corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CHRISTENSEN BOYLES
CORPORATION, 

a Delaware
corporation
 	 
	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	INTERNATIONAL DIRECTIONAL SERVICES, L.L.C., a
Delaware limited liability company
 	 
	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE TEXAS, INCORPORATED, a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	MID-CONTINENT DRILLING
COMPANY, 

a Delaware
corporation
 	 
	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SHAWNEE OIL & GAS, L.L.C., a Delaware limited

liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	STAMM-SCHEELE INCORPORATED, a Louisiana corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	TOLEDO OIL & GAS SERVICES, INC., a Louisiana

corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	VIBRATION TECHNOLOGY, INC., a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE DRILLING PTY LTD., an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	LAYNE CHRISTENSEN AUSTRALIA PTY LTD., an Australian
company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	STANLEY MINING SERVICES PTY LTD., 

an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	SMS HOLDINGS PTY LTD., an Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN HOLDINGS PTY LTD., an Australian
company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN DRILLING SERVICES PTY LTD., an
Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	WEST AFRICAN DRILLING SERVICES
PTY
(NO. 2) LTD., an
Australian company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	LAYNE ENERGY, INC., a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY CHERRYVALE, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY CHERRYVALE PIPELINE, LLC, a Delaware
limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY DAWSON, LLC, a Delaware limited

liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY DAWSON PIPELINE, LLC, a Delaware
limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY ILLINOIS, LLC, a Delaware limited

liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	LAYNE ENERGY ILLINOIS PIPELINE, LLC, a Delaware
limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY MARKETING, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY OPERATING, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY OSAGE, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY PIPELINE, LLC, a Delaware limited

liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY PRODUCTION, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	LAYNE ENERGY RESOURCES, INC., a Delaware

corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY SYCAMORE, LLC, a Delaware limited
liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE ENERGY SYCAMORE PIPELINE, LLC, a Delaware
limited liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LAYNE WATER DEVELOPMENT AND STORAGE, LLC, a
Delaware limited liability
company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CHERRYVALE PIPELINE, LLC, a Delaware limited

liability company

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska  	 
	 	 	Title:  	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]